Reducing Federal Tax Liability of Private Employers
The Work Opportunity Tax Credit (WOTC) is a federal tax credit that reduces the federal tax liability of private employers who hire from nine targeted groups. Qualified applicants who began work before September 1, 2011, can earn Texas employers up to $2,400 if they are certified for any of the first eight of the nine listed targeted groups. The nine targeted groups include:

Designated Community Residents (DCR) residing in an Empowerment Zone (EZ), Renewal Community (RC), or in a Rural Renewal County (RRC) Ex-Felons Food Stamp Recipients Long–Term Family Assistance Recipients (LTFAR)

Summer Youth in qualified programs Supplemental Security Income Recipients (SSI) Temporary Assistance to Needy Families Recipients (TANF) Veterans / Disabled Veterans Vocational Rehabilitation Agency Referrals

Long–Term Family Assistance Recipients
Long-Term Family Assistance Recipients who began work after December 31, 2006, and before September 1, 2011, can earn their employers up to $9,000 if they are a member of a family that meets one of the following conditions: 

• Received TANF for at least 18 consecutive months before the hire date, or 
• Received TANF for at least 18 months, beginning after August 5, 1997, and is hired not more than two years after that 18-month period, or
• Had TANF eligibility under federal or state law expire after August 5, 1997 (for applicants hired within two years after their eligibility expired)

Texas Workforce Commission Certification
An employer must request and receive certification from the Texas Workforce Commission that the new hire is a member of one of the target groups before the employer can claim the WOTC on its federal income tax return.

Contact Us
For more information about the Work Opportunity Tax Credit program, contact the WOTC Unit at the Texas Workforce Commission at (800) 695-6879.

For additional information or assistance, please contact a Business Solutions representative.