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Work Opportunity Tax Credit

WOTC Program Updates

WOTC Program Update-June 17, 2016

On December 18, 2015, President Obama signed the Consolidated Appropriations Act of 2016 into law. The WOTC program was reauthorized without changes to existing target groups retroactively as of January 1, 2015. Modification of the WOTC program now includes a new target group, qualified long-term unemployment recipients, starting January 1, 2016. Additionally, the WOTC program has been granted an extension through December 31, 2019. The retroactive authorization applies to new hires that began work for an employer on or after January 1, 2015 and through December 31, 2015. The reauthorization means that the D.C. Department of Employment Services (DOES) may issue final determinations for the calendar year 2015.

For most or all certification requests received and processed during the 2015 hiatus:

DOES released all 2015 certifications and denials to employers or their representatives – all of which are available on the WOTC web page for all registered entities.

For certification requests that were received and filed during the 2015 hiatus but were not processed:

DOES will process and conduct all required eligibility determinations for those certification requests and will issue final certifications and denials to employers or their representatives.

Please be advised that TEGL No. 25-15 was published with the incorrect date of September 29, 2016. The correct date to conclude the WOTC transitional relief period extension is September 28, 2016. The TEGL will be corrected; however, any application submitted on September 29, 2016, will be considered late. All appropriate forms have been updated and approved by the U.S. Office of Management and Budget (OMB). To allow States and the employer community time to modify their automated systems with the revised IRS and Employment and Training Administration (ETA) Forms, ETA grants a 90-day grace period, which begins on the issue date of the TEGL and ends up to 90 calendar days later. During this grace period, employers and their authorized representatives will be required to file certification requests using other filing methods (e.g., via email, fax, scanned, mail) using the OMB Control Number 1205-0371, ETA Forms (Revised May 2016), and OMB Control Number 1545-1500 IRS Form 8850 (Revised March 2016) for all WOTC eligible groups.
 
We encourage District employers to continue to submit all qualified WOTC applications promptly. Please be advised that WOTC applications for Designated Community Residents or Summer Youth Employees living in the District are no longer valid due to expiration on December 31, 2011. However, other state residents within these target groups who work for businesses located in the District may qualify.