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Work Opportunity Tax Credit (WOTC)

Breaking News: 

IRS Notice 2016-40 Extends Retroactive Filing—Transitional Relief 

*****The IRS has allowed for Retroactive Filing--Transitional Relief Period for the Work Opportunity Tax Credit program.*****For the new Long Term Unemployed Target Group start work dates from January 1, 2016- August 31, 2016 must be postmarked by September 28, 2016.All other target groups with Start Work dates from January 1, 2015 –August 31, 2016 must be postmarked by September 28, 2016. 

On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012 (the Act), which authorizes an extension of the WOTC program. In summary, the Act:

  • Extends authorization for all veteran target groups (including those implemented under the VOW to Hire Heroes Act) to December 31, 2013.

  • Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013.

  • Retroactively reauthorizes the Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013.

  •  Does NOT reauthorize the Recovery Act disconnected youth and Recovery Act unemployed veteran target groups.

The new forms have arrived: Form 8850, Form 8850 Instructions and Form 9061.  These new forms need to be used for any Work Opportunity Tax Credit application filed after October 29, 2012.

For more information, please visit the USDOL Employment and Training Administration Web Site

Effective November 22, 2011 President Obama signed into law The Vow to Hire Heroes Act of 2011 which extends prior WOTC categories: the Veterans receiving SNAP benefits, Veterans with a service connected disability and Veterans with a service connected disability unemployed for at least 6 months, for a tax credit of up to $9,600 and created a new target group for Unemployed Veterans (similar to the Recovery Act of 2009) unemployed for at least 4 weeks for a tax credit of up to $2,400 or unemployed for at least 6 months for a tax credit up to $5,600.

Work Opportunity Tax Credit (WOTC)

Work Opportunity Tax Credit (WOTC Overview)

Print Version (PDF, 107KB)

Earn a Federal tax credit per qualified individual hired through the WOTC administered by the Connecticut Department of Labor (DOL) Work Opportunity Tax Credit Unit. It's easy:

  • You choose the new employee who is qualified for one of the designated groups.

  • There is no limit on the number of people you can hire under this program.

  • Only minimal paperwork must be filed to claim a tax credit.

Current WOTC Target Groups:

On or after January 1, 2012 and before December 31, 2013 (retroactive re-authorization of target groups)

  • Temporary Assistance to Needy Families (TANF) recipient

  • Ex-felon*

  • Food Stamp recipient

  • Designated Community Residents

  • Summer Youth employee

  • Supplemental Security Income (SSI) recipient or Ticket-to-Work holder

  • Qualified Veteran (VOW to Hire Heroes)

  • Vocational Rehabilitation Referral or Ticket-to-Work holder

  • Long-Term Family Assistance Recipient (LTFAR)

Consider adding a Federal Bond when hiring individuals from designated groups. For more information click here.

Or, for the Connecticut Bonding Coordinator, please contact:

Mr. Donatus Ojide, Bonding Coordinator at 860-263-6797

Bonding Service Coordinator

Connecticut Department of Labor

200 Folly Brook Blvd

Wethersfield, CT 06109



Who Does Not Qualify For The WOTC Tax Credits:

  • Employers not covered by the Federal Unemployment Tax Act (FUTA)
  • Relatives of the employer
  • Individuals rehired by an employer
  • Individuals employed in Federally subsidized on-the-job training positions


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Tax Credit Home Page

200 Folly Brook Boulevard, Wethersfield, CT 06109 / Phone: 860-263-6000

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