Tax Credits for Hiring Employees with Disabilities

Hiring employees with disabilities not only strengthens your workforce—it can also qualify your business for valuable state and federal tax credits. ECVC works with employers to help identify and access these incentives.

Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire individuals from specific target groups, including people with documented disabilities.

Eligible employers may receive:

• Up to $2,400 for each qualified hire

• Up to $9,600 in certain cases (such as veterans with disabilities)

Learn more on the U.S. Department of Labor WOTC page.

How Does It Work?

To claim the WOTC, employers must follow a few simple steps:

1. Pre-Screening:
   The employer includes the WOTC Pre-Screening Notice (Form 8850) during the job application process.

2. Timely Submission:
   The form must be signed by both the employer and the new employee, then submitted to the State Workforce Agency (SESA) within 21 days of the employee’s start date.

3. Documentation:
   The employer gathers supporting documentation and submits it to the SESA based on employee-provided information.

4. Certification:
   The SESA reviews the application and notifies the employer in writing if the individual is certified as WOTC-eligible.

Once certified, the employer can apply the credit when filing their business taxes.

Additional Incentives for Inclusive Hiring

Employers may also benefit from:

• On-the-job training funding – Helps cover the cost of new hire training

• Accommodation assistance – Low-cost modifications that may qualify for credits

• Retention support – ECVC provides free follow-up to ensure job success

How ECVC Supports Employers

When you work with ECVC, we help you:

• Identify eligible incentives

• Provide pre-screening guidance

• Support documentation and submission

• Coordinate with payroll or HR teams

• Maximize your return on inclusive hiring

Ready to Learn More?

If you’re interested in hiring employees with disabilities and exploring available tax credits, let’s talk.

📞 Call 252-317-3140
📧 Or visit our Employers page to get started.

How to claim the credit:

Complete and submit IRS Forms 8850, 8861 and 5884 (provided below) and submit to your local State Employment Security Agency.

IRS Form 5884

(Work Opportunity Credit)