Work Opportunity Tax Credit and Jobs Act to Help American Workers…Permanently

Written by Rachel Zarate Brouwer. Updated May 20, 2019.


Updated May 20, 2019

Sen. Chuck Grassley (R-IA) announced late last week that lawmakers on the Senate Finance Committee will form bipartisan groups to analyze how best to address expired and soon-to-expire tax incentives, known as extenders.

Finance Committee Democrats and Republicans will convene six separate working groups to analyze tax extenders, with the two largest working groups addressing energy tax incentives and those for economic and community development.The economic and community development group, led by Sens. Rob Portman (R-OH) and Maria Cantwell (D-WA), will examine widely popular provisions expiring at the end of the year, such as the Work Opportunity Tax Credit.

Sen. Grassley said he hoped the Senate tax panel's work on tax extenders would encourage the House Ways and Means Committee members to consider producing their own bill. Sen. John Cornyn (R-TX) has suggested that the amount of tax provisions expiring at the end of the year could provide more pressure on lawmakers to advance an extenders package.

On the floor of the Senate, Sen. Grassley stated "we have asked the taskforces to begin their work right away and complete their efforts by the end of June. This should provide adequate time to identify possible long-term solutions that can be enacted this year to end the annual extenders drama and provide certainty to the taxpayers who utilize those provisions."

Updated May 3, 2019

Momentum is building as the federal Work Opportunity Tax Credit (WOTC) program is another step closer to becoming a permanent part of the tax code.

U.S. Reps. Tom Rice (R-SC) and Tom Reed (R-NY) have introduced a bipartisan bill in the House of Representatives to permanently extend the WOTC.

“Making the Work Opportunity Tax Credit permanent will incentivize employers to hire and retain people who have been struggling to find long-term, meaningful employment opportunities,” said Rep. Rice.

The congressmen introduced the legislation, H.R. 2213, on April 10th with lead sponsor U.S. Rep. Mike Thompson (D-CA). Just days before, the measure was introduced in the Senate on April 2nd, also with strong bipartisan support (read below).

Published Apr 4, 2019

A few years ago, the team here at CTI was ecstatic when the Federal Credit for Increasing Research Activities, also know as the “R&D Tax Credit” was made permanent with the signing of the Protecting Americans from Tax Hikes (PATH) Act of 2015. Now, our firm is on the precipice of celebrating another significant tax credit that will have an enduring benefit for our valued clients’ businesses and their employees.

On April 2, 2019, the “Work Opportunity Tax Credit and Jobs Act” bill1 was introduced on the United States Senate floor. Sen. Rob Portman (R-OH) is the bill’s sponsor, with Sen. Ben Cardin (D-MD), Sen. Roy Blunt (R-MO), Sen. Sherrod Brown (D-OH), Sen. Bill Cassidy (R-LA), and Sen. Bob Menendez (D-NJ) as co-sponsors; a showing of strong bi-partisan support.

What the Bill Means to American Companies and Workers

Currently, the Work Opportunity Tax Credit (WOTC) is set to expire on December 31, 2019.  However, with the passing of this bill, this benefit for American businesses and American workers would become a permanent addition to the tax code.

U.S. employers can receive a credit, anywhere between $1,200 to $9,600, depending on the WOTC target groups their new hires fall within. The target groups range from veterans, ex-felons, those with disabilities, and households that are benefiting from programs like Supplemental Nutrition Assistance Program (SNAP) or Temporary Assistance for Needy Families (TANF).

Providing a tax credit to employers for hiring people with these types of barriers to finding employment not only helps the company and the new hire, but our society also benefits, as we can grow towards a more sustainable economy and strengthened workforce.

Learn about how the WOTC target group of U.S. Military Veterans is filling the gap in available cybersecurity talent

“People can and want to contribute to their communities, and they deserve a fair shot. The WOTC provides that opportunity, and awards companies for investing in their greatest asset – the American worker,” said Senator Brown.

The passing of this bi-partisan bill would be extremely beneficial to CTI’s valued clients that rely on this credit in its various forms. Regardless of industry, size, or business operations, be it a Fortune 500 company or a small ‘mom-and-pop’ business, if your company is hiring, you may be able to secure tax credits that you can use to reduce costs and spur growth.

How CTI Can Help Businesses and Job Seekers

At CTI, we are tax professionals genuinely passionate about maximizing credits and incentives for our clients. Sharing these types of incentives with our clients helps them reduce costs and provide funding for training, infrastructure, and more new hires. Powering the success of American business IS our mission.

With the WOTC becoming a permanent fixture in the credits and incentives world, CTI is here to share the news, spread the word, and help American businesses to help the American worker find gainful employment.

Stay tuned and bookmark this blog article for updates as we monitor the bill’s progress through Congress.



Elevate Your Tax Savings with WOTC

1. S.978 - 116th Congress: A bill to amend the Internal Revenue Code of 1986 to permanently extend the work opportunity credit,

Topics: Employment Incentives, WOTC, CPA, Legal News

Rachel Zarate Brouwer

Written by Rachel Zarate Brouwer

Rachel develops Employment Incentives (EI) solutions and manages our Team Leaders. Rachel started with CTI in 2009. With her years of experience at CTI and as a Project Manager, Rachel specializes in understanding a client’s current EI process and seamlessly integrating customized service solutions, including project setup and continuous process improvement. Furthermore, Rachel leverages her vast client project experience to serve as a subject matter expert for CTI’s in-house software development team.