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Alabama Heroes for Hire Act Signed by Governor

Thursday, April 5th, 2012

Alabama Governor Robert Bentley signed the state’s Heroes for Hire Act yesterday.   Read the press release from the Governor’s website, copied below.

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MONTGOMERY – Governor Robert Bentley on Wednesday signed into law the Heroes for Hire Act, which will help veterans returning from deployment find new jobs or start new businesses.

“When our service men and women were called to defend our freedoms, they didn’t ask questions. They simply answered the call to serve,” Governor Bentley said. “We must not forget the sacrifices veterans have made, and we encourage employers to remember our veterans as they fill open positions.”

The Act provides an additional $1,000 tax credit for job creation to employers who hire recently deployed, and now discharged, unemployed veterans. The Act also creates a $2,000 income tax credit to recently deployed, and now discharged, unemployed veterans who start their own businesses.

“Veterans have a unique set of skills and valuable experience that will benefit the companies that hire them,” Governor Bentley said. “Many veterans also have ideas that can help them launch a new business, and we want to give them every opportunity to succeed as they return home from service.”

The bill was sponsored by State Representative DuWayne Bridges and State Senator Tom Whatley.

“With wars winding down in Iraq and Afghanistan, thousands of Alabama veterans are returning home to a difficult economy in which it is hard to find a job,” Rep. Bridges said. “We need to give returning veterans every advantage we can toward finding employment. Our ‘Heroes for Hire’ bill does that by giving businesses a significant incentive for hiring a veteran who recently returned from war. Those who served on the front lines deserve to go to the front of the line for new jobs.”

“We need to do right by our heroes. These men and women put their lives on the line for our country,” Senator Whatley said. “This new law not only reaffirms our commitment to supporting our veterans, but also will contribute to Alabama’s decreasing unemployment rate.”

The Adjutant General of the Alabama National Guard added that the Heroes for Hire bill will benefit the livelihoods of veterans seeking new opportunities upon their return to Alabama.

“It is great to see the Governor and the Alabama Legislature promoting our veterans’ employment,” Major General Perry Smith said. “The Alabama National Guard has a higher unemployment rate than the state average, so this bill will be a great morale booster. More than that, it could be a life-changer for many Soldiers and Airmen.”

The Alabama Career Center System is a valuable resource for veterans searching for a new job. The system has career centers across the state, and connecting veterans with employment is among the system’s primary services. The Alabama Career Center System is managed under the authority of the Alabama Department of Industrial Relations and has additional information online at www.joblink.alabama.gov.

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DOL (Also) Issues New WOTC Instructions for Vow to Hire Heroes Act

Monday, December 12th, 2011

The following instructions are copied directly from the document recently published by the US Department of Labor.

Vow to Hire Heroes Act – Work Opportunity Tax Credit Provisions: Interim Instructions for State Workforce Agencies and Employers

On November 21, 2011, the President signed into law the “Vow to Hire Heroes Act”, which amends and expands the definition of Veteran target groups for the Work Opportunity Tax Credit (WOTC). These provisions became effective the day after the President signed the Act into law (November 22, 2011).

The Employment and Training Administration (ETA) is working to revise and issue ETA Forms 9061 and 9058, and update all other program-related materials, to reflect changes to the Veteran target groups. During this transition period until revised forms are issued, employers are instructed to continue to use the current ETA Form 9061.

When requesting certification for the Veteran target groups using ETA Form 9061, employers and consultants should do the following:

1) When using the hard copies of Form 9061, indicate in red at the top margin of the form the Veteran target group for which they are requesting certification.

2) When using an electronic form for the 9061 with those states that are fully automated, indicate in black at the top margin of the form the Veteran target group for which they are requesting certification.

Note: ETA will notify states with a date for the end of this transition period and the date when employers are to start using only the revised forms and program materials. State Workforce Agencies are to accept the current forms until additional guidance is provided by ETA.

3) Employers and consultants must continue to adhere to the “28-day timely filing” requirement.

4) Employers and consultants should follow any other instructions IRS may issue. States and Participating Agencies should continue to use the current ETA Form 9062 and follow its instructions, which already provide for the Veteran target groups.

State Workforce Agencies should continue to use ETA Form 9058, Report 1, until further ETA guidance.

 

Vow to Hire Heroes Act: DOL Publishes Summary of New WOTC Provisions

Monday, December 12th, 2011

Thank you to Rik Moore of the National Telecommuting Institute, Inc. for bringing this to my attention early last week.

The US Department of Labor has offered new guidance bringing into focus the WOTC provisions of the recently passed Vow to Hire Heroes Act of 2011.   A summary of WOTC-related provisions from the act has been published on the Department of Labor’s website.  The following is copied directly from that document.  Please download the entire document in order to see footnotes and introductory content not included here.

• Extends the current target group for Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits with the same qualified wages cap ($6,000) and maximum tax credit ($2,400).

• Extends the current target group for Veterans with a service-connected disability with the same qualified wages cap ($12,000) and maximum tax credit ($4,800).

• Extends the current target group for Veterans with a service-connected disability unemployed for at least 6 months with the qualified wages cap increased to $24,000 and the maximum tax credit increased to $9,600.

• Establishes a new target group for unemployed Veterans, similar to the Recovery Act of 2009 unemployed Veteran group that expired on December 31, 2010:

o Veterans unemployed for at least 4 weeks with a qualified wages cap of $6,000 and maximum tax credit of $2,400.

o Veterans unemployed for at least 6 months with qualified wages cap of $14,000 and maximum tax credit of $5,600.

o State Workforce Agencies will certify veterans as meeting the required periods of unemployment based on receipt of unemployment insurance compensation.

Note: The 5-year period ending on the hiring day requirement that was part of the Recovery Act unemployed veteran group was rescinded.

• Qualified “tax-exempt” (i.e., 501(c)) organizations can now participate by hiring qualified veterans and are now eligible to claim the WOTC.

• These provisions became effective the day after the President signed the Vow to Hire Heroes Act into law, November 22, 2011, through December 31, 2012.

• The Vow to Hire Heroes Act does not extend any of the other (non-Veteran) WOTC target groups, which currently expire on December 31, 2011.

 

WOTC Legislation to Go Before Senate This Week – Expected To Pass

Sunday, November 6th, 2011

As Democrats continue their efforts to shepherd portions of President Obama’s jobs bill piecemeal through the Senate, leading Democrats have expressed optimism that the President’s expanded hire-a-veteran tax credits will receive bipartisan support later this week.

This is according to an article published by The Hill on Friday afternoon. See “Senate Democrats try new tack on jobs, push bill without millionaire surtax.”

As proposed by the President, the new tax credits would be implemented through an expansion of the existing Work Opportunity Tax Credit (WOTC) program. WOTC is slated to expire on December 31 of this year. Passage of the President’s veteran’s tax credits proposal would therefore also necessitate renewing the WOTC program itself.

While I am aware of extensive lobbying efforts in support of extending WOTC, this is the most optimistic and timely expression on the subject I have heard to date. According to the article in The Hill:

“Democratic Sens. Patty Murray (Wash.), Debbie Stabenow (Mich.) and Jon Tester (Mont.) told reporters Friday that they were hopeful that Republicans would jump on board with the veterans’ legislation.”

It’s expected to pass. It should pass, Stabenow said, saying the legislation is meant to ensure that veterans would not stand in the unemployment line.”

An important feature of the Senate Democrats’ strategy will be to attach the veteran’s bill to another bill already passed with broad bipartisan support in the House of Respresentatives.

The veterans’ legislation is also expected to be attached to a GOP priority — a House-passed measure that would repeal a yet-to-be-implemented requirement that federal, state and many local government agencies withhold 3 percent of certain payments to contractors.

For more, click through to read the entire article. It is short and to the point.

 

Renew Unemployed Vet WOTC Group and Create Iraq and Afghanistan Vet Tax Credit

Tuesday, February 8th, 2011

Democrat Congressman Peter Welch (Vermont) announced legislation on Monday that would renew the Unemployed Veteran WOTC target group, which expired on December 31, 2010. The Veterans Employment Tax Credit Act would provide a $2,400 tax credit when businesses hire a veteran released within the past 5 years who has received unemployment benefits for at least 4 weeks during the 12 months prior to hire.

Congressman Welch also announces that he will co-sponsor a bill by Republican Congressman Peter King (New York) that would provide a tax credit to businesses that hire veterans of the Iraq and Afghanistan wars.

The announcements were made on location at an unnamed Vermont business.

Read the full press release on the Congressman’s website.

U.S. Senate Passes Tax Bill – Eyes Turn to House to Please Add Back Missing Tax Incentives!

Wednesday, December 15th, 2010

The Senate today passed the much anticipated tax bill without renewing the HIRE Act Payroll Tax Exemption, federal Renewal Communities, or the WOTC provisions for disconnected youth, unemployed veterans, or Gulf Opportunity Zone employers.  This is a disappointment, but not unexpected. 

Now that HR 4853 has been passed to the U.S. House of Representatives, eyes turn to susceptible House members seeking an amendment to add these provisions.  If these incentives are important to you, please consider contacting House Members from your jurisdictions and urge them to support including these 5 provisions with any amendments to the tax bill.  Make a special effort to contact Ways and Means Chairman Sander Levin.

Paul Suplizio, President of the WOTC Coalition, pointed out today that these 5 programs are “current-law job creation incentives” — so we are not urging the creation of any new program.  In summary, what we seek:

  1. Extension of the HIRE tax credits
  2. Extension of the Renewal Community program
  3. Extension of WOTC for disconnected youth
  4. Extension of WOTC for unemployed Iraq-Afghanistan era veterans
  5. Extension of WOTC for Gulf Opportunity Zone employers

On the bright side, the bill passed by the Senate does include reauthorization of:

  • The WOTC Program through 2011
  • The Research and Development Tax Credit
  • The Indian Employment Credit
  • The Empowerment Zone Program
  • The District of Columbia Enterprise Zone

See my previous post on this.

Asking the US House to Include Key Tax Incentives in House Amendment

Monday, December 13th, 2010

As noted in my most recent post, some key employment incentives were left out of the Senate version of the tax bill being discussed in Washington D.C.  I received a correspondence today from Paul Suplizio, President of the WOTC Coalition, detailing current efforts to include the missing programs in the House version of the bill.

Specifically, the WOTC Coalition is urging that the following be included in the House bill if the opportunity for amendment materializes.

  • Reauthorization of the HIRE Act’s Payroll Tax Exemption for Employers
  • Reauthorization of Renewal Communities
  • Continuation of Disconnected Youth as a WOTC targeted group
  • Continuation the Unemployed Veterans as WOTC targeted group
  • Continuation of WOTC for Gulf Opportunity Zone employers

Efforts at persuasion are focused on Representative Sander Levin, Chairman of the House Committee on Ways and Means and Senator Max Baucus, Chairman of the Senate Committee on Finance. 

Representative Charles B. Rangel, a known expert and champion of the WOTC program within the House of Representatives has also been contacted with the hope that he will use his expertise to help persuade the Chairman to include these items in any amendment to the bill.

Gillibrand Announces New Push To Make Tax Cut Permanent For Businesses That Hire Veterans

Wednesday, August 18th, 2010

 U.S. Sen. Kirsten Gillibrand of New York has announced renewed efforts to make WOTC benefits permanent for businesses that hire military veterans.   Read the press release by clicking here

“Too many veterans are still coming home to a very bad job market and struggling to find work,” Senator Gillibrand said. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job. The tax breaks we put in place are a win-win for businesses and veterans, and now we need to make them permanent so we can continue supporting businesses, create jobs, and put more of our veterans to work as they come home to their families so they can succeed in the economy.”

The WOTC program as a whole is set to expire in August 2011, while some aspects of the program have earlier expiration dates.   The entire history of the program has been one of expiration and reauthorization.  So far, however, proponents have been unable to achieve making the program permanent. 

The likelihood that Congress will discontinue the program is slim but there will be political battles to be won for reauthorization, and hopefully permanence, in the near future.

U.S. Legislators Introduce Simplified Tax Credit Bill for Hiring Veterans

Monday, May 24th, 2010

U.S. Senator max Baucus (D-Montana), introduced a bill today to provide a federal tax credit to employers that hire U.S. military veterans, including those who were activated by their states as National Guard members.  Similar to the WOTC, the bill simplifies (apparently by replacement) some of the WOTC’s veteran provisions.  Congressman Tim Walz (DFL-Minnesota) introduced an identical bill in the U.S. House of Representatives.

According to the press release, the bill “would provide a simplified tax credit for employers who hire servicemen and women who’ve left the service in the last 5 years.”

As a result, servicemen and women who have been recently discharged will be able to provide documentation from the Department of Defense without having to go through the tax credit’s current certification process, which can be lengthy. Any recently discharged veteran that has discharge paperwork showing 180 days of qualified active duty is eligible. This includes those men and women who were activated by their states as members of the National Guard.

I’ve not yet been able to find mention of the bill on either legislator’s website.  A press release, however, was published today at 1:07 PM on the KECI Missoula News Channel 13 website.

Final Guidance about Disconnected Youth and Unemployed Veteran WOTC Groups

Tuesday, March 23rd, 2010

I have wanted to write about this for a couple of weeks now, but as you know if you follow the news, there has been a lot going on. 

On March 5, 2010 the U.S. Department of Labor’s Employment and Training Administration issued Training and Employment Guidance Letter NO. 3-09 Change 2.  (I’m not complaining, but even the names of these documents are complicated.) 

This “TEGL” deals with issues that are critically important for employers who participate in the Work Opportunity Tax Credit (WOTC) program.  I’ll highlight the most pressing here.  If you want all the details, you can download the TEGL yourself by clicking here.

Use the August 2009 Form IRS 8850. First, this TEGL sets a deadline for requiring the use of the newest (August 2009) version of Form IRS 8850 - ”Pre-Screening Notice and Certification Request for the Work Opportunity Credit.”  In a nut shell, use it now.  But there is some leeway allowed.

For the two newest target groups of Disconnected Youth and Unemployed Veterans, all submissions as of October 17, 2009 must use the August 2009 form.  I have found that the California WOTC unit will still accept timely applications using older versions, but will not issue a certification unless an August 2009 form is also submitted.

Please note that this absolute requirement applies only to applications under the Disconnected Youth and Unemployed Veteran target groups.  Submissions for other target groups using the June 2007 and May 2009 forms are still accepted.

Official Form for Disconnected Youth Self-Attestation.  Beginning 90 days from the publication date of this TEGL (I believe 90 days will expire on June 3, 2010), WOTC units can only accept a self-attestation from Disconnected Youth if the attestation is made with the DOL’s official ‘Youth Attestation Form.”  Until that date, home-made versions are still acceptable, as long as they meet statutory requirements.

In response to these rules, my team is now distibuting updated survey packets to all of our WOTC services clients.

If you have any questions at all about these developments, please feel welcome to contact me directly.  You can reach me at 800-655-5281, ext 101.  Or send me an e-mail at vah@WOTCPlanet.com. I will also welcome your call or correspondence.