Work Opportunity Tax Credit (WOTC)


This program is available to employers who hire new employees from targeted groups. The credit is used to reduce the federal tax liability of private, for-profit, employers. Credit is based on 25% of $6,000 at 125-399 hours of employment and 40% of $6,000 at 400 or more hours. Maximum credit available is $2,400 per eligible worker.

Tax Credit Amount

The Welfare-to-Work Tax Credit is a tax credit of 35% of $10,000 for an employee retained 400 hours the first year and 50% of $10,000 for the same employee retained 400 hours the second year (employees must meet eligibility requirements).

Application Forms

Forms 8850 and ETIA-9061 may be obtained from the WOTC Unit, Department of Employment at (307) 235-3611.