WORK OPPORTUNITY TAX CREDIT (WOTC) EXTENDED FOR 44 MONTHS
Tax Credits Offered For Hiring Eligible Workers
The Work Opportunity Tax Credit (WOTC) law was extended for 44 months (through August 31, 2011) when the supplemental defense spending bill was signed into law on May 25, 2007. This three plus year extension is a departure from prior years’ practice of enacting short term renewals.
The new law includes a number of changes and enhancements, such as:
- Expands the qualified veterans targeted group definition and increases qualified first year wages to $12,000 instead of the previous $6,000 amount.
- Changes “high-risk youth” category to “designated community residents” and raises the age ceiling from 25 to 39. This category is expanded to include rural renewal county residents.
- Expands the definition of vocational referral.
- Allows the provision that business tax credits generally can offset the alternative minimum tax (AMT) liability.
Companies hiring eligible recipients such as Aid to Families with Dependent Children (AFDC) / Temporary Assistance to Needy Families (TANF), Ex-Felons, Food Stamps Recipients, High-Risk Youth, Summer Youth Employee, Supplemental Security Income (SSI) recipients, Veterans, and Vocational Rehabilitation Referrals that do not currently have a WOTC program in place should contact Brian Kelly at 860-678-4401 for more information about the WOTC and to learn how CMS can help save your company money with the WOTC Program.
Click here to see how much your company could save:
Click here to download the WOTC brochure.