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. 

 

 

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

James Newby
Business Solutions Manager
303-318-8816
james.newby@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.