WORK OPPORTUNITY TAX CREDITS

The Work Opportunity Tax Credit (WOTC) is a tax credit for employers who hire targeted low-income groups, including workers with disabilities. The WOTC replaced the Targeted Jobs Tax Credit (TJTC) on October 1, 1992. The U. S. Congress must reauthorize the WOTC annually.

The WOTC provides a tax credit of 40% of qualified wages, capped at $6,000, for those employed 400 or more hours; 25% for those employed at least 120 hours.

Eligibility

The WOTC is intended to encourage employers to hire workers from nine groups whose members may otherwise have difficulty finding employment. One of the nine eligible groups is vocational rehabilitation referrals that have completed or are completing rehabilitative services.

MDRS staff is available to assist the employer and job applicant with necessary paper work to apply for the tax credit.

For more information about these tax credits and assistance in applying for them go to Work Opportunity Tax Credit or contact an MDRS Employment Coordinator.