Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal tax incentive that encourages employers to hire individuals from certain targeted groups who face barriers to employment, such as veterans, long-term unemployed, or those receiving public assistance. When an employer hires eligible workers and complies with program requirements, they can receive a tax credit that reduces their federal tax liability. This helps promote inclusive hiring practices, supports economic opportunity for underserved populations, and benefits both employers and communities by fostering employment and reducing welfare dependence.