If you are a "for-profit" employer in Massachusetts, you may be eligible for a federal tax credit through the Work Opportunity Tax Credit (WOTC) program if you hire a qualifying veteran or other individual in a targeted group listed below. Individuals must be identified as members of one of these targeted groups before a job offer is made.
The WOTC program has two purposes: to help individuals who qualify as members of a target group to get a job; and to help employers who hire qualified individuals by giving them a credit on their federal taxes.
- A veteran who is a member of a family that is receiving or has recently received food stamps and certain qualified disabled veterans.
- A vocational rehabilitation referral who completed or is completing rehabilitative services from the Commonwealth of Massachusetts, an Employment Network, or the U.S. Department of Veterans Services.
- A member of a family that is receiving or has received Transitional Aid to Families with Dependent Children (TAFDC) benefits or Temporary Assistance to Needy Families (TANF) for any 9 months during the 18-month period that ends on the hiring date.
- A recently released ex-felon.
- An 18- to 39-year-old resident of one of the 105 federally designated Empowerment Zone/Renewal Communities.
- A 16- to 17-year-old Empowerment Zone/Renewal Community resident hired between May 1 and September 15 as a Summer Youth Employee.
- An 18- to 39-year-old member of a family that is receiving or has recently received food stamps.
- A recipient of Supplemental Security Income (SSI) benefits.
- A long term family assistance recipient.
The person hired must be employed for at least 120 hours.
The first step is pre-screening to determine eligibility. The jobseeker or the employer must complete the following forms:
- Individual Characteristics Form Work Opportunity and Welfare-to-Work Tax Credit ETA 9061
- Certification Welfare Opportunity and Welfare-to-Work Tax Credits 9062
- Pre-Screening Notice and Certification Request for Welfare Opportunity and Welfare-to-Work Credits Form 8850. Instructions for completing Form 8850 are provided.
The employer and the jobseeker must sign the Form 8850 stating that the jobseeker is a member of a target group. The employer then sends the forms to the Division of Career Services postmarked no later than the 28th day after the jobseeker begins work.
Work Opportunity Tax Credit Unit
Department of Career Services
19 Staniford Street
Boston, MA 02114
For more information, contact the Department of Career Services at (617) 626-5300.