You’re probably already aware of the House’s tax reform proposal, which in it’s current form would repeal the Work Opportunity Tax Credit (WOTC) program. Repeal would be effective 01/01/2018. The draft reform bill was introduced 7 days ago as H.R. Bill 1, the Tax Cut and Jobs Act.
The repeal of WOTC as proposed is wholesale and complete. Here’s the text in its entirety:
SEC. 3404. REPEAL OF WORK OPPORTUNITY TAX CREDIT.
(a) In General.—Subpart F of part IV of subchapter A of chapter 1 is amended by striking section 51 (and by striking the item relating to such section in the table of sections for such subpart).
(b) Clerical Amendment.—The heading of such subpart F (and the item relating to such subpart in the table of subparts for part IV of subchapter A of chapter 1) are each amended by striking “Rules for Computing Work Opportunity Credit” and inserting “Special Rules”.
(c) Effective Date.—The amendments made by this section shall apply to amounts paid or incurred to individuals who begin work for the employer after December 31, 2017.
After one week, no effort to remove or amend this provision has so far gained significant traction. In addition to NEON, The WOTC Coalition, and other more specific interest groups, many individuals are also reaching out to their members in the House and Senate.
If you or your organization are involved in this effort, please let me know.