A little good news for employers and foster youth living in New Mexico. Republican Governor Susana Martinez has signed into law a bill providing a $1,000 tax credit to employers that hire qualifying foster youth.
Although the New Mexico Foster Youth Tax Credit was signed on March 1, the law does not go into effect until July 1. Beginning then, employers may claim a tax credit of up to $1,000 per each qualifying foster youth they hire.
The $1,000 is based on the qualifying youth’s first full year of employment. If a youth does not remain employed for an entire year, the employer may claim a pro-rated portion of the $1,000 based on the percentage of a year worked. For example, work half a year, claim half the credit or $500.
Employers interested in the Work Opportunity Tax Credit (WOTC) and the federal Empowerment Zone program received good news this morning. Just after 5:30 AM, President Donald Trump announced that he had signed the Bipartisan Budget Act of 2018.
With this deal, numerous expired tax benefits were retroactively reauthorized including federal Empowerment Zones. Renewing Empowerment Zones also impacts the WOTC program.
Qualification under WOTC Target Groups D and F, “Designated Community Resident” and “Summer Youth,” respectively, among other things requires that an employee reside within an authorized Empowerment Zone. (more…)
I received this link to a recent article in Accounting Today from a colleague and a reader of The WOTC Planet. According to the article, Senator John Thune (Republican from South Dakota) has confirmed the Senate’s intention to act on expired tax incentives, which are typically reauthorized with a tax extenders bill. (more…)