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U.S. Department of Labor awards $2.5 million in tax credit grants
The U.S. Department of Labor announced the award of $2.5 million in grants through the Work Opportunity Tax Credit to help state work force agencies streamline their business processes and systems. This will help reduce the processing backlog, including the large number of accumulated certification requests awaiting processing.
The Work Opportunity Tax Credit provides tax credits to businesses that hire individuals from certain target groups. The program is administered by the IRS and Department of Labor.
The Assistant Secretary of the Employment & Training Administration, John Pallasch, said “The U.S. Department of Labor is committed to helping states that are in need of upgrading their Work Opportunity Tax Credit processing systems or conducting other activities to reduce their backlogs to ensure U.S. employers can benefit from the federal tax credit,”.
The following states are experiencing significant processing backlogs and will be awarded WOTC grants: Alaska, California, Connecticut, Delaware, Idaho, Indiana, Kansas, New Jersey, New York, North Carolina, Virginia, and Wyoming.
US Department of Labor