Update on Tax Reform and its potential effect on WOTC
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 Republican’s framework, two popular credits are explicitly referenced to be continued: the Research and Development credit and the Low-Income Housing credits....
UPDATE: TAX REFORM AND ITS POTENTIAL IMPACT ON THE WORK OPPORTUNITY TAX CREDIT (WOTC)
We are now eight months into 2017, and many employers are wondering what the status with tax reform is and how it 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 t...
Legislative update: The impact tax reform will have on WOTC
With the start of a new administration, we have received several inquiries from clients concerning the impact the Trump tax reform proposals will have on WOTC. The fact is that no one yet knows for sure what is going to happen, but we feel it’s important to provide a comprehensive overview of what we know so far and our expectations for the future.
Here’s what we know…
BeneStream Announces Partnership with Walton Management Services, Inc. to Bring New Cost-Savings Program to Businesses
Partnership combines Walton’s Work Opportunity Tax Credit platform with BeneStream’s Medicaid Migration™ product
New York, NY, June 1, 2016 - BeneStream today announced a partnership with Walton Management Services, a leading provider of tax credit and incentives consulting services. This relationship will enable the seamless incorporation of BeneStream’s signature product, Medicaid Migration™ into Walton’s award-winning Work Opportunity Tax Credit (“WOTC”) screening t...
U.S. Department of Labor Issues Funding to State Workforce Agencies
State Workforce Agencies (SWAs) responsible for the administration of the Work Opportunity Tax Credit (WOTC) Program are working diligently to process retroactive and current WOTC Program certification requests.
WOTC Program Transitional Relief Announced
Recently released IRS Notice 2016-22 provides for a transitional relief period for the Work Opportunity Tax Credit (WOTC) Program, providing businesses with the opportunity to retroactively capture the WOTC Program for hires made prior to its reauthorization i.e., the “hiatus” or period of time in which the WOTC Program was expired due to Congressional inaction on the tax extenders bill.
Businesses may now retroactively screen and pursue the WOTC Program for employees that were not screened during hiatus or, for those businesses that chose to do so, allows for c...
PATH Act Effects Code Section 179
The PATH Act increased the expensing break for qualifying real estate improvements. It also made it easier for improvements to qualify for bonus first-year depreciation, but the determinations of qualifying improvements and expenses are more complex. The detail of these new complications is lengthy, but, as summarized by Thomas Reuters in their Checkpoint New dated March 8, 2016, as a general rule, the cost of commercial real estate improvements is recovered over a period of 39 years via straight line depreciation only.
“However, for specially defined categories of r...
Mississippi Businesses Benefit From Major Economic Impact Act
Certified businesses that construct a plant engaged in the manufacture of tires or other related rubber or automotive products and enterprises owning or operating maritime fabrication and assembly facilities are eligible for up to 25 years in exemptions against corporate income tax on income arising from the project. Qualifying projects for tire or other related rubber or automotive manufacturing plant projects are those projects commencing aft...
Michigan Data Center Sales and Use Tax Exemption
Effective January 1, 2016 through December 31, 2035, businesses operating a qualifying data center and eligible co-located businesses may claim a sales and use tax exemption for the sale, use, or consumption of data center equipment used in a qualified data center or co-located in the qualifying data center. Contractors providing construction materials affixed to a qualified data center and meeting certain construction methodology requirements also qualify. The Ac...
North Dakota Extends and Amends Tax Credits
Automation Tax Credit Extended
North Dakota allows primary sector businesses to claim a tax credit against the purchase of machinery and equipment used in the automation of a manufacturing process. While this tax ...