Exciting new legislation, that would increase the Work Opportunity Tax Credit (WOTC) amount across all categories, was introduced yesterday. The Hiring Incentive to Return Employment (HIRE) Act of 2021 proposes a WOTC increase to 50% for the first $10,000 in wages, for two years, for all WOTC target groups.
The bill, drafted by leading members of the Ways and Means Committee, has garnered support from important association groups including The International Franchise Association, The National Restaurant Association, The American Health Care Association, and others.
As noted in the Congressional press release on the bill, the “WOTC amount has not changed since its initial enactment 25 years ago. Due to wage inflation, the value of credit has significantly eroded over time, placing qualifying employees at a disadvantage during a critical time when high unemployment continues.”
“This enhancement of the Work Opportunity Tax Credit would help put Americans back to work as the country recovers from the pandemic, and directly assist the long-term unemployed, who were left behind by our economy even before the pandemic began,” said one of the bill’s co-sponsors, Congressman Don Beyer.
As usual, FADV is working in conjunction with our fellow members of the National Employment Opportunity Network (NEON) to advocate for the passage of this legislation. If your organization is interested in assisting in our legislative efforts, please contact your tax consultant for more information on what you can do to help. The voice of the employer is most influential in lobbying efforts, a brief email, phone call or letter in support of this increase in credit value can make a difference.
Please ensure you are subscribed to our Tax Alerts to stay informed! If you have any questions on the programs discussed in this alert and how they might impact you, please contact your First Advantage Tax Consultant or your legal counsel.
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