Category Archives: 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 […]
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, […]
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 […]
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 […]
Colorado State Representative Dianne Primavera has proposed House Bill 16-1372, “Concerning the Creation of the Colorado Work Opportunity Income Tax Credit.” The bill states as a rationale: The General Assembly further finds that when such employees are hired and thus move out of unemployment, the federal government and the state see savings in the cost […]
The IRS published today Notice 16-22 concerning the extension of the federal Work Opportunity Tax Credit (WOTC) and the addition of a new qualification category. Consistent with recent IRS action, the Service is allowing a period of transition relief to allow taxpayers to submit WOTC applications to the states despite the requirement that applications must […]
Senator Cardin (MD) was the co-author (along with Senator Portman) of the amendment accepted into the Finance Committee extender bill which would add a new category to WOTC for hiring long-term unemployed individuals. In a press-release, Senator Cardin said the following about this amendment: I am very proud of my work to extend the availability […]
Ways and Means member, Congressman Tom Reed (R-NY) and Congressman Charlie Rangel (D-NY) have introduced H.R. 2754 to permanently extend WOTC. Apparently this bill was introduced with the blessing of Chairman Ryan and is going to be part of the House Republican strategy of proposing the permanent extension of a number of important components of […]
In March of 2013, because of Congress’ retroactive authorization of the WOTC program, the IRS allowed a brief period of “transition relief” to allow taxpayers to file WOTC applications for employees hired in 2012 retroactively. Normally, the WOTC program requires that applications be submitted within 28-days of an employee’s start date. There has been speculation […]