Work Opportunity Tax Credit

Colorado Department of Labor and Employment Apprenticeship

Colorado

Funding Colorado Funding Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that incentivizes employers for hiring within targeted groups of job seekers. The WOTC can reduce employer federal tax liability by as much as $9600, when you hire talented, skilled, hard-to-place job seekers. Read...

Overview

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that encourages employers to hire targeted groups of job seekers. WOTC can reduce employer federal tax liability by as much as $2,400 to $9, 600 per new hire. You must apply for and receive certification from the Colorado Department of Labor and Employment (CDLE) WOTC Unit, verifying that any new hire is a member of a "WOTC Target Group" (see above box labeled Targeted Groups) before you can claim a WOTC on your federal tax return. This must be done within 28 days of the new hire's start date. Start a new account and begin submitting applications on the WOTC Electronic Application website.