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WOTC Legislative Update — December 17, 2019

We are pleased to announce that, early this morning, the House Rules Committee issued a Rule and manager’s amendment to H.R. 1865 “Further Consolidated Appropriations Act, 2020.” The amendment grants the extension for the Work Opportunity Tax Credit (WOTC), including VOW to Hire Heroes Act Credits, through December 31, 2020. It also grants a retroactive extension of the Federal Empowerment Zones and Indian Employment Credit through the end of 2020.

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Breaking News: House Passes H.R. 1865

Important developments are happening very rapidly. As expected, yesterday afternoon, the House voted 297-120 to approve H.R. 1865, Further Consolidated Appropriations Act, 2020, with a one-year extension of WOTC, including VOW to Hire Heroes Act and retroactive extensions for Federal Empowerment Zones (FEZ) and the Indian Employment Credit (IEC).

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WOTC Legislative Update — November 18, 2019

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:

The week of November 4, Senate Finance Chairman Chuck Grassley (R-IA) and House Ways and Means Chairman Richard Neal (D-MA) contended openly over the so-called “tax extenders.” Tax extenders are several dozen non-permanent tax provisions of the U.S. tax code, which include WOTC among the many. Essentially, there were two key points of disagreement:

  1. House Representative Neal and Democrats could grant the extenders two years through 2021, provided programs like the Earned Income Tax Credit, Child Tax Credit, and Child and Dependent Care credit expansions are in the deal.
  2. On the Senate side, Senator Grassley and Ways and Means Ranking Member Kevin Brady (R-TX) oppose the new provisions which add an estimated $300 billion to the deficit. They feel House Democrats are holding the extenders hostage to get their add-ons. Instead, Senator Grassley wants a permanent extension for as many extenders as possible. House Democrats oppose permanent extensions because it adds to the deficit. Instead, they favor temporary extensions which do not add to the deficit under budget scoring rules.

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WOTC Five-Year Extension

The senate voted 53-33 to pass H.R. 2029, the Omnibus appropriations and tax extenders bill and sent the bill to the President for his signature. The bill contains a five-year retroactive extension of WOTC and the VOW to Hire Heroes Act tax credits for hiring veterans. The President has said he will sign the bill. He has until midnight December 22 to do so because government funding runs out at that time.

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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”

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