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Work Opportunity Tax Credit (WOTC) 


Overview:

The Work Opportunity Tax Credit (WOTC) reduces an employer's cost of doing business, while helping those most in need gain valuable work experience. The credit provides tax savings to employers who hire people from certain target groups, including welfare recipients, veterans, youth and ex-felons. In the end, WOTC helps increase America's economic growth and productivity.

Contact:

Illinois Department of Employment Security
250 N. Chicago Street
Joliet, IL 60432
(815) 740-5148

Illinois Department of Employment Security
321 Quadrangle Drive
Bolingbrook, IL 60440
(630) 759-0647

Website:

http://www.ides.state.il.us/employer/ui-credits.asp


Eligibility:

The WOTC Target Groups include:

    • Families receiving Temporary Assistance for Needy Families (TANF)
    • Qualified Veterans 
    • Ex-felons
    • Designated Community Residents
    • Vocational Rehabilitation Referrals
    • Summer Youth Employees
    • Food Stamp Recipients
    • SSI Recipients
    • Long-term Family Assistance Recipients


Employer Benefits:

The Work Opportunity Tax Credit saves employers money and requires little paperwork. Helping those most in need find and retain jobs and gain on-the-job experience benefits all employers and increases America's economic growth and productivity. 


The credit amount depends on which WOTC target group a new hire qualifies into and the number of hours a new hire works. For example, the maximum tax credit for short-term welfare recipients, qualified veterans and ex-felons is $2,400 per hire. But the maximum credit is $4,800 for a disabled veteran and $9,000 over a two-year period for long-term welfare recipients.