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Work Opportunity Tax Credit extended, long-term jobless now eligible

December 28, 2015

The year-end spending and tax bill passed into law this month extends the Work Opportunity Tax Credit for five years and adds long-term unemployed as a target group. The WOTC was renewed retroactively through Dec. 31, 2019.

The Federal tax credit is available to employers that hire individuals from certain target groups who have consistently faced significant barriers to employment, such as low-income and veterans. The new bill adds long-term unemployment recipient as another target group, and includes employees hired after Dec. 31, 2015 that are unemployed for at least 27 weeks and receiving unemployment compensation under State or Federal law.

Participating companies will continue to get $2,400 to $9,600 for each eligible new hire, according to software provider TC Services USA Inc.