Which Candidates Qualify Employers for the Work Opportunity Tax Credit?

The Work Opportunity Tax Credit (WOTC) is a federal incentive program that encourages employers to hire employees from certain groups who have historically faced significant barriers to employment. The tax credits, worth up to $9,600 per new hire, can significantly impact an employer's bottomline.

Businesses may be wondering which candidates qualify and the amount of tax credits they can receive. Below is a breakdown of eligible WOTC target groups and their credit caps:

Veteran Target Groups

  • $9,600 - Veterans with a service-connected disability who have been unemployed for at least 6 months in the past year
  • $4,800 - Veterans with a service-connected disability and hired within 1 year of their discharge/release date
  • $5,600 - Veterans who have been unemployed for at least 6 months
  • $2,400 - Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits
  • $2,400 - Veterans who have been unemployed for at least 4 weeks but less than 6 months

Non-Veteran Target Groups

  • $9,000 - Long-Term Family Assistance recipients who are members of a family that has received TANF benefits for at least 18 consecutive months
  • $2,400 - Temporary Assistance for Needy Families (TANF) recipients
  • $2,400 - SNAP recipients
  • $2,400 - Long-term unemployed
  • $2,400 - Supplemental Security Income recipients
  • $2,400 - Vocational rehabilitation referrals
  • $2,400 - Ex-felons
  • $2,400 - Designated community residents
  • $1,200 - Summer Youth program participants who are 16 to 17 years old, work between May 1 and September 15, and live in a designated community area

Interested in learning more about qualifying your business for tax credits and business incentives?

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