Senate Finance Passes Tax Extender Bill – WOTC Included

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As expected and hoped, the Senate Finance Committee passed a version of a tax extenders bill that includes a two year extension of WOTC (through the end of 2015), as well as the Indian Employment Credit and the Federal Empowerment Zone credit.  In addition, based on the earlier “Long-Term Unemployed Hiring Incentive Act” (H.R. 3726) [Read More...]

Senator Wyden Releases Draft of Tax Extender Markup

Tax Extender Bill Legislation

Senator Ron Wyden, Chairman of the Senate Finance Committee, has released a draft of a proposed markup for a tax extenders bill that will be be put up for a markup and vote today, April 3rd.  Notably, the proposal includes a two year extension and renewal (retroactive one year, and a one year extension until  December [Read More...]

WOTC and Tax Extenders to be Addressed in April

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Both the leadership of the House Ways and Means Committee and Senate Finance committee have indicated that they will address the expired Tax Extenders, including WOTC, with hearings and a bill markup session as soon as next week.  This is by no means a “slam dunk” for renewal, but both these committees are key efforts [Read More...]

WOTC Legislative Activity Heating Up

US Senate

There has been some recent legislative activity as it relates to WOTC renewal and the Tax Extenders.  Ron Wyden, soon to lead the Senate Finance Committee pending the exit of Max Baucus, has expressed his desire to deal with the tax extenders in an expeditious manner.  Speaking on the overall extenders, that include WOTC, Mr. [Read More...]

President Obama Presents Plan for “Promise Zone” Tax Credits

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In an effort to encourage economic investment in targeted geographic areas, President Obama has introduced his plan to establish “Promise Zones” to “ensure that hard work leads to a decent living for every American.”  The plan includes raising minimum wage, “high quality” preschool programs, and making targeted investments while “partnering with communities to help them [Read More...]

WOTC Extension Bill for Long-Term Unemployed

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The Long-Term Unemployed Hiring Incentive Act (H.R. 3726) has been introduced by Rep. Bill Pascrell, Jr. (D-NJ).   Reps. Jon Runyan (R-NJ), Alan Lowenthal (D-CA) and Tom Reed (R-NY) joined Mr. Pascrell to “To amend the Internal Revenue Code of 1986 to allow the work opportunity credit for hiring the long-term unemployed.”  This bill would [Read More...]

DOL Publishes WOTC Hiatus Guidance for SWA’s

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The Department of Labor has issued Training and Employment Guidance Letter 8-13 detailing “Work Opportunity Tax Credit (WOTC) Procedural Guidance During Authorization Lapse.”  As we have seen in previous hiatus situations, the State Workforce Agencies (SWA) are instructed to continue processing all timely filed certification request for individuals hired before Jan 1, 2014.  Further, the SWA’s [Read More...]

Year End Tax Credit Check-Up

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Regardless of the outcome of upcoming efforts to renew WOTC and the tax extenders, it is advised that companies review their tax credit capture processes and procedures to enhance their participation and ensure maximum benefit realization.  As a best practice, there are three things that employers should consider as they seek to implement and maintain [Read More...]

Year End Budget Proposal and The Tax Extenders

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The  House of Representatives has passed  a budget proposal offered by both Paul Ryan (R – Wis.)  and Patty Murray (D – Wash).   The deal  is worth about $85 billion, $45 billion of which replaces the sequestration cuts in 2014, and another $20 billion for deficit reduction.  The remaining $20 billion preemptively replaces sequestration cuts in 2015. [Read More...]

WOTC Extension Bills Presented in Both Houses

WOTC Capital

As we inch ever nearer to a Work Opportunity Tax Credit (WOTC) hiatus, and overall tax reform becomes less and less likely, there has recently been some important action taken in both houses of congress to extend WOTC, both the core program and 2011 veteran expansion, ahead of its impending hiatus on December 31, 2013. [Read More...]