Congress is currently considering legislation related to the reauthorization of the federal Work Opportunity Tax Credit (WOTC). As employers may have questions about the timing and implications of this process, it is important to provide clear context and practical guidance.
While Congress has not yet completed reauthorization, the WOTC program has historically been renewed following temporary lapses. During these periods, employers are advised to continue normal screening and filing practices.
Why Reauthorization Happens
The WOTC program was intentionally designed by Congress to require periodic reauthorization. Since its creation in 1996, the program has been successfully renewed more than a dozen times. In several instances, renewals occurred after short legislative gaps caused by negotiations over unrelated legislation.
These brief hiatuses are a known feature of the program’s legislative history and do not require employers to alter their participation.
What Employers Should Do Right Now
During temporary reauthorization gaps, state workforce agencies instruct employers to continue screening all new hires and to submit WOTC applications on time, just as they would under normal circumstances. This ensures that eligible hires remain fully documented and properly positioned for certification once reauthorization is finalized.
There is no recommendation to pause or modify WOTC screening or filing activity.
WOTC Planet continues to operate as usual and is closely monitoring legislative developments. Employers will be informed as new information becomes available.
Reauthorization — Frequently Asked Questions
- What does “reauthorization” mean for the WOTC program?
The Work Opportunity Tax Credit is a federal program that Congress periodically renews through legislation. This structure has been part of the program since its creation in 1996 and is intentional. Reauthorization allows Congress to extend the program for additional years.
. - Has WOTC ever lapsed or been temporarily delayed before?
Yes. Since 1996, WOTC has been renewed more than a dozen times. Several of those renewals occurred after brief gaps caused by broader legislative negotiations unrelated to WOTC itself. These short delays are not unusual.
. - What is the current status of WOTC reauthorization?
Congress has not yet completed reauthorization. Historically, the WOTC program has been renewed following temporary lapses, and employers are advised to continue normal screening and filing practices during this period.
. - Should employers stop screening new hires for WOTC during this period?
No. During temporary reauthorization gaps, state workforce agencies instruct employers to continue screening all new hires and to timely submit WOTC applications, just as they would under normal circumstances.
. - Will WOTC applications submitted during the hiatus still be valid?
Yes. Continuing to screen and submit applications ensures that eligible hires are fully documented and properly positioned for certification once reauthorization is finalized.
. - Does this affect previously certified or claimed WOTC credits?
No. Credits that have already been certified or claimed are not affected by the reauthorization timing.
. - What should employers do right now?
No changes to standard WOTC procedures are recommended at this time.
Employers should:- Continue screening all eligible new hires
- Continue submitting WOTC applications within required timeframes
- Maintain normal onboarding and documentation practices
.
- How will employers be updated as Congress moves forward?
WOTC Planet is monitoring legislative developments closely and will provide updates as new information becomes available.
. - Will WOTC Planet continue operating and supporting employers as usual during this period?
Yes! WOTC Planet will continue normal operations without interruption. All screening, application processing, monitoring, and employer support services will proceed as usual. There are no changes to workflows, service levels, or employer responsibilities during the reauthorization period.
Final Reassurance
State WOTC agencies encourage employers to continue their WOTC participation without interruption. Temporary reauthorization gaps are a known and recurring aspect of the program’s legislative history. By continuing to screen new hires and submit applications on time, employers preserve eligibility, ensuring qualifying credits are not missed once reauthorization is finalized.
WOTC Planet will continue operating as usual and remains actively engaged in monitoring developments and supporting employers throughout this process.
