Work Opportunity Tax Credit Program

Purpose
This program provides a federal tax credit to private-sector employers as an incentive for hiring members of targeted groups who traditionally have difficulty finding jobs. 

Customers
Primary customers are Minnesota employers interested in hiring targeted job seekers, and the targeted job seekers themselves. Targeted groups include recipients of the Minnesota Family Investment Program; unemployed veterans who received food stamps or who are entitled to compensation for a service-connected disability; ex-felons hired within one year after conviction or release from prison; Vocational Rehabilitation clients and Ticket-to-Work holders; summer youth, age 16-17, who reside in the Empowerment Zone (EZ) located within the city of Minneapolis; individuals, age 18-39, who reside in the Minneapolis EZ or in a designated Minnesota rural renewal county; individuals, age 18-39, who received (SNAP) food stamps; and individuals who have received Supplemental Security Income. 

DEED provides program information to job seekers, employers, and agencies that serve these targeted job seekers; and certifies employer applications.

Under the American Recovery and Reinvestment Act of 2009, two new temporary groups were added for 2009 and 2010 only: unemployed veterans who received federal or state unemployment compensation; and disconnected youth, age 16-24, who lack basic skills. 

Measures - Reporting period is state fiscal year (SFY), July 1 - June 30

More DEED measures: Uniform Program Accountability Measures

Funding Source and Appropriation/Allocation (in thousands)

Statutory Authority
-- Small Business Job Protection Act of 1996 - Public Law (Pub. L.) 104-188; Taxpayer Relief Act of 1997 - Pub. L. 105-34; Ticket to Work and Work Incentives Improvement Act of 1999 - Pub. L. 106-170; Job Creation and Worker Assistance Act of 2002 - Pub. L. 107-147; Working Families Tax-Relief Act of 2004 - Pub. L. 108-311; Tax Relief and Health Care Act of 2006 - Pub. L. 109-432; Small Business and Work Opportunity Tax Act of 2007 - Pub. L. 110-28; U.S. Code, Title 26; American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5); Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (Pub. L. 111-312)

Contact Information
Frances Regan, Program Coordinator
Phone: 651.259.7508; Fax: 651.297.7722; TTY: 651.296.3900

This information current as of December 2011.