High Unemployment Zone (Information Overlay)
WOTC LAPSE NOTICE: The Work Opportunity Tax Credit (WOTC) expired December 31, 2025. As of July 2026 it is in legislative hiatus — no new credits are available for employees starting work on or after January 1, 2026. WOTC has historically been reauthorized retroactively; employers are advised to CONTINUE pre-screening new hires using IRS Form 8850 to preserve potential retroactive eligibility. Credit value: $2,400–$9,600 per qualifying hire.
Check an Address — Free Snapshot
See whether a specific Chicago address sits inside the area that unlocks High Unemployment Zone (Information Overlay), alongside every other incentive that touches that parcel.
Employers hiring from designated WOTC target groups (veterans, SNAP recipients, ex-felons, residents of Empowerment Zones/RRCs, long-term unemployed, etc.). Pre-screen on IRS Form 8850 before/at hire.
High Unemployment Zone (Information Overlay) is tied to the High Unemployment Zone geography — being inside that boundary is the first eligibility gate. A single address can fall inside several overlapping incentive areas at once.
Boundaries are precise and change over time, so exact eligibility always depends on the specific address. The fastest way to know is to run a free snapshot for the parcel you have in mind.
Typical range · WOTC: $2,400–$9,600/hire (authority lapsed 1/1/2026; retroactive reauthorization historically occurs)
- +Work Opportunity Tax Credit up to $9,600 per qualifying hire (LAPSED 1/1/2026 — see status)
- +State and federal workforce training grants
- +Priority for workforce development programs
- 1Pre-screen new hires using IRS Form 8850 (continue pre-screening to preserve retroactive eligibility)
- 2File within 28 days of hire start date
- 3Contact Illinois Department of Employment Security
Call IDES at (800) 247-4984; continue Form 8850 pre-screening to preserve retroactive eligibility
- IRS Form 8850 (pre-screening notice)
- ETA Form 9061 or 9062
- Employee hiring records
- Proof of residence for local hiring programs
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Phone
- (800) 247-4984
- Web
- Visit site ↗
Last verified 2026-07-02
Created by the 2017 Tax Cuts and Jobs Act and made permanent by the One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21, July 2025) on a 10-year designation cycle. OZ 2.0 governor nominations underway July 2026; new OZ 2.0 map effective 1/1/2027. Existing OZ 1.0 tracts remain valid through 12/31/2028.
The New Markets Tax Credit program was made permanent by OBBBA (July 2025) with $5 billion in annual allocation authority — eliminating the prior reauthorization risk. The 39% federal tax credit on qualified equity investments through certified CDEs continues without sunset. CY 2026 application round not yet open as of July 2026. NMTC flows through Community Development Entities (CDEs), not directly to businesses — projects typically $5M+.
HUD-designated Qualified Census Tracts boost Low-Income Housing Tax Credits (LIHTC) by 30%, making affordable housing development more financially viable in these areas.
Properties in National Register Historic Districts qualify for a 20% federal tax credit on certified rehabilitation costs, one of the most valuable credits available for historic building projects.