Renewal of WOTC and Payroll Tax Cut Still Possible This Year
If you’ve been following the news during the past few days, you might be aware that Congressional leaders are sparring over legislation to extend the existing payroll tax cut. Over the weekend, the Senate rejected the House’s proposal and responded with a proposed 2-month extension, obviously intended to buy time for further negotiations.
Neither version of the legislation included WOTC nor other sought after tax-extenders. This is not, however, the end of the game. (more…)
- Published in Work Opportunity Tax Credit
VOW to Hire Heroes Act – Passed By House, Goes to President Obama for Signature
The good news is in. The US House of Representatives has passed the VOW to Hire Heroes Act, which is now on its way to a signature by President Obama. This bill breaks new ground for WOTC in that it not only expands the qualifying categories and tax credit amounts for hiring veterans, it extends WOTC benefits to non-profits. (more…)
- Published in Veterans, Work Opportunity Tax Credit
Fight Is Over For Now – Missing Tax Incentives To Stay Missing
The US House is schedule to vote on the tax bill today. The House Rules Committee, however, is allowing a vote on only one proposed amendment – an amendment to increase the estate tax. The rule allows no other motions or amendments on the bill.
While we hoped for an extension of the HIRE Act payroll tax exemption, that program will end for new hires (as it was originally scheduled) on December 31. Do not forget, however, that the HIRE Act’s worker-retention tax credit remains in play — many employees who qualified for the payroll tax exemption in 2010 will generate an additional income tax credit for their employer in 2011 after working for 52 weeks.
Some employers who participate in the Work Opportunity Tax Credit (WOTC) program will experience a small decrease in qualifications in 2011 as the Disconnected Youth and Unemployed Veteran target groups also expire. We are consoled, however, by the fact that the WOTC program itself has been renewed through 2011.
So, far now — for now — the fight is temporarily over. In 2011, we will be working with the new Congress to renew and extend as many of these provisions as feasible. If you’re interested in joining the WOTC Coalition and playing some role in the effort, contact Paul Suplizio, President of the WOTC Coalition. Visit the Coalition’s website at www.WOTCCoalition.com.
- Published in Federal Legislation
U.S. Senate Passes Tax Bill – Eyes Turn to House to Please Add Back Missing Tax Incentives!
The Senate today passed the much anticipated tax bill without renewing the HIRE Act Payroll Tax Exemption, federal Renewal Communities, or the WOTC provisions for disconnected youth, unemployed veterans, or Gulf Opportunity Zone employers. This is a disappointment, but not unexpected.
Now that HR 4853 has been passed to the U.S. House of Representatives, eyes turn to susceptible House members seeking an amendment to add these provisions. If these incentives are important to you, please consider contacting House Members from your jurisdictions and urge them to support including these 5 provisions with any amendments to the tax bill. Make a special effort to contact Ways and Means Chairman Sander Levin.
Paul Suplizio, President of the WOTC Coalition, pointed out today that these 5 programs are “current-law job creation incentives” — so we are not urging the creation of any new program. In summary, what we seek:
- Extension of the HIRE tax credits
- Extension of the Renewal Community program
- Extension of WOTC for disconnected youth
- Extension of WOTC for unemployed Iraq-Afghanistan era veterans
- Extension of WOTC for Gulf Opportunity Zone employers
On the bright side, the bill passed by the Senate does include reauthorization of:
- The WOTC Program through 2011
- The Research and Development Tax Credit
- The Indian Employment Credit
- The Empowerment Zone Program
- The District of Columbia Enterprise Zone
See my previous post on this.
- Published in Federal Legislation
Asking the US House to Include Key Tax Incentives in House Amendment
As noted in my most recent post, some key employment incentives were left out of the Senate version of the tax bill being discussed in Washington D.C. I received a correspondence today from Paul Suplizio, President of the WOTC Coalition, detailing current efforts to include the missing programs in the House version of the bill. (more…)
- Published in Federal Legislation
Renewal of Key Tax Incentives Still Up In the Air
As reported by Jamie Dupree Washington Insider, Senate Majority Leader Harry Read’s office has released a summary of elements included in the Senate’s version of the tax compromise between President Obama and Congressional Republicans. The list is long and may include other provision of interest to you. For my purposes, however, this post focuses on employment-based tax incentives (and the much prized R&D credit). (more…)
- Published in Federal Legislation
Jobs Bill Passes House – Tax Credits Expanded Big Time!
As we anticipated, the U.S. House of Representatives has sent the Small Business Jobs Bill to President Obama’s desk for signing. The Senate passed HR 5297 last week, sending it to the House where it was passed on Wednesday. See previous post. President Obama is expected to sign. (more…)
- Published in Federal Legislation
House to Vote on HR 5297 Small Business Jobs Bill Next Week
According to House Majority Leader Steny Hoyer (Dem) the U.S. House of Representatives will vote on the Small Business Jobs Bill next week. HR 5297 was passed by the Senate earlier this week, and sent back to the House for approval. It is believed that if the bill passes the House this time, it will also be signed by President Obama. (more…)
- Published in Federal Legislation
Small Business Jobs Bill Passes Senate Includes WOTC 5-Year Carryback And More
The U.S. Senate has passed HR 5297, the Small Business Jobs Bill, by a vote of 61-37. The bill, which will be highly beneficial to some of my clients, must now go back to the House of Representatives for reconsideration there.
If passed into law, this bill will include a number of provisions relevant to hiring-based tax incentives like the Work Opportunity Tax Credit and the federal Empowerment Zone Employment Credit. (more…)
- Published in Federal Legislation