WOTC UPDATES

WOTC NEEDS TO BE EXTENDED BY DECEMBER 31, 2019

WOTC PERMANENCY BILLS INTRODUCED

 IN THE SENATE AND HOUSE

WOTC Permanency Bills

On April 2, Senators Rob Portman (R-OH) and Ben Cardin (D-MD) along with Senators Roy Blunt (R-MO), Sherrod Brown (D-OH), Bill Cassidy (R-LA) and Bob Menendez (D-NJ) introduced "The Work Opportunity and Jobs Act",  S. 978, which would make WOTC permanent. This was followed on April 10 by Congressman Mike Thompson (D-CA) and Tom Reed (R-NY), along with Congressman Bill Pascrell (D-NY), Tom Rice (R-SC) and Tom Suozzi (D-NY), introducing S. 2213, which would also make WOTC permanent. The Senate and House Bills and Press Releases from when the bills were introduced can be found below.

H.R. 2213: https://www.congress.gov/116/bills/hr2213/BILLS-116hr2213ih.pdf

H.R. 2213 Press Release: https://mikethompson.house.gov/newsroom/press-releases/thompson-reed-pascrell-rice-and-suozzi-introduce-bill-to-permanently-extend

S.978: https://www.congress.gov/116/bills/s978/BILLS-116s978is.pdf

S.978 Press Release: https://www.cardin.senate.gov/newsroom/press/release/cardin-portman-lead-bipartisan-bill-to-make-work-opportunity-tax-credit-permanent

 

Tax Extenders for 2017, 2018 and Disaster Relief Retention Credit

Congress continues to work on moving a tax extenders package for provisions that expired in 2017 and 2018 (Indian Employment Credit and Empowerment Zones) as well as Disaster Tax Relief, including a retention credit for employers located in communities that have been impacted by 2018 hurricanes, wildfires and mudslides. 

 

While NEON continues to advocate for the 2017/2018 tax extenders and Disaster Relief, we are shifting our grassroots efforts towards supporting renewal of the core WOTC program which expires at the end of 2019.  

Click on the take action link on the right on the top of the page to immediately send a message to Congress in support for the House and Senate bills.   

 

The Take Action Message is below:

House: 

Dear Congressman/Congresswoman,

As an employer in your state who actively participates in the Work Opportunity Tax Credit (WOTC) program that will expire on December 31, 2019, I want to urge you to become a cosponsor of H.R. 2213 the Mike Thompson and Tom Reed bill which would make WOTC permanent. WOTC provides me with the resources I need to train and screen for eligible individuals who often have few of the job ready skills that are needed to succeed in the workplace. WOTC works for the government by reducing expenditures on public assistance programs and it works for employers, such as myself, by providing the resources to screen, hire and train those who qualify. I urge you to contact Congressman Mike Thompson and Tom Reed and let them know that you want to cosponsor H.R. 2213.

 

Senate: 

Dear Senator,

As an employer in your state who actively participates in the Work Opportunity Tax Credit (WOTC) program that will expire on December 31, 2019, I want to urge you to become a cosponsor of The Work Opportunity Jobs Act, S. 978 which would make WOTC permanent.  WOTC provides me with the resources I need to screen and train for eligible individuals who often have few of the job ready skills that are needed to succeed in the workplace. WOTC works for the government by reducing expenditures on public assistance programs and it works for employers, such as myself, by providing the resources to screen, hire and train those who qualify. I urge you to contact Senators Rob Portman and Ben Cardin and let them know that you want to cosponsor S. 978.

 

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According to Dr. Cappelli's studies:

●  Employers respond to the tax incentive and change their hiring practices by targeting WOTC eligible individuals.

●  The average WOTC hire stays on the job 2.3 years.

●  WOTC saved states $3.5 B for FY 2018 in matching and administrative costs for welfare, food stamps, and Medicaid.

●  The federal government receives an average net savings of $17,700 per individual just from TANF, SNAP, Medicaid and housing subsidies.

●  WOTC is one of the most cost effective hiring programs ever enacted by Congress.

●  Over a 10 year period, WOTC saves the federal government $167 B in TANF, SNAP, Medicaid and federal housing subsidies, and saves the states $35 B in TANF, SNAP and Medicaid payments.

●  Cappelli Impact of Corporate Tax on Need for WOTC 

●  WOTC- 2013 study executive summary

●  A Detailed Assessment of the Value of WOTC - Cappelli 2013 Study

●  Assessing the Value of WOTC 1 Executive Summary

●  Cappelli LTUE Study September 2015

How WOTC Works


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Past WOTC Initiatives

In February of 2018, Congress passed the Bipartisan Budget Act of 2018 which contained a retroactive extension through December 2017 of the Designated Community Resident hiring incentives as well as the Indian Employment hiring incentive.  NEON played an active leading role in this effort. 


In 2017, because of NEON’s efforts, the Social Security Administration (SSA), after a year and a half of work finally agreed to establish a system to provide the State Workforce Agencies (SWAs) with the information needed to determine eligibility for Supplemental Security Income WOTC hires. Prior to NEON’s efforts, SSA was insisting upon charging $35 per enquiry effectively resulting in SSI requests for certification not being processed.


At the end of 2015, NEON led the effort to get Congress to pass the PATH act which included a five-year extension that goes through 2019. The PATH act includes an expansion of WOTC to the Long-Term Unemployed defined as those who have been unemployed for 26 consecutive weeks or longer.

NEON also played a key role in the American Taxpayer Relief Act of 2012 which extended WOTC for 2 years plus a one-year extension of WOTC in 2014.

NEON worked with the Ways and Means and the Finance committee to pass Veterans Opportunity to Work (VOW) to Hire Heroes Act of 2011: Signed into law on November 21, 2011 the legislation is designed to help veterans of war transition into civilian employment. The VOW act amends and expands the definition of the WOTC “qualified veteran” category, granting a tax credit to employers for hiring certain qualified veterans.