The Work Opportunity Tax Credit (WOTC) is a federal credit available to private-for-profit employers who hire from specific targeted groups (see link for list below) of people that have in the past experienced difficulty in securing employment. For the first year of employment, WOTC allows maximum credits of $4,800. Targeted groups include, among others, disabled veterans and unemployed veterans. WOTC has been reauthorized through 2019, and a new category for the Long Term Unemployed has been announced effective January 1, 2016. In order to qualify, a new hire must have been unemployed at least 27 weeks or longer on the day before their start date, AND must have collected unemployment benefits at some time (even one week) during that period of unemployment.
In New Jersey, applications that were submitted in accordance with the IRS Transitional Relief period that ended August 31, 2016 may not be processed until all other applications submitted timely have been processed.