Photo credit to Jacquelyn Martin/AP (Dusk falls over the Capitol, Monday, Dec. 21, 2020, in Washington)
Good news for the WOTC Program!
The Omnibus Spending bill signed by President Trump on Sunday includes a provision that extended the Work Opportunity Tax Credit (WOTC) for five more years. The new expiration date for the program is December 31, 2025. This bill made no other changes to the WOTC program.
Last Friday, Senator Rob Portman (R-OH) made an appearance during a webcast hosted by the Urban-Brookings Tax Policy Center. His remarks were optimistic about including a number of tax-extenders in a pandemic stimulus bill after the elections. I think that as a member of the Senate Finance Committee, Portman just might know something about it.
As described by Law 360, Portman called for expanding the Work Opportunity Tax Credit and making WOTC permanent. His WOTC expansion would create a new Target Group for people unemployed because of the pandemic. The U.S. Senate included this same provision in its July stimulus proposal. See post herein, “Senate COVID Bill Would Expand WOTC Again.”
This article (click here) came out yesterday from Lexis Nexus’ Law 360 Tax Authority. It appears that the publisher has made it available without a subscription because it relates to covid-19 legislation. I’ll provide just a couple of quotes for you to test your interest.
Photography by Magda Ehlers.
After a long weekend and late nights of negotiations, Congress has agreed upon an end-of-year tax package that includes long-awaited tax extenders.
The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extends the Work Opportunity Tax Credit (aka WOTC) another year, through December 31, 2020. Empowerment Zone tax benefits, which expired in 2017, have been retroactively renewed for 2018, 2019, and 2020.
A few additional renewed tax incentives that may interest our readers include:
Maybe you’ve heard that the Work Opportunity Tax Credit (aka WOTC) is slated to expire on December 31, 2019. And that makes you nervous.
But should it?
Forty years of productive history suggest that WOTC will still be around for years to come.
WOTC is part of the U.S. tax code. Like dozens of similar code provisions, Congress wrote it in a way that requires them to revisit the program from time to time. The upcoming expiration date signals that the moment has arrived again.
Has it happened before? Yes. Many times.
On June 20th, after a marathon mark-up session and by a vote of 24-17, the US House Ways and Means Committee advanced a number of measures. Of most importance to the Work Opportunity Tax Credit (WOTC), was H.R. 3301, “The Taxpayer Certainty and Disaster Relief Act.” The bill would extend for one year a number of incentives scheduled to expire at the end of 2019, including the Work Opportunity Tax Credit. This would extend WOTC and other provisions listed through 2020.
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…)
President Promptly Signs Government Funding and Tax Extenders Legislation – WOTC Survives through 2019
President Obama signed a huge tax and spending package into law on Friday following congressional votes that avoided a year-end showdown over the budget and ended legislative business until lawmakers return in 2016
The tax extenders and government funding legislation passed the House and Senate today and is now on its way to the President for his pen. Of primary interest to WOTC Planet readers is the 5-year extension of the Work Opportunity Tax Credit (WOTC) with Vow to Hire Heroes Act. These will become law upon receiving the President’s signature.
From USA Today, “Senate clears massive spending bill, tax measures“.
You can read the bill here, at least until they move the file. For the WOTC extension and revision, scroll to page 38 of the PDF. (more…)
I’m sorry, I should have posted this sooner.
The Bipartisan Budget Agreement of 2015 as worked out by Speaker Boehner and other leaders this week does not include WOTC or other tax extenders. The extenders will likely become a priority for the new Speaker in coming days. They most certainly ARE a priority for tens of thousands of businesses and tax payers, all of whom have their eyes on Congress this week. (more…)