The Work Opportunity Tax Credit (WOTC) has long been a valuable incentive for businesses and a powerful tool for inclusive hiring across the U.S. But with its current expiration date looming on December 31, 2025, many employers are asking the same question: What happens next?
In this article, we explore what the future may hold for WOTC, including possible legislative changes, new eligibility expansions, and what employers can do now to stay ahead.
WOTC traces its roots back to the Targeted Jobs Tax Credit (TJTC) created under the Revenue Act of 1978. That early program focused on helping underrepresented individuals access good jobs by incentivizing employers through tax relief.
By 1996, Congress restructured the program, launching the WOTC as we know it today, with simplified eligibility and an expanded list of qualifying groups. Since then, WOTC has become a cornerstone of federal employment and tax policy, supporting veterans, SNAP recipients, long-term unemployed individuals, and others facing barriers to employment.
As of now, the WOTC is authorized through December 31, 2025, thanks to the Consolidated Appropriations Act of 2021. That’s less than 18 months away.
Recent IRS notices (such as Notice 2021-43 and Notice 2020-78) have extended submission deadlines and provided relief for employers hiring from empowerment zones, further demonstrating the program’s adaptability. Still, uncertainty about long-term authorization remains.
By 2025, those numbers are expected to grow based on historical trends, increased automation, and broader adoption of screening tools:
Note: The 2025 projections are based on historical data trends from the U.S. Department of Labor and the IRS, along with industry benchmarks. These estimates assume continued WOTC program authorization beyond its current expiration on December 31, 2025, and increased adoption of automated screening tools during hiring processes.
There’s potential for WOTC to integrate more closely with federal and state training initiatives, aligning tax credits with upskilling and career development programs.
HRlogics helps businesses identify, screen, and certify eligible hires under WOTC, so you never miss out on credits your workforce qualifies for.
Total WOTC, our full-service solution, streamlines every step of the WOTC lifecycle:
With 20% of new hires typically qualifying for WOTC, the savings can be substantial, especially when automated and optimized.
With December 2025 fast approaching, it’s time to capture the credits your business qualifies for.
Let HRlogics help you turn everyday hiring into lasting tax savings and workforce impact.