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2010 WOTC state allotments
Summary ETA gave state workforce agencies fiscal year 2010 funding allotments for administration of the Work Opportunity Tax Credit program, covering October 2009 through September 2010. Two attachments provide the allotment and grant materials. ETA now lists this year-specific advisory Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 16-09
Date issued
March 5, 2010
Status
Withdrawn
ETA lists this advisory Canceled as of 2026-10-24; its signed letter prints Expiration Date: Continuing and Rescissions: None. It concerns fiscal year 2010 funding.
Status last verified October 24, 2026
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This document has been withdrawn. Ezel checks what federal law requires today, under current federal labor law, and answers your situation with citations.
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.
Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL16-09acc.pdf
CLASSIFICATION
WOTC
EMPLOYMENT AND TRAINING ADMINISTRATION
CORRESPONDENCE SYMBOL
ADVISORY SYSTEM OWI
U. S. DEPARTMENT OF LABOR DATE
Washington, D.C. 20210 March 5, 2010
TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 16-09
TO: ALL STATE WORKFORCE AGENCIES
ALL STATE WORKFORCE LIAISONS
FROM: JANE OATES /s/
Assistant Secretary
SUBJECT: Work Opportunity Tax Credit (WOTC) Funding Allotments for
Fiscal Year 2010
l. Purpose. To provide state workforce agencies (SWAs) responsible for
management of the WOTC Program with funding allotments for the
period October 1, 2009 through September 30, 2010.
2. References.
Department of Labor Appropriations Act, 2010, Division D, Title I of
the Consolidated Appropriations Act of 2010 (P.L. 111-117)
American Recovery and Reinvestment Act (Recovery Act) of 2009
Section 1221, (P.L. 111-5)
Section 51 of the Internal Revenue Code of 1986, as amended;
Wagner-Peyser Act, Section 7(d)
Small Business and Work Opportunity Tax Act of 2007 (P.L. 110-28)
Tax Relief and Health Care Act of 2006 (P.L. 109-432)
Working Families Tax Relief Act of 2004 (P.L. 108-311)
Small Business Job Protection Act of 1996 (P.L. 104-188)
August 2009 Addendum to Third Edition, November 2002, ETA
Handbook 408
Third Edition, November 2002, of ETA Handbook 408
3. Background. The funds for the allotments announced in this Training and
Employment Guidance Letter (TEGL) are part of the funds appropriated
under the Department of Labor Consolidated Appropriations Act of 2010
(P.L. 111-117), signed into law by President Obama on December 16, 2009.
RESCISSIONS EXPIRATION DATE:
None Continuing
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On May 25, 2007, the Small Business and Work Opportunity Tax Act of
2007 (P.L. 110-28) reauthorized the Work Opportunity Tax Credit program
for an additional 44-month period, through August 31, 2011. On
February 17, 2009, the President signed into law the American Recovery
and Reinvestment Act (the Recovery Act) of 2009 (P.L. 111-5). This
legislation introduced two new target groups: 1) Unemployed Veterans
and 2) Disconnected Youth who begin to work for an employer after
December 31, 2008.
4. Funding. ETA is issuing Fiscal Year (FY) 2010 funding to the SWAs for
WOTC Program implementation activities and elimination of certification
backlogs. The appropriated level for FY 2010 totals $18,520,000. After
allocating $20,000 for the Virgin Islands, funds are distributed to states by
administrative formula with a $66,000 minimum allotment and a 95
percent stop-loss/120 percent stop-gain from the prior year allotment
share percentage.
The FY 2010 formula allotment data factors and related percentages are as
follows:
(1) Fifty percent based on each state's relative share of total
certifications issued from July 1, 2008 – June 30, 2009 for the WOTC
program;
(2) Thirty percent based on each state's relative share of the Civilian
Labor Force, averages for the 12-month period, from October 2008
through September 2009; and
(3) Twenty percent based on each state's relative share of adult
recipients of Temporary Assistance for Needy Families, averages for
the 12-month period, from October 1, 2007 through September 30,
2008.
Attachment I shows the distribution of FY 2010 WOTC funding amounts
by state for program operations in 2010. For FY 2010, there will no longer
be a postage reserve taken from funds distributed by formula. All funds
are distributed by formula, and all states will use their formula funds to
cover postage costs. Funds will be issued by the Grant Officer with the
requirement that expenditures must comply with the Uniform State Plan
Narrative (i.e., the Statement of Work – Attachment II) and the policy
guidance in this TEGL.
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5. General Administration. SWAs are responsible for administering the
WOTC Program, including processing certification requests, promoting the
program to employers, reducing and eliminating existing backlogs, and
reporting program data on a quarterly basis.
In addition, the WOTC must be administered in accordance with the
policies and procedural guidance set forth in the November 2002, Third
Edition of ETA Handbook No. 408 (Handbook) and the August 2009
Addendum to this Handbook, and Section 51 of the Internal Revenue
Code. Current Federal Regulations at 20 CFR 658.400 Subpart E cover the
Job Service complaint procedures.
6. Reporting. SWAs should report expenditures quarterly by completing
Standard Form 9130 (SF-9130) (OMB No. 1205-0461) and entering
expenditures into ETA’s Web-based Enterprise Business Support System
(EBSS), Cost Reporting System. These reports should cover all WOTC
grant funds. Quarterly financial reports are due within 30 days following
the end of each quarter per 29 CFR 97.41(b)(4). Timely submission of these
reports is extremely important to ensure proper accounting of funds.
Regional Offices will conduct a financial reconciliation at the end of the
fiscal year. Questions regarding financial management and reporting for
FY 2010 or for existing prior year fund balances should be addressed to the
appropriate Regional Office.
SWAs should use the Web-based EBSS modified Tax Credit Reporting
System, currently in place, to report quarterly program activities and
outcomes. A schedule with report due dates will be available at:
http://www.doleta.gov/business/incentives/opptax. Quarterly
performance reports are due within 45 days following the end of each
quarter. Note. States were granted an additional 90 days to submit
quarterly performance reports during the WOTC program’s early
implementation years. However, to ensure greater transparency and
timely data for the WOTC program, ETA has decided to remove the 90-day
grace period effective upon receipt of this TEGL. Program reports will
now be due 45 days following the close of each quarter.
7. Action Requested. State Administrators are requested to immediately
transmit this TEGL to the appropriate staff.
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8. Inquiries. Questions regarding these allotments may be directed to the
appropriate Regional Office. Information on allotments and planning
requirements may also be found on ETA’s Web site at:
http://www.doleta.gov.
9. Attachments:
I. FY 2010 WOTC State Allotments
II. WOTC Uniform State Plan Narrative (Statement of Work)
Attachment 1 (official PDF): https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL16-09a1.pdf
U. S. Department of Labor
Employment and Training Administration
Work Opportunity Tax Credits
FY 2010 State Allotments
State Amount
Total $18,520,000
Alabama 243,221
Alaska 66,000
Arizona 394,394
Arkansas 233,704
California 2,287,884
Colorado 210,314
Connecticut 197,595
Delaware 66,000
District of Columbia 66,000
Florida 817,894
Georgia 585,186
Hawaii 66,000
Idaho 66,000
Illinois 845,352
Indiana 502,670
Iowa 259,688
Kansas 172,777
Kentucky 277,636
Louisiana 380,805
Maine 79,736
Maryland 303,782
Massachusetts 333,452
Michigan 642,363
Minnesota 267,248
Mississippi 194,335
Missouri 484,533
Montana 66,000
Nebraska 135,321
Nevada 108,911
New Hampshire 66,000
New Jersey 457,713
New Mexico 149,750
New York 935,998
North Carolina 500,319
North Dakota 66,000
Ohio 804,850
Oklahoma 250,378
Oregon 243,531
Pennsylvania 639,936
Puerto Rico 94,307
Rhode Island 66,000
South Carolina 202,405
South Dakota 68,562
Tennessee 709,716
Texas 1,352,370
Utah 121,866
Vermont 66,000
Virginia 392,904
Washington 452,191
West Virginia 127,381
Wisconsin 311,022
Wyoming 66,000
State Total 18,500,000
Virgin Islands 20,000
Attachment 2 (official PDF): https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2010/TEGL16-09a2.pdf
Work Opportunity Tax Credit Program
Uniform State Plan Narrative (Statement of Work)
Instructions.
State workforce agencies (SWAs) are to use Fiscal Year 2010 funds announced herein
for:
1. Determining eligibility of individuals as members of targeted groups, on a
timely basis, and performing a “quality review” by a second staff person for
each determination within 48 hours of receipt of the IRS Form 8850 and ETA
Form 9061 or 9062.
2. Issuing employer certifications, denials, or notices of invalidation for tax
credits on a timely basis and in accordance with the policies and procedures set
forth in the ETA Handbook No. 408, Third Edition, November 2002 (the
Handbook) and the August 2009 Addendum to the Handbook.
3. Developing working agreements with partner agencies in the One-Stop
Delivery System and coordinating efforts to promote WOTC to employers and
job seekers and other Workforce Investment Act (WIA) partners.
4. Establishing and implementing an Appeals Resolution and Policy Clarification
System in accordance with the guidelines provided in the Handbook (Chapter
VIII, Section F, pp.VIII-5-8).
5. Establishing and maintaining appropriate forms review, record keeping, and
reporting capability related to the orderly management of WOTC certification
requests.
6. Establishing and maintaining an orderly system for regularly verifying the
eligibility of a random sample of individuals certified under the WOTC
Program and initiating effective corrective action when appropriate as
indicated by results of the audit activities.
7. Negotiating formal cooperative agreements with local WIA areas, State
Vocational Rehabilitation Agencies, Veterans Administration and related
groups, Employment Networks and other state and local agencies and
organizations for the purposes of issuing Conditional Certifications where
appropriate, and/or augmenting WOTC outreach activities.
8. Negotiating formal agreements with appropriate Federal and state agencies,
including the Departments of Health and Human Services, Agriculture,
Housing and Urban Development, the Social Security Administration, and
others to expedite verification of information provided to the SWA by
participating target group members.
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9. Training state and participating agency staff and providing monitoring and
technical assistance to these agencies, as appropriate, for conducting target
group preliminary eligibility determinations and issuing Conditional
Certifications.
10. Cooperating with employment and training organizations already working with
the private sector, such as veteran organizations, employer committees, and
local WIA Boards to inform employers about the tax benefits to be derived
from participation and the eligibility requirements under the WOTC Program.
Grant Agreement Conditions.
By entering into this agreement, the SWA agrees to the following conditions:
1. Provisions of the Internal Revenue Code of 1986, Section 51, as amended,
must be adhered to in conducting the program. By law, the SWAs are
designated as the ONLY agencies that can issue a Certification. The SWAs
can enter into cooperative agreements with certain participating agencies and
together provide other WOTC-related program services (e.g., issuing
Conditional Certifications, outreach activities).
2. SWAs must follow the conditions and standards of performance for
administration and operation of the program found in the most current edition
of the ETA Handbook 408 for the WOTC and its August 2009 Addendum.
The state must maintain a verification and quality control process in
accordance with guidance in this Handbook
3. Funding use will be reviewed against the quarterly spending plan and when
expenditures are substantially below plan; ETA may de-obligate funds for
redistribution.
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