Recent House and Senate Action on WOTC

During the Week of June 16, NEON filed its comments to the Senate Finance Committee's tax extender's Task Force on Employment and Community Development. NEON testified before the Task Force and emphasized WOTC's public assistance savings, employer acceptance of the program, the flexibility of the WOTC platform, program growth as a result of the five year PATH Act extension, and the need for a seamless permanent extension. We also discussed program improvements with an emphasis on the positive impact of lifting the age ceiling on WOTC eligibility for SNAP recipients. In addition, we referenced bills that have been introduced that would make eligible Transitional Foster Care Youth, S. 1651 and those on Social Security Disability Insurance, S. 255.

The Task Force was quite supportive of WOTC. We were asked about our savings estimates and why we don't get credit for them. We referenced our meeting between Dr. Cappelli and the head of the Joint Committee on Taxation during which we were told that they believe the program more than pays for itself. However, the Joint Committee recommended we speak with the Congressional Budget Office since the Joint Committee on Taxation only estimates the impact on revenues of changes to the tax law, and not the impact on spending programs. We explained that CBO can only estimate total annual program costs, but not how a program like WOTC impacts those costs.

SENATE APPROPRIATIONS FUNDING INCREASE FOR WOTC ADMINISTRATION:

NEON was instrumental in securing $2M increase in WOTC administrative funding in the draft Senate Labor HHS Bill that was released September 18th, 2019. NEON will work with the conferees to secure the House level of funding for WOTC.

On Thursday, June 20, the House Ways and Means Committee Reported H.R. 3301, The Tax Payer Certainty and Disaster Relief Act of 2019 which would:

Seamlessly extend WOTC through 2020, and retroactively extends through 2020 the Indian Employment Credit and Empowerment Zone hiring and provide Disaster Tax Relief which would include an employee retention credit for all 2018 and 2019 federally declared disaster areas through 60 days after the date of enactment.

During the Committee's consideration of H.R. 3301, Congressmen/woman Bill Pascrell (D-NJ), Danny Davis (D-IL), Terri Sewell (D-AL), Dwight Evans (D-PA), and Steven Horsford (D-NV) all spoke in support of WOTC.

HOUSE APPROPRIATIONS FUNDING INCREASE FOR WOTC ADMINISTRATION:

NEON was also instrumental in securing a $2.5M increase in WOTC administrative funding in the Labor HHS portion of the House passed Defense, the State Department, Energy and Water Development, and Labor, HHS spending bills, H.R. 2740. This would bring total administrative dollars for processing WOTC claims up to $22.3 M, a 12.6% increase which is more than the across the board 10% increase given to DOL. We are working with the Senate Labor HHS Subcommittee to secure a similar increase in the Senate bill.

Tax Extenders for 2017, 2018 and Disaster Relief Retention Credit:

Congress continues to work on moving a tax extenders package for provisions that expired in 2017 and 2018 (Indian Employment Credit and Empowerment Zones) as well as Disaster Tax Relief, including a retention credit for employers located in communities that have been impacted by 2018 hurricanes, wildfires, and mudslides.