On May 22, 2013, the California State Assembly’s Budget Subcommittee #4 held a hearing that explored Governor Jerry Brown’s latest economic tax incentive proposals as they relate to the State’s current enterprise zone program. In my previous post on this subject, based solely on the language published in the Governor’s May 2013 budget revision, I concluded that significant “revisions” were the target. The recent hearing makes it abundantly clear, however, that the words “elimination” and “replacement” better describe Governor Brown’s proposal. (more…)
Tag: Senator Ron Wydon
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Per the Chattanoogan:
“Tennessee employers taking advantage of the Work Opportunity Tax Credit (WOTC) program achieved a record high in potential federal income tax savings during the fiscal year that ended in September 2012, announced Burns Phillips, acting commissioner for the Tennessee Department of Labor & Workforce Development. Last year the department issued 64,300 WOTC tax credit certifications to Tennessee employers, representing a potential federal income tax savings in excess of $232 million.” (more…)
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California Governor Jerry Brown released his May budget revise today, revealing additional intentions for the State’s enterprise-zone program.
From page 68:“The [enterprise zone] hiring credit will be refocused to specific areas with high unemployment and poverty rates. This credit will be available for the hiring of long-term unemployed workers, unemployed veterans, and people receiving public assistance. The Enterprise Zone sales tax program will be expanded to a statewide, upfront sales tax exemption for manufacturing or biotech research and development equipment purchases.”
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As reported earlier this month, the 2014 fiscal budget as proposed by the White House includes a proposal to make the VOW to Hire Heroes tax credits permanent. It would accomplish this by giving permanency to the entire Work Opportunity Tax Credit (WOTC) program — of which the VOW tax credits are an integral part. (more…)
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Last summer, the House Subcommittee on Select Revenue Measures held hearings to explore HOW to evaluate the numerous tax extenders coming before Congress each year. Chairman of the Subcommittee, Congressman Pat Tiberi (R-OH) explained at the time: (more…)
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This question has been coming up since the passage in January of the American Taxpayer Relief Act of 2012. Did the act renew the Washington DC Empowerment Zone designation?
Answer: Unfortunately, no. (more…)PUBLISHED IN
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Carmen Ortiz, the United States’ National WOTC Coordinator (U.S. Department of Labor, Employment & Training Administration) issued a correspondence to all of the program’s Regional Coordinators. The purpose of the correspondence was to answer the question many have been asking about IRS Notice 2013-14.
Does the notice in essence wave the “on or before the day of hire” requirements created by §51(d)(13)(A)(ii). Short answer: YES!
In her email correspondence, Ms. Ortiz states that while she is the author of the response to this question, she first ran her response before the IRS.
Now I quote Ms. Ortiz, National WOTC Coordinator: (more…)PUBLISHED IN
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I have received a number of additional inquiries about IRS Notice 2013-14. Specifically, readers want to know if under the Notice, the affected employees are still required to complete IRS Form 8850 on or before the day they are offered a job.
Answer: I do not know for sure but until further guidance is given must assume that, Yes, employees with hire dates affected by Notice 2013-14 are still required to have completed the form on or before the day of their job offer.
Having said that, I am looking further into this issue.
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Yesterday, I published a post about IRS Notice 2013-14.
I have since modified that post and I want to advise caution about how employers interpret the IRS Notice. (more…)PUBLISHED IN
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The IRS has released IRS Notice 2013-14, which provides transition relief given the late retroactive renewal of the Work Opportunity Tax Credit program in January. The transition rules are not the same, however, for all WOTC target groups.
Notice 2013-14 waves the 28-day deadline for submitting IRS Form 8850 (the WOTC Pre-screen Notice) for qualifying employees hired within certain dates ranges in 2012 and early 2013. The extended deadline for submitting the applications for affected employees is now April 29, 2013.
The rules apply as follows:- For all targeted groups except qualifying veterans, the extension applies to qualifying employees hired from January 1, 2012 through March 31, 2013 (that’s a period of 15 months).
- For qualifying veterans, the extension applies to qualifying employees hired between January 1, 2013 through March 31, 2013 (a period of just 3 months)
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