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Work Opportunity Tax Credit (WOTC)
The WOTC provides a private-for-profit employer with tax savings as an incentive to hire job seekers with barriers to employment. WOTC targets short-term welfare cash recipients, veterans on food stamps, youth on food stamps, vocational rehabilitation customers, Supplemental Security Income recipients, ex-felons, high-risk youth and Summer Youth living in a Renewal Community, Empowerment Zone, or Enterprise Community.
Deadline / Regulations:
The WOTC is 40% of the first $6,000 in wages, for a maximum credit of $2,400. A new hire must be employed at least 180 days or 400 hours. A partial credit of 25% is permitted for employees working at least 120 hours, but less than 400 hours. For youth hired as summer employees May1 through September 15, the tax credit is 25% of the first $3,000, for a maximum credit of $750; and the youth must be employed at least 20 days or 120 hours.
Contact your local PA CareerLink® Office for additional information, or contact a representative in Tax Credit Coordination Services at 1-800-345-2555 with questions. More information is also available on the Labor & Industry website.
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