TEGL 3-21.pdf

EMPLOYMENT AND TRAINING ADMINISTRATION

ADVISORY SYSTEM

U.S. DEPARTMENT OF LABOR

Washington, D.C. 20210

CLASSIFICATION

WOTC

CORRESPONDENCE SYMBOL

OWI

DATE

November 15, 2021

RESCISSIONS

None

EXPIRATION DATE

Continuing

ADVISORY: TRAINING AND EMPLOYMENT GUIDANCE LETTER NO. 3-21

TO: STATE WORKFORCE AGENCIES

STATE WORKFORCE ADMINISTRATORS

WORK OPPORTUNITY TAX CREDIT COORDINATORS

FROM: ANGELA HANKS

Acting Assistant Secretary

SUBJECT: Work Opportunity Tax Credit (WOTC) Initial Funding Allotments for Fiscal

Year 2022

1. Purpose. To convey the WOTC Fiscal Year (FY) 2022 initial funding allotments and application requirements for State Workforce Agencies (SWA) based on funding appropriated through a continuing resolution (CR) through December 3, 2021.

2. Action Requested. Grantees must meet the application requirements detailed in section 4 within 30 calendar days from the date of this Training and Employment Guidance Letter

(TEGL) issuance.

3. Summary and Background.

a. Summary – On September 30, 2021, the Extending Government Funding and Delivering

Emergency Assistance Act, 2022 (Public Law 117-43) was signed into law, providing a continuing resolution (CR), which allows for the uninterrupted administration of the

WOTC through December 3, 2021. The allotment for WOTC under this CR is

$3,240,420. Once Congress authorizes final appropriations for FY 2022, the

Employment and Training Administration (ETA) will publish a change to this TEGL to announce the full year allotments and state balances. If applicable, ETA will also announce any additional funding appropriated to reduce processing backlogs and assist states in adopting or modernizing information technology for processing of certification requests. ETA requests that SWAs submit applications for funding as allotted in

Attachment I to this TEGL.

b. Background – The WOTC is set forth under section 51 of the Internal Revenue Code of

1986 (Code) and is effective until December 31, 2025 under Section 113 of Division EE, Title 3 -- Further Consolidated Appropriations Act, 2021 (P.L. 116-260). The U.S.

Department of the Treasury, through the Internal Revenue Service (IRS), administers all tax-related provisions and requirements of the Federal tax credit. The U.S. Department of Labor, through the ETA, awards grants to states for administration of WOTC.

4. Details. States must enter the state allotment amount (provided in Attachment I) on their

SF-424 Form, Application for Federal Assistance (OMB Control No. 4040-0004), as their request for FY 2022 funding.

After allocating $20,000 to the Virgin Islands, ETA distributes the remaining funds to the

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 calculated as follows:

a. 50 percent is based on each state’s relative share of total WOTC certifications issued from October 1, 2020 through September 30, 2021;

b. 30 percent is based on each state’s relative share of the Civilian Labor Force averages for the 12-month period from October 1, 2020 through September 30, 2021; and

c. 20 percent is based on each state’s relative share of adult recipients of Temporary

Assistance for Needy Families averages from October 1, 2019 through September 30, 2020.

Application Requirements for FY 2022 Funding. ETA requires grantees to submit an electronically signed copy of the SF-424 Form through Grants.gov for funding opportunity number ETA-WOTC-TEGL-03-21-2022 at https://www.grants.gov, within 30 calendar days from the issuance date of this TEGL. The official, electronically signed SF-424 Form must reflect the state amount listed in Attachment I for the requested estimated funding total in item #18, and the Catalog of Federal Domestic Assistance Number 17.271 for item #11.

Each applicant 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) at https://www.sam.gov, before submitting an application. To submit the required documents, applicants must follow the “Apply for Grants” link on Grants.gov and download the links for the grant application package. For this grant opportunity, applicants should not follow the “Find Grants” link, as this is not a competitive funding opportunity. If applicants encounter a problem with Grants.gov and do not find an answer in any of the other resources, they should call 1-800-518-4726 or 1-606-545-5035 to speak to a Customer Support

Representative or send an email to support@grants.gov. Please note: Effective June 2017, applicants can no longer access SAM using Internet Explorer (IE) web browser versions older than IE11.

General Administration. 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.

Reporting Requirements.

a) Quarterly Financial Report – SWAs must report fiscal expenditures quarterly using ETA Form 9130. Financial reports are due no later than 45 days following the end of https://www.grants.gov/ https://www.sam.gov/ mailto:support@grants.gov each quarter. Timely submission of these reports is important to ensure proper accounting of funds.

b) Quarterly Performance Report – SWAs must use the web-based Enterprise Business

Support System (EBSS) Tax Credit Reporting System to report quarterly activities and outcomes using ETA Form 9058. Performance reports are due no later than 45 days following the end of each quarter. Timely submission of these reports is important for administration purposes.

5. Inquiries. Please direct inquiries to the appropriate Regional WOTC Coordinator listed on the WOTC website at https://www.dol.gov/agencies/eta/wotc/contact/regional-offices.

6. References.

• Section 51 of the Internal Revenue Code of 1986 as amended; and

• P.L. 117-43 -- Extending Government Funding and Delivering Emergency Assistance

Act of 2022.

7. Attachment(s).

Attachment I: Work Opportunity Tax Credit Fiscal Year 2022 Initial State Allotments

Attachment II: Work Opportunity Tax Credit Statement of Work https://www.dol.gov/agencies/eta/wotc/contact/regional-offices

Attachment IWork Opportunity Tax Credit FY 2022 State Allotments under Continuing Resolution #1

State

CR #1

10/1/21 thru 12/03/21

(17.53%)

Total $3,240,420

Alabama 49,516 Alaska 11,570 Arizona 52,952 Arkansas 25,123 California 440,238 Colorado 51,705 Connecticut 22,045 Delaware 12,450 District of Columbia 11,570 Florida 153,178 Georgia 93,604 Hawaii 11,570 Idaho 13,884 Illinois 137,158 Indiana 53,076 Iowa 42,494 Kansas 22,590 Kentucky 68,732 Louisiana 50,870 Maine 12,662 Maryland 61,872 Massachusetts 64,697 Michigan 111,615 Minnesota 45,859 Mississippi 38,192 Missouri 73,542 Montana 11,570 Nebraska 25,906 Nevada 24,098 New Hampshire 11,570 New Jersey 59,236 New Mexico 25,378 New York 186,758 North Carolina 88,019 North Dakota 11,570 Ohio 129,308 Oklahoma 50,564 Oregon 46,475 Pennsylvania 138,026 Puerto Rico 13,877 Rhode Island 13,884 South Carolina 46,722 South Dakota 11,570 Tennessee 126,985 Texas 214,333 Utah 18,635 Vermont 11,570 Virginia 73,484 Washington 69,658 West Virginia 22,991 Wisconsin 60,393 Wyoming 11,570 Virgin Islands 3,506

I-1

Attachment II

II-1

Work Opportunity Tax Credit (WOTC)

Statement of Work

State Workforce Development Agencies, also known as State Workforce Agencies (SWA), must use funds for the Fiscal Year to realize the following responsibilities:

1. The SWA must adhere to Employment and Training Administration (ETA) guidance, and provisions of the Internal Revenue Code of 1986, Section 51, as amended, in administering

WOTC. Law designates the SWAs as the only agencies that can issue a Certification.

26 USC sec. 51(d)(12).

2. Designate a state coordinator, who oversees the administration of WOTC, for each state grant.

3. Determine eligibility of individuals as members of targeted groups, on a timely basis, and issue employer certifications, denials, or notices of invalidation for tax credits on a timely basis, and in accordance with the policies and procedures set forth by ETA.

4. Establish and implement an appeals resolution process in accordance with the guidelines provided by ETA.

5. Develop a backlog reduction plan that includes an estimated timeline to eliminate existing backlogs based on current policies and procedures, and notify your regional coordinator prior to implementation.

6. Establish and maintain appropriate forms’ quality review process, record keeping, and reporting capability related to the orderly management of WOTC certification requests.

7. Establish and maintain an orderly system for regularly verifying the eligibility of a random sample of individuals certified under WOTC and initiating effective corrective action when appropriate as indicated by results of such activities.

Additionally, SWAs may also use the funds to realize the following items below:

Develop working agreements, such as Memorandums of Understanding (MOU) or other formal agreements, with partner agencies in the American Job Center network (also known as the One-Stop Career Center system) and coordinate efforts to promote WOTC to employers, job seekers and other Workforce Innovation and Opportunity Act (WIOA) partners.

Develop working agreements such as MOUs or other formal agreements with other SWAs for the timely and orderly processing of “out of state” Certification Requests (i.e., applications) requiring SWAs to provide available documentation and records for WOTC potentially eligible applicants/new hires relocating and working in another state.

Develop working agreements such as MOUs or other formal agreements with state or local partnering agencies (i.e. state Vocational Rehabilitation Agencies, Veterans Administration and related organizations, Employment Networks, and other local workforce areas), for the purposes of expediting verification of targeted group eligibility information submitted in the certification request, and issuing Conditional Certifications, where appropriate.

Attachment II

II-2

Train state and participating agency staff, and provide monitoring and technical assistance to these agencies, as appropriate, for conducting target group preliminary eligibility determinations and issuing Conditional Certifications.

Other Grant Agreement Conditions

By entering into this agreement, the SWA agrees to the following conditions:

SWAs must assure that all data exchanges conducted through or during the course of performance of this grant will be conducted in a manner consistent with applicable Federal law and TEGL NO. 39-11 (https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7872) issued June 28, 2012. All such activity conducted by ETA and/or recipient/s will be performed in a manner consistent with applicable state and Federal laws.

Fulfill performance and financial reporting requirements under grant agreement.

https://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=7872

Attachment II (Accessible PDF).pdf