Tennessee Employers Save Millions of Dollars with Tax Credit

Thursday, November 10, 2016 | 1:32pm

State issues $153.3 million in Work Opportunity Tax Credits So Far in 2016

NASHVILLE - The Workforce Services Division of the Tennessee Department of Labor and Workforce Development (TDLWD) is on track to issue a record number of Work Opportunity Tax Credits (WOTC) to employers across the state.

January 1, 2016 through October 31, 2016 the Department issued 71,336 WOTC certifications, which represents a potential tax savings to Tennessee employers of $159,367,400. “This tax credit can really impact the bottom line of an employer, while helping an individual who is struggling to find meaningful employment. It is a win-win situation for everyone,” said TDLWD Commissioner Burns Phillips.  

Just in the month of October the Department processed 13,400 certifications, with a potential tax savings to employers of $5.5 million. The state is on track to issue between 95,000 and 100,000 certifications during this calendar year, which would equate to over $212 million in potential tax savings for employers across Tennessee.

  • Long-term unemployed
  • $2,400

  • Veterans
  • $2,400 - $9,600

  • SNAP recipients
  • $2,400

  • Ex-felons
  • $2,400

  • Vocational rehabilitation
  • $2,400

  • SSI recipients
  • $2,400

  • TANF recipients
  • $2,400 - $9,600

The Work Opportunity Tax Credit program is designed to assist Tennesseans from certain targeted groups who have consistently faced significant employment barriers with re/entering the labor force. The program provides federal tax credit incentives to employers for hiring these individuals that range from $1,200-$9,600.

Targeted groups include; long-term unemployed, veterans, SNAP recipients, ex-felons, persons in vocational rehabilitation, Social Security Insurance recipients, Temporary Assistance for Needy Families recipients, as well as several other groups.

“This program has made a tremendous impact on Tennessee. WOTC helps targeted workers move from economic dependency, into self-sufficiency, by earning a steady income and become contributing taxpayers. Participating employers simultaneously reduce their income tax liability, making it easier to do business,” Commissioner Phillips said.

Last spring the TDLWD simplified the process for employers to apply for the WOTC program by transitioning to an online application. This not only speeds up the approval process, it will eliminate the use of more than 700,000 pieces of paper each year.

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Labor & Workforce Development