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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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WOTC Legislative Update March 7, 2020

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TCC has been actively working with NEON urging Congress to extend the Work Opportunity Tax Credit (WOTC) and other tax incentive programs before the end of 2020. It is good news for the WOTC program that since January 1, 2020 three bills have been introduced involving the enhancement of WOTC target groups. Though they are unlikely to become law, they are an indicator that Congress continues to look at the WOTC as a successful program that supports the hiring of individuals with barriers to employment. The bills are:

  • S. 3232 Promoting Local Arts and Creative Economy Workforce Act of 2020 known as the “The PLACE Act”
    Introduced on 1-28-2020 by Senator Brian Schatz [D-HI]
    Intent: Would provide a work opportunity tax credit for hiring a qualified displaced worker
  • H.R. 5876 “Children for Military Families Act of 2020”
    Introduced on 2-12-20 by Representative Donald Norcross [D-NJ] (co-sponsored by 2 republicans)
    Intent: Would provide a work opportunity tax credit for hiring military spouses

  • H.R. 5869 “SKILL UP Act of 2020”
    Introduced on 2-12-2020 by Representative Steven Horsford [D-NV]
    Intent: Would provide a work opportunity tax credit for hiring individuals enrolled in an apprenticeship program

While in Washington last week, NEON met with several congressional members gaining support for the Work Opportunity Tax Credit program. At this juncture, there are three areas which could provide a vehicle for the renewal of the WOTC program:

  • A package which would include modifications to the “Paid Family and Medical Leave Act”
  • A package which may include Medicare Health Extenders and TANF extension
  • An infrastructure package which would include tax components

At the administration level:

  • The Department of Labor is still working on determining how to distribute the additional 2.5 million dollars in federal WOTC funding to states for the purpose of reducing current backlogs.
  • DOL is still coordinating with the IRS on guidance to enable states to process certifications related to Empowerment Zones for employees hired in 2018 and forward.

We will continue to keep you informed as new information becomes available.  

 

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