Work Opportunity Tax Credit

GREAT NEWS FOR EMPLOYERS!

Work Opportunity Tax Credit Available!

Claim a tax credit on your annual tax return when you hire from a targeted, but skilled talent pool – people with disabilities who are screened, trained and ready to work.

What is the Work Opportunity Tax Credit?

The WOTC is designed to help move people from welfare into gainful employment and obtain on-the-job experience. It joins other tax credits, education, and job training programs that help American workers with barriers to employment prepare for good jobs; ease their transition from job to job; benefit from the creation of effective regional economic development strategies; and create high performance workplaces.      

How much is the Work Opportunity Tax Credit?

$2,400 for each new adult hire

$1,200 for each new summer youth hire; and

$9,000 for each new long-term family assistance recipient hired over 2 years

How can employers participate in the WOTC? 

To receive certification that a new employee qualifies the employer for this tax credit, the employer must: 

  • Complete the one-page IRS Form 8850 by the day the job offer is made.  Both employer and employee must sign and date the form.
  • Complete one page ETA Form 9061 and employee must sign and date ETA Form 9061. 

Mail the ORIGINAL completed and signed IRS and ETA forms to the employer's state workforce agency (listed below)

NEW: IRS Form 8850 must be mailed within 28 days of the employee's employment-start date for all individuals who begin work for an employer on or after Jan. 1, 2007. 

Annette Graves
Employment Service Division
Department of Industrial Relations
649 Monroe St.
Montgomery, AL 36131
334-353-8023; Fax 334-353-9064