Congress is currently considering a major overhaul of the tax system. In order to reduce rates all tax incentives including WOTC are at risk. It is important that you send an e-mail to your congressman and your two senators and urge them in the House to talk with Ways and Means Chairman Brady and in the Senate Finance Chairman Hatch to include WOTC through 2019 in their tax reform bills.
We have drafted a letter to send to your congressman and a separate letter to send to both of your senators. Don't delay, act today to save WOTC. Click on Take Action tab above to contact Congress today.
NEON SECURES RETENTION HIRING CREDIT FOR THOSE IMPACTED BY HURRICANES HARVEY, MARIA, AND IRMA.
NEON successfully worked with members of congress to include a retention hiring tax credit in the
Disaster Tax Relief and Airport and Airway Extension Act of 2017 (H.R.3823). The bill was signed into law on September 29. It provides a retention credit equal to 40% of the first $6,000 in wages paid to an employee retained on an employer’s payroll. The employer had to be located in a Hurricane Harvey, Maria, or Irma FEMA designated disaster zone. To determine whether a business is located in a FEMA designated disaster zone go to
www.fema.com click on Navigation, and then click on Disaster Declarations, then click on the appropriate declaration. The credit is available to businesses that became substantially inoperable after August 23 in the case of Harvey; September 4 in the case of Irma, and September 16 in the case of Maria until the earlier of when the business becomes substantially operable again or no later than January 1, 2018.
NEON ENDORSES FOSTER CARE WOTC PROVISION
Each year, over 23,000 young people age out of the foster care system. Unfortunately, by the time they reach twenty four, fifty percent of individuals who have been in the foster care system are unemployed. The National Employment Opportunity Network is pleased to endorse the McDermott/Reichert Improved Employment Outcomes for Foster Youth Act of 2016, H.R. 5947 which would include foster care transition youth as a category under the Work Opportunity Tax Credit (WOTC). Rep. McDermott (D-WA), Rep. Reichert (R-WA), and committee staff reached out for out assistance in developing this important legistlation. Inclusion of foster care youth in WOTC will help foster care youth to find gainful employment, thus making them independent while at the same time reducing their reliance on public assistance programs.
DOL TO ADMINISTER HUD EZ/EC LOCATOR
The Department of Labor has released their new address locator system for Designated Zone Residents which will replace the HUD locator. Under the DOL's new system, companies can look up whether a resident or business is in the zone. If so, you can download and file that along with your request for certification. If you cannot find a valid address on the DOL locator, then you may submit a signed statement from a county or local government agency certifying the 1990 – 2000 census track numbers of the address in question. The statement must be on official letterhead. The State Workforce Agency could request that you send accompanying documentation such as a map of the site.
Find the locator here.
FIVE YEARS FOR WOTC
Before going into recess last year, Congress passed the Protect Americans from Tax Hikes (PATH) Act, which included a five-year extension of WOTC. With this certainty going forward, employers can move forward with hiring decisions and help people transition into the workforce.
EXPANDING WOTC TO INCLUDE THE LONG-TERM UNEMPLOYED
NEON is pleased to note that the PATH Act, passed in December 2015, expands WOTC to include the long-term unemployed, defined as those who have been out of work for twenty-six or more weeks. This will go a long way toward helping those who have been left behind in the economic recovery.
It's common knowledge: the longer you're out of a job, the harder it is to get a job. The long-term unemployed comprise nearly a third of the jobless in America. The social and economic challenges they face impact not only the unemployed, but their families and their communities as well. Past studies by Peter Cappelli have documented that WOTC influences employer hiring practices; including the long-term unemployed in WOTC would help reintegrate these individuals into the workforce, lift them from dependency on social programs, and improve health and wellbeing for them, their families, and their communities.