An extension of the Work Opportunity Tax Credit (WOTC) Program was recently signed into law. The WOTC program is a tax incentive program designed to encourage employers to hire and retain veterans, welfare and food stamp recipients, and other individuals who face barriers to employment. The extension is retroactive to January 1, 2015 and continues through December 31, 2019. Employers may qualify for a tax credit of up to $9,600 per eligible employee during the first year of employment under this program. Tax credits of about $1 billion are claimed under the program by employers each year.
One additional category, the long-term unemployed, has been added to the WOTC program. Long-term unemployed individuals are those unemployed for a minimum of 27 weeks and who have received unemployment compensation for a period of time under state or federal law.
Further information may be found at the U.S. Department of Labor website here.