Work Opportunity Tax Credit
Overview
Minnesota now has an online WOTC application filing system which allows employers to file applications electronically. Any business which employs workers in the state of Minnesota or any tax credit consultant which represents an employer through a power of attorney may use the WOTC electronic filing system. Contact the WOTC Unit for system registration assistance.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to all private sector businesses as an incentive to employers to hire workers in certain groups who consistently experience high rates of unemployment.
The tax credit allows employers to reduce their federal tax liability by up to $9,000 per new hire. For-profit businesses of any size qualify. And the tax credit applies to temporary, seasonal, part-time and full-time workers. The tax credit is available for new hires with job start dates through December 31, 2011. Employers should continue to submit applications for hires in 2012 while we await reauthorization of the program by Congress.
The WOTC applies only to new employees who have never worked for the hiring employer at any other time.
- Any size for-profit employer may apply for the WOTC.
- No limit to the number of new hires an employer may claim for the WOTC in any calendar year.
- No relatives or dependents or majority business owners qualify as WOTC hires.
- Self-employed individuals do not qualify as WOTC hires.
- Temporary, seasonal, part-time and full-time work applies.
- Any type of job is acceptable.
Learn about the expanded tax credit for hiring veterans (Vow to Hire Heroes Act) in the Qualifying Groups section.
Contact the Minnesota WOTC Unit
Telephone: 651.259.7507
Toll Free: 888.234.5521
Email: deed.wotc@state.mn.us