WORK OPPORTUNITY TAX CREDIT

Legislation:

On May 25, 2007, the Small Business and Work Opportunity Tax Act of 2007 was signed into law. The WOTC is one tool in a diverse toolbox...[and] joins other tax credits, education, and workforce training programs that help American workers with barriers to employment...benefit from the creation of effective regional economic development strategies, and create high performance workplaces.

Eligible Users:

Any business hiring from the target group is eligible.

Eligible employees:

New hires that belong to the following groups: Veterans and veterans with disabilities, vocational rehabilitation referrals, Social Security income [SSI] recipients, summer youth employees and others.

Tax incentives for hiring target group members:

New Adult Hire: up to $2,400
New disabled Vet Hire: up to $4,800
Summer Youth Hire: up to $1200

Minimum Employment or Retention Period:

All new adult employees must work a minimum of 120 or 400 hours. Individuals hired as Summer Youth employees must work at least 90 days, between May 1 and September 15, before an employer is eligible to claim the tax credit. The WOTC amount an employer may claim depends on the hours the employee works. The credit is 25% of qualified first-year wages for those employed at least 120 hours but fewer than 400 hours and 40% for those employed 400 hours or more.

For more information on target group definitions, certification procedures, restrictions, forms, and additional incentives please visit:

http://www.doleta.gov/business/incentives/opptax

OR contact

State of Illinois WOTC Coordinator:

Felicia Clark
Department of Employment Security
33 SOUTH STATE STREET # 8-S
CHICAGO, IL 60603
312-793-6811 ext.231
Fax 312-793-1778 or 793-5151
felicia.clark@illinois.gov

Updated: November 12, 2008.