What does the Work Opportunity Tax Credit incentivize for employers?

The Work Opportunity Tax Credit (WOTC) is designed specifically to encourage employers to hire individuals from certain target groups that typically face significant barriers to employment. One of these groups includes individuals with disabilities. By providing a tax credit to employers who hire these individuals, the WOTC incentivizes businesses to take on workers who might otherwise struggle to find employment opportunities.

This tax credit not only helps to promote workplace diversity and inclusion but also aims to reduce unemployment among disadvantaged populations. The financial benefit of the tax credit serves as a motivating factor for employers, making it more appealing for them to consider candidates who are often overlooked in the hiring process, particularly those with disabilities who possess skills and capabilities that can contribute to the workforce.

The other options do not align with the purpose of the WOTC, as reducing training programs, providing accommodations, or minimizing wages do not encourage employers to hire individuals from target groups or support their inclusion in the workforce.