Bill Proposed to Renew Employer Tax Credits
The IEC and FEZ Employer Tax Credits are up for Renewal
At the end of 2017, Senator Orrin G. Hatch (UT-R) introduced a bill to continue to promote employment opportunities within the Tax Extender Act of 2017 (SB 2256). In particular, there are two long-standing federal employer tax credits up for renewal that business should be aware of; the Indian Employment Credit (IEC) and the Empowerment Zone Employment Credit (FEZ).
The Indian Employment Credit would allow businesses a maximum credit of $4,000 for a qualified employee or spouse who is an official member of an Indian tribe. To fully qualify, they have to work within an Indian reservation, while also having their home on or near that reservation. The Empowerment Zone Employment Credit would give businesses a credit of up to $3,000 for an employee who lives and works within the Empowerment Zone. Both of these credits had previously expired on December 31, 2016.
For both credits, the employees do not have to be new hires. You can claim credits on the same employee each year, as long as they continue to qualify. Over the past decade, these credits have expired and been extended a number of times. Typically, each extension has provided one to four additional years to claim the credits. Senator Hatch’s bill seeks to do the same, enabling credits to continue two more years through December 31, 2018, and retroactively back to December 31, 2016.
As always, the Equifax Government Team is closely following the status of this bill. We will provide updates as they happen. Currently, the bill has been referred to the United States Senate Committee on Finance.
Click here to learn how we help businesses identify and capture tax credits to help offset their tax rate. Our expertise and experience can address your challenges and uncover opportunities across all tax disciplines.
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