Author Archives: Max Shenker
Each year, the IRS releases a list of “Dirty Dozen Tax Scams” which usually includes things like fake charities or identity theft. This year, “misuse” of the Research Credit makes the list: The research credit is an important feature in the tax code to encourage research and experimentation by the private sector. The IRS continues […]
In a comprehensive tax reform effort, everything in the tax code will be scrutinized. That includes the Work Opportunity Tax Credit. Senators on the Finance Committee had the opportunity to submit written questions to Treasury Secretary nominee Steven Mnuchin to ask questions beyond what was covered in his live hearing. Senator Ben Cardin (D-MD) asked […]
Despite the fact that the Department of Labor’s TEGL 25-15 states that employers may submit WOTC applications through September 29, 2016, the IRS (which is the agency with jurisdiction over transition relief of this kind) clarifies that the deadline is today, September 28, 2016. See IRS Notice 2016-40.
Representatives McDermott (D-WA), Reichert (R-WA), Davis (D-IL), Reed (R-NY), and Doggett (D-TX) have introduced H.R. 5947, a bill “To amend the Internal Revenue Code of 1986 to include foster care transition youth as members of targeted groups for purposes of the work opportunity credit.” The language of the bill has not been made available yet, […]
California’s Governor’s Office of Business and Economic Development has announced the dates for three new rounds of California Competes tax credits. The application rounds will take place: 1. July 25, 2016, through August 22, 2016 ($75 million available) 2. January 2, 2017, through January 23, 2017 ($100 million available) 3. March 6, 2017, through March, […]
On Friday, June 17, the Department of Labor issued a long-awaited TEGL providing the states critical guidance regarding the renewal and expansion of WOTC which were included in the PATH Act passed on December 18, 2015. A previous post reviewed the timeline of events through the end of May. The TEGL provides the following critical […]
Approaching the end of May 2016, where do we stand with the changes made to WOTC in the PATH Act? The Protecting Americans from Tax Hikes Act of 2015 (“PATH Act” Division Q of P.L. 114-113) was enacted Dec. 18, 2015. That legislation extended WOTC for five years, one year back and four years forward, […]
Colorado House Bill 1372, which would have established a state WOTC to supplement the federal credit, was killed in the House Finance Committee on Wednesday. Below is the audio of the bill’s sponsor, State Representative Dianne Primavera, explaining the fiscal necessity to abandon the bill at this time with the hope it could be reconsidered […]
We recently reviewed the status of California’s business incentive programs that replaced the Enterprise Zone program in 2013. We noted that the New Employment Credit (NEC) seemed to be falling significantly short of expectations. The legislation included a requirement that the FTB report to the Legislature each year on the performance of that credit and, […]
The Sacramento Business Journal interviewed Madeline Janis, a member of the California Competes Tax Credit Committee about some of her recent stances on tax credit applications:
Healthcare consultant Mercer conducted a survey of 644 employers regarding opinions of the Affordable Care Act: Employers have made their opinion about the excise tax clear. There is another Affordable Care Act (ACA) provision, however, that irks them nearly as much, and that is the “play or pay” rule – the mandate to offer coverage […]
Colorado House Bill 1372 passed a vote in the House Public Health Care & Human Services Committee on April 5 on a party-line vote. The bill was referred to the Finance Committee. In order to reduce fiscal complications, the bill was amended to begin on Jan. 1, 2018 instead of 2017.
In March, Texas House Member René Oliveira introduced HB 3305, a bill to provide tax credits to businesses that hire certain employees. While not linked to WOTC to the same degree as Colorado’s HB 1372, it is certainly modeled after WOTC. The bill enumerates five categories of qualified employees focused on veterans and the unemployed. […]
We reported earlier on Representative Bonnie Watson Coleman’s (D-NJ) bill to enhance WOTC for businesses that hire ex-offenders. The Congresswoman is proposing an additional WOTC category to make “older long-term unemployment recipients” a new targeted group. Like her previous bill, this bill also proposes to make all of WOTC permanent. The difference between this bill […]
Representative Bonnie Watson Coleman (D-NJ) has introduced H.R. 4840 which focuses on enhancing WOTC for businesses that hire ex-offenders. The bill would make four changes to the WOTC program: 1. Increase the amount of qualified wages for an employee qualified in the ex-offender category from $6,000 to $14,000 for a maximum credit of $5,600 (matching […]