On September 27, the Republicans revealed the framework of what they hope to accomplish with tax reform. Herein is a general overview of their plan and the impact we believe it can have on the Work Opportunity Tax Credit (WOTC). Considering the proposed reduction in the corporate tax rate from 35% to 20%, deductions and credits are not necessary to the same degree that they were in the past. Under the Republicans’ framework, two popular credits are explicitly referenced to be continued:
- Research and Development credit
- Low-Income Housing credit
The remaining credits, including WOTC, and other deductions are subject to review by the tax-writing committees, leaving their fate unclear at the present time. Continue reading “Update on Tax Reform and its potential effect on WOTC”