As indicated in our last Tax Alert on April 4, 2019, a bipartisan group of Senators recently introduced a bill (S. 978) to make the Work Opportunity Tax Credit (WOTC) permanent. This week, a companion bill (H.R. 2213), has been introduced by 5 members of the House of Representatives also proposing WOTC permanency.
Like the Senate bill, the House bill has strong bipartisan sponsorship. It was introduced by the House Ways and Means Select Revenue Measures Subcommittee Chairman Mike Thompson (D-CA), Rep. Tom Reed (R-NY), Rep. Bill Pascrell (D-NJ), Rep Tom Rice (R-SC), and Rep. Tom Suozzi (D-NY), and would extend WOTC indefinitely as opposed to its current 12/31/19 expiration date.
While introducing the bill, Chairman Thompson described WOTC as “highly effective in ensuring individuals on public assistance can make the transition to private sector jobs,” and Representative Pascrell called WOTC “remarkably effective” and “a proven tool to move eligible individuals off of unemployment and into the workforce.”
We at First Advantage will continue to monitor the progression of this bill. If you have any questions, please contact your First Advantage Tax Account Manager or your legal counsel.