The Senate Finance Committee released the first 3 of 6 reports investigating the status and future of numerous federal tax incentive programs.
According to an article published by Bloomberg on Tuesday, “Two of the reports released, on energy and individual tax provisions, didn’t reach definitive conclusions, indicating either weak support or divided opinion for some of those provisions.”
What About WOTC?
Photography by Suzy Hazelwood.
According to the U.S. Department of Justice, more than 10,000 former prisoners are released every week across America. They need jobs. In fact, the Prison Policy Initiative reports that 2 years after release, more than 30% are still unemployed.
Gratefully, the State of Iowa offers a special tax benefit to small businesses that hire ex-felons residing in that state. In addition to the federal Work Opportunity Tax Credit (WOTC), Iowa small businesses can receive a tax deduction of up to $20,000 per qualifying hire. Since this is a deduction (not a tax credit), the actual tax effect depends on the business’ tax rate.
Building on the success of the Work Opportunity Tax Credit (or WOTC), Senator Tim Kaine (D-VA) introduced a bill to expand employment opportunities for military spouses.
Known as the Jobs and Childcare for Military Families Act of 2019, Senate Bill 1802 would recognize “Qualified Military Spouse” as a new WOTC program target group.
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.
On June 5, 2019, Representative Steve Cohen (D, District of Columbia) introduce HR 3123, the Supermarket Tax Credit for Underserved Areas Act. This bill proposes both new and increased tax incentives for operators who set up new supermarkets within designated areas nationwide.
The bill has eleven cosponsors from the District of Columbia and the states of Arizona, California, Illinois, Maryland, Massachusetts and New York.
Featured artwork by Courtney Chauvin.
Three weeks ago, we informed you about a coordinated passionate effort by the National Military Spouse Network to “Storm the Hilll” (as in Capitol Hill). Military spouses everywhere called upon Congress to reduce employment barriers faced by the husbands and wives of America’s soldiers. (See WOTC for Military Spouses – Encouragement for Unsung Heroes).
One of the group’s goals is to expand the Work Opportunity Tax Credit (WOTC) program to include military spouses as a target group. Their efforts are being rewarded.
The letter begins in traditional fashion.
We write to ask you to cosponsor H.R. 2213 to permanently extend the Work Opportunity Tax Credit (WOTC). After receiving a five-year extension as part of the PATH Act in 2015, WOTC is scheduled to expire at the end of this year.
Imagine you’re almost 30, out of the military for a few years and are raising your first child. You’ve bounced around between a variety of jobs and have now decided it’s time for college. You need that formal education to fill in the gaps from your military training and to set a course for your civilian career.
With political divisions at an all-time high, six U.S. Senators offered a much welcomed bi-partisan proposal this week – a bill to make the WOTC Program permanent!