The Tax Credit Staffing Firms Lost on January 1, and What Might Replace It
Key takeaways
The Work Opportunity Tax Credit (WOTC) lapsed on January 1, 2026. Every qualifying placement was worth $2,400 to $9,600 in federal credit, and that line is gone for new 2026 hires until Congress acts.
The lapse falls hardest on the desks that place hard-to-place people:
