Workforce Opportunity Tax Credit:  
is a Two-Tiered System Based on Retention:

Tier 1 Employee works 120 hours to 399 hours.

• Credit is equal to 25% of qualified first year wages.
• Qualified first year wages are capped at $6,000.
• Maximum Credit: $1,500
  • Applies to all WOTC target groups except the New Disabled Veteran
  • Subgroup; and Summer Youth. Summer Youth wages are capped at $3,000 with a Maximum Credit $750.
  • See below for the New Disabled Veteran Subgroup.

Tier 2 Employee works 400 hours or more.

·         Credit is equal to 40% of qualified first year wages.

·         Qualified first year wages are capped at $6,000.

·         Maximum Credit: $2,400

·         Applies to all WOTC targeted groups except the New Disabled Veteran

·         Subgroup; Summer Youth; and LTFA.

·         Summer Youth wages are capped at $3,000 with Maximum Credit $1,200.S

·         See below for the New Disabled Veteran Subgroup and Long-Term Family Assistance Recipient.

Tier 1 New Disabled Veteran Subgroup (works 120 hours to 399 hours.)

• Credit is equal to 25% of qualified first year wages.
• Qualified first year wages are capped at $12,000.
• Maximum Credit: $3,000

Tier 2 New Disabled Veteran Subgroup (works 400 hours or more.)

• Credit is equal to 40% of qualified first year wages.
• Qualified first year wages are capped at $12,000.
• Maximum Credit: $4,800

Long-Term Family Assistance Recipient - Maximum Credit over the 2 years is $9,000 with a Retention period = 400 hours each year.

• First Year Tax Credit equal to 40% of qualified first year wages.  Qualified first year wages are capped at $10,000.Maximum Credit =$4,000.
• Second Year Tax Credit equal to 50% of qualified second year wages. Qualified second year wages are capped at $10,000.Maximum Credit =$5,000.