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Tax Credits Blog

Still Waiting

The good news is that they (the Congress) have to resolve this fiscal cliff before the end of the year and I believe they will come up with something, if not a stop-gap measure to avoid the cliff.

 

There are still credits to recoup - HIRE Act 2010, EZ/EC/RC credits as well as the active WOTC category - Veterans, both on public assistance and those who are unemployed.

 

Ken

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Fiscal cliff can be our best friend

to finally get something done vis a vis tax credits extenions.  The democrats in the Senate have already signed off on the extensions so we need the republicans in the house to do the same.  Our extensions are basically a footnote to the larger bill that needs to be resolved by the end of the year or else we will fall off a cliff.

 

Take a moment and write a letter/call your republican house members to ask them to support the tax credit extensions that are in the current bill on the floor.

 

Do it now.

 

Ken Brice

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No good news from Washington

Well, it didn't get done as far as I can tell.  The legislators all took their recess without passing the extensions for WOTC and EZ.  What gets me is the fact that major corporations are going to take a serious earnings hit if they don't get the tax credits that they've had in the past - its like a huge tax increase without the credits - something I know the Republicans are fighting against.  What every happened to "not one dollar of revenue increase" by the GOP?  I know someone out there realizes not extending a tax credit is the same as increasing taxes.

 

Ken Brice

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Delaware Veteran Credit

There's continuing pressure on states to help companies hire vets - this one was just signed on 7/31 for Delaware Vets.

New Tax Credit – Delaware’s “Veterans Opportunity Tax Credit” Signed by Governor

The Veterans Opportunity Tax Credit program was signed by the Governor on July 31st.

The new program provides a tax credit equal to 10% of the qualifying employee’s wages, with a maximum annual credit of $1,500.  The credit can be claimed for up to 3 consecutive years, resulting in a maximum 3-year credit of $4,500.

The tax credit program is effective for hire dates from January 1, 2012 through December 31, 2015.  It focuses narrowly on a qualifying group of honorably discharged veterans who served in oversees missions, and who work at least 185 days during the applicable tax year(s).  In part, the bill reads as follows:

“Qualified military service” means military service for which a veteran received: (i) the Afghanistan Campaign Medal; (ii) the Iraq Campaign Medal; or (iii) the Global War on Terrorism Expeditionary Medal.

“Qualified veteran” means either a Delaware resident who engaged in qualified military service, or a nonresident who, as member of the Delaware National Guard, engaged in qualified military service, and who: (i) has provided to the qualified employer documentation showing that he or she was honorably discharged or is a current member of a National Guard or Reserve unit; and (ii) was initially hired by the qualified employer on or after January 1, 2012 and prior to January 1, 2016.

 

Ken Brice

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NY has a lucrative Youth HIring Credit

New York has added another state income tax credit for anyone in certain cities and towns that hires someone who is between the ages of 16 and 24.  Its called the New York Youthworks Program and is administered by the State of New York.  Cities and towns are Albany, Buffalo, New York City, Rochester, Schenectady, Syracuse, Mt. Vernon, New Rochelle, Utica, Yonkers, Brookhaven and Hempstead.  The credit can be as much as $4,000 per hire.  If you would like more infomation, give me a call 609-252-0044.  We can set you up and take care of all the paperwork for 20% of what we deliver.

 

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