The Work Opportunity Tax Credit (WOTC), scheduled to expire on Dec. 31, 2025, offers tax savings to businesses for hiring individuals from targeted groups. Examples include qualified veterans, recipients of certain aid programs, ex-felons and qualified long-term unemployment recipients. Employers must file a form with their state workforce agency to certify that hires are members of a targeted group. A bipartisan group of lawmakers is working to not only extend the WOTC five years, but also to expand it by increasing eligibility and boosting its potential value. The bill calls for increasing the credit percentage from 40% to 50% of qualified first-year wages and indexing the credit for inflation.
Our Blog 