As you may know, the current version of the Work Opportunity Tax Credit (WOTC) program is set to expire on December 31, 2019 unless congress passes legislation that extends the program, as done previously, since its inception in 1996.
Here are the latest developments:
WOTC Legislative Update — November 18, 2019 Read More »
President Donald Trump has signed the Tax Cuts and Jobs Act into law. This law delivers a $1.4 trillion tax overhaul to the U.S. tax code. It provides generous cuts to corporations and simplifies tax brackets for individual filers, lowering taxes for most people. As part of the congressional process to address the tax reform, the future of tax provisions such as the Work Opportunity Tax Credit (WOTC) have became uncertain, particularly in the House. The House called for an unprecedented repeal of the program, as of December 21, 2017.
Tax Reform is signed into law Read More »
On Friday, December 15, Congress released the final draft of the tax-reform bill. We are happy to report that the conference committee deferred to the Senate position, which left WOTC as is. Therefore, WOTC has survived tax reform and will remain in place through its current expiration date of December 31, 2019. A vote is expected to take place by Wednesday, December 2017, to decide the fate of the tax-reform bill.
WOTC makes it to the final Tax Reform bill Read More »
Recent Developments
The Senate Finance Committee voted the tax reform bill out of committee on Thursday, November 16 in a similar fashion to the House plan, suggesting an aligned strategy orchestrated by Republican leadership. All Democratic amendments were voted down by party-line votes. All Republican amendments were withdrawn in favor of the Chairman’s mark. As it turns out, the bill that was voted on does not reference WOTC. This likely means that WOTC will be left in place until December 31, 2019, based on the existing law.
Update: Tax Reform and the Future of WOTC Read More »
On Thursday, November 2, 2017, the House Ways and Means Committee released a first draft of tax reform. The Tax Cuts and Jobs Act H.R. 1 includes many of the items listed in the tax reform framework released by the Republicans in September, as well as additional details. The bill proposes fewer tax brackets for individuals as well as higher deductions for middle-class families and lowers corporate tax rates to 20%. It is estimated that H.R. 1 will also curtail federal government revenues by approximately $1.5 trillion over ten years. As it turns out, the proposed legislation also calls for a repeal of the Work Opportunity Tax Credit (WOTC) by December 31, 2017, along with several other provisions.
Legislative Update: WOTC program at risk of repeal Read More »
We are now eight months into 2017, and many employers are wondering what the status with tax reform is and how might impact the future of WOTC. As we mentioned in our last update, at the start of this year, House Speaker Paul Ryan proposed a plan to reform our tax code which was designed to be revenue-neutral. His plan proposed a Border Adjustment Tax (BAT) which would tax imports to the United States, but it would not tax exports.
Update: Tax Reform and its Potential Impact on the Work Opportunity Tax Credit (WOTC) Read More »
Earlier today, the U.S. Senate Finance Committee released a series of Frequently Asked Questions (FAQ) prepared by the committee’s Republican staff to address the employee retention credit included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Pub. L. No. 116-136)
Please note that these FAQs are for informational purposes and should not be relied upon for legal advice.
Retention Tax Credit Opportunity Read More »
