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Update: President signs CARES Act Stimulus Package into law, creating the $55 Billion Covid-19 Employee Retention Tax Credit program

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TCC Legislative Update Dec 23, 2019

By and

We are excited to announce that President Trump signed into law the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” on Friday, December 20, 2019. This Act renews several tax provisions which had expired or were set to expire on December 31, 2019. The following key measures are included in the package:

  • Extends the Work Opportunity Tax Credit (WOTC) through December 31, 2020.
  • Retroactively renews the Indian Employment Credit (IEC) for two years and extends IEC through December 31, 2020.
    • Modifies the expiration date from December 31, 2017 to December 31, 2020.
  • Retroactively renew s the Federal Empowerment Zone tax credit (FEZ) for two years and extends FEZ through December 3,1 2020.
    • Modifies the expiration date from December 31, 2017 to December 31, 2020.
  • Extends the Family and Medical Leave (FMLA) tax credit through December 31, 2020.
  • Provides employers that conducted a trade or business with a qualified disaster zone in 2018-2019 with a retention tax credit.
    • A qualified disaster zone means any portion of a qualified disaster area that was determined by the President during the period of January 1, 2018 and ending on February 20, 2020.

In addition, the spending bill includes a $2.5 million increase in funding for the state agencies that administer WOTC. The increase in funding is intended to help with the administration of the program and support reducing backlogs of pending determinations.

TCC will continue working diligently toward the continuation and enhancement of these tax credit programs. We are board members of NEON, a collation of interested parties striving to secure Congressional support for the continuance of these valuable initiatives.  

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