What is WOTC

NEON Mission Statement

The National Employment Opportunity Network (NEON) is the leading national voice on hiring tax incentives. It has played a central role in the development and continuance of the Work Opportunity Tax Credit (WOTC) program.  NEON has worked closely with the Internal Revenue Service (IRS), U.S. Department of Labor (DOL), and the State Employment Security Agency (SESA) to ensure the program and any modifications are administered in an efficient manner. NEON is comprised of Service Bureaus that assist employers to effectively manage the recruitment, and employment of WOTC eligible new hires who are on public assistance programs which include TANF (Temporary Assistance for Needy Families -welfare), SNAP (Supplemental Nutrition Assistance Program - food stamps), Supplemental Security Income (SSI), Recipients of Vocational Rehabilitation as well as Veterans, Ex-felons, and residents of Empowerment Zones. NEON members work collectively to promote the WOTC program which provides a modest tax incentive to employers for hiring individuals who qualify, but have little, if any, work experience and/or job skills.


During 1995, NEON developed the legislative concept that is WOTC and took the lead in organizing a broad based coalition of employers and national groups in a successful effort to get the program enacted in 1996. Since then, NEON has led every program renewal effort as well as every legislative initiative to modernize and make WOTC more responsive to the unemployment challenges facing individuals on government dependent programs.  Today NEON continues to provide the primary leadership on reauthorization of WOTC and serves as the "institutional memory" for Washington decision makers seeking to utilize hiring tax incentives to reduce structural unemployment.


NEON members work with employers to inform them of key program performance indicators such as higher retention rates for entry level workers hired through WOTC and to understand that hiring tax incentive provide an offset to the extra costs to mentor and train eligible new hires to be successfully integrated into an employer's existing workforce.  NEON members help employers to establish internal management practices that ensure compliance and in particular the timeliness requirements with completing IRS' pre-screening 8850 form as part of their job application process, and to timely file the certification request with the State Workforce Agency (SWA).