The Department of Labor issued a letter to states that may see the Work Opportunity Tax Credit (WOTC) retroactively authorized. They are not guaranteeing that Congress will act, but based on past experiences this may be a fair expectation. The legislative authority on WOTC expired on 12/31/2013.
According to the Department of Labor website, www.doleta.com, the WOTC is a Federal tax credit available to employers for hiring individuals from certain groups who have consistently faced significant barriers to employment. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers. WOTC helps targeted workers move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers, while participating employers are able to reduce their income tax liability. The maximum tax credit ranges from $1,200 to $9,600, depending on the employee hired.