Hire Smarter and Save: What Landscapers Need to Know About the Work Opportunity Tax Credit
Running a landscaping business takes more than green thumbs — it takes smart hiring and smart tax planning. One powerful way to do both is by taking advantage of the Work Opportunity Tax Credit (WOTC).
What is the WOTC?
The Work Opportunity Tax Credit is a federal incentive for businesses that hire workers from specific target groups who often face barriers to employment. If your landscaping business hires someone who qualifies, you may receive a tax credit of up to $9,600 per employee.
Who Qualifies?
Eligible hires include individuals who are:
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Veterans
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Long-term unemployed
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SNAP (food stamp) recipients
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Ex-felons
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Residents of designated “empowerment zones”
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Youth summer workers (ages 16–17) in urban or rural high-unemployment areas
Why Landscapers Should Care
Landscaping companies often hire seasonal or part-time workers — many of whom may fall into these categories. You could be eligible for thousands in tax savings each year just by completing a couple of forms.
How Much Can You Save?
The exact credit depends on the employee’s category, hours worked, and wages paid. For example:
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Veteran with disability: up to $9,600
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Long-term TANF recipient: up to $9,000 over two years
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Youth summer hires: up to $1,200
How to Claim the Credit
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Pre-screen the employee using IRS Form 8850 on or before the job offer date
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Submit the form to your state workforce agency within 28 days of the hire
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Track the employee’s hours and wages
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Claim the credit using IRS Form 5884 on your tax return
Tip: Keep good hiring records and work with a tax professional to make sure you don’t miss deadlines or documentation.
Bottom Line:
If you're hiring, make it count. The WOTC is an easy way for landscapers to reduce their tax bill and support meaningful employment. It's a win-win for your business and your community.