The Consolidated Appropriations Act, 2021 (the Act) reauthorizes the Work Opportunity Tax Credit (WOTC) until December 31, 2025. Additionally, the Act extends empowerment zone designations from December 31, 2020, to December 31, 2025.
State Workforce Areas should continue the uninterrupted processing of employers’ timely filed certification requests and issuance of determinations (certifications or denials) for individuals that began to work for an employer on or after January 1, 2021 and before January 1, 2026, for all currently reauthorized targeted groups, including the extension of designated empowerment zones.
What is the Work Opportunity Tax Credit (WOTC) Program?
The Work Opportunity Tax Credit (WOTC) is a federal tax credit, ranging from $1,200 to $9,600, that is given to employers for each individual they hire from a designated targeted groups. This tax credit is also dependent upon the new employee working a minimum of 120 hours in their first year.
Who can participate in the WOTC Program?
Employers may submit applications to claim tax credits for new hires meeting the criteria for the specified target group. Current or rehired employees are excluded.
The Work Opportunity Tax Credit (WOTC) is available to employers who hire people from specific target groups that experience barriers to employment.
How to Apply
Register for a WOTC account online. After you create an account, you may submit an individual WOTC request to Arizona’s WOTC Unit, check the status of a completed application, upload a batch file or change profile information.
Forms and Other Resources
Forms must be submitted within 28 calendar days from the date the employee begins working . All untimely applications will be denied. To learn more, contact the Arizona WOTC Unit by phone (480) 258-2803 or email [email protected].