Work Opportunity Tax Credits

WOTC Renewed Through 2020!


On December 20th, 2019, Congress passed a bill that extends the Work Opportunity Tax Credit through 2020. The bill also includes a retroactive extension of the Indian Employment Credit (IEC) and the Federal Empowerment Zone Credit (FEZ).


If You're A Current WOTC Client:

In short: Hire. Screen. Save. Win. Repeat.

The HIREtech Tax Credit Platform continues to help you capture the maximum available credit with industry leading results. In addition, our WOTC screening process automatically identifies if the Indian Employment Credit and Federal Empowerment Zones are applicable to you!

Learn More about winning with our solutions to wage and employment verifications, I-9 Compliance, unemployment claims management, and other tax credits.

If You’re Not A Current WOTC Client

It’s time to jump-start your Season of Winning. The Work opportunity Tax Credit (WOTC) provides significant dollar for dollar tax savings to help offset the costs of doing business. There is no limit to how much credit you can get. Enacted in 1996, the credit ranges from $1,200 to $9,600 for hiring individuals who face significant barriers to employment; many of whom you may already be considering. The program has expired and been renewed many times since inception, including Friday’s renewal.

Most employers are already hiring WOTC-eligible employees. However, employers who don’t screen every new hire may be missing out on the savings due to them. The current WOTC target groups are:

  • Qualified IV-A Recipients
  • Qualified Veterans
  • Ex-Felons
  • Designated Community Residents (DCR)
  • Vocational Rehabilitation Referrals
  • Summer Youth Employees
  • Supplemental Nutrition Assistance Recipients (SNAP)
  • Supplemental Security Income (SSI) Recipients
  • Long-Term Family Assistance Recipients
  • Qualified Long-Term Unemployment Recipients

HIREtech helps employers quickly and confidentially screen new hires for WOTC eligibility. Our electronic solution delivers the highest certification rate in the nation – helping you maximize your bottom line, while also helping your community.

At the very least, it’s worth a conversation to see how much money you can save through our tax credit management service.

Indian Employment Credit

The Indian Employment Credit is a tax incentive that provides businesses with an incentive to hire certain individuals who live on or near an Indian reservation. This credit was retroactively renewed from 2017, which means employers can again offset their federal tax liability on their 2017 return by claiming a tax credit on the first $20,000 in wages paid to each “qualified employee.” A qualified employee under the Indian Employment Tax Credit must meet the following criteria:

  • (A) the employee is an enrolled member of an Indian tribe or the spouse of an enrolled member of an Indian tribe,
  • (B) substantially all of the services performed during such period by such employee for such employer are performed within an Indian reservation,
  • (C) the principal place of abode of such employee while performing such services is on or near the reservation in which the services are performed.

Not sure whether this credit applies to you and your employees? No problem! We can help you out over a short phone call.

Federal Empowerment Zones

The Federal Empowerment Zone Tax Credit offers tax incentives to businesses that hire individuals who live in federally designated zones. The Department of Labor designates Empowerment Zones throughout the country, and the tax relief for these economically distressed regions is now retroactively available through 2020 under the new agreement. These tax benefits include “tax-exempt bonds, employment credits, increased expensing, and gain exclusion from the sale of certain small-business stock.”

Not sure whether this credit applies to you and your employees? No problem! We can help you out over a short phone call.

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