The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced significant barriers to employment. The target groups include unemployed veterans, ex-felons, designated community residents in Rural Renewal Counties (ages 18 to 39), etc. Some of the Rural Renewal Counties in our area include Keokuk, Appanoose, Adams, Wayne, and Poweshiek. Your business does not need to be in one of these counties to qualify, you just need to hire an employee that resides in one of the counties. This credit must generally be applied for within 28 days of the employee’s hire date.
For more information on applying in Iowa, click here. If you have recently hired anyone you think might qualify or hire anyone in the future that qualifies, please contact our office for assistance with the application process.