The Worker Opportunity Tax Credit (WOTC) is a federal tax credit that employers can claim for hiring and employing individuals from certain targeted groups who have faced significant barriers to employment¹². These groups include veterans, ex-felons, long-term unemployed, and others¹².
The WOTC is available for wages paid to eligible individuals who begin work on or before December 31, 2025¹³. To claim the WOTC, employers must pre-screen and obtain certification from the appropriate state agency that the employee is a member of a targeted group¹².
(1) Work Opportunity Tax Credit | Internal Revenue Service. https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit. (2) Work Opportunity Tax Credit | U.S. Department of Labor. https://www.dol.gov/agencies/eta/wotc. (3) Small businesses can benefit from the work opportunity tax credit. https://www.irs.gov/newsroom/small-businesses-can-benefit-from-the-work-opportunity-tax-credit.