Targeted Job Tax Credit

The Work Opportunity Tax Credit

The Work Opportunity Tax Credit, (WOTC) provides financial incentives to employers to hire job seekers from 9 categories. These categories include long-term TANF recipient and other TANF recipients, Veterans, Vocational Rehabilitation, referral, ex-felon, SSI recipients, and 18-39 year old food stamp recipients. This list also includes 18-24 year old EZ/EC/RC residents, individuals who live in an Empowerment Zone,(EZ) Enterprise Community, (EC), and Renewal Community, (RC). Teenagers, 16-17 years of age are included as well to work for an employer between May 1st and September 15th and lives in an Empowerment Zone,(EZ), Enterprise Community, (EC) or Renewal Community,(RC). The (WOTC) is based on qualified wages paid to the employee for the first year. Qualified wages are capped at $6,000. The credit is 25% of qualified first year wages for individuals employed at least 120 hours but fewer than 400 hours and 40% for those employed 400 hours or more.

The Work Opportunity Tax Credit to include youth for summer employment wages are capped at $3,000 for 16 to 17 year olds working for a 90 day period between May 1 and September 15th.

For Long term TANF recipients wages are capped at $10,000. The (WOTC) is available for employee's qualified second-year wages which is also capped at $10,000. The credit provided is 50% of qualified wages for the second year of employment.

To learn more about this program, you can contact your state (WOTC) coordinator, Jeanne Pectol at (405)557-5371 or you may email her. To learn more about about other employer related services such as training and assistance for workers affected by layoffs, you can call toll free help line at 1-877-872-5627. TTY: 1-877-889-5627. For tax related questions, contact Internal Revenue Service,(IRS)at 202-622-6080.