March 31, 2021 – Governor Tony Evans is proposing a state Work Opportunity Tax Credit (WOTC) to piggyback on the federal program in the 2021-23 biennial budget. The “Budget in Brief” summary document explains:
To help individuals who face persistent barriers to employment, the Governor recommends creating a nonrefundable Wisconsin supplement to the federal Work Opportunity Tax Credit equal to 50 percent of the amount an employer claims for the federal credit for their qualifying Wisconsin employees. Even before the pandemic and its economic effects, a variety of groups faced acute difficulties in accessing employment, including veterans, ex-felons, TANF recipients, and certain other public assistance recipients. The Work Opportunity Tax Credit currently provides an incentive at the federal level for employers who hire these targeted groups. A Wisconsin supplement to the federal credit will provide a greater incentive for employers to hire members of the groups and get them actively involved in the labor force. This provision is estimated to provide $27.8 million in tax relief to employers in fiscal year 2021-22 and $24.1 million in fiscal year 2022-23.
This proposal parallels a recent legislative proposal in California to create a state WOTC there.
See the “Budget in Brief” summary document here.