Kentucky Career Center

The Work Opportunity Tax Credit (WOTC) Program is a tax credit used by employers against federal taxes owed. The amount of the tax credit ranges from $1,200 to $9,600 (depending upon the Target Group).

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Please note that to be considered a veteran eligible for WOTC, an individual must meet these two standards:

1. Have served on active duty (not including training) in the U.S. Armed Forces for more than 180 days or have been discharged or released from active duty for a service-connected disability.
2. Not have a period of active duty (not including training) of more than 90 days that ended during the 60-day period ending on the hire date.

Target Group 2Ba Maximum Tax Credit $2,400	Veteran receiving SNAP: A Veteran who is member of a household that received SNAP benefits (food stamps) for at three consecutive months during the 15 month period prior to the hire date.
Target Group 2Bb Maximum Tax Credit $4,800	Veteran Disabled Discharged (within year): A Veteran who is entitled to compensation for a service-connected disability AND has a hire date within 1 year of discharge or release from active duty.
Target Group 2Bc Maximum Tax Credit $9,600	Veteran Disabled and Unemployed: A Veteran who is entitled to compensation for a service-connected disability AND was unemployed at least 6 months during the year ending on the hire date.
Target Group 2Bd Maximum Tax Credit $2,400	Veteran Unemployed 4 weeks: A Veteran who was unemployed at least 4 weeks, but less than 6 months during the year prior to the hire date.
Target Group 2Be Maximum Tax Credit $5,600	Veteran Unemployed 6 months: A Veteran who was unemployed at least 6 months during the year prior to the hire date.
Target Group E Maximum Tax Credit $2,400	Veterans Affairs Referral: An individual with a disability who completed or is completing rehabilitative services from the U.S. Department of Veteran of Affairs.

Target Group C Maximum Tax Credit $2,400	Ex-Felon: An individual who has been convicted of a felony within 1 year prior to the hire date.
Target Group C Maximum Tax Credit $2,400	Ex-Felon: An individual who has been convicted of a felony AND has release date from prison within 1 year prior to the hire date.
Target Group C Maximum Tax Credit $2,400	Ex-Felon: An individual charged with a felony but received “deferred adjudication” (without a finding of guilty, but only if the court considers this to have been a “conviction”) AND was placed on probation within 1 year prior to the hire date.
Target Group D Maximum Tax Credit $2,400	Designated Community Resident: An 18-39 year old who resides in a designated Rural Renewal County.
Target Group D Maximum Tax Credit $2,400	Designated Community Resident: An 18-39 year old who resides in a designated Empowerment Zone.
Target Group E Maximum Tax Credit $2,400	Vocational Rehabilitation Referral: An individual with a disability who completed or is completing rehabilitative services from a state-certified agency.
Target Group E Maximum Tax Credit $2,400	Ticket to Work Referral: An individual with a disability who completed or is completing rehabilitative services from an Employment Network under the Ticket to Work program.
Target Group F Maximum Tax Credit $1,200	Summer Youth Employee: A 16 or 17 year-old youth who works for the employer between May 1 and September 15 and resides in an Empowerment Zone.
Target Group G Maximum Tax Credit $2,400	SNAP (Food Stamp) Recipient: An 18-39 year old who is a member of a family that received Supplemental Nutrition Assistance Program (SNAP) benefits for the 6 month period ending on hire date.
Target Group G Maximum Tax Credit $2,400	SNAP (Food Stamp) Recipient: An 18-39 year old who is a member of a family that received Supplemental Nutrition Assistance Program (SNAP) benefits at least 3 months out of the 5-month period ending on the hire date, but has been determined ineligible to participate in the SNAP Program as the result of a failure to comply with the work requirements (Able-Bodied Adult without Dependents).
Target Group H Maximum Tax Credit $2,400	Supplemental Security Income (SSI) Recipient: A recipient of SSI benefits for any month ending within the 60-day period ending on the hire date.
Target Group A Maximum Tax Credit $2,400	Short-term TANF Recipient: A family that received TANF benefits for 9 months (whether or not consecutive) during the 18 months ending on the hire date.
Target Group I Maximum Tax Credit $9,000	Long-term Family Assistance Recipient (TANF): A member of a family that received TANF benefits for 18 consecutive months ending on the hire date.
Target Group I Maximum Tax Credit $9,000	Long-term Family Assistance Recipient (TANF): A member of a family that received TANF benefits for at least 18 months (whether or not consecutive) and has a hire date that is not more than 2 years after the end of the earliest 18-month period after August 5, 1997.
Target Group I Maximum Tax Credit $9,000	Long-term Family Assistance Recipient (TANF): A member of a family that received TANF benefits but stopped being eligible for TANF due to a Federal or state law that limits the maximum time payments could be made during the 2 years prior to the hire date.

Two forms are submitted to the Kentucky WOTC Unit (the IRS Form 8850 and the ETA Form 9061). To meet the statutory requirement of timely filing, the IRS Form 8850 must be submitted no later than 28 calendar days AFTER the Start-to-Work date. Both forms are at http://www.doleta.gov/business/incentives/opptax/forms.cfm.

The WOTC request is ONLY considered submitted by one of the two methods below.
Note: The Kentucky WOTC Unit does not accept WOTC requests submitted via facsimile (FAX) as timely filed.

Method I WOTC successfully submitted to the Kentucky WOTC Online System.

• Businesses may submit WOTC requests through the Kentucky Online System at https://wotc.ky.gov
A. Request a User ID and Password
B. Log onto the online system
C. Click on Application Entry (enter the IRS Form 8850 and ETA Form 9061)
D. Select Submit Request and receive confirmation message with a 6 digit case number

Method II WOTC has a Post Mark Date (PMD) stamp from the United States Postal Service (USPS).

• Businesses may submit WOTC requests via USPS to the address below
A. Obtain a Certificate of Mailing (COM) from the USPS (WOTC requests not delivered may be resubmitted only with a COM).
B. The COM can be for one individual or several new hires.
» If one new hire is submitted in an envelope, the PMD stamped COM should include
1. Employer’s name
2. Employee’s name
3. Start-to-Work date
» If more than one new hire is submitted in an envelope, the PMD stamped COM should include
1. Employer’s name
2. Employee’s name
3. Start-to-Work date

Mailing Address:
   Kentucky Career Center
   Tax Credit Unit
   275 East Main Street, 2 WA
   Frankfort, Kentucky 40621

As of 01/01/2015 the WOTC Program is in Hiatus (lapse of program authorization due to funding by Congress). During prior “hiatus periods,” the Department of Labor (DOL) Employment and Training Administration (ETA) instructed all State Workforce Agencies to accept IRS Form 8850s and ETA Form 9061s in anticipation of a retroactive reauthorization. Even though Congress has provided for retroactive eligibility certification in the past, certifications for an employer’s new hires during this hiatus are not guaranteed.

Note: The nine previous program reauthorizations were made retroactive to the program authorization lapse date. During the 2015 Hiatus the KY WOTC Unit is recommending that all employers continue to adhere to the 28 day timeliness requirement when submitting WOTC requests (IRS Form 8850 and ETA From 9061) in anticipation of reauthorization.

Please see http://wdr.doleta.gov/directives/attach/TEGL/TEGL_28-14_Acc.pdf for full details.

Beginning May 1, 2015 the Kentucky Tax Credit Unit will accept Power of Attorney (IRS Form 2848) via email wotc@ky.gov or fax (502-782-3465). For auditing purposes, the Representative is required to maintain the original POA, a notarized copy of the original POA or an electronic copy that meets all IRS requirements.

A single Power of Attorney may be used for both the Work Opportunity Tax Credit Program and the Kentucky Unemployment Tax Credit Program. Part I, line 3 must refer to both programs. "Federal and state tax credit" under Description of Matter and "IRS Form 8850 and OET UTC Form 1" under Tax Form Number.

The During the 2015 Hiatus, the KY WOTC Unit is currently accepting 2015 requests and is recommending that all employers continue to adhere to the 28 day timeliness requirement in anticipation of 2015 WOTC reauthorization. Please see http://wdr.doleta.gov/directives/attach/TEGL/TEGL_28-14_Acc.pdf for full details.

The KY WOTC Unit

• Will continue to process to a final determination (certification or denial) all timely filed WOTC certification requests (IRS Form 8850s and ETA Form 9061s) for the WTOC requests with a hire date on or before 12/31/2014.
• Will accept and process requests with a hire date of 01/01/2015 or later up to, but not including, final determination (certification or denial) prior to WOTC Program reauthorization.

If you have any questions or need any additional assistance contact the KY WOTC Helpdesk at 502-782-3465.

For more information or to submit requests for certification please contact:
Kentucky Career Center
Tax Credit Unit
275 East Main Street, 2W-A
Frankfort, Kentucky 40621
Phone: (502) 782-3465

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