The Tax Credit Staffing Firms Lost on January 1, and What Might Replace It
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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: