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

The Work Opportunity Tax Credit, known as #WOTC, is a federal tax credit available to employers who hire individuals from disadvantaged groups of workers. Including WOTC Screening can save an employer significant amounts of money.

WOTC Screening is used to determine if a new hire is a member of one of the Work Opportunity Tax Credit’s ten target groups that would make the employer eligible to receive a tax credit for hiring the individual.

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 (DCR). 152,149 individuals were hired with certification from this group in 2022, 5.9% of the total.

Designated Community Resident (DCR)

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.

About CMS WOTC Screening Services

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In over 25 years of providing valuable WOTC Screening and Administration services we’ve saved millions for our customers.

Contact CMS today to start taking advantage. Call 800-517-9099, or click here to use our contact form to ask any questions.