Work Opportunity Tax Credit Initial Funding Allotments for Fiscal Year 2026
This grant provides FY 2026 state funding allotments for Work Opportunity Tax Credit activities, application requirements, and administrative guidance from the Employment and Training Administration.
Funder: Employment and Training Administration
Due Dates: May 28, 2026: Full application submission deadline | May 28, 2026: SF-424 electronically signed submission deadline
Funding Amounts: Total program funding: $15,203,383; awards range from $36,000 to $1,742,067 per state/territory; 53 awards expected.
Summary: Supports State Workforce Agencies in administering the Work Opportunity Tax Credit program for FY 2026.
Key Information: Only State Workforce Agencies (including DC, Puerto Rico, and Virgin Islands) are eligible.
Description
This opportunity provides formula funding to State Workforce Agencies (SWAs) for the administration of the Work Opportunity Tax Credit (WOTC) program for Fiscal Year 2026. The WOTC is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment. The funds are intended to support SWAs in processing employer certification requests, maintaining program integrity, and reducing backlogs, in accordance with guidance from the Employment and Training Administration (ETA) and the Internal Revenue Code.
