Work Opportunity Tax Credit | National Restaurant Association

Public Policy Issue Briefs

Issue: Work Opportunity Tax Credit
Overview: Congress needs to assure employers that they can count on the WOTC by making the tax credit permanent.

Questions? Contact the Association's Government Affairs and Public Policy Division

Background
The WOTC is a financial incentive that encourages employers to hire people who may traditionally experience more difficulty finding jobs. Employers who hire workers from targeted groups -- including former welfare recipients -- are eligible for a federal income tax credit of up to $2,400 per year per employee.

Status: The WOTC expires in August 2011. Congress expanded the credit in its February 2009 economic stimulus bill: In addition to the original target groups, employers may now claim the credit for unemployed veterans and "disconnected youth" age 16 to 25 who are hired in 2009 and 2010.

Talking Points: The National Restaurant Association believes that permanently extending the WOTC would create stability in the program, helping more disadvantaged workers transition toward self-sufficiency.

Questions? Contact Michelle Reinke at (202) 331-5901 or mreinke@restaurant.org.