Federal Tax Exempt Program

Work Opportunity Tax Credit (WOTC)

  1. Two incentives for hiring targeted workers:
    1. May qualify for federal tax credits up to $9,000.00
    2. State tax refund up to $2,000.00 per employee
  2. Nine targeted groups — one of which is qualified ex-offenders, defined as
    An ex-felon who has been convicted of a felony under any federal or state law, and is hired not more than 1 year after the conviction or release from prison for that felony.
  3. Documentation needed-proof of felony conviction and/or felony release dates. These documents may be obtained from correctional institution records, court records, etc.
  4. To apply for wotc employers must complete:
    1. IRS Form 8850 with original signatures from:
      • Applicant/employee and
      • Employer
      • ETA Form 9061 individual characteristics (icf).
      • Documents attached to demonstrate eligibility, or
      • ETA Form 9062 conditional certification from TWC or an authorized participating agency.

    NOTE: The 8850 must be postmarked within 28 days of the applicant’s start date.

  5. To apply for state tax refund employers must complete:
    1. Form TWC 1098 original signatures required by employee, employer, or consultant.
    2. Power of Attorney. In cases where an employer uses a third party consultant, a power of attorney must be on file with TWC.

    NOTE: Filing dates are January 1-March 31 of the year after the wages were earned.

For additional information, call the WOTC Unit at 1-800-695-6879.