Hire Smarter and Save: What Landscapers Need to Know About the Work Opportunity Tax Credit

droof@davidroofcpa.com (David Roof) — Wed, 13 Aug 2025 13:50:24 GMT

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:

Veterans
Long-term unemployed
SNAP (food stamp) recipients
Ex-felons
Residents of designated “empowerment zones”
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:

Veteran with disability: up to $9,600
Long-term TANF recipient: up to $9,000 over two years
Youth summer hires: up to $1,200

How to Claim the Credit

Pre-screen the employee using IRS Form 8850 on or before the job offer date
Submit the form to your state workforce agency within 28 days of the hire
Track the employee’s hours and wages
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.

David Roof, CPA blog

Hire Smarter and Save: What Landscapers Need to Know About the Work Opportunity Tax Credit