On Friday, December 18, 2015, President Obama signed into law H.R. 2029 – Consolidated Appropriations Act, 2016. This measure is the vehicle for the Consolidated Appropriations Act, 2016 and the Protecting Americans from Tax Hikes Act of 2015, in which the tax extenders have been renewed for various periods and, in some cases, expanded.
Tag: New Market Tax Credit
Tax Credit Extenders H.R. 2029 Amendment #2 Passes House
The House has approved H.R. 2029 as amended with The Protecting Americans from Tax Hikes Act, which both renews and expands various tax 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 the WOTC program is an expansion in which a new target group has been added to the existing nine groups. The new target group is the long-term unemployment recipient, which includes individuals who have been receiving federal or state unemployment for a period of at least 27 consecutive weeks prior to their hiring. Continue reading “Tax Credit Extenders H.R. 2029 Amendment #2 Passes House”
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.
Kentucky New Markets Tax Credit Cap Increase
During the 2014 legislation session, the credit cap for the new markets tax credit was increased from $5 million to $10 million. The New Markets Development Program Tax Credit provides a person or entity, making a qualified equity investment, a credit equal to 39% of the purchase price of the qualified equity investment made by the person or entity claiming the credit, to be utilized against its tax liability for the taxable year that includes the credit allowance date equal to the applicable percentage for the credit allowance date multiplied by the purchase price paid for the qualified equity investment, or carry forward any unused portion to a subsequent tax year, or, if an insurance company, apply the tax credit against the insurance premium tax. A refundable performance fee has been added that would required when a credit application is submitted. Applications can be submitted beginning July 15, 2014.