House Resolution 5845 was introduced by Congressman Ted Poe of Texas and referred to the House Ways and Means Committee last Friday (on May 18th). As of this afternoon, the actual text of the bill is not yet available. The title, however, is listed as
H.R.5845 – To amend the Internal Revenue Code of 1986 to extend the work opportunity tax credit for veterans and to allow an exemption from an employer’s employment taxes in an amount equivalent to the value of such credit.
In January, I mentioned that Minnesota’s Democrat Governor Mark Dayton was proposing state jobs tax credits to reward employers who hire veterans, unemployed workers, and recent graduates. During the intervening months, this ongoing story hit the news a surprising number of times . . . almost always in the context of budgeting disagreements between state Democrats and the Republican controlled Minnesota legislature. (more…)
Wisconsin Governor Scott Walker signed three bills yesterday, designed to help military veterans in that state to find jobs. Each of the bills had been authored by Wisconsin State Representative Evan Wynn. (more…)
Alabama Governor Robert Bentley signed the state’s Heroes for Hire Act yesterday. Read the press release from the Governor’s website, copied below.
MONTGOMERY – Governor Robert Bentley on Wednesday signed into law the Heroes for Hire Act, which will help veterans returning from deployment find new jobs or start new businesses. (more…)
HR 97 passed the New Mexico House and Senate in February. The bill, which was part of New Mexico Governor Susana Martinez state tax-reform package, provides a one-time $1,000 tax credit to employers when they hire a qualifying veteran. (more…)
The House – Senate Conference has come to an agreement on what is now dubbed The Middle Class Tax Relief and Job Creation Act of 2012. Expectations are high that both the House and Senate will quickly pass the bill. President Obama has already indicated he will sign the bill.
Unfortunately, the tax extenders, including the general WOTC extension, were completely excluded from this legislation. All WOTC categories except for those favoring military veterans must now wait to be extended by another yet future tax bill.
As I’ve summarized before, this situation is not unusual for the Work Opportunity Tax Credit (WOTC) program. Of the eight times Congress has acted to renew or extend the WOTC program, three were passed retroactively months after the program’s legislative authority had expired.
- The first was in March 2002 after WOTC expired on December 31, 2001.
- The second was in October 2004, about ten months after WOTC expired on December 31, 2003.
- The worst example to date was in December 2006, when the program was reauthorized almost 12 months after its expiration.
In each of these events, the renewal was made effective retroactively back to the date of expiration. In other words, employers were eligible to claim tax credits generated by properly certified employees hired between the expiration date and the date the WOTC program was renewed.
We continue to anticipate a similar re-authorization in 2012. For this reason, my firm will continue to process and submit WOTC applications under all employee-eligibility categories — not just for veterans.
As employers consider their strategy for 2012, they should remember that even though a general extension has not yet been passed, eligibility-categories for hiring military veterans are already authorized through 2012 by the VOW to Hire Heroes Act of 2011. The amount of tax credit currently offered for hiring unemployed veterans goes as high as $9,600 per qualifying hire.
This is an excellent opportunity to more affirmatively recruit veterans for your workforce.
The following instructions are copied directly from the document recently published by the US Department of Labor.
Vow to Hire Heroes Act – Work Opportunity Tax Credit Provisions: Interim Instructions for State Workforce Agencies and Employers
On November 21, 2011, the President signed into law the “Vow to Hire Heroes Act”, which amends and expands the definition of Veteran target groups for the Work Opportunity Tax Credit (WOTC). These provisions became effective the day after the President signed the Act into law (November 22, 2011). (more…)
The VOW to Hire Heroes Act was signed today by President Obama. (see Business Week article from today.) As previously mentioned, this bill expands the eligible-veterans categories under the Work Opportunity Tax Credit (WOTC) program and extends the new categories through December 31, 2012. Unless the legislative language was modified prior to final passage, my understanding is that the new WOTC categories will become effective immediately. (more…)
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…)