The Work Opportunity Tax Credit (WOTC) is a federal tax credit for businesses. It encourages employers to hire jobseekers who face challenges in finding work. The U.S. Department of Labor (DOL) and the Internal Revenue Service (IRS) regulate the WOTC program together.
WOTC's goal is to help individuals get jobs, earn money and become responsible taxpayers. It's part of efforts to promote diversity at work and make it easier for Americans to find good job opportunities.