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What Employers Need to Know About the WOTC Program Hiatus Starting in 2026
The Work Opportunity Tax Credit (WOTC) program is currently authorized through Wednesday, Dec. 31, 2025. Effective Thursday, Jan. 1, 2026, the program will enter a hiatus period pending authorization from the U.S. Department of Labor. During the hiatus, South Dakota will continue to accept and process WOTC applications, but final certifications or denials cannot be issued until the program is reauthorized.
During this time, we will continue to:
- Issue Needs Letters requesting supporting documentation
- Issue Out-of-State Letters requesting benefit verification from other states
- Accept, approve, and verify Employer Representative Declarations (ERDs) in the SD Online System
- Verify all benefits in the SD Interstate portal for State Workforce Agencies (SWAs)
- Review and verify all supporting documentation submitted
- Accept applications submitted via USPS or the SD Online System, including those with 2026 hire dates
The WOTC program has expired and been retroactively reauthorized by Congress multiple times in the past, which has resulted in previous hiatus periods. While reauthorization cannot be guaranteed, it has occurred historically.
If you have questions, please contact WOTC@state.sd.us.
For the most up-to-date federal information, employers are encouraged to monitor the U.S. Department of Labor WOTC webpage and the IRS Work Opportunity Tax Credit webpage.
QUICK LINKS
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South Dakota Department of Labor and Regulation
Employer Connection E-Newsletter
You have received this email because you have an account with the South Dakota Department of Labor and Regulation or have subscribed to the DLR Employer Newsletter ListServ
This correspondence is sent from an account we use to send messages only. Please refer to our Staff Directory page to contact the appropriate department or use this web form to contact us. Thank you.
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