Work Opportunity Tax Credit
Tax credit
Agency: Internal Revenue Service and state workforce agencies. Agency source
This directory is not tax advice. Confirm eligibility, tax-year rules, deadlines and filing requirements with a tax professional.
Authorization through 2025; do not assume 2026 hires qualify [IRS Work Opportunity Tax Credit]
- Who qualifies
- Employers hiring certified members of specified target groups; tax-exempt employers qualify only for certain veteran hires. [IRS Work Opportunity Tax Credit]
- What it’s worth
- Generally 40% of up to $6,000 of first-year wages for qualifying employees working at least 400 hours; other rates and wage limits apply to particular groups. [IRS Work Opportunity Tax Credit]
- How to claim
- Pre-screen with Form 8850 by the job-offer date and request state workforce certification. After certification, taxable employers use Forms 5884 and 3800; eligible tax-exempt employers use Form 5884-C. [IRS Work Opportunity Tax Credit]
- Deadlines and application windows
- Published federal authorization runs through December 31, 2025. Submit Form 8850 within 28 days after work starts. [IRS Work Opportunity Tax Credit]
Amounts are subject to the conditions in each listing. A source review does not mean applications are open or that a business qualifies.
Official sources
Listing reviewed