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June 1, 2007
The WOTC provisions of the Katrina Recovery Bill are now public law after being signed by President Bush. May 25th is the "date of enactment" on which those provisions become effective. Under the Act, WOTC is effective for employees who begin work for an employer on or before August 31st, 2011. The Department of Labor is to issue a notice to the field on implementation of changes in the law. We expect at least 60 day wait for the list of "rural renewal counties" to be published. Under the Act, workers age 18-40 whose principal place of abode is in such county are eligible for the WOTC credit.
For disabled veterans, defined as a veteran receiving disability compensation from the Veterans Administration, the credit is computed on $12,000 of wages instead of the usual $6,000. To be eligible, a disabled veteran must EITHER have a hiring date of not more than a year after discharge from the Armed Forces OR have aggregate periods of unemployment of at least 6 months during the one-year period ending on the hiring date. Thus, ALL disabled veterans are now eligible for WOTC.
The Act demonstrates the congressional vote of confidence in the Work Opportunity Tax Credit and in workers and employers who have kept faith in the program and kept it going for 27 years.
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