Work Opportunity Tax Credit - WOTC
WOTC is a widely utilized federal tax credit program available to employers for hiring individuals from a variety of targeted groups who face significant barriers to employment.
Purpose of WOTC
Encourage employers to hire and train people experiencing difficulties that are linked to unemployment.
Goals of WOTC
Increase workforce participation rates across the state and reduce an individual’s reliance on expensive social support programs.
What Makes WOTC More Effective Than Other Tax Credits?
Structure
WOTC is currently a joint federal / state program. This makes the adoption of a state companion bill administratively efficient for both the state and the employers. The framework already exists and does not need to be recreated, unlike most tax credit programs which require starting from scratch.
Broad Eligibility
The credit is not focused on one specific industry, resulting in increased workforce participation across all service levels and employment sectors.
Cost Effective
Unlike many other tax credit programs, subsidies are only paid when the targeted individuals are actually placed in jobs. This reduces financial overhead and streamlines the evaluation of program effectiveness.
WOTC Saves More Money for the State Than it Costs
State level companion bills to further support businesses: a state-by-state workforce development initiative.
View state wide campaigns and policy efforts
Understanding the true economic impact this program has on the workforce
Interviews and media coverage related to WOTC
Policies aimed to reach the lowest possible unemployment rate
Changing economic models and their affect on workforce development
