Work Opportunity Tax Credit (WOTC)

Program Type: Federal Tax Credit

Geographic Scope: United States (including Massachusetts/Hampden County)

Program Focus:

• Tax credit available to employers for hiring individuals from target groups who have consistently faced significant barriers to employment
• Reduces employer federal income tax liability

Target Populations: Specific federally designated target groups facing employment barriers

Eligible Target Groups: Includes various categories of workers with employment barriers (see IRS website for complete list)

More Information:

• U.S. Department of Labor: https://www.doleta.gov/business/incentives/opptax/
• IRS Small Business Page: https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit
• WOTC Fact Sheet available from MHHCWB

Contact Information:

• Larry Martin, MHHCWB
• Phone: 413-755-1361

Additional Resources:

• Mass BizWorks (state employer resources): www.mass.gov/ebe

How to Apply for WOTC

1. Determine Eligibility
   • Verify that your business is eligible and that prospective hires are from designated target groups
   • Review target groups at: https://www.doleta.gov/business/incentives/opptax/
   • See IRS website for complete eligible target group information
2. Obtain Information
   • Request WOTC Fact Sheet from MHHCWB
   • Review IRS guidance: https://www.irs.gov/businesses/small-businesses-self-employed/work-opportunity-tax-credit
3. Contact for Assistance
   • Contact Larry Martin at MHHCWB: 413-755-1361
   • For comprehensive state employer resources: www.mass.gov/ebe
4. Submit Application
   • Follow IRS procedures for claiming WOTC
   • Documentation requirements available through IRS and DOLETA