Tax Credits Blog

WOTC gets bipartisan support

Good news out of the WOTC Planet today - there seems to be an agreement among leaders on both sides of the isle that the WOTC and Empowement Zone Tax Credit programs will be extended through December 2013, retroactive to 1/1/12.  I never doubted it and the only question in my mind was when and were there going to be any changes.  Had they not been extended, companies like Walmart and Home Depot and other major corporations would take a serious profit hit so the lobbying effort is paying off.  More and more companies are finding out about this hidden gold nugget and taking advantage of the program by simply sending in the required paperwork.  SInce the program has been "cancelled" as of 12/31/11, EI has been encouraging its clients to continue to send in paperwork on its new hires and it looks like its paying off.



Tax Credits Extension Update

The below email from Paul Suplizio is the latest on the extension of the WOTC and other income tax credit programs. I thought it a good way to inaugurate this blog. Check back often as I plan on updating it regularly on issues that affect your tax liability and bottom lines.

Ken Brice, President
June 13, 2012


After a Senate Finance Committee meeting yesterday called by Chairman Max Baucus to discuss the question of passing the tax extenders, ranking committee Republican Senator Orrin Hatch expressed willingness to cooperate in producing a bill. At the same time, Chairman Baucus bowed toward the Republican view that the list of extenders be scrubbed to determine whether any can be dropped.
The view among Republican senators is that some extenders must be dropped.
No decisions were made at the hearing, but we are seeing the opening moves to consult within the Finance Committee, and more broadly within the Party caucuses, to come up with a list of extenders that can make the grade and be incorporated in a stand-alone extenders bill.
The key will be the ability of the Senate majority and minority to agree on a package, and then cooperate in moving a bill without a filibuster or the interminable number of amendments tax bills usually draw. Odds are long, but extenders may become one of the few areas of bi-partisan consensus on a bill.
This Senate initiative may be the only game in town—there's still no indication from House Republican leaders when they will take up the extenders. The Leaders say goal is to craft a tax bill by July dealing with Alternative Minimum Tax relief, pending expiration of favorable Estate Tax rates, and other issues. This bill would be a good vehicle for passing tax extenders that eventually make Chairman Camp's short list, but the decision to take up such a bill in the campaign season will be a political one—House leaders are leaning toward not doing taxes till after the election.
Besides tax extenders, Senator Baucus is also spurring action on another front—reauthorization of Welfare Reform (TANF) which expires on September 30th. On every Welfare Reform reauthorization, your Coalition has made the case that WOTC is critical to this program—for welfare recipients who obtain jobs in the private sector, WOTC is responsible for 7 out of 10 placements. WOTC has also proven effective in placing long-term welfare recipients in jobs. Using WOTC to help welfare recipients find jobs in the private sector helps States economize their limited block grant funds which cover training, child care, and other supports. Working in tandem with welfare in the social safety net are food stamps (SNAP), and here again WOTC has proven highly effective in enabling food stamp recipients to find jobs.

There may not be time to bring Welfare reauthorization to the Senate floor but it must be passed by attachment to some measure before September 30th, and that measure is most likely the Continuing Resolution to fund the government in the new fiscal year. Whether as part of Welfare reauthorization or in a tax title to the CR, we will be working to extend WOTC on one of the must-do bills coming up on September 30th.

President, WOTC Coalition