Congressional committees are hammering out the details of the “Build Back Better Act” H.R. 5376, the $3.5 trillion reconciliation bill which is a priority of the Biden administration. Currently, the House has passed the Bill and it lies with the Senate.
Among the many programs and provisions in the Bill, there is a golden nugget for employers taking advantage of the Work Opportunity Tax Credit Program (WOTC). In Section 138513 of the Build Back Better Act is an “Enhancement of Work Opportunity Credit During COVID-19 Recovery Period.”
What would the WOTC enhancements do for employers?
The enhancements would:
- Eliminate the restriction against claiming WOTC for rehired employees,
- Increase the amount of tax credit from 40% of $6,000 in qualified wages to 50% of $10,000, and
- Provide a similar credit for the second year of employment of qualified employees.
- These WOTC enhancements would be available for qualified new hires or rehires hired after the bill is enacted and before January 1, 2023.
We will keep this blog up to date with the latest news on Section 138513 of the Bill. This is incredible if it passes in the Bill! If you are not taking advantage of WOTC, this certainly sweetens the pot to get started now! Get in touch with our sales team to learn more about WOTC and how easy it is to get started.