Work Opportunity Tax Credit Initial Funding Allotments for Fiscal Year 2026

The Employment and Training Administration (ETA) is announcing the availability of Work Opportunity Tax Credit (WOTC) initial funding allotments for Fiscal Year 2026. The opportunity is available to all State Workforce Agencies (SWAs) including the District of Columbia, Commonwealth of Puerto Rico, and the Virgin Islands. The funding will be used to administer the WOTC program, which provides tax credits to employers who hire individuals from targeted groups. The key activities to be performed under this grant include: * Designating a State Coordinator to oversee the administration of WOTC for each state grant * Determining eligibility of individuals as members of targeted groups and issuing certifications or denials on a timely basis * Establishing and maintaining quality review processes, record keeping procedures, and reporting capability related to the orderly management of WOTC certification requests * Developing a backlog reduction plan to eliminate existing backlogs of certification requests * Establishing and maintaining an orderly system for regularly verifying the eligibility of a random sample of individuals certified under WOTC on a quarterly basis. Some of the key benefits of this opportunity include: • Increased efficiency in processing employers' certification requests • Development of plans to eliminate existing backlogs of certification requests • Improved quality review processes and record keeping procedures • Enhanced reporting capability related to the orderly management of WOTC certification requests • Increased access to employment opportunities for job seekers from targeted groups • Tax credits for employers who hire individuals from targeted groups.