WOTC
A History of WOTC
The Work Opportunity Tax Credit was created in 1996 to encourage hiring from designated target groups. Over three decades, Congress has expanded those groups, merged related credits, and updated how states process certifications.
Abhay Patel · Co-Founder · WOTC Practice · Dallas, Texas·October 29, 2026
1996: WOTC established
The Small Business Job Protection Act introduced WOTC to incentivize hiring individuals from disadvantaged backgrounds.
1997–2002: expanded target groups
The Welfare-to-Work credit and SSI recipients were added, with refined eligibility for veterans.
2006: program consolidation
The Welfare-to-Work credit merged into WOTC, simplifying administration.
2009: Recovery Act
Unemployed veterans and disconnected youth became new target groups.
2011: VOW to Hire Heroes Act
Higher credit amounts became available for hiring long-term unemployed veterans.
2015: PATH Act
Congress extended WOTC and introduced electronic filing options to streamline certification.
2023: updated DOL guidance
New procedural guidance for state workforce agencies aimed to reduce certification backlogs.
This article is general information, not legal or tax advice. For how FCA applies this to a claim, see WOTC.