Work Opportunity Tax Credit Funding Allotments for Fiscal Year 2023

The Work Opportunity Tax Credit (WOTC) program provides funding to State Workforce Agencies (SWAs) to administer the WOTC certification process. The program aims to encourage employers to hire individuals from targeted groups, such as veterans, ex-felons, and recipients of certain government benefits. The SWAs will use the funds to conduct activities such as determining eligibility of individuals, issuing employer certifications, and establishing an appeals resolution process. Some of the key requirements for the SWAs include: • Designating a State Coordinator to oversee the WOTC administration • Determining eligibility of individuals as members of targeted groups • Issuing employer certifications, denials, or notices of invalidation for tax credits • Establishing an appeals resolution process • Developing a backlog reduction plan The SWAs are also encouraged to adopt information technology to process certification requests more efficiently and develop working agreements with partner agencies to promote WOTC to employers, job seekers, and other Workforce Innovation and Opportunity Act partners.