The Work Opportunity Tax Credit is available to employers who hire and retain veterans and individuals from other target groups (see below) who experience significant barriers to employment. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit.  The Department of Labor is a great source of info on the credit, offering a tutorial, video, and employer’s guide.

The IRS also offers some excellent resources.

This year, there is an extended certification deadline — Sept. 28, 2016 — which applies to eligible workers hired between Jan. 1, 2015, and Aug. 31, 2016.

The 10 categories of WOTC-eligible workers include:

1. Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
2. Unemployed veterans, including disabled veterans
3. Ex-felons
4. Designated community residents living in Empowerment Zones or Rural Renewal Counties
5. Vocational rehabilitation referrals
6. Summer youth employees living in Empowerment Zones
7. Food stamp (SNAP) recipients
8. Supplemental Security Income (SSI) recipients
9. Long-term family assistance recipients
10. Qualified long-term unemployment recipients (for people who begin work after 2015).

This is a great example of a win-win tax credit, designed to encourage employers to hire those people who face difficulties getting into the workforce, which not only helps the employers and their employees, but also strengthens communities.

More here: IRS Urges Employers to Take Advantage of Expanded Work Opportunity Tax Credit; Employers Have until Sept. 28 to Request Certification for Many New Hires