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What is the Work Opportunity Tax Credit (WOTC)?

The WOTC has two purposes:

  • To promote the hiring of individuals who qualify as a member of a target group (See Target Group Definitions below)
  • To provide a federal tax credit to employers who hire these individuals

Key Characteristics:

  • WOTC can provide up to $4,800 in a one year period in tax relief for each qualifying new hire (or up to $9,000 for long term family assistance recipients)
  • Full-time, part-time and temporary employees make a business eligible to receive the tax credit
  • Employers may claim a tax credit on an unlimited number of qualifying new hires
  • Easy application process
  • The Employment Development Department (EDD) is the Work Opportunity Tax Credit certifying agency for California employers.

Download the WOTC Information Sheet September 2011