Tax Credits Blog


As most of you are aware, states are still behind in processing 2013 credits and in some cases 2012 credits.  These credits are for employees hired in 2013 which technically should be taken on your 2013 tax return.  As is our policy every year, we want to hold off as long as we can before we wrap up the year.  As most companies have a 12/31/13 tax year end which needs to be filed either 3/15/14 or 4/15/14, depending on the structure of the company, we plan on holding off wrapping up the year until 3/1/14.  At that time we will run all the year end reports for you and get them to you by 3/7/14 at the latest.
If you have a different tax year or are planning on filing an extension, please let us know so we can accommodate your tax reporting needs.

Still Waiting

We sit and wait for the Congress to get around to renewing the WOTC program which expired on 12/31/13.  States are continuing to allow us to send them forms although they won't act on them until the program is re-authorized.  The two main criterium of signing the 8850 on or before hire date and the 28 day mailing window is still in place.  Do you think Walmark, Home Depot, and other large employers can take the earnings hit of no tax credits?  Just for fun, using our company averages, Walmart has 2.1 million employees.  Assuming 25% turnover (probably higher) they're going to hire 525,000 people a year.  Using a conservative 12% eligibles, that's 63,000 eligible people.  Using an average credit of $1,500 each (I know its higher since Walmart has targeted veterans who can be as high as $9,600 in creits) thats $94,500,000 in lost profits if the programs are not extended.  Not even Walmart can absorb that kind of loss.





Happy Holidays

"Best wishes for a healthy, happy and prosperous New Year".


Please keep checking back to see when WOTC is extended plus any other credits that you can use.




Ken Brice



Tax Credit Extenders Predicted!

From the Eastern Iowa Gazette:

Republican Senator Predicts Extensions on Tax Credits

Tax credits critical to wind energy development, college students and veterans seeking to re-enter the workforce likely will be extended, but not before the end of the year, according to Sen. Chuck Grassley, the ranking Republican on the Senate Finance Committee.

That’s despite a call from Iowa 1st District Democratic Rep. Bruce Braley for Congress to approve the Student Tuition Tax Deduction, the Work Opportunity Tax Credit for Returning Heroes and Wounded Warriors, and the Wind Energy Production Tax Credit before adjourning for the Christmas holiday.

“Congress should be working every day to create jobs and grow the economy, not hurt it, Braley said Dec. 11. “Congress should act immediately to renew these tax cuts before they expire.”

There won’t be any extension before Christmas, Grassley predicted, but not because of political opposition to the credits. Based on past performance, he said Wednesday, Congress will come back after the New Year and approve four dozen or more tax credits.

“There are a lot of economic interests” represented in the tax credits, he explained. Those interest groups collectively “put a lot of pressure on Congress to re-institute the credits.”

The delay, Grassley said, can be attributed to the ongoing discussion about “massive tax reform.”

If congressional leaders – in this case Finance Committee Chairman Max Baucus, a Montana Democrat, starts talking about extending the credits “it looks like you’ve given up on tax reform,” Grassley said, adding “which isn’t going to happen before Christmas.”

“They don’t want to poison tax reform next year,” he said

In making the case for extending tax credits, Braley said last year more than 18,700 Iowans claimed the tuition relief tax deduction.

The veteran work opportunity tax credits provide anywhere between $2,400 and $9,600 to businesses who hire veterans, he added.

Braley said MidAmerican Energy’s $1.9 billion investment in wind energy announced earlier this year probably would not have happened without the wind energy production tax credit. That investment will create jobs, generate $3 million a year in landowner payments as well as $360 million in additional property tax revenues over the next 30 years in those counties where wind turbines will be built, a company spokesperson said.

Also this week, 2nd District Democratic Rep. Dave Loebsack called on Congress to remain in session to pass a farm bill.

“I don’t want to be accused of being the Grinch who wants to steal Christmas, but passing a farm bill is too important for the House to pack up and go home early for the holidays,” Loebsack said.

However, House leaders said Tuesday that Congress won’t vote on a final deal this year. The soonest action will come will be mid-January when Congress returns from a holiday recess.

Democratic Sen. Tom Harkin, a member of the conference committee negotiating a farm bill compromise, said h continues to “hold hope.”

“There is no final agreement yet, though conferees are making good progress,” he said.

- See more at: http://thegazette.com/2013/12/11/sen-grassley-predicts-tax-credit-extensions-in-congress-but-not-until-2014/#sthash.MIJo9QUV.dpuf


WOTC Needs your Help!

We must act now to insure the WOTC program does not go on hiatus again! The WOTC tax credit law is set to expire on Dec. 31 2013 unless Congress acts to extend it. There is currently a bill before the U.S. Senate called a doc fix for Medicare that will stop a cut in doctor’s payments from happening. We are trying to get a temporary extension for WOTC amended on to this doc fix bill, which has been identified as the last chance this year to extend the WOTC program as it is the last item the Senate will take up this year. Next year is an election year, and tax legislation will be difficult if not impossible to pass. In that case, it will have to wait until 2015 to be extended.

Please help us in this measure to ensure you can earn the WOTC tax credit in 2014. According to Paul Suplizio of The WOTC Coalition, here are 2 actions you can take to help:

Action Number 1:
Immediately contact your Democratic and Republican senators by e-mail, fax, and telephone with this message:

“WOTC will expire on December 31st with the loss of a million jobs for veterans, people with disabilities, food stamp recipients and others, and there’s little chance it will be renewed before the next Congress. Please ensure the nation’s commitment to these jobs for those with the highest unemployment rates is upheld by speaking out at your Party meeting when the Senate returns, and insist that a one-year extension of WOTC should have the highest priority for inclusion in the “doc fix” bill the Senate will pass before adjournment. Ask your Leader to work to include a WOTC extension in an amendment when the doc fix bill comes to the Senate floor. A WOTC extension will not increase the Federal deficit—it will have the same impact on revenues next year as this year.”

Action Number 2:
If your senator is a member of the Senate Finance Committee, fax him or her a letter on your company’s letterhead, and then follow up a phone call to their tax legislative assistant, with this message:

“When the Senate Finance Committee meets to mark up the Medicare doctors payments bill on December 12th, please support an amendment to include a one-year extension of WOTC in the bill; otherwise, one million jobs for veterans, people with disabilities, food stamp recipients and others will expire with the likelihood they will not be renewed till the next Congress. Please uphold the nation’s commitment to those experiencing the highest unemployment rates in the jobs market by ensuring the Finance Committee acts to include a WOTC extension in the “doc fix” bill the Senate will pass before adjournment. A WOTC extension will not increase the Federal deficit—it will have the same impact on revenues next year as this year.”

To find out if your Senators are members of the Senate Finance Committee, click here: http://www.finance.senate.gov/about/membership/

Please be aware the WOTC Coalition has been working for an amendment in the Finance Committee for a one-year WOTC extension since last week. They are in touch with Senate Finance Committee Chairman Senator Max Baucus’ people and other members of the Finance Committee who might offer the amendment. Veterans organizations, and organizations serving people with disabilities have been mobilized to weigh in. We will keep you informed and may be calling on you again—this is the last best opportunity before 2015 and we hope you’ll pitch in to get the job done.

Thank you very much for your help!