Work Opportunity Tax Credit Program (WOTC) Renewed by Congress

Work Opportunity Tax Credit Program (WOTC) Renewed by Congress

Farmington, CT., Dec. 12- Cost Management Services, LLC, a business solutions provider, announced today that the Work Opportunity Tax Credit (WOTC) and Welfare-to-Work (WtW) Tax Credit programs have been approved for renewal by Congress for two years, retroactively effective from Jan. 1, 2006 through Dec. 31, 2007. Although the bill, H.R. 6111, is pending signature by the President of the United States, it is expected to be signed in the upcoming weeks.

WOTC/WtW provisions include a two-year extension effective January 1, 2006 with the following program enhancements for individuals hired as of January 1, 2007:

  • Raises the age ceiling on food stamp recipients through 39
  • Combines WtW into the WOTC program
  • Eliminates the earnings test for ex-felons
  • Increases the paperwork filing deadline from 21 to 28 days

The tax credit program, which had expired at the end of 2005, provides an incentive to employers to hire individuals from the following eight groups:

  • Aid to Families with Dependent Children (AFDC) / Temporary Assistance to Needy Families (TANF)
  • Ex-Felons
  • Food Stamps Recipient
  • High-Risk Youth
  • Summer Youth Employee
  • Supplemental Security Income (SSI) recipient
  • Veterans
  • Vocational Rehabilitation Referral

The WOTC program is designed to give employers an incentive to hire welfare-to-work employees. By taking advantage of the CMS WOTC program you can save up to $3,500 per new hire the first year, and up to $5,000 the second year of employment.

Get a bonus for your company, while helping others. CMS will provide your organization with the tools to maximize the WOTC tax incentives. In addition CMS will provide the following benefits:

  • CMS will identify eligible employees.
  • CMS understands all the Federal and State guidelines for your company to obtain the eligible tax credits.
  • CMS handles all the administrative duties necessary to obtain WOTC in your state.
  • CMS protects your organization from asking the sensitive questions necessary to obtain the WOTC tax credits.

To speak with a Representative, call 800-517-9099 and ask for Brian, or send an email to