In 2020, Congress passed the Consolidated Appropriations Act. This law extends the authorization of tax credits and empowerment zones until the end of 2025.
WOTC Authority and Funding Status
The Work Opportunity Tax Credit (WOTC) is a federal program, and its current authorization is set to expire on December 31, 2025. Historically, Congress has reauthorized the program in the past; however, there is no official confirmation yet regarding reauthorization status.
The Texas WOTC Unit will continue to ACCEPT and PROCESS all IRS Form 8850/ETA Form 9061 applications beyond 2025. However, all applications will reflect a "HIATUS" status pending program reauthorization. Once the DOL reauthorization TEGL is received, the WOTC Unit will begin the release of final determinations, including denials and certifications.
Portal Account Users
Portal users should continue to submit the IRS Form 8850/ETA Form 9061 applications, ETA Form 9198 ERDs (If applicable) and continue to upload support documents using your WOTC OLS portal account to ensure the 28-day "timely filing" requirement. Even though DOL and IRS have typically provided a transition relief period during a WOTC program lapse, it is never a guarantee.
Consultants—Employer Representative Declarations (ERDs)
Prior to ANY/ALL IRS Form 8850/ETA Form 9061 submissions, there MUST be a current/valid/approved ERD on file for the EIN being submitted. As per the SIGNED WOTC Online System User Account Request Form that is on file, DO NOT SEND ANY IRS Form 8850/ETA Form 9061 APPLICATIONS POSTAL MAIL; THEY WILL NOT BE PROCESSED/UPLOADED BY THE WOTC UNIT.
Nonportal Users
Nonportal users should continue to submit the IRS Form 8850/ETA Form 9061 applications, support documents either by email to the WOTC Unit email address wotc@twc.texas.gov or by postal mail to ensure the 28-day "timely filing" requirement. Even though DOL and IRS have typically provided a transition relief period during a WOTC program lapse, it is never a guarantee.
Forthcoming
Applications submitted under FORTHCOMING status will be processed accordingly. The OLS will continue to issue the NEEDS-Forthcoming letter so that support docs can be uploaded, and FORTHCOMING status can be released for review. The WOTC Unit will NOT issue the final determinations until the DOL reauthorization TEGL has been received.
Transition Relief
If a transition relief (TR) is granted due to a reauthorization lapse, the WOTC Unit will AUTOMATICALLY process those applications that were denied as "untimely" filed within the 28-day requirement. DO NOT HOLD applications assuming there will be a TR.
Summary
Standard practice for the Texas WOTC Unit during ANY HIATUS is to continue receiving and processing WOTC applications until the reauthorization TEGL is received. Once received, final determinations will be "released" UNLESS there are changes to TG eligibility. Depending on the length of the TR, the "release" of final determinations will be done based on a predetermined schedule by the programming team so not to overload the "batch processes." The WOTC unit will send out communications accordingly as to the status of HIATUS applications.
