Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) is a federal tax credit that encourages employers to hire targeted groups of job seekers. WOTC can reduce employer federal tax liability by as much as $2,400 to $9, 600 per new hire. 

The targeted groups are Category A: Welfare Recipients, Category B-1: Veterans Receiving Food Stamps, Category B-2: Disabled Veterans, Category C: Ex-Felons, Category D: Designated Community Residents, Category E: Vocational Rehabilitation Recipients, Category G: Food Stamp Recipients, Category H: Supplemental Security Income Recipients, Category I: Long Term TANF Recipients, Category V: Unemployed Veterans. Each target group has its own specific requirements.

For more details view the ETA WOTC Handbook No. 408 Third Edition (page II-1 Target Groups At-A-Glance). 

Get Started

You must apply for and receive certification from the Colorado Department of Labor and Employment WOTC Unit, verifying that any new hire is a member of a WOTC target group before you can claim WOTC on the federal tax return. This must be done within 28 days of the new hire’s start date. 

Watch A Webinar To Learn About The Application Process

Apply Online Button

 

 

Or complete the following forms:


Resources


Contact Us

Shirley Dixon
WOTC Coordinator
303-318-8845
Fax 303-318-8934
shirley.dixon@state.co.us

Frances Pineda
303-318-8961
Fax 303-318-8934
frances.pineda@state.co.us

Ashley Watikai
303-318-8809
Fax 303-318-8934  
ashley.watikai@state.co.us

Celia Hardin
Business Solutions Manager
303-318-8812
celia.hardin@state.co.us

Colorado Department of Labor & Employment, WOTC Unit
633 17th Street, Suite 700, Denver, CO 80202-3927

Tax related questions should be directed to IRS, Washington, D.C, Robin Ehrenberg at 1-202-622-6080

Information on Colorado Works Program Credit; this program is not related to WOTC, it is administered by the Colorado Department of Revenue, contact Richard Giardini  rgiardini@spike.dor.state.co.us or 303-856-3900.