The Work Opportunity Tax Credit (WOTC) is a federal tax credit program offering significant incentives for employers who hire and retain individuals from specific target groups that have in the past experienced difficulty in securing employment, such as long-term welfare recipients and ex-felons.
WOTC allows employers to claim a maximum tax credit of $2,400 on wages paid over the first year of employment and a maximum tax credit up to $9,000 for wages paid in the first two years of employment. The tax credits or any unused portion of the credits can be carried back one year or forward 20 years from the year in which the employer claims the credit. Under Public Law 110-28, the WOTC Program has been granted a 44-month extension through August 31, 2011.
During the last program year from July 1, 2007 through June 30, 2008, 5,576 Work Opportunity Tax Credit (WOTC) applications were certified for a tax credit resulting in an estimated $6.6 million in tax credits to West Virginia employers.
For more information, email the WOTC State Office or call 304-558-5050.
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WOTC Q & A
WOTC Brochure
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