The U.S. Department of Labor announced twelve state recipients of $2.5 million in grants to help improve their WOTC programs. WOTC is an acronym for Work Opportunity Tax Credit. Agencies in some states suffer from multi-year processing backlogs and severely need improvements.
According to Assistant Secretary of the Employment & Training Administration John Pallasch:
“The U.S. Department of Labor is committed to helping states that are in need of upgrading their Work Opportunity Tax Credit processing systems or conducting other activities to reduce their backlogs to ensure U.S. employers can benefit from the Federal tax credit.”
The twelve states and their award amounts include:
- California – $325,000
- Indiana – $325,000
- New Jersey – $325,000
- New York – $325,000
- Connecticut – $200,000
- Kansas – $200,000
- North Carolina – $200,000
- Virginia – $200,000
- Alaska – $100,000
- Delaware – $100,000
- Idaho – $100,000
- Wyoming – $100,000
The WOTC program is currently set to expire at the end of 2020. However, interest continues in Congress to extend (and even to expand) this tax provision. Congress has reauthorized WOTC more than a dozen times since it’s inception in 1996.
Read the DOL’s press release here: https://www.dol.gov/newsroom/releases/eta/eta20200915-1
