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Work Opportunity Tax Credit (WOTC)

Veteran Tax Credits Extended and Increased In Scope

Congressional passage of "The Tax Relief, UI Reauthorization and Job Creation Act of 2010," in part, reauthorized and extended the Work Opportunity Tax Credit (WOTC) Program through December 31, 2011..

The reauthorization made certain modifications to the WOTC tax credit program for employees that begin work for an employer after 12-31-2009, including, but not limited to, the following:

  • Re-instates retroactively each HUD designated Rural Empowerment Zone (EZ) from January 01, 2010 through December 31, 2012, reference Group D "Designated Community Resident"

During federal fiscal year 2011, which ended on September 30, 2011, the Tennessee Department of Labor and Workforce Development issued 50,025 federal Work Opportunity Tax Credit (WOTC) certifications representing in excess of $201 million in potential federal income tax savings to Tennessee employers. The 2011 WOTC Certification level represents an increase over the previous year’s activity.

The Tennessee Department of Labor & Workforce Development, working with USDOL, the Internal Revenue Service, and other states, has been among the leaders in developing clear and effective regulatory requirements for the Work Opportunity Tax Credit (WOTC) Program since its inception in 1996. These efforts, along with our partnering state and local agencies have resulted in Tennessee being one of the nation’s top 5 producing states as it relates to the amount of potential Federal income tax credits it has been able to return to eligible Tennessee employers.

In an effort to streamline the WOTC application requirements, recent IRS guidance (Notice 2012-13) allows employers to submit a completed and signed Form 8850 to TDOL&WD via a fax transmission.  All faxed WOTC applications should be sent to 615-532-1612.

To receive additional information regarding the WOTC tax credit program, please call 1-800-432-5268 (in state only) or fax your request to 615-532-1612.

IRS Form 8850 - PreScreening Notice and Certification Request

ETA Form 9061 - Individual Characteristics Form

Attention Employers!!

Employers may also be eligible for a "State Tax Credit" under the Tennessee Jobs Tax Credit for Hiring Persons With Disabilities (TJTC).  This is a one-time "State Tax Credit" which may be available to qualified employers who establish either full-time or part-time jobs(s) for persons with disabilities who are receiving state services directly related to such disability.  For more information about the Tennessee Jobs Tax Credit for Hiring Persons With Disabilities, visit the TJTC - Frequently Asked Questions Web page.