Work Opportunity Tax Credit (WOTC)

Learn more about the federal Work Opportunity Tax Credit (WOTC), available to employers who hire people from certain targeted groups.

About the WOTC program

WOTC allowed employers to reduce their federal income tax liability when they hired people in certain targeted groups who face significant barriers to employment.

During a reauthorization lapse, employers can continue to submit requests (28 calendar days from the start date of employment).  If the program is reauthorized retroactively MDCS will work on cases in the order they were received.

Program requirements and limits

The MassHire Department of Career Services (MDCS) determines employer and applicant eligibility for WOTC.

• There is no hiring limit for this tax credit, as long as each employee identifies as being in one of these targeted groups.
• The tax credit amount is based on a percentage of qualified wages paid to the new employee in their first year of employment (with the exception of long term TANF recipients).
• The percentage and cap on qualifying wages depends on which group the employee is in.

How to certify

While the WOTC program is not currently authorized, employers can continue to certify employees hired after December 31, 2025. If the program is re-authorized, MDCS will process requests in the order they were received.

Submit a WOTC certification request 

How to claim the credit

Employers who certified their eligibility and hired employees before December 31, 2025 can claim the credit by following instructions on the IRS website.