Work Opportunity Tax Credit Funding Allotments for Fiscal Year 2022

Background
The Work Opportunity Tax Credit (WOTC) is set forth under section 51 of the Internal Revenue Code of 1986 and is effective until December 31, 2025 under Section 113 of Division EE, Title 3 -- Further Consolidated Appropriations Act, 2021. The U.S. Department of Labor, through the Employment and Training Administration (ETA), awards grants to states for the administration of WOTC.

Grant Details
States must enter the state allotment amount provided in Attachment I on their SF-424 Form, Application for Federal Assistance, as their request for FY 2022 funding. After allocating $20,000 to the Virgin Islands, ETA distributes the remaining funds to the State Workforce Agencies (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 based on each state’s relative share of total WOTC certifications issued, civilian labor force averages, and adult recipients of Temporary Assistance for Needy Families averages.

Eligibility Requirements
Grantees 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) before submitting an application. The 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.

Period of Performance
The period of performance for this grant opportunity is until December 3, 2021.

Grant Value
The total allotment for WOTC under this continuing resolution is $3,240,420.