WOTC Renewed – Now Attention Turns to Hurricane Sandy Hiring Credits
Late Wednesday evening, President Obama signed into law the American Taxpayer Relief Act of 2012, extending the Work Opportunity Tax Credit (WOTC) through the end of 2013. The WOTC extension is retroactive to the beginning of 2012 to cover the current hiatus that began on January 1, 2012. The measure also includes a retroactive extension of other federal hiring credits – both the Federal Empowerment Zone and Indian Employment Credits. This positive outcome will help create certainty for employers as they plan their tax and business strategies going forward.
Congress is considering two packages that will provide various relief to victims of Hurricane Sandy. There are proposals to include hiring tax credits in the packages that are somewhat similar to those hiring credits provided after Hurricanes Katrina, Rita, and Wilma. Employers impacted by Sandy are encouraged to contact the Administration and members of the House and Senate this week to express support for these proposed Sandy hiring credits.