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2012 Work Opportunity Tax Credit administration funds
Summary ETA gave state workforce agencies final fiscal year 2012 allotments to administer the Work Opportunity Tax Credit program through September 30, 2012. It explains the allocation formula and attaches state amounts and a statement of work. ETA now lists the advisory Canceled.
Document
Federal guidance
Agency
U.S. Department of Labor, Employment and Training Administration (ETA)
Document number
TEGL No. 17-11
Date issued
February 28, 2012
Status
Withdrawn
ETA lists this advisory Canceled as of 2026-10-24; the letter prints Expiration Date: Continuing and Rescissions: None.
Status last verified October 24, 2026
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Accessible letter PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2012/tegl_17_11_acc.pdf
CLASSIFICATION
EMPLOYMENT AND TRAINING ADMINISTRATION WOTC
ADVISORY SYSTEM CORRESPONDENCE SYMBOL
U.S. DEPARTMENT OF LABOR OWI
Washington, D.C. 20210 DATE
February 28, 2012
ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 17-11
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 (FY)
2012
1. Purpose. To provide the State Workforce Agencies (SWAs) with final funding allotments
for the administration of the WOTC program through September 30, 2012.
2. References.
• The Department of Labor Appropriations Act, 2012, Division F of the Consolidated
Appropriations Act of 2012 (Pub. L. 112-74);
• The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010
(Pub. L. 111-312);
• The American Recovery and Reinvestment Act of 2009 (Pub. L. 111-5);
• Internal Revenue Code of 1986, Section 51, as amended;
• Internal Revenue Service Notices 2009-69 (August 31, 2009) and 2009-28, 2009-24 I.R.B
1082 (June 15, 2009); and
• ETA Handbook No. 408, November 2002, Third Edition (Handbook); and August 2009
Addendum to the Handbook (available at www.doleta.gov/wotc).
3. Background. In December 2011, the Employment and Training Administration (ETA)
issued program funds to SWAs for Continuing Resolutions 1, 2, and 3 for FY 2012 for the
uninterrupted administration of the WOTC program.
4. Funding. ETA is now issuing the balance of FY 2012 funds to the SWAs for the operation
of authorized activities of the WOTC program through September 30, 2012. The balance of
FY 2012 funds is being issued based on the appropriated level of $18,484,997. 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.
RESCISSIONS EXPIRATION DATE
None Continuing
The FY 2012 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
October 1, 2010 through September 30, 2011 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 2010 through September 2011; 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,
2009 through September 30, 2010.
Attachment I shows the distribution of full FY 2012 WOTC funding amounts by state
according to this formula, including those funds previously awarded in December 2011.
5. General Administration. SWAs are responsible for administering the WOTC program
including the certification process, promoting the program to the employer sector, reducing
and eliminating existing backlogs, and reporting program data on a quarterly basis. In
addition, WOTC must be administered in accordance with the policies and procedural
guidance set forth in the November 2002, Third Edition of the Handbook; the August 2009
Addendum to this Handbook; and Section 51 of the Internal Revenue Code of 1986, as
amended. Current Federal Regulations at 20 CFR 658.400 Subpart E cover the complaint
procedures. Other applicable requirements are listed in the Statement of Work (Attachment
II).
6. Reporting. SWAs must report expenditures quarterly using the ETA Financial Report (ETA
Form 9130). Quarterly financial reports are due within 45 days following the end of each
quarter. 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 2012 or for
existing prior year fund balances should be addressed to the appropriate Regional Office.
SWAs should use the Web-based Enterprise Business Service System Tax Credit Reporting
System, currently in place, to report quarterly program activities and outcomes using ETA
Form 9058. Quarterly program reports are due within 45 days following the end of each
quarter. Timely submission of these reports is very important for program management
purposes and to enable ETA to respond to inquiries about WOTC program activities.
Questions about reporting on program activities and outcomes should be addressed to the
appropriate Regional Office.
7. Action Requested. State Administrators are requested to immediately transmit this Training
and Employment Guidance Letter to the appropriate staff.
8. Inquiries. Questions regarding these instructions should be directed to the appropriate
Regional WOTC Coordinator listed on the WOTC program Web site at:
http://www.doleta.gov/wotc.
9. Attachments.
I. FY 2012 State Allotments
II. WOTC Statement of Work
Attachment I: FY 2012 State Allotments
Official attachment PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2012/tegl_17_11_att_a.pdf
Attachment I
U. S. Department of Labor
Employment and Training Administration
Work Opportunity Tax Credits - FY 2012 State Allotments
State Amount
Total $18,484,997
Alabama 303,734
Alaska 66,000
Arizona 442,955
Arkansas 210,519
California 2,124,523
Colorado 229,643
Connecticut 177,992
Delaware 66,000
District of Columbia 66,000
Florida 893,117
Georgia 527,131
Hawaii 66,000
Idaho 87,316
Illinois 761,486
Indiana 452,801
Iowa 233,925
Kansas 196,593
Kentucky 315,906
Louisiana 343,026
Maine 90,727
Maryland 316,012
Massachusetts 300,371
Michigan 616,847
Minnesota 248,770
Mississippi 188,702
Missouri 436,464
Montana 66,000
Nebraska 146,960
Nevada 98,106
New Hampshire 66,000
New Jersey 412,305
New Mexico 134,894
New York 985,894
North Carolina 564,708
North Dakota 66,000
Ohio 908,878
Oklahoma 284,891
Oregon 219,371
Pennsylvania 670,491
Puerto Rico 84,951
Rhode Island 66,000
South Carolina 251,177
South Dakota 66,000
Tennessee 639,307
Texas 1,251,695
Utah 168,672
Vermont 66,000
Virginia 447,063
Washington 434,099
West Virginia 183,081
Wisconsin 353,894
Wyoming 66,000
State Total 18,464,997
Virgin Islands 20,000
Attachment II: WOTC Statement of Work
Official attachment PDF: https://www.dol.gov/sites/dolgov/files/ETA/advisories/TEGL/2012/tegl_17_11_att_b.pdf
Attachment II
Work Opportunity Tax Credit Program (WOTC)
Uniform State Plan Narrative (Statement of Work)
Instructions.
State workforce agencies (SWAs) are to use Fiscal Year 2011 or Fiscal Year 2012 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 (Handbook) and the most currently
updated version of the 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.
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. The most current edition of the ETA Handbook 408 for the WOTC and its August 2009
Addendum shall guide conditions and standards of performance for administration and
operation of the program. 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, the Employment and Training Administration may de-
obligate funds for redistribution.
-2-
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