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FY 2022 initial Work Opportunity Tax Credit allotments
Summary ETA gave state workforce agencies initial FY 2022 funds to administer the Work Opportunity Tax Credit under a continuing resolution through December 3, 2021. It listed state allotments and asked for grant applications within 30 days. Changes 1 and 2 later announced further FY 2022 funds without rescinding this base letter.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 03-21
Date issued
November 15, 2021
Status
Active
ETA lists this base letter as active. It prints an expiration date of Continuing and no rescissions; later changes added FY 2022 funding.
Status last verified October 24, 2026
Topics
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About this page: The full text below is the official document from U.S. Department of Labor, Employment and Training Administration (ETA). Ezel adds the plain-English summary and tracks the document's status. The official source linked on this page is authoritative for any reliance.
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION WOTC
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OWI
Washington, D.C. 20210 DATE
November 15, 2021
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 3-21
TO: STATE WORKFORCE AGENCIES
STATE WORKFORCE ADMINISTRATORS
WORK OPPORTUNITY TAX CREDIT COORDINATORS
FROM: ANGELA HANKS
Acting Assistant Secretary
SUBJECT: Work Opportunity Tax Credit (WOTC) Initial Funding Allotments for Fiscal
Year 2022
1. Purpose. To convey the WOTC Fiscal Year (FY) 2022 initial funding allotments and
application requirements for State Workforce Agencies (SWA) based on funding
appropriated through a continuing resolution (CR) through December 3, 2021.
2. Action Requested. Grantees must meet the application requirements detailed in section 4
within 30 calendar days from the date of this Training and Employment Guidance Letter
(TEGL) issuance.
3. Summary and Background.
a. Summary – On September 30, 2021, the Extending Government Funding and Delivering
Emergency Assistance Act, 2022 (Public Law 117-43) was signed into law, providing a
continuing resolution (CR), which allows for the uninterrupted administration of the
WOTC through December 3, 2021. The allotment for WOTC under this CR is
$3,240,420. Once Congress authorizes final appropriations for FY 2022, the
Employment and Training Administration (ETA) will publish a change to this TEGL to
announce the full year allotments and state balances. If applicable, ETA will also
announce any additional funding appropriated to reduce processing backlogs and assist
states in adopting or modernizing information technology for processing of certification
requests. ETA requests that SWAs submit applications for funding as allotted in
Attachment I to this TEGL.
b. Background – The WOTC is set forth under section 51 of the Internal Revenue Code of
1986 (Code) and is effective until December 31, 2025 under Section 113 of Division EE,
Title 3 -- Further Consolidated Appropriations Act, 2021 (P.L. 116-260). The U.S.
Department of the Treasury, through the Internal Revenue Service (IRS), administers all
tax-related provisions and requirements of the Federal tax credit. The U.S. Department
of Labor, through the ETA, awards grants to states for administration of WOTC.
RESCISSIONS EXPIRATION DATE
None Continuing
4. Details. States must enter the state allotment amount (provided in Attachment I) on their
SF-424 Form, Application for Federal Assistance (OMB Control No. 4040-0004), as their
request for FY 2022 funding.
After allocating $20,000 to the Virgin Islands, ETA distributes the remaining funds to the
SWAs by administrative formula with a $66,000 minimum allotment and a 95 percent stop-
loss/120 percent stop-gain from the previous year allotment-share percentage. The
administrative formula is calculated as follows:
a. 50 percent is based on each state’s relative share of total WOTC certifications issued
from October 1, 2020 through September 30, 2021;
b. 30 percent is based on each state’s relative share of the Civilian Labor Force averages for
the 12-month period from October 1, 2020 through September 30, 2021; and
c. 20 percent is based on each state’s relative share of adult recipients of Temporary
Assistance for Needy Families averages from October 1, 2019 through September 30,
2020.
Application Requirements for FY 2022 Funding. ETA requires grantees to submit an
electronically signed copy of the SF-424 Form through Grants.gov for funding opportunity
number ETA-WOTC-TEGL-03-21-2022 at https://www.grants.gov, within 30 calendar days
from the issuance date of this TEGL. The official, electronically signed SF-424 Form must
reflect the state amount listed in Attachment I for the requested estimated funding total in
item #18, and the Catalog of Federal Domestic Assistance Number 17.271 for item #11.
Each applicant must have a Dun and Bradstreet Data Universal Numbering System (DUNS)
number available and it must be registered with the System for Award Management (SAM)
at https://www.sam.gov, before submitting an application. To submit the required
documents, applicants must follow the “Apply for Grants” link on Grants.gov and download
the links for the grant application package. For this grant opportunity, applicants should not
follow the “Find Grants” link, as this is not a competitive funding opportunity. If applicants
encounter a problem with Grants.gov and do not find an answer in any of the other resources,
they should call 1-800-518-4726 or 1-606-545-5035 to speak to a Customer Support
Representative or send an email to [email protected]. Please note: Effective June 2017,
applicants can no longer access SAM using Internet Explorer (IE) web browser versions
older than IE11.
General Administration. SWAs are responsible for using the FY 2022 CR funding
allotment to conduct WOTC activities outlined in Attachment II, WOTC Statement of Work,
through December 3, 2021.
Reporting Requirements.
a) Quarterly Financial Report – SWAs must report fiscal expenditures quarterly using
ETA Form 9130. Financial reports are due no later than 45 days following the end of
each quarter. Timely submission of these reports is important to ensure proper
accounting of funds.
b) Quarterly Performance Report – SWAs must use the web-based Enterprise Business
Support System (EBSS) Tax Credit Reporting System to report quarterly activities and
outcomes using ETA Form 9058. Performance reports are due no later than 45 days
following the end of each quarter. Timely submission of these reports is important for
administration purposes.
5. Inquiries. Please direct inquiries to the appropriate Regional WOTC Coordinator listed on
the WOTC website at https://www.dol.gov/agencies/eta/wotc/contact/regional-offices.
6. References.
• Section 51 of the Internal Revenue Code of 1986 as amended; and
• P.L. 117-43 -- Extending Government Funding and Delivering Emergency Assistance
Act of 2022.
7. Attachment(s).
Attachment I: Work Opportunity Tax Credit Fiscal Year 2022 Initial State Allotments
Attachment II: Work Opportunity Tax Credit Statement of Work
Work Opportunity Tax Credit Attachment I
FY 2022 State Allotments under Continuing Resolution #1
CR #1
10/1/21 thru 12/03/21
State
(17.53%)
Total $3,240,420
Alabama 49,516
Alaska 11,570
Arizona 52,952
Arkansas 25,123
California 440,238
Colorado 51,705
Connecticut 22,045
Delaware 12,450
District of Columbia 11,570
Florida 153,178
Georgia 93,604
Hawaii 11,570
Idaho 13,884
Illinois 137,158
Indiana 53,076
Iowa 42,494
Kansas 22,590
Kentucky 68,732
Louisiana 50,870
Maine 12,662
Maryland 61,872
Massachusetts 64,697
Michigan 111,615
Minnesota 45,859
Mississippi 38,192
Missouri 73,542
Montana 11,570
Nebraska 25,906
Nevada 24,098
New Hampshire 11,570
New Jersey 59,236
New Mexico 25,378
New York 186,758
North Carolina 88,019
North Dakota 11,570
Ohio 129,308
Oklahoma 50,564
Oregon 46,475
Pennsylvania 138,026
Puerto Rico 13,877
Rhode Island 13,884
South Carolina 46,722
South Dakota 11,570
Tennessee 126,985
Texas 214,333
Utah 18,635
Vermont 11,570
Virginia 73,484
Washington 69,658
West Virginia 22,991
Wisconsin 60,393
Wyoming 11,570
Virgin Islands 3,506
Attachment II
Work Opportunity Tax Credit (WOTC)
Statement of Work
State Workforce Development Agencies, also known as State Workforce Agencies (SWA), must
use funds for the Fiscal Year to realize the following responsibilities:
1. The SWA must adhere to Employment and Training Administration (ETA) guidance, and
provisions of the Internal Revenue Code of 1986, Section 51, as amended, in administering
WOTC. Law designates the SWAs as the only agencies that can issue a Certification.
26 USC sec. 51(d)(12).
2. Designate a state coordinator, who oversees the administration of WOTC, for each state
grant.
3. Determine eligibility of individuals as members of targeted groups, on a timely basis, and
issue employer certifications, denials, or notices of invalidation for tax credits on a timely
basis, and in accordance with the policies and procedures set forth by ETA.
4. Establish and implement an appeals resolution process in accordance with the guidelines
provided by ETA.
5. Develop a backlog reduction plan that includes an estimated timeline to eliminate existing
backlogs based on current policies and procedures, and notify your regional coordinator prior
to implementation.
6. Establish and maintain appropriate forms’ quality review process, record keeping, and
reporting capability related to the orderly management of WOTC certification requests.
7. Establish and maintain an orderly system for regularly verifying the eligibility of a random
sample of individuals certified under WOTC and initiating effective corrective action when
appropriate as indicated by results of such activities.
Additionally, SWAs may also use the funds to realize the following items below:
Develop working agreements, such as Memorandums of Understanding (MOU) or other
formal agreements, with partner agencies in the American Job Center network (also known
as the One-Stop Career Center system) and coordinate efforts to promote WOTC to
employers, job seekers and other Workforce Innovation and Opportunity Act (WIOA)
partners.
Develop working agreements such as MOUs or other formal agreements with other SWAs
for the timely and orderly processing of “out of state” Certification Requests (i.e.,
applications) requiring SWAs to provide available documentation and records for WOTC
potentially eligible applicants/new hires relocating and working in another state.
Develop working agreements such as MOUs or other formal agreements with state or local
partnering agencies (i.e. state Vocational Rehabilitation Agencies, Veterans Administration
and related organizations, Employment Networks, and other local workforce areas), for the
purposes of expediting verification of targeted group eligibility information submitted in
the certification request, and issuing Conditional Certifications, where appropriate.
Attachment II
Train state and participating agency staff, and provide monitoring and technical assistance
to these agencies, as appropriate, for conducting target group preliminary eligibility
determinations and issuing Conditional Certifications.
Other Grant Agreement Conditions
By entering into this agreement, the SWA agrees to the following conditions:
SWAs must assure that all data exchanges conducted through or during the course of
performance of this grant will be conducted in a manner consistent with applicable Federal
law and TEGL NO. 39-11 (https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7872)
issued June 28, 2012. All such activity conducted by ETA and/or recipient/s will be
performed in a manner consistent with applicable state and Federal laws.
Fulfill performance and financial reporting requirements under grant agreement.
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