On March 4th, the White House released their 2015 budget proposal.
Notable provisions include permanency and expansion of targeted hiring tax credits to encourage employers to hire individuals traditionally facing barriers to employment. Those provisions include:
- Permanent extension of Work Opportunity Tax Credit (“WOTC”) for those starting work after 12/31/13.
- An expansion of the definition of disabled veterans for individuals starting work after 12/3/14 for purposes of qualification for WOTC. The definition would include disabled veterans who use G.I. Benefits to attend a qualified educational institution or training program within one year of being discharged or released from active duty, and who are hired within 6 months of ending attendance at such qualified educational institution or training program. This is designed to extend the current one year from discharge time limit to include six months from completion of education or training. Wages paid of up to $12,000 would be eligible.
- Permanent extension of the Indian Employment Credit (“IEC”) for those hired after 12/31/13, and then starting after 12/31/14, the credit would be 20% of the excess of qualified wages and costs paid or incurred in the base year. The base year costs would equal the average of wages and costs for the two tax years prior to the current tax year.
Equifax will continue to monitor progress on the renewal and potential expansion of these important hiring credits.