ATTACHMENT III:

Work Opportunity Tax Credit and
Welfare-to-Work Tax Credit
Plan Narrative Instructions


The reauthorization of the Work Opportunity Tax Credit and Welfare-to-Work Tax Credit (WOTC and WtWTC) for FY 2003 extends the availability of a highly successful business service tool to stimulate economic recovery and growth. Plan narratives should focus on how the tax credits will be integrated within the state's business outreach and employer service programs.

Statement of Work. SWAs will submit detailed plan narrative descriptions for carrying out the following functions:

  1. Determining eligibility of individuals as members of targeted groups, on a timely basis, and performing a quality review by a second staff person for each determination within 48 hours.
  2. Issuing employer certifications, denials, or notices of invalidation for tax credits on a timely basis and in accordance with the policies and procedures set forth in the ETA Handbook No. 408 Third Edition, November 2002 (Handbook).
  3. Developing working agreements with partner agencies in the One-Stop Service Delivery system and coordinating efforts to promote WOTC and WtWTC to employers and job seekers and other Workforce Investment Act (WIA) partners.
  4. Establishing and implementing an Appeals Resolution and Policy Clarification System in accordance with the guidelines provided in the Handbook (Chapter VIII, Section F, pp VIII-5-8).
  5. Establishing and maintaining appropriate forms review, record keeping, and reporting capability related to the orderly management of WOTC and WtWTC certification requests.
  6. Establishing and maintaining an orderly system for regularly verifying the eligibility of a random sample of individuals certified under the WOTC and WtWTC and initiating effective corrective action when appropriate as indicated by results of such activities.
  7. Negotiating formal cooperative agreements with local WIA areas, State Vocational Rehabilitation Agencies, and other state and local agencies and organizations for the purposes of issuing Conditional Certifications where appropriate, and/or augmenting WOTC and WtWTC outreach activities.
  8. Negotiating formal cooperative agreements with appropriate state agencies, including the Departments of Health and Human Services, Agriculture and Housing and Urban Development to expedite verification of information provided to the SWA by participating target group members.
  9. Training state and participating agency staff, and providing monitoring and technical assistance to these agencies, as appropriate, for conducting target group, preliminary eligibility determinations and issuing Conditional Certifications.
  10. Cooperating with employment and training organizations already working with the private sector, such as veteran organizations, employer committees, and WIA Boards, to inform employers about the tax benefits to be derived from participation and the eligibility requirements under WOTC and WtWTC.

    Grant Agreement Conditions:

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

    1. Provisions of the Internal Revenue Code Section 51 and 51A, as amended, must be adhered to in conducting the program. By law, the SWAs are designated as the ONLY agencies that can issue a Certification. The SWAs can enter into cooperative agreements with certain participating agencies and together provide other WOTC and WtWTC related program services.
    2. The Handbook for the WOTC and WtWTC shall guide conditions and standards of performance for administration and operation of the program. The state shall maintain a verification and quality control process in accordance with guidance in the Handbook.
    3. Fund utilization will be reviewed against the quarterly spending plan and when expenditures are substantially below plan, ETA may de-obligate funds for redistribution.