Work Opportunity Tax Credit Program (WOTC) (17.271)
Work Opportunity Tax Credit Program (WOTC) (Assistance Listing 17.271) is run by the Employment and Training Administration, part of the Department of Labor. It awarded $99.9 million in 266 grants from fiscal 2021 to 2025, about $375,678 per award on average. No funding opportunity is open on Grants.gov right now.
The typical award was $285,461. Half of the 266 awards fell between $136,366 and $494,331, and they ranged from $19,276 to $2.7 million.
- Awarded, FY 2021 to 2025$99.9 million
- Grant awards266
- Typical award$285,461
- Awarded in FY 2025$20.9 million
- Size rank813 of 1,823
- Type of assistanceFormula grants
Key findings
- Annual funding rose from $18.2 million in fiscal 2021 to $20.9 million in fiscal 2025.
- It is the 813th largest of 1,823 federal grant programs by five-year awards.
- The 20 largest recipients received 69% of the money.
- Awards went to recipients in 53 states and territories.
What the program funds
This federal tax credit was designed to help individuals from certain targeted groups who consistently face significant barriers to employment move from economic dependency to self-sufficiency. Businesses are encouraged to hire targeted group members in order to claim the tax credit against wages paid to eligible new hire(s) during their first year of employment. WOTC joins other workforce programs that incentivize workplace diversity and facilitate access to good jobs for American workers.
Open opportunities
No opportunity under this program is open or forecast on Grants.gov right now. Programs often post once a year, so the funding history below shows what to expect.
Rules from the program listing
Who can apply
States (not individuals), the District of Columbia, the U.S. Virgin Islands, and Puerto Rico. The "designated local agency," also known as the State Workforce Agency (SWA), is the designated state employment security agency (established in accordance with the Wagner-Peyser Act of June 6, 1933, as amended (29 U.S.C. 49–49n)) authorized to administer the WOTC.
What the money can and cannot pay for
States are to use these formula grants to administer the WOTC in accordance with the grantee requirements outlined in the WOTC statement of work. Required activities include: accepting WOTC applications from employers; determining eligibility of individuals as members of targeted groups; issuing employer certifications or denials; developing working agreements with partner agencies in American Job Centers (also called One-Stop Career Centers) or other State agencies to verify or document eligibility of new hires, including issuing Conditional Certifications; and coordinating efforts to promote WOTC with employers, job seekers and other Workforce Innovation and Opportunity Act (WIOA) partners. ETA develops procedural guidance and program technical assistance, awards funding to states, and provides general administrative oversight to the states. See above for additional information.
Matching requirements
This program has no statutory formula. Matching requirements are not applicable to this assistance listing. MOE requirements are not applicable to this assistance listing.
Award range and average, in the agency's words
After allocating $36,000 to the U.S. Virgin Islands, ETA distributes the remaining funds to state grantees (SWAs) by administrative formula with a $79,131 minimum allotment. For Fiscal Year (FY) 2024 allotments, grants to states ranged from $79,131 to $2,338,208. FY 2024 'Backlog Reduction and System Modernization Awards' (for select states) ranged from $100,000 to $300,000.
Funding history and past recipients
From fiscal 2021 to 2025, Work Opportunity Tax Credit Program (WOTC) (17.271) awarded $99.9 million across 266 grant awards, an average of $375,678 per award.
Who usually wins
State and local governments received 95% of the money, nonprofits 0.1%.
| Recipient type | Awards | Amount | Share |
|---|---|---|---|
| State and local governments | 246 | $94.5 million | 95% |
| Other | 19 | $5.3 million | 5.3% |
| Nonprofits | 1 | $118,367 | 0.1% |
By state
34 states have a page for this program: those that received at least $1 million or 10 awards.
| State | Awards | Amount |
|---|---|---|
| California | 5 | $12.3 million |
| Texas | 5 | $5.9 million |
| New York | 5 | $5.7 million |
| Ohio | 5 | $4.2 million |
| Florida | 5 | $4.0 million |
| Illinois | 5 | $3.6 million |
| Michigan | 5 | $3.4 million |
| Pennsylvania | 5 | $3.3 million |
| Tennessee | 5 | $3.1 million |
| Georgia | 5 | $2.9 million |
| North Carolina | 5 | $2.8 million |
| Maryland | 5 | $2.4 million |
| Virginia | 6 | $2.3 million |
| New Jersey | 5 | $2.2 million |
| Arizona | 5 | $2.2 million |
| Oklahoma | 5 | $2.0 million |
| Wisconsin | 5 | $2.0 million |
| Indiana | 5 | $1.8 million |
| Louisiana | 5 | $1.8 million |
| Massachusetts | 5 | $1.7 million |
| Kentucky | 5 | $1.7 million |
| Alabama | 5 | $1.6 million |
| Minnesota | 5 | $1.6 million |
| South Carolina | 5 | $1.5 million |
| Missouri | 5 | $1.5 million |
| Washington | 5 | $1.4 million |
| New Mexico | 5 | $1.3 million |
| Oregon | 5 | $1.3 million |
| Iowa | 5 | $1.3 million |
| Arkansas | 5 | $1.2 million |
| Colorado | 5 | $1.2 million |
| Utah | 5 | $1.1 million |
| Connecticut | 5 | $1.1 million |
| Mississippi | 5 | $1.0 million |
| South Dakota | 5 | $872,088 |
| Nevada | 5 | $779,901 |
| Montana | 5 | $772,088 |
| North Dakota | 5 | $772,088 |
| Hawaii | 5 | $738,018 |
| New Hampshire | 5 | $736,884 |
| Nebraska | 5 | $708,192 |
| Kansas | 5 | $670,744 |
| Maine | 5 | $655,933 |
| West Virginia | 5 | $599,227 |
| Alaska | 5 | $547,088 |
| Rhode Island | 5 | $514,456 |
| Delaware | 5 | $486,403 |
| Vermont | 5 | $484,329 |
| District of Columbia | 5 | $472,088 |
| Puerto Rico | 5 | $449,775 |
| Wyoming | 5 | $447,088 |
| Idaho | 5 | $402,137 |
| U.S. Virgin Islands | 5 | $329,709 |