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       ETA Home > USES HOME > Tax Credit
  

 Related Documents
ETA Handbook No. 408 Third Edition, November 2002
WOTC/WtW Reporting System User's Guide
 

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Tax Credit Programs

The Work Opportunity and Welfare-to-Work Tax Credits:

The Work Opportunity Tax Credit (WOTC) created in 1996 and the Welfare-to-Work Tax Credit (WtWTC) created in 1997, are incentives that the Congress provides to private-sector employers for hiring economically disadvantaged individuals with significant barriers to employment,
 In This Section
who are members of 10 targeted groups including, long-term welfare recipients. As employers participate in these two tax credits they find out that:
  • it is the employer who makes the hiring decision;
  • there are no restrictions on the number of qualified new individuals he/she can hire;
  • they can claim up to $8,500 in potential tax credits;
  • the credits are applied to taxes due to the Internal Revenue Service, and unused tax credits may be carried over to the next tax year.


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