MARCH 2020 – The latest statistics for the Work Opportunity Tax Credit from 2020 have just been released, and the data shows 1,620,806 total Work Opportunity Tax Credits were issued in the United States in 2020. This represents an almost 22% drop over previous years 2019 (2,066,616 credits), and 2018 (2,204,142 credits), and shows the dramatic impact of COVID-19 on the U.S. economy.
SNAP continues to be the highest WOTC qualifying target group with 68.28%, the next highest categories were TANF (long and short term) at 7.5%, and the combined Qualified Veteran target groups categories adding up to 6.58%.
Although the actual value of the issued tax credits would actually vary based on hours worked, and category the employee came in under, we are using the average tax credit value of $2,400. This would give us a potential total value of 2020’s tax credits at an impressive $3,889,934,400.
WOTC Target Groups 2020 | Total Credits | Percentage |
SNAP (FS) | 1,106,756 | 68.28% |
Long term IV-A (TANF) | 70,864 | 4.37% |
Ex-Felon | 69,137 | 4.27% |
Designated Community Resident | 68,198 | 4.21% |
SSI Recipient | 60,948 | 3.76% |
Long Term Unemployment | 53,774 | 3.32% |
Veteran unemp. 6 Mo. | 52,685 | 3.25% |
IV-A (TANF) | 50,754 | 3.13% |
Veteran unemp. 4 Wk | 41,156 | 2.54% |
Vocational Rehabilitation | 29,316 | 1.81% |
Veteran Receiving SNAP | 9,578 | 0.59% |
Ticket Holder | 4,151 | 0.26% |
Disabled Veteran unemp. 6 Mo. | 2,179 | 0.13% |
Disabled Veteran | 1,099 | 0.07% |
Summer Youth | 211 | 0.01% |
States Issuing Most Credits by Target Group
California and Texas leads the pack in most categories. California issued the most certifications for the IV-A (TANF) and Long term IV-A (TANF), as well as Long-Term Unemployment and Veteran Unemployed for Six Months.
Texas issued the most certifications for SNAP Recipients, Ex Felons, Designated Community Residents and Vocational Rehabilitation referrals.
WOTC Target Group | State Issuing Most Credits | Number of Credits |
SNAP (FS) | Texas | 94,283 |
Long term IV-A (TANF) | California | 13,434 |
Ex-Felon | Texas | 7,744 |
Designated Community Resident | Texas | 9,213 |
SSI Recipient | Ohio | 7,433 |
Long Term Unemployment | California | 10,974 |
Veteran unemp. 6 Mo. | California | 8,133 |
IV-A (TANF) | California | 10,132 |
Veteran unemp. 4 Wk | Georgia | 4,462 |
Vocational Rehabilitation | Texas | 4,980 |
Veteran Receiving SNAP | Florida | 678 |
Ticket Holder | Georgia | 411 |
Disabled Veteran unemp. 6 Mo. | Georgia | 312 |
Disabled Veteran | Colorado | 197 |
Summer Youth | Missouri | 45 |
Which states issued the most WOTC tax credits?
Texas issued 135,602 certifications in 2020 making it the largest issuer of Work Opportunity Tax Credits. California came in second with 127,188, and Ohio third with 90,326.
- Texas 135,602 (8.37% of total)
- California 127,188 (7.85% of total)
- Ohio 90,236 (5.57% of total)
- Illinois 81,738 (5.04% of total)
- Florida 79,311 (4.89% of total)
- Pennsylvania 70,109 (4.33% of total)
- New York 68,612 (4.23% of total)
- Georgia 65,548 (4.04% of total)
- North Carolina 61,880 (3.82% of total)
- Michigan 60,276 (3.72% of total)
Which states received the most and least requests for WOTC?
Missouri received the most WOTC requests from employers in 2020 with 786,765 requests, and the two states with the highest estimated populations Texas came in at 726,486 and California came in at 526,262.
Most Requests
- Missouri 786,765
- Texas 726,486
- California 526,262
- New York 303,577
- Florida 284,681
- Ohio 283,988
- Kentucky 267,185
- Illinois 243,641
- Tennessee 223,715
- North Carolina 220,318
Least Requests
- Virgin Islands 887 (not shown on above map)
- Puerto Rico 5,484 (not shown on above map)
- Montana 8,480
- South Dakota 8,672
- DC 10,565
- Vermont 11,249
- New Hampshire 15,052
- North Dakota 16,957
- Nebraska 25,335
- Wyoming 26,914
Which states issued most denials?
Texas has issued the most denials at 280,511, California and Florida also issuing over 200,000 denials so far.
- Texas 280,511
- California 255,527
- Florida 200,976
- Ohio 193,746
- New York 149,294
- Illinois 124,026
- Pennsylvania 112,646
- Georgia 109,723
- Tennessee 95,854
- North Carolina 91,470
Which states are the most caught up and most still pending with WOTC requests?
This is important to consider. At CMS, we are always asked the question “How long does it take to receive a WOTC Tax Credit?” Well, it depends on how much of a backlog the state you are in is currently working on. Last year 12 states were issued grants to help alleviate their WOTC backlogs and update their systems.
Missouri currently has the most pending requests at 657,377, and Texas at 310,373 and Kentucky, Connecticut, Iowa, California, Kansas, Maryland, and New Jersey have over 100,000 requests pending for 2020. (As of February 2021.)
- Missouri 657,377
- Texas 310,373
- Kentucky 179,346
- Connecticut 165,575
- Iowa 155,553
- California 143,547
- Kansas 141,009
- Maryland 120,559
- New Jersey 103,334
- New York 85,671
Congratulations to Montana, New Mexico and Pennsylvania who do not have any pending requests!
What are the most popular WOTC Target Groups / Categories in 2020?
WOTC Target Groups 2020 | Total Credits | Percentage |
SNAP (FS) | 1,106,756 | 68.28% |
Long term IV-A (TANF) | 70,864 | 4.37% |
Ex-Felon | 69,137 | 4.27% |
Designated Community Resident | 68,198 | 4.21% |
SSI Recipient | 60,948 | 3.76% |
Long Term Unemployment | 53,774 | 3.32% |
Veteran unemp. 6 Mo. | 52,685 | 3.25% |
IV-A (TANF) | 50,754 | 3.13% |
Veteran unemp. 4 Wk | 41,156 | 2.54% |
Vocational Rehabilitation | 29,316 | 1.81% |
Veteran Receiving SNAP | 9,578 | 0.59% |
Ticket Holder | 4,151 | 0.26% |
Disabled Veteran unemp. 6 Mo. | 2,179 | 0.13% |
Disabled Veteran | 1,099 | 0.07% |
Summer Youth | 211 | 0.01% |
You can see from the table above that SNAP (FS) dominated all categories in 2020 with 1,106,756 qualified certifications which represents a total of 68.28% of all qualified employees. This was the most popular category, by a wide margin and has increased by 3.2% over 2019.
The Qualifying Veteran categories total 6.58% of the total qualifying categories, coming in second. The most popular Veteran category was the Veteran unemployed 6 Months 3.25%. Veteran unemployed 4 Weeks 2.54%, Veteran Receiving SNAP 0.59%, Disabled Veteran unemployed 6 Months 0.13% and Disabled Veteran 0.07%.
The third most popular category was the Long term IV-A (TANF) which had 70,864 total certifications issued, and only 4.37% of the total. This is the only tax credit that is taken over two years.
States with most WOTC Tax Credits for SNAP Recipients (food stamps):
- Texas 94,283
- Illinois 73,995
- California 68,610
- Ohio 61,764
- Florida 57,357
- North Carolina 50,719
- New York 50,705
- Pennsylvania 49,502
- Georgia 49,250
- Oklahoma 44,092
States with most WOTC Tax Credits for qualified Veterans (over all five vet. categories – Veteran Receiving SNAP, Disabled Veteran, Disabled Veteran unemp. 6 Mo., Veteran unemp. 4 Wk, Veteran unemp. 6 Mo.). The Qualified Veteran category had 106,697 qualified certifications at 6.58% overall.
- California 13,020
- Texas 8,839
- Florida 8,628
- Georgia 8,053
- Pennsylvania 4,568
- Washington 4,552
- Oklahoma 3,976
- Colorado 3,929
- South Carolina 3,335
- Arizona 3,333
States with most WOTC Tax Credits for TANF (Temporary Assistance to Needy Families):
The IV-A (TANF) category had 50,754 qualified certifications at 3.13% overall.
- California 10,132
- Wisconsin 6,937
- Pennsylvania 4,542
- Tennessee 4,135
- Minnesota 2,537
- Ohio 1,790
- Oregon 1,712
- Massachusetts 1,700
- New York 1,642
- Virginia 1,523
The Long term IV-A (TANF) – Credit Taken Over Two Years – had 70,864 qualified certifications at 4.37% overall.
- California 13,434
- New York 6,104
- Indiana 5,796
- Ohio 5,042
- Minnesota 3,594
- Pennsylvania 3,583
- Massachusetts 2,806
- Rhode Island 2,740
- Illinois 2,436
- Florida 2,360
Most felon friendly states: States with most WOTC Tax Credits for Ex-Felons
Ex-Felon was the fourth most popular qualifying category, at only 4.27% and 69,137 certifications issued. So which state had the most ex-felons qualifying? (Why you shouldn’t overlook hiring Ex-Offenders.)
- Texas 7,744
- North Carolina 4,104
- Georgia 3,882
- Wisconsin 3,848
- California 3,737
- Missouri 3,195
- Florida 3,082
- Indiana 2,791
- Oklahoma 2,569
- Kentucky 2,467
States with most WOTC Tax Credits for Designated Community Residents
The Designated Community Resident category had 68,198 qualified certifications at 4.21% overall. Washington, Puerto Rico, Delaware, Hawaii, Washington DC, Vermont and the U.S. Virgin Islands had no qualifying tax credits for this category.
- Texas 9,213
- Virginia 7,146
- Mississippi 6,587
- Ohio 5,749
- North Dakota 4,516
- Oklahoma 3,600
- Arkansas 3,435
- Kentucky 3,399
- Michigan 3,238
- Alabama 3,212
States with most WOTC Tax Credits for SSI Recipients
The SSI Recipient category had 60,948 qualified certifications at 3.76% overall.
- Ohio 7,433
- California 5,624
- Florida 4,110
- Michigan 3,826
- Texas 3,822
- Pennsylvania 3,045
- Tennessee 3,024
- Georgia 2,768
- North Carolina 2,385
- Maryland 2,370
States with most WOTC Tax Credits for Long Term Unemployment Recipients
The Long Term Unemployment category received 3.32% of all certifications for a total of 53,774 certifications. Vermont and the U.S. Virgin Islands did not report any Long-Term Unemployment certifications.
- California 10,974
- Texas 5,565
- New Jersey 3,089
- Illinois 3,066
- Maryland 2,441
- Pennsylvania 2,023
- New York 1,977
- Indiana 1,964
- Michigan 1,633
- Washington 1,563
States with most WOTC Tax Credits for Vocational Rehabilitation:
The Vocational Rehabilitation category had 29,316 qualified certifications at 1.81% overall. Alaska and the U.S. Virgin Islands did not report any Vocational Rehabilitation certifications.
- Texas 4,980
- Ohio 4,121
- Kentucky 1,883
- California 1,649
- Florida 1,552
- Wisconsin 1,458
- Rhode Island 1,357
- North Carolina 1,340
- Missouri 1,130
- Pennsylvania 894
State with most WOTC Tax Credits for Ticket-to-Work Holders:
The Ticket Holder category had 4,151 qualified certifications at 0.26% overall. Tennessee, Texas, California, Wisconsin, Michigan, Louisiana, Washington, New Jersey, Vermont, Puerto Rico and the U.S. Virgin Islands did not report any Ticket-to-Work certifications.
- Georgia 411
- Alabama 345
- Massachusetts 328
- North Carolina 326
- New York 299
- South Carolina 252
- Pennsylvania 244
- Idaho 226
- Kentucky 176
- Florida 176
States with most WOTC Tax Credits for Summer Youth:
The Summer Youth category was the smallest WOTC category with just 211 qualified certifications at 0.01% of the total overall.
- Missouri 45
- Virginia 35
- Oklahoma 27
- Ohio 21
- Tennessee 18
- Maryland 15
- Connecticut 14
- Indiana 10
- Pennsylvania 8
- Kentucky 4
View WOTC Statistics from 2014-2020 by State:
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