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Individual state-level savings a critical part of WOTC’s overall impact

March 16, 2017

By Stacey May, Director of Tax Credits

The Work Opportunity Tax Credit’s (WOTC) impact on historically underemployed individuals finding work and its impact on businesses’ bottom lines is fairly well known. But, on the other side of the coin, and just as important, is WOTC’s impact on poverty and reductions in government entitlement spending. At the federal level, the annual savings is estimated at $7,600 per employee in SNAP, TANF, Medicaid and public housing payments. Based on certification numbers in 2015 approaching 1.9 million, this works out to $14.4 billion in federal savings.

Additionally, however, each state also benefits heavily from WOTC via entitlement program savings. In total, this amounts to over $4 billion per year. Which means, without WOTC, state entitlement spending could be significantly higher.

How states benefit from WOTC
State Estimated Annual WOTC State Savings DOL FY 2015 Certifications FY 2015 Pending Certifications
Alabama $40,828,406 43,999 24,516
Alaska $3,766,010 1162 10,789
Arizona $19,659,810 22,644 66,518
Arkansas $22,829,248 25,913 14,496
California $659,319,418 171,526 59,225
Colorado $40,930,703 21,687 52,439
Connecticut $17,611,929 4,836 38,288
Delaware $2,044,274 886 23,697
D.C. $7,520,329 2,305 6,346
Florida $163,713,586 122,988 141,898
Georgia $85,403,231 72,825 130,040
Hawaii $8,898,023 3,494 3,819
Idaho $4,876,843 5,082 92
Illinois $244,518,464 109,361 108,639
Indiana $106,636,425 62,418 54,249
Iowa $67,205,581 34,020 97,565
Kansas $35,081,084 18,803 27,028
Kentucky $61,913,631 40,994 91,271
Louisiana $79,385,030 66,993 77,543
Maine $5,139,738 2,663 19,377
Maryland $55,713,873 17,564 115,737
Massachusetts $42,402,585 12,117 47,429
Michigan $272,476,853 104,825 123,012
Minnesota $69,072,940 20,916 56,471
Mississippi $23,626,321 21,058 34,803
Missouri $76,031,750 36,745 65,778
Montana $1,722,216 2,068 490
Nebraska $11,586,718 5,372 30,867
Nevada $4,642,672 3,482 98,790
New Hampshire $11,566,207 3,363 4,271
New Jersey $100,877,919 34,016 42,350
New Mexico $12,251,943 8,245 47,314
New York $304,333,514 71,573 65,047
North Carolina $155,435,393 101,849 94,488
North Dakota $4,513,833 7,593 6,555
Ohio $208,651,896 103,934 273,803
Oklahoma $49,512,422 35,922 63,272
Oregon $55,714,053 25,879 42,530
Pennsylvania $192,942,272 62,541 62,525
Rhode Island $27,604,919 5,855 11,666
South Carolina $37,143,796 45,011 50,684
South Dakota $11,648,895 6,701 1,775
Tennessee $48,753,771 36,829 77,004
Texas $252,083,099 156,282 272,075
Utah $15,809,792 11,077 23,085
Vermont $593,249 174 4,704
Virginia $129,753,268 46,306 44,705
Washington $142,925,030 58,162 28,324
West Virginia $9,578,540 10,011 29,011
Wisconsin $55,275,683 23,092 5,337
Wyoming $0 0 22,516

 

For more information or assistance on employment tax credits in the state(s) in which you do business, call 888-556-0123, email taxcreditrep@hkpayroll.com  or submit our online form.

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