Description
The Work Opportunity Tax Credit (WOTC) program provides funding to State Workforce Agencies (SWAs) to administer the WOTC, which is a tax credit for employers who hire individuals from targeted groups. The program is authorized under the Internal Revenue Code of 1986, as amended, and is administered by the U.S. Department of Labor, Employment and Training Administration (ETA). The funding opportunity announced in this document provides additional funding allotments for Fiscal Year 2025, and SWAs must submit an application for funding within 30 calendar days from the issuance date of the Training and Employment Guidance Letter (TEGL). The application must include a completed SF-424 Form, Application for Federal Assistance, and must reflect the amount listed in Attachment I as the state's requested estimated funding total.
• The WOTC program is designed to encourage employers to hire individuals from targeted groups, such as veterans, ex-felons, and individuals with disabilities.
• The program provides a tax credit to employers who hire eligible individuals, and the credit can be claimed against the employer's federal income tax liability.
• SWAs are responsible for administering the WOTC program, including determining eligibility of individuals as members of targeted groups, issuing employer certifications, and establishing and maintaining record-keeping and reporting systems.
• The funding opportunity announced in this document provides additional funding allotments for Fiscal Year 2025, and SWAs must submit an application for funding within 30 calendar days from the issuance date of the TEGL.