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Author Archives: Max Shenker

LAO Reveals Break in Revenue Neutrality Promise

In a response to Governor Brown’s May revision of California’s budget, the Legislative Analysts Office revealed that the tax incentives enacted in 2013 to replace the Enterprise Zone program have failed to live up to their promise. A press release from Governor Brown’s office date July 11, 2013 stated: “By providing a hiring tax credit […]

Senators Introduce Legislation to Expand WOTC to Help At-Risk Youth

The following is a press release from Senator Dick Durbin (D-IL): WASHINGTON – U.S. Senators Dick Durbin (D-IL) and Tammy Duckworth (D-IL) today introduced two pieces of legislation to expand and increase access to employment opportunities for at-risk youth. The Helping to Encourage Real Opportunity (HERO) for At-Risk Youth Act and the Creating Pathways for […]

Update on the California New Employment Credit (NEC)

About a year ago, we reviewed the status of the business incentive programs that California enacted as replacements for the Enterprise Zone program: When California did away with its enterprise zone tax incentive program in 2013, it replaced that program with three new tax incentives: (1) the California Competes tax credit, (2) a partial sales […]

Mass. Governor Proposes State WOTC Credit for Hiring Veterans

In his fiscal year 2018 budget proposal, Mass. Governor Charlie Baker is proposing a state credit to small employers who hire WOTC qualified veterans. The credit would be up to $4,000 over two years, but would only be available to businesses with fewer than 100 employees. The proposed language of the legislation is: SECTION 35. […]

IRS Lists Research Credit Among “Dirty Dozen Tax Scams”

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 […]

Treasury Nominee Mnuchin Responds to Question about WOTC

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 […]

Today is the Last Day of WOTC Transition Relief

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.

H.R. 5947 Proposes to Expand WOTC for Foster Youth

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, […]

GO-Biz Announces FY 2016/17 California Competes Rounds

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, […]

DOL Provides Guidance for PATH Act WOTC Updates

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 […]

Where We Are: WOTC and the PATH Act

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 WOTC Bill Killed in Committee

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 […]

California New Employment Credit Update

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, […]

A California Competes Tax Credit Committee Member Offers Insight Into The Voting Process

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:

ACA: Survey Finds Businesses Think Reporting Requirements are a Significant Administrative Burden

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 […]

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