The WOTC promotes the hiring of individuals who qualify as members of target groups, by providing a federal tax credit incentive of up to $9,600 for employers who hire them.

The Protecting Americans from Tax Hikes Act of 2015 (Pub. L. 114-113) (the PATH Act) reauthorizes the WOTC program and Empowerment Zones, without changes, through December 31, 2019. The PATH Act also introduced new target group L – Qualified Long-Term Unemployment Recipient – for new hires that begin to work for an employer on or after January 1, 2016.

The WOTC has two purposes:

To promote the hiring of individuals who qualify as a member of a target group, and

To provide a federal tax credit to employers who hire these individuals.

The Employment Development Department is the WOTC certifying agency for California employers.