On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 that extends the Work Opportunity Tax Credit (WOTC) program until December 31, 2019. The 5 year reauthorization includes retroactively reauthorizing the WOTC program with all its current target groups without changes or new provisions, for a 5-year period, after December 31, 2014 to December 31, 2019.
There has been a new target group added to the program called Qualified Long-Term Unemployment Recipients for new hires from January 1, 2016 through December 31, 2019.
The Work Opportunity Tax Credit helps people move from welfare to work and gain on-the-job experience by encouraging private employers to hire within one of several targeted groups of job candidates who traditionally face significant barriers to employment, reducing employer’s federal income tax liability by as much as $2,400 per qualified new worker in the first year of employment. The targeted candidates are: