Category Archives: WOTC
WOTC Expires Tomorrow
Happy New Year. The federal Work Opportunity Tax Credit will expire tomorrow. This will be the 6th time that Congress has allowed the credit to expire. In the past five times, the program has operated in hiatus and has been renewed retroactively. Experts currently expect that this will be the case again this year. The [...]
Senate Approves Expansion of WOTC for Veterans
The US Senate has passed a new multi-tier expansion of the WOTC program for several categories of veterans. The bill is expected to pass in the House next week. Credit amounts will range from the standard $2,400 to over $9,000. These new categories will have an expiration date of 12/31/2012. The bill did not extend [...]
Majority Leader Reid Expected to Push Expanded Veteran WOTC Credit Through Senate
One of the proposals in President Obama’s “American Jobs Act” was an expanded WOTC credit for returning military veterans. While the Jobs Act as a whole is not being pursued in Congress, various pieces of it are. According to The Hill, Senator Reid is forcing the issue of the veterans tax credit: Senate Majority Leader [...]
American Jobs Act Uses WOTC to Implement
The White House has released the detailed legislative language for the President’s “American Jobs Act” proposals. Both the “Returning Heroes and Wounded Warriors” and “Long Term Unemployed” tax credit proposals have been drafted as new sections of the existing Work Opportunity Tax Credit statute.
Congressman Rangel Urges President to Make WOTC Part of Jobs Initiative
President Obama is expected to make a major speech around Labor Day on how his administration intends to create more jobs. We recently saw the President propose an expansion of the WOTC program to enhance the hiring tax credits for military veterans. Representative Charles Rangel has sent this letter to the President’s Chief of Staff [...]
President Obama Will Promote Expansion of WOTC
President Obama just delivered a speech today at the Washington Navy Yard to discuss policies that will help returning military veterans enter the job force. One of his proposals is an expansion of WOTC: The Wounded Warrior Tax Credit will double the existing tax credit for long-term unemployed veterans with service-connected disabilities. Maintain the existing [...]
New Senate Bill Will Expand WOTC for Veterans
Senators Baucus and Grassley introduced Senate Bill 146 to expand the Veteran category for WOTC and simplify the certification process. A Finance Committee press release explains: This Veterans Employment Transition Act, or the VETs Jobs bill, would reward employers for hiring qualified veterans who have recently completed their service in the military with a tax [...]
NY Senator Gillibrand Wants to Extend WOTC
In this video clip, NY Senator Kirsten Gillibrand advocates a permanent extension of WOTC:
What’s Going on with Tax Credits in Washington?
H.R. 4853 has been amended in the Senate to become the “Middle Class Tax Relief Act of 2010.” A summary of the entire bill can be found here. As far as tax credits go, The package includes an extension of the Research and Development credit, Indian Hiring Incentive, Empowerment Zones, New Markets, the Wage Credit [...]
IRSAC Recommends Electronic Signatures for 8850
The Internal Revenue Service Advisory Council (IRSAC) issued its annual report today in Washington, DC. As described in the report, the IRSAC serves as an advisory body to the Commissioner of Internal Revenue. The purpose of the IRSAC is to provide an organized public forum for Internal Revenue Service (the “IRS”) officials and representatives of [...]
Is WOTC Discriminatory?
Over the years I have heard many people question if hiring incentive programs such as the Enterprise Zone or the federal Work Opportunity Tax Credit were consistent with anti-discriminatory statutes. The federal Equal Employment Opportunity Commission (EEOC) has recently responded to this question for WOTC in an informal opinion. Their conclusion is that screening employees [...]
More New WOTC Expansion Ideas From Congress
While California considers hamstringing businesses by limiting its tax incentive programs, in Washington are bipartisan efforts to expand incentives that help business create jobs. H.R. 5685 introduced by Congressman Steve Cohen (D-TN) would increase the WOTC credit by $1,000 for employers who open a new grocery supermarket in an “under served area,” defined as federal [...]
Oil Spill Recovery Zone
Members of Congress are working on a special set of tax incentives for those in the area affected by the Gulf oil spill, including an expansion of the WOTC. The Hill reports: Sen. Mary Landrieu on Friday joined with five other lawmakers to propose a tax package aimed at helping businesses negatively affected by the [...]
WOTC Expansion Updates
H.R. 4920 was introduced in March by Rep. Rush (D-IL) and would make a variety of changes to the WOTC program, It would expand the Disconnected Youth category by increasing the age to 24, make the Disconnected Youth and Veteran categories permanent. The bill would add a new target group called “Title I-B youth services [...]
New WOTC Proposals
Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) have proposed a bill to expand the WOTC program to include more veterans. Here is the press release, and the bill language can be found here. The Senate bill does not yet have a number, but Rep. Timothy Walz (D-MN1) has introduced [...]
