CMS Work Opportunity Tax Credit Newsletter January 2025

In this issue:

• WOTC Wednesday: A Look Back at the Top Five #WOTCWednesday Posts of 2024
• Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident
• Work Opportunity Tax Credit Statistics Tennessee 2023
• Work Opportunity Tax Credit Statistics 2023
• #ICYMI

A Look Back at the Top Five #WOTCWednesday Posts of 2024

CMS’s Brian Kelly answers your questions about the Work Opportunity Tax Credit in our weekly video Q&A series #WOTCWednesday. Follow us on our new TikTok.

Other Recent #WOTCWednesday Questions Answered:

• Benefits of Switching to Paperless WOTC Screening
• How many Target Groups are there for WOTC?
• Does Your Software Check the Status of WOTC Applications?

 

Understanding the Work Opportunity Tax Credit’s Target Groups: Designated Community Resident

New hires who fall under one or more of WOTC’s Target Groups may make you eligible for a WOTC Tax Credit. Target Group #4 is the Designated Community Resident.

152,149 individuals were hired with certification from this group in 2023, 5.9% of the total. The Summer Youth category also requires the qualified applicants to live in an Empowerment Zone, Enterprise Community or a Renewal Community.

A Designated Community Resident is an individual who, on the date of hiring:

• Is at least 18 years old and under 40,
• Resides within one of the following:
  • An Empowerment zone
  • An Enterprise community
  • A Renewal community
    • AND continues to reside at the locations after employment.

The maximum tax credit available for hiring a Designated Community Resident is $2,400.

See more about the Empowerment Zones, Enterprise Zones, Rural Renewal Counties, and drill down to your location using the map.

 

Work Opportunity Tax Credit Statistics Tennessee 2023

In 2023 the state of Tennessee issued 47,772 Work Opportunity Tax Credit certifications.

Tennessee issued 2.41% of all WOTC Tax Credits in 2023., SNAP Recipient was Tennessee’s highest tax credit target group with 74% of certifications for that category. See historical data on Tennessee and the Work Opportunity Tax Credit.

 

Work Opportunity Tax Credit Statistics 2023

The latest statistics for the Work Opportunity Tax Credit from 2023 have recently been released by the U.S. Department of Labor, and the data shows that a total of 1,988,528 total Work Opportunity Tax Credits were issued in the United States in 2023. This represents an almost 23% decrease over the previous year.