We want to keep everyone abreast of the ongoing legislation regarding the WOTC tax credit extensions and what it could mean for your business.
Below are excerpts from an article by Paul Suplizio, WOTC Coalition President
Today, Ways and Means Chairman Paul Ryan brought a bill to the House to permanently extend the deduction for corporate donations of food inventory. Permanent extension of Section 179 expensing is on tap for tomorrow.
Chairman Ryan was immediately confronted by the Ranking Democrat on Ways and Means, Congressman Sander Levin, and the Minority Leader, Steny Hoyer.
“Where is the child credit, where is the Earned Income Tax Credit, where is the work opportunity tax credit?” Levin asked.
Levin, and Hoyer afterward, made much of a comment made by Senator Roy Blunt to the effect that, “As long as the Finance Committee sees an opportunity to do a tax reform bill, separate bills won’t move very fast in the Senate.”
There’s a strong interest in these Ryan bills because they could be a vehicle for passing a WOTC extension anytime Finance Chairman Orrin Hatch is ready to mark-up the extenders to be renewed for 2015.
Senator Hatch isn’t committing to permanent extenders because he sees them as part of a tax reform bill if the Finance Committee votes to keep them in the tax code. The tax staffs are developing a bill that Hatch seems likely to present in draft by the August recess to gauge whether it can serve as the basis for a deal with the White House.
The road to permanency for WOTC is as part of a “grand bargain” tax deal Hatch and Ryan aim to negotiate with Treasury Secretary Jack Lew. This means a short-term extension can pop up anytime Senator Hatch and Senator Wyden set their minds to it.
As Senator Blunt says, “as long as the Finance Committee sees an opportunity to do a tax reform bill” the key issue will be whether WOTC should be kept alive in tax reform.
By getting a majority of Senate Republicans for permanent WOTC, with strong showing from Democrats, the odds of a short-term extension are much in favor.