WOTC Extension Included in Senate Finance Action
As noted yesterday, the Senate Finance Committee was set to mark up a tax extenders package
today. In a vote of 19-5, the Committee has now approved “The Family and Business
Tax Cut Certainty Act of 2012.” This act calls for an extension of the Work Opportunity
Tax Credit, including the new veteran’s credits initiated under the Vow to Hire A
Hero Act, through 2013 and retroactively for 2012. Recall that the overall WOTC program,
excluding the veterans provisions, expired at the end of 2011. The next step is for
the Senate as a whole to take up this measure. It is not clear when that could happen
as Congress will soon leave for their summer recess and then will run into election
Importantly, this approval indicates that the Senate Finance Committee is serious
in their support of the WOTC credit going into general tax reform negotiations, and
therefore, WOTC is likely to survive that process intact. However this does not guarantee
a WOTC extension at this time.
Max Baucus, (D-Mont), Chairman of the committee, said that:
Businesses need certainty so they can plan for the future. They need to know how transactions
will be taxed. They need to know what income will be taxed. Without this certainty,
they are less able to know how much money they have to hire new workers or invest
in new technology or machinery, the engines that help our economy grow.
Speaking on tax reform, Senator Orrin Hatch (R-UT) said,
Today’s markup is important for another reason. On a very limited basis, it is a dry
run for the fundamental tax reform that we all know must come, and will come, in the
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