On April 17, 2014, the US DOL Employment and Training Administration distributed a Training and Employment Guidance Letter to state workforce agencies advising the agencies that although US DOL does not know whether Congress will act, based on previous retroactive legislation states may expect the Work Opportunity Tax Credit (WOTC) to be retroactively authorized. DOL interprets Congress’s decision to appropriate new funds for WOTC to reflect its intent that state workforce agencies continue to accept applications for the expired target populations pending possible reauthorization at a later date.
The WOTC credit was not reauthorized after December 31, 2013, however, reauthorization and expansion to include long term unemployed has been included in legislation recently approved by the Senate Finance Committee.
State workforce agencies may not issue eligibility certifications or denials for employer new hires on or after January 1, 2014 unless and until Congress reauthorizes the program, but administrative funding is provided in anticipation of retroactive reauthorization. The full guidance can be viewed at http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=9352.