- Extends the Work Opportunity Tax Credit for 5 years through December 31, 2025
- Extends the Empowerment Zone hiring tax incentive for 5 years though December 31, 2025
- Extends the Indian Employment Credit for one year through December 31, 2021
- Provides $23,318,000 for the Department of Labor and the State Workforce Agencies (SWAs) to administer WOTC, reduce processing backlogs, to provide technical assistance to the SWAs and to modernize processing. This is the second year of enhance WOTC administration funding
- Extends the Disaster Relief hiring incentive from January 1, 2020 through February 20, 2021 (sixty days after date of enactment which was on December 22, 2020).Â
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- Extends and improves the COVID-19 Employee Retention Tax Credit from January 1, 2021 through June 30, 2021:
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Increases the credit from 50% to 70%;
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Expands eligibility by reducing the decline in receipts eligibility criteria from the 2020 requirement of 50% to only 20% loss in year over year revenues and provides a safe harbor which would allow employers to use prior quarter gross receipts to determine eligibility;
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Increases the limit on per-employee creditable wages from $10,000 per year to $10,000 for each quarter;
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Increases the 100-employee delineation for determining the relevant qualified wage base to employers with 500 or fewer employees;
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Allows Government run colleges, universities, as well as government run entities providing medical or hospital care to qualify;
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Allows employers who were not in existence for all or part of 2019 to now qualify.
- Modifications to the Employee Retention Tax Credit that are retroactive to date of enactment of the CARES ACT – March 27, 2020:
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Employers who received a Paycheck Protection Program (PPP) loan may qualify for the ERTC for wages that are were not paid for with a forgiven PPP loan;
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Clarifies the determination of gross receipts for not-for-profits;
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Clarifies that group health plan expenses can be considered qualified wages even when no other wages are paid an employee
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