Maximize Your Business Savings with Work Opportunity Tax Credit (WOTC) and R&D Tax Credits

Each year, small and medium-sized businesses miss out on valuable tax savings because they don't take full advantage of the Work Opportunity Tax Credit (WOTC) and Research & Development (R&D) tax credits. These programs are designed to help companies grow and innovate, yet they remain underutilized by many business owners. In this guide, we’ll explore how these tax credits work, common challenges in claiming them, and how your business can unlock their full potential.

Work Opportunity Tax Credit (WOTC): Boost Hiring and Save on Taxes

The Work Opportunity Tax Credit (WOTC) is a federal program aimed at encouraging businesses to hire individuals from certain target groups who have historically faced employment barriers. This program not only fosters diversity in the workplace but also offers significant tax savings.

Key Benefits of WOTC:

• Up to $2,400 in federal tax credits for each eligible employee.
• Covers various groups, including veterans, ex-felons, and long-term unemployment recipients.
• Requires a minimum of 120 work hours for partial credit, and over 400 hours for full credit.

How WOTC Can Benefit Your Business:

By hiring from these target groups, your business can reduce its tax liability and contribute to workforce diversity. This is a powerful financial incentive that not only supports economic growth but also helps build stronger, more inclusive communities.