Work Opportunity Tax Credit Program (WOTC)

This federal tax credit was designed to help individuals from certain target groups who consistently face significant barriers to employment move from economic dependency to self-sufficiency by encouraging businesses to hire target group members and be eligible to claim tax credits against the wages
paid to the new hires during the first year of employment.

Agency - Department of Labor

The Department of Labor fosters and promotes the welfare of job seekers, wage earners and retirees by improving their working conditions, advancing their opportunities, protecting their retirement and health benefits and generally protecting worker rights and monitoring national economic measures.

Office - See Regional Agency Offices.

Contact information for regional and state WOTC coordinators is available on the WOTC program website at www.doleta.gov/wotc.



Selected Recipients for this Program


RecipientAmount Start DateEnd Date
Employment Security, Illinois Department Of $ 731,207   2019-04-012020-09-30
Michigan Department Of Labor And Economic Opportunity $ 645,927   2019-04-012020-09-30
Job & Family Services, Ohio Department Of $ 756,211   2019-04-012020-09-30
Labor & Industry, Pennsylvania Department Of $ 731,491   2019-04-012020-09-30
State Of Florida Department Of Economic Opportunity $ 968,208   2019-04-012020-09-30
Labor And Workforce Development, Tennessee Department Of $ 802,646   2019-04-012020-09-30
Employment Development, California Department Of $ 2,512,045   2019-04-012020-09-30
Labor, New York Department Of $ 1,017,666   2019-04-012020-09-30
Texas Workforce Commission $ 1,110,332   2019-04-012020-09-30
North Carolina Department Of Commerce $ 556,350   2019-04-012020-09-30



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

States are to use these formula grants for: accepting WOTC applications from employers; determining eligibility of individuals as members of the target groups; issuing employer certifications or denials; developing working agreements with partner agencies in American Job Centers (also called One-Stop Career Centers) or other State agencies to verify or document eligibility of new hires, including issuing Conditional Certifications; and coordinating efforts to promote WOTC with employers, job seekers and other Workforce innovation and Opportunity Act (WIOA) partners.

The Federal government provides general direction, funding, and oversight to the states.

See above.

Eligibility Requirements

Applicant Eligibility

States (not individuals), the District of Columbia, the Virgin Islands, and Puerto Rico.

Beneficiary Eligibility

Beneficiaries are all employers seeking WOTC target group workers and members of those target groups seeking employment. The members of the different target groups have statutory definitions (per Public Law 104-188, as amended) with specific eligibility requirements that must be verified by the State Workforce Agencies before a new hire certification can be issued to an employer or his/her representative. Participating employers and their representatives must file their certification requests with State Workforce Agencies using IRS Form 8850 and ETA Form 9061 or 9062 within 28 days after the employment start day of the new hires.

Credentials/Documentation

No Credentials or documentation are required. 2 CFR 200, Subpart E - Cost Principles applies to this program.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is eligible for coverage under E.O.

12372, 'Intergovernmental Review of Federal Programs.' An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review.

Application Procedures

2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program.

Award Procedures

WOTC grant funds are provided to State Workforce Agencies (SWAs) on an annual basis. Grant amounts are determined by formula.

Deadlines

Not Applicable.

Authorization

The WOTC Program is authorized under §§ 51 and 3111(e) of the Internal Revenue Code (Code), as extended and amended by the Protecting Americans from Tax Hikes Act of 2015, Pub. L. No. 114-113, div. Q (the PATH Act). , Title 26, Part IV, Section 51, Public Law 104-188, 26 U.S.C 51-52; Tax Increase Prevention Act of 2014 (The Act), Public Law 113-295.

Range of Approval/Disapproval Time

As provided in funding allotment and policy guidance issued by ETA and IRS.

Appeals

Not Applicable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. This program does not have MOE requirements.

Length and Time Phasing of Assistance

Funding is provided by annual formula allotments. Method of awarding/releasing assistance: by letter of credit.

Post Assistance Requirements

Reports

Program performance reporting by quarterly data submission is required.

No cash reports are required.

No progress reports are required.

Quarterly financial reports are required.

No performance monitoring is required.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. See below.

Records

Standard records for periodic internal audits are required. The Internal Revenue Service (IRS) also requires that the State Workforce Agencies (SWAs) keep and maintain certification records for four years, and denial records for one year in the event of an employer audit by IRS or an employer appeal to the SWAs.

Financial Information

Account Identification

16-0179-0-1-999.

Obigations

(Formula Grants) FY 16 $18,000,000; FY 17 est $18,000,000; and FY 18 est $18,000,000

Range and Average of Financial Assistance

FY 2016 grants to states ranged from $66,000 to $2,518,373.

Regulations, Guidelines, and Literature

Section 51 of the Internal Revenue Code, Title 26 U.S.C. ETA Handbook No. 408, Third Edition, November 2002, as amended. The Handbook and applicable U.S. Department of Labor, Employment and Training Administration policy directives are available on the WOTC program website at www.doleta.gov/wotc.

Information Contacts

Regional or Local Office

See Regional Agency Offices. Contact information for regional and state WOTC coordinators is available on the WOTC program website at www.doleta.gov/wotc.

Headquarters Office

Steven Rietzke 200 Constitution Ave. NW, Room C-4510, Washington, District of Columbia 20210-0001 Email: Rietzke.Steven@dol.gov Phone: 2026933912

Criteria for Selecting Proposals

Not Applicable.



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