At WorkForce West Virginia, our goal is to strengthen West Virginia’s business climate by supporting our state’s strong business partners – from startups to global businesses – and that means connecting you with tax credits that may be available to you to help your business grow and thrive.

 

Work Opportunity Tax Credit (WOTC)

The WOTC is a federal tax credit program that offers significant incentives for employers who hire and retain individuals from specific target groups that have previously experienced difficulty in securing employment.

Program Benefits

Through this tax credit program, employers can:

  • Receive tax credits for hiring individuals from targeted groups
  • Reduce federal tax liability by as much as $2,400 per new hire during the first year of employment
  • Help those most in need to become economically self-sufficient
  • Hire as many qualified employees as the payroll will allow
  • Reduce recruitment and training costs
  • Claim the tax credit with minimal paperwork
  • Provide valuable on-the-job experiences to qualified job seekers

How to Apply for the Credit

We try and make the process simple and efficient. To apply for the WOTC, employers must complete two forms:

  • Internal Revenue Service (IRS) 8850: Prescreening Notice and Certification Request
  • Employment and Training Administration (ETA) 9061: Individual Characteristics Form
Employers must provide documentation. We will accept applications via US Postal Service (with original signatures), emailed to This email address is being protected from spambots. You need JavaScript enabled to view it., or you can enter the application into our online database (please contact WOTC state office for access). You can use the method most convenient for you. Employers must meet the filing deadline-applications must be submitted within 28 days of the employee's start work date. The original application must be retained for four years (after one year on-site, the application can be moved to a storage site).
 

How to Access Required Forms

Both the IRS 8850 and the Department of Labor ETA 9061 can be downloaded from the WOTC homepage:

www.doleta.gov/business/incentives/opptax/

Employers may call the WOTC state office to request forms.

(304) 558-5050

 

Military Incentive Program – A West Virginia State Tax Credit for Employers Who Hire Qualified Veterans

The Military Incentive Program (MIP) Act of 1991 created an employer tax incentive program designed to promote the employment of West Virginia veterans, reservists and National Guard members.  Korean conflict and Vietnam era veterans who are economically disadvantaged, and all other disabled veterans are covered by this program.  Also, included in the act are unemployed members of the National Guard and Reserves.

Through the creation of this program, West Virginia recognizes that the sacrifices made by the state’s veterans merit their preferential treatment in public and private sectors.  By providing tax credits to private-sector employers who employ these veterans, West Virginia publicly recognizes their service to the nation and promotes a preference for hiring in the private sector. 

Tax credits are based on a percentage of the first $5,000 in wages paid to the individual after one continuous year of employment.  Employers may claim a 30 percent tax credit for hiring economically, disadvantaged Korean conflict and Vietnam era veterans, 25 percent for unemployed members of the Guard and Reserves, or may claim a credit ranging from 10 to 100 percent for disabled veterans.  The actual percentage is equal to the percent of service-connected disability compensable by the US Department of Veterans Affairs.

Please call 1-800-252-JOBS for additional information about MIP.