The Work Opportunity Tax Credit (WOTC) applies to employees hired after December 31, 2006 and those hired before December 31, 2013 for all target groups except veterans.
A new employee must belong to any one of the following 13 targeted groups of individuals:
2Ba - Veteran receiving Supplemental Nutrition Assistance Program (SNAP) benefits (V): A veteran who has received SNAP benefits for any three-month period in the past 12 months.
2Bb - Disabled Veteran (DV): A veteran discharged from the military in the last 12 months for a service-connected disability.
2Bc. DV Unemployed for six months: A veteran discharged from the military in the last 12 months for a service connected disability and has been unemployed for any six months in the last 12 months.
2Bd. V Unemployed for four weeks: A veteran who has been unemployed for four weeks but less than six months during the year before he/she was hired.
2Be. V Unemployed for six months: A veteran who has been unemployed for six months or more during the year before he/she was hired.
a. 5a. Voc Rehabilitation Referral: An individual referred by a vocational rehabilitation agency either through the state or the Department of Veterans Affairs Vocational Rehabilitation Center.
b. 5b. Ticket Holder: An individual referred by an employment network under the Ticket to Work program.
No tax credit can be claimed for wages paid to relatives.
No tax credit can be claimed for federally subsidized on-the-job-training; however, wages paid after the subsidy expires can qualify for the tax credit.
No Individual who is a re-hire of the employer requesting the credit is eligible.