Work Opportunity Tax Credit (WOTC) Program

Important Notices

Lapse in WOTC Program Authorization

The Work Opportunity Tax Credit (WOTC) was congressionally authorized through December 31, 2025 (Section 113 of Division EE of P.L. 116-260 — Consolidated Appropriations Act, 2021). At this time, the Employment and Training Administration (ETA) has not indicated whether Congress will pass legislation to reauthorize WOTC.

 During the lapse in WOTC authorization, states will follow the procedures outlined in ETA’s WOTC Procedural Guidance:

  • Accept and fully process all timely submitted WOTC certification requests for individuals with start dates on or before December 31, 2025.
  • Accept, date stamp, log, and retain certification requests submitted using the required IRS and ETA WOTC processing forms for individuals with start dates on or after January 1, 2026, provided they are submitted within the Department of Labor’s 28‑day timeliness requirement.
  • Not release certification request determinations for individuals with start dates on or after January 1, 2026, until Congressional reauthorization occurs.

 Consultants and independent employers should continue submitting certification requests within the 28‑day DOL timeliness requirement.

Additional information will be provided as it becomes available from the U.S. Department of Labor (DOL) Employment and Training Administration (ETA). For specific questions, please contact the WOTC Department at wotc@dew.sc.gov.

Conditionally Certified Individuals

The Work Opportunity Tax Credit program, known as WOTC, provides tax credits for businesses each time they hire a new, eligible employee.  The program is simple.  Businesses make the hiring decision and complete minimal paperwork to apply for a certification to take the tax credit.  With absolutely no limit on the number of qualified hires a business can claim, businesses may receive a credit from $1,200 up to $9,600 for each qualified individual.  

Recently, the SC Department of Employment and Workforce partnered with the SC Department of Corrections and SC Works Disabled Veterans’ Outreach Program staff to provide individual job seekers with a WOTC Conditional Certification.  The WOTC Conditional Certification increases an employer’s opportunity to receive the WOTC tax credit when hiring an individual that is conditionally certified.  If you receive a WOTC Conditional Certification from a newly hired individual, reach out to the WOTC Department at wotc@dew.sc.gov.

What is WOTC? 

Businesses that take advantage of the Work Opportunity Tax Credit (WOTC) program may receive a tax credit every time they hire an eligible new employee.

Administered by the S.C. Department of Employment and Workforce, WOTC is a federally funded tax credit program designed to provide an incentive for businesses to hire unemployed veterans, disabled veterans and individuals with documented barriers to employment.

“For-profit” entities can receive a 40 percent tax credit against first-year qualifying wages paid when new hires have been employed for 400 hours or more. (Qualifying wage caps apply.)

Qualified tax-exempt “not for-profit” 501(c) entities can participate when hiring qualifying veterans. The credit is 26 percent of the first-year wages when new hires have been employed for 400 hours or more. (Qualifying wage caps apply.)

With absolutely no limit on the number of qualified hires your business can claim, you can receive anywhere from $2,400 to $9,600 for each one of your eligible employees.

The program is simple. Businesses make the hiring decision, and then complete the minimal paperwork to apply for the credit.

You can benefit from hiring within the following groups:

  • Temporary Assistance for Needy Families (TANF) recipient
  • Supplemental Nutrition Assistance Program (SNAP) recipients
  • Empowerment Zone residents
  • Marlboro County Rural Renewal Community residents
  • Vocational Rehabilitation or Ticket-to-Work Participants
  • Recently released ex-felons
  • Supplemental Security Income (SSI) recipients
  • Disabled veterans who within the last year were discharged or unemployed for more than six months
  • Unemployed veterans
  • Veterans receiving SNAP
  • Long-term unemployment recipient

You can mail or electronically file your requests. Requests must be postmarked or e-filed within 28 days of the employee’s start date. 

Take advantage of the WOTC program and increase your return on investment while helping targeted employees become self-sufficient and earn a steady income. 

Tools

Click the links below to view and print the forms you will need to participate in this program.  

For more information, contact WOTC@dew.sc.gov or click here to visit the Department of Labor's website.

Click here to view the brochure for more information.