Department of Labor and Workforce Development
James G. Neeley, Commissioner
Work Opportunity Tax Credit (WOTC)
On May 25, 2007, the President signed into law the "Small Business and Work Opportunity Tax Act of 2007”, which in part, reauthorized and extended the Work Opportunity Tax Credit (WOTC) through August 31, 2011.
The reauthorization made certain modifications to the WOTC tax credit program for employees that begin work for an employer after 05-25-2007, including, but not limited to, the following:
- Renames the High-Risk Youth Group (Target Group D) and calls it Designated Community Residents;
- Increases the age criteria for Designated Community Residents (Target Group D) to 18 through 39 years of age;
- Expanded Designated Community Residents (Target Group D) to include employee’s who reside in a Rural Renewal County ;
- Establishes a new “Disabled Veteran” sub-group under the current Qualified Veteran Category (Target Group B).
During federal fiscal year 2006, which ended on September 30, 2006, the Tennessee Department of Labor and Workforce Development issued 26,151 federal Work Opportunity Tax Credit (WOTC) certifications and 14,248 Welfare-to-Work (WtW) Tax Credit certifications representing in excess of $150 million in potential federal income tax savings to Tennessee employers. The 2006 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 these tax programs since their inception in 1996. These efforts, along with our partnering state and local agencies have resulted in Tennessee being one of the nation’s top 3 producing states as it relates to the amount of potential Federal income tax credits it has been able to return to eligible Tennessee employers.
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
