The Work Opportunity Tax Credit is a Federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. The program aims to incentivize workforce diversity by offering up to $2,400 in tax credit to any employer that hires an individual identified as being a member of one of 10 targeted groups.

The credit is equal to 40 percent of up to $6,000 of wages paid to, or incurred on behalf of, an individual who is in their first year of employment, performs at least 400 hours of services for that employer, and is certified as being a member of a targeted group.

Targeted groups include recipients of SNAP benefits or Supplemental Security Income (SSI), people with disabilities, ex-felons, and summer youth interns, among others. People in the targeted groups must be certified as belonging to that group.

As with all government programs, the Work Opportunity Tax Credit has specific criteria and rules which must be followed. Consult the IRS criteria and target group list, and contact your business accountant for more information.

Note: This information about the Work Opportunity Tax Credit does not constitute legal advice.