WOTC Target Groups
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit that provides an incentive to private-sector businesses for hiring individuals from nine target groups who have consistently faced significant barriers to employment. The groups are:
- Qualified Temporary Assistance for Needy Families (TANF) Recipients:
A member of a family that received TANF for any 9 months during the 18-month period ending on the family member's hiring date.
- Qualified Veterans:
A person who is a "Veteran" as defined below and:
- is a member of a family that received food stamps for at least a three-month period that ended during the 12 month period ending on the hiring date, or
- is entitled to compensation for a service connected disability and:
- a. has a hiring date which is not more than one year after discharge or release from active duty, or
- b. has aggregate periods of unemployment of six months or more during the one-year period ending on the hiring date.
"Veteran" is defined as an individual who:
- served on active duty (other than duty for training) for more than 180 days, or
- was discharged or released from active duty for a service-connected disability and was not serving more than a 90-day period of active duty (other than duty for training) on any day within 60 days of the hiring date.
A person who was convicted of a felony under any state or federal law and has a hiring date within one year of the date of conviction or release from prison.
- Designated Community Residents:
A person who has attained age 18 but not 40 on the hiring date, and who has his/her principal place of abode in an Empowerment Zone, Enterprise Community, Renewal Community, or Rural Renewal County. To identify these communities, visit http://egis.hud.gov/ezrclocator/.
- Vocational Rehabilitation Referrals:
A person who has a physical or mental impairment that causes a substantial handicap to employment and who has been referred to an employer after completing or while receiving vocational or employment services through federal programs for veterans, under the Rehabilitation Act of 1973, or under the Ticket To Work program.
- Qualified Summer Youth Employees:
A person who:
- has attained age 16 but not 18 on the hiring date (or if later, on May 1), and
- performs services for the employer between May 1 and September 15, and
- has not been employed by the employer prior to the May 1 - September 15 period, and
- has his/her principal place of abode in an Empowerment Zone, Renewal Community, or Enterprise Zone.
- Qualified Food Stamp Recipients:
A person who has attained age 18 but not 40 on the hiring date, and is a member of a family that received Food Stamp assistance:
- for the six-month period ending on the hiring date, or
- if the person became ineligible for Food Stamp assistance under Section 6(o) of the Food Stamp Act of 1977, for at least three months of the five-month period ending on the hiring date.
- Qualified SSI Recipients:
A person who received Supplemental Security Income benefits for any month ending within the 60-day period ending on the hiring date.
- Long-term Family Assistance Recipients:
A member of a family that:
- received TANF for at least 18 consecutive months ending on the hiring date; or
- received TANF for a total of at least 18 months, whether or not consecutive, beginning after August 5, 1997, if the family member's hiring date is not more than two years after the end of the earliest 18-month period; or
- became ineligible for TANF after August 5, 1997, if the family member is hired within two years after the family became ineligible.