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Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a tax credit offered to employers as an incentive to hire individuals who are members of targeted groups, which have traditionally faced significant barriers to employment. The credit is used to reduce the federal tax liability of private/for-profit employers. Employers can claim a maximum tax incentive of $12,500.

More information about this program can be found on the U.S. Dept. of Labor's WOTC webpage.

Employers

To apply for WOTC, employers and consultants must complete and submit both IRS Form 8850 and ETA Form 9061 within 28 calendar days of the new hire’s start date. Forms may be submitted by email to wotc8850@oesc.ok.gov or via upload to the WOTC website. To gain access to the website, independent employers may register online via the employer login. Consultant companies must submit a WOTC New Employer Registration Form (OES-090) to wotc8850@oesc.ok.gov.

Job Seekers

Job seekers who believe they meet one of the target groups for the WOTC program may provide a Letter of Introduction form to potential employers to inform them of the possible tax credit they can receive. Job seekers can visit their nearest Oklahoma Works office for assistance and a copy of the Letter of Introduction. Once a job seeker is hired, the employer must submit the required forms.

Contact Information

For any questions, email OESC at wotc8850@oesc.ok.gov.

  1. TANF - a member of a family that has received assistance from Aid for Dependent Children (AFDC) or its successor program Temporary Assistance to Needy Families (TANF).
  2. Veteran/Disabled Veteran/Unemployed Veteran - There are five Veteran categories: (1) a Veteran and member of a family that received food stamps; (2) a Disabled Veteran who is entitled to a service-connected disability; (3) a Disabled Veteran with certain aggregate periods of unemployment; (4) a veteran with certain aggregate periods of unemployment; or (5) a Veteran with certain aggregate periods of unemployment.
  3. Ex-Felon - a person convicted of a felony.
  4. Designated Community Resident - is an individual who attained age 18 but not yet 40 on the hiring date.
  5. Vocational Rehabilitation Recipient - a person with a disability who has received or is receiving vocational rehabilitation from a rehabilitation agency approved by the state or the Department of Veterans Affairs.
  6. Summer Youth - a person a least age 16 but not 18 on the hiring date and who has a principal residence in an Empowerment Zone or Rural Renewal County.
  7. Food Stamp Recipient - a person who is at least 18 but under age 40, AND is a member of a family that has received food stamps for the last 6 months.
  8. SSI Recipient - a person receiving Supplemental Security Income (SSI) benefits.
  9. Long-term Family Assistance Recipients - a qualified long-term family assistance recipients is an individual certified by a designated local agency as being: (1) a member of a family that has received family assistance for at least 18 consecutive months ending on the hiring date; (2) a member of a family that has received such family assistance for a total of at least 18 months; or (3) a member of a family who is no longer eligible for family assistance.
  10. Long-term Unemployed Recipient (LTUR) - is an individual who on the day before the individual begins work, or if earlier, the day the individual completes the IRS Form 8850 is in a period of unemployment.

To learn more about the timelines and criterias that apply to each of these targeted groups, visit the IRS website.