Work Opportunity Tax Credit (WOTC) – Available Through 2025

The Work Opportunity Tax Credit (WOTC) is a valuable federal income tax credit available to employers who hire individuals from targeted groups that have historically faced barriers to employment.

Credit Amounts

• Up to $2,400 for most qualified hires

• Ranges from $1,200 to $9,600, depending on the target group

• Credit is calculated as 40% of the first $6,000 in qualified first-year wages

Minimum Hours Requirement

• 120–399 hours worked: Employer may claim a partial credit of 25% of wages, up to $1,500

• 400+ hours worked: Full credit of 40%, up to $2,400

Eligible Target Groups Include:

• Veterans

• SNAP (food stamp) recipients

• Long-term unemployed

• Ex-felons

• Vocational rehabilitation referrals

• Individuals receiving Supplemental Security Income (SSI)