U.S. Department of Labor awards $2.5 million in tax credit grants

WASHINGTON – The U.S. Department of Labor announced the award of approximately $2.5 million in grants through the Work Opportunity Tax Credit that incentivizes workplace diversity and facilitates access to good jobs for American workers.

These awards will help state work force agencies streamline their business processes and systems to reduce the processing backlog, including the number of accumulated certification requests that employers have submitted and await processing.

WOTC is a federal tax credit available to employers for hiring individuals from certain targeted groups – including qualified veterans, ex-felons, qualified long-term unemployment recipients and individuals who receive Supplemental Nutrition Assistance Program benefits – who have consistently faced significant barriers to employment.

“The U.S. Department of Labor is committed to helping states that are in need of upgrading their Work Opportunity Tax Credit processing systems or conducting other activities to reduce their backlogs to ensure U.S. employers can benefit from the federal tax credit,” said Assistant Secretary of the Employment & Training Administration John Pallasch.

The Department and the IRS jointly administer the WOTC program implementation. State work force agencies administer the certification process, ensuring that individuals hired by employers meet the qualifications of the claimed targeted group. The IRS administers all tax-related provisions and requirements.

ETA will award WOTC grants to the following states, which are experiencing significant processing backlogs:

♦ California — $325,000

♦ Indiana — $325,000

♦ New Jersey — $325,000

♦ New York — $325,000

♦ Connecticut — $200,000

♦ Kansas — $200,000

♦ North Carolina — $200,000

♦ Virginia — $200,000

♦ Alaska — $100,000

♦ Delaware — $100,000

♦ Idaho — $100,000

♦ Wyoming — $100,000

The mission of the department is to foster, promote and develop the welfare of the wage earners, job seekers and retirees of the United States; improve working conditions; advance opportunities for profitable employment, and assure work-related benefits and rights.

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