What is the Work Opportunity Tax Credit (WOTC)?

The WOTC has two purposes:

• To promote the hiring of individuals who qualify as a member of a target group (See Target Group Definitions below)
• To provide a federal tax credit to employers who hire these individuals

Key Characteristics:

• WOTC can provide up to $4,800 in a one year period in tax relief for each qualifying new hire (or up to $9,000 for long term family assistance recipients)
• Full-time, part-time and temporary employees make a business eligible to receive the tax credit
• Employers may claim a tax credit on an unlimited number of qualifying new hires
• Easy application process
• The Employment Development Department (EDD) is the Work Opportunity Tax Credit certifying agency for California employers.

Download the WOTC Information Sheet September 2011