Understanding the Work Opportunity Tax Credit’s Target Groups: Vocational Rehabilitation Referral and Ticket to Work

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 #5 is the Vocational Rehabilitation Referral. 28,566 individuals were hired with certification from this group in 2022, 1.1% of the total.

This category is also combined with “Ticket to Work” or “Ticket Holder” which received 3,481 certifications in 2022.

Vocational Rehabilitation Referral/Ticket to Work

A “vocational rehabilitation referral” is a person who has a physical or mental disability and has been referred to the employer while receiving or upon completion of rehabilitative services pursuant to:

  • A state plan approved under the Rehabilitation Act of 1973 OR
  • An Employment Network Plan under the Ticket to Work program, OR
  • A program carried out under the Department of Veteran Affairs.

The maximum tax credit available for hiring a qualified Vocational Rehabilitation Referral is $2,400.

 

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