DETR - Work Opportunity Tax Credit

Work Opportunity Tax Credit (WOTC):

The Work Opportunity Tax Credit (WOTC) signed into Law by President Clinton on August 20, 1996 is intended to encourage employers to hire low income and other targeted groups. The new program provides a tax credit to private-for-profit employers who hire and retain (for a minimum of 125 to 400 hours) new employees from select "targeted" groups. The rules for summer youth are slightly different.

The tax credit is equal to 40% of up to $6,000 in "qualified first year" wages for a maximum credit of $2,400 for each new qualified hire. Under the Welfare-to-Work (WTW) program the credit is over a 2 year period and is equal to 35% of $10,000 in "qualified first year wages" and 50% of $10,000 in "qualified second year wages" for a maximum credit of $8,500 for each qualified new hire.

Targeted groups include:

Aid to Families with Dependent Children (AFDC) Recipients
Ex-Felons
High Risk Youth
Long-Term Welfare Recipients
Qualified Food Stamp Recipients
Qualified Summer Youth Employees
Supplemental Security Income (SSI) Recipients
Temporary Assistance to Needy Families (TANF) Recipients
Veterans
Vocational Rehabilitation Referrals
Welfare recipients

There are specific forms, qualifications and documentation for each target group. If you are interested in more information about the WOTC program, please contact the WOTC Coordinator (775) 684-0321.

Department of Employment, Training and Rehabilitation
Workforce Investment Support Services
500 East Third Street
Carson City, NV 89713-0012

Link to Partnership for Employment - Federal tax credits can help boost your bottom line

For more information about the Work Opportunity Tax Credit, contact your nearest
Employment Security Division JobConnect Office

Employment related questions or comments can be submitted via e-mail.

Nevada Department of Employment, Training & Rehabilitation
Workforce Investment Support Services
500 East Third Street
Carson City, NV 89713-0012

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