Work Opportunity Tax Credit (WOTC)


TIA is a member of the Work Opportunity Tax Credit Coalition. This coalition seeks legislative action to increase the effectiveness of the Work Opportunity Tax Credit.

Every independent evaluation of the Work Opportunity Tax Credit and its predecessor, the Targeted Jobs Tax Credit, by the Department of Labor and Government Accountability Office affirms that this tax incentive increases the employment of targeted workers, which is its goal.

Contrasted to direct Federal spending, a targeted tax credit for employers can be a powerful policy instrument to improve labor market efficiency and outcomes in workforce training, mobility, and adjustment to economic change.

TIA has outlined numerous ways in which the Administration can use the Work Opportunity Tax Credit more effectively to impact the national economy:

  • Support a long-term reauthorization of the recently expired HIRE tax credits -Assure Full Electronic Filing to save costs on certification eligibility
  • Assure Employers Receive the Promised Benefit so that they continue to use the WOTC -----Require the Treasury Secretary to Promote WOTC
  • Allow Non-Profit Employers to Participate in WOTC and Take the Credit Against FICA

Expand Worker Eligibility for WOTC by extending benefits to Disabled Workers who are receiving SSA disability payments, workers above the age of 18 who are receiving food stamps, decently discharged Veterans and the National Guard, cooperative education students, and displaced workers.

At the end of 2017, Congress passed a tax reform package that preserves WOTC until the end of 2019. TIA will work for the permanent extension of WOTC and will work to ensure that it is extended before it expires.