Work Opportunity Tax Credit (WOTC) | Program Updates
Program Updates
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.
Training and Employment Guidance Letters (TEGLs)
TEGL 22-22, issued on June 23, 2023, requires any applicants starting on or after Oct. 1, 2023, can only be accepted with the latest version of the ETA Form 9061 and ETA Form 9075.
TEGL 16-20, issued on Nov. 20, 2023, provided updated guidance with the following rules effective on Feb. 20, 2024:
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Both the IRS 8850 and 9061 need to be submitted within 28 calendar days from the employee start date.
- Applications marked “Documentation Forthcoming” will be updated to the Denial Pending More Information (DPMI) status. These applications have 365 days to submit the needed information, after which these applications will be Denied. If denied, after having been in DPMI status, the application cannot be appealed.
- After an employer receives a Denial from a State Workforce Agency (SWA) for a complete, timely submitted certification request, an employer may submit a written appeal to the SWA within 90 calendar days from the date the SWA issued the denial letter. The option to appeal is also available through our online system or by submitting a written to request to the SWA.
To view the updated guidance in its entirety, please visit ETA Advisories | U.S. Department of Labor (dol.gov) and search for TEGL 22-22 and TEGL 16-20, Change 1. If you have any questions or concerns, please email our office.