10.06.14 |
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Will Congress Renew Expired WOTC Credits?

Congress A number of federal tax credits and hiring incentives expired on Dec. 31, 2013, including the Work Opportunity Tax Credits (WOTC) program, a tax credit available to employers for hiring individuals from certain target groups who face barriers to employment. However, many in the business community are hopeful that Congress will retroactively reauthorize the program back to the date of expiration as it has done in the past for the WOTC program.

Before Congress adjourned on Aug. 5, 2014, for its summer recess, bill H.R. 5264 was introduced for consideration in connection with the WOTC program. If passed, this bill would make WOTC a permanent program effective Jan. 1, 2014. With strong support from many congressional members, many businesses hoped this bill would be addressed when the session resumed Sept. 8, but due to the short congressional calendar in September, all expired tax provisions (known as extenders) will be addressed after the Nov. 4 election.

In the meantime, here is what business leaders should consider doing:

  • Keep processing certification requests during the WOTC hiatus. In hopes of a retroactive reauthorization, employers should continue to submit WOTC applications to state workforce agencies. For further information, please review Training and Employment Guidance Letter No. 8-13 or contact the WOTC coordinator in your state.
  •  Monitor Congress for updates on outstanding agenda items like the WOTC program. Congressional leaders will likely try to resolve many of the pending issues when they return to session after the Nov.  4 elections to avoid spending the first months of the next session dealing with the previous year’s unfinished agenda.





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