Work Opportunity Tax Credit (WOTC), federal
When in force: 40% of up to $6,000 of first-year wages for certified hires from targeted groups. For hires after 2025 it is not currently available.
40% of up to $6,000 of wages (up to $2,400 per hire) for workers who began on or before December 31, 2025.
Your business, as a federal income tax credit. Screening and certification go through the state workforce agency.
- Hire belongs to one of 10 targeted groups and is certified by the state agency
- Employer submits Form 8850 within 28 days of the start date
- Worker must have begun on or before December 31, 2025 to qualify now