What Are WOTC Target Groups?

Target groups are defined groups specific to WOTC for which a new hire may be eligible, depending upon his or her personal circumstances. Each target group has specific requirements which the new hire must meet in order to be verified (approved) for the WOTC Program. Only one target group is approved on a new hire. Not all target groups are alike—some provide a higher tax credit than others (see the chart below for details).

WOTC Target Groups Maximum Tax Credit* Age**
Designated Community Resident

$2,400

18-39

Disconnected Youth (expired 12/31/2010)

$2,400

16-24

Ex-Felon

$2,400

None

SNAP† (Food Stamp) Recipient

$2,400

18-39

Summer Youth

$1,200

16-17

Supplemental Security Income (SSI) Recipient

$2,400

None

TANF†† Recipient—Long-Term Family Assistance (This target group has a possible combined 2-year maximum tax credit of $9,000.)

Year 1: $4,000

Year 2: $5,000

None

TANF†† Recipient—Short-Term IV-A

$2,400

None

Veteran:
-SNAP† (Food Stamp) Recipient

$2,400

None

-Service-Connected Disabled Veteran

$4,800

None

Unemployed Veteran (expired 12/31/2010)

$2,400

None

Vocational Rehabilitation Referral

$2,400

None

*The actual tax credit may vary depending upon the number of hours worked and whether the wage cap or actual wage amount is used in the tax credit calculation.

**Age requirement as of hire date.

†Supplemental Nutrition Assistance Program

††Temporary Assistance for Needy Families

NOTE: The SNAP (Food Stamp) eligibility requirements differ between the SNAP (Food Stamp) Recipient target group and the Veteran target group.

The information in the chart above is subject to change. Visit www.doleta.gov/business/incentives/opptax/ to learn more about the WOTC target groups (Applying for WOTC, Eligible New Hires).