WOTC UPDATES

*IMMEDIATE ACTION REQUIRED*

Congress is currently working on its year end spending bills which they must complete by December 21. We are urging them to include disaster tax relief which would include a retention credit for employers located in communities that have been impacted by recent hurricanes, wild fires and mudslides as well a two year extension (through December 31, 2019) of the Indian Employment Credit and the Empowerment Zone hiring credits which expired at the end of 2017. 


We are focusing our effort on sending our message to Congressional Leadership. Please use the below message which is in quotes. We have also included a list of leadership and their tax staff contact information. 


Dear Majority Leader McCarthy, Majority Whip Scalise, Majority Whip Cornyn, Democratic Leader Schumer, Conference Chairman Thune, Chairman Hatch, Senator Grassley, Senator Wyden,
 
"The American public sent one clear message this past election – they want Washington to work in a bi-partisan manner and get things done where there is agreement. As the 115th Congress draws to a close, one clear area of bi-partisan agreement is on disaster tax relief for those impacted by recent natural disasters and on the tax extenders which expired at the end of 2017 (they need to be extended through 2019). As an employer who is impacted by these tax incentives, we want to strongly urge you to include these provisions in the year end spending bills that you are currently working on. Absent action on these provisions, those impacted by recent disasters will not receive the economic relief they desperately need and those who utilize the tax extenders will see their tax burden increase."
 
Sincerely,
 
Contact Information:
 
Sen. Chuck Grassley (R-IA)
Chris Conlin, Tax Counsel
135 Hart Senate Office Building
Washington, DC 20510 
Phone: 202-224-3744
 
Sen. Ron Wyden (D-OR)
Tiffany Smith, Chief Counsel, Tax for Senate Finance Committee (Minority Staff)
219 Dirksen Senate Office Building
Washington, DC 20510-6200
 
Sen. Chuck Schumer (D-NY)
Anna Taylor, Tax Counsel
322 Hart Senate Office Building
Washington, DC 20510-3202 
Phone: 202-224-6542
 
Sen. John Thune (R-SD)
Mark Warren, Tax and Trade Counsel
511Dirksen Senate Office Building
Washington, DC 20510-4105 
Phone: 202-224-2321
 
Sen John Cornyn (R-TX)
Andrew Siracuse, Counsel
517 Hart Senate Office Building
Washington, DC 20510-4305 
Phone: 202-224-2934
 
Senator Orrin Hatch
Nick Wyatt, Tax Counsel
219 Dirksen Senate Office Building
Washington, DC 20510-4305
202 224-4515
Email: nick_wyatt@finance.senate.gov
 
Rep. Steve Scalise (R-LA-01)
Marty Reiser, Deputy Policy Director for House Republican Whip
H-329, The Capitol
Washington, DC 20515
 
Rep. Kevin McCarty (R-CA-23)
Brittan Specht, Senior Policy Adviser for House Republican Majority Leader
H-107, The Capitol
Washington, DC 20515


If you wish to also send a message to your own representatives urging them to include these provisions in the year end spending bill, please click on to the Take Action tab above.


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 saves states $4 B collectively each year 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 years period, WOTC saves the federal government $144 B in TANF, SNAP, Medicaid and federal housing subsidies, and saves the states $40 B in TANF, SNAP and Medicaid payments.

How WOTC Works


Current WOTC Legislation:

H.R. 3562 to make the Work Opportunity Tax Credit permanent, Tom Reed (R-NY) and Joe Crowley (D-NY).


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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.