The Workforce Series (7): Tax Credit for Employers

workforce blog seriesAs part of the Greater Mankato Growth Talent Initiative, GMG is publishing a guest blog series highlighting the programs, tools and resources that are available in our marketplace. This series can serve as a catalog or library for businesses to address workforce issues. 


Work Opportunity Tax Credit (WOTC)

Written by: Connie Hines, Workforce Development Specialist, MN DEED

As businesses face challenges filling vacant positions, new tools are being explored by area employers for hiring staff.

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to all private sector businesses as an incentive to employers to hire workers in certain groups who consistently experience high rates of unemployment.

The tax credit allows employers to reduce their federal tax liability by up to $9,600 per new hire. For-profit businesses of any size qualify. 501(c) non-profits qualify for the veteran target groups only. And the tax credit applies to temporary, seasonal, part-time and full-time workers. The tax credit is available for new hires with job start dates through December 31, 2019.

The WOTC applies only to new employees who have never worked for the hiring employer at any other time:

    • Any size for-profit employer may apply for the WOTC.
    • 501(c) non-profit employers may apply for the WOTC for the veteran target groups only.
    • No limit to the number of new hires an employer may claim for the WOTC in any calendar year.
    • No relatives or dependents or majority business owners qualify as WOTC hires.
    • Self-employed individuals do not qualify as WOTC hires.
    • Temporary, seasonal, part-time and full-time work applies.
    • Any type of job is acceptable.

For More Information contact Mankato Workforce Center at 507-344-2622 or

 Karen Marberry
Work Opportunity Tax Credit Coordinator
Department of Employment and Economic Development
1st National Bank Building, 332 Minnesota Street, Suite E200
St. Paul MN 55101
Direct: 651-259-7521; Toll Free: 888-234-5521; Fax: 651-297-7722

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