We are almost at the finish line! As expected, this afternoon, the Senate passed H.R. 1865, Further Consolidated Appropriations, 2020, which contains a one-year extension of WOTC and a retroactive extension of Federal Empowerment Zone as well as Indian Employment Credit through December 31, 2020. The President is expected to sign the bill into law by tomorrow. Extenders’ provisions will become effective on the signing date, and official text of the new public law will be published in coming days. We will let you know once it’s signed into law!
Tag: Federal Empowerment Zone
Tax Credit Extenders Renewal Continues to Move Forward
H.R. 2029 has been amended with the The Protecting Americans from Tax Hikes Act to both renew and expand various credit programs. In particular, the Work Opportunity Tax Credit program (WOTC) will be renewed for a period of 5 years, with a retroactive start date of January 1, 2015 through December 31, 2019. Also included in the renewal of WOTC is an expansion in which a new target group has been added to the existing 9 groups. The new target group is the long-term unemployment recipient, which includes individuals who have been receiving federal or state unemployment compensation for a period of at least 27 consecutive weeks prior to their hiring.
Other incentives included in the amendment are the New Market Tax Credit program, also renewed for a period of 5 years, as well as the Indian Employment Tax Credit program and Empowerment Zone program, which are both renewed until December 31, 2016, and Research and Development Tax Credit program, which is made permanent by this amendment.
It is expected that the House will be voting on the amendment most likely on Thursday.
WOTC Extension Discussion Progresses
Ways and Means Chairman Kevin Brady sent to the House Rules Committee last night a 2-year tax extenders bill tabled as a House amendment to a Senate Amendment H.R. 34, “Tax Increase Prevention and Real Estate Investment Act of 2015.” This bill is only one option currently on the table with other options being a 5-year extension and a broader bill making some extenders permanent. Continue reading “WOTC Extension Discussion Progresses”