WOTC on the Agenda as Congress Prepares for January Tax Negotiations

Congress is wrapping up for the holidays without moving forward on a tax bill, but action is expected when lawmakers return in January. At that point, they’ll need to deal with two big issues — extending federal funding that runs out on January 31 and renewing healthcare premium credits that expire at the end of December. These deadlines may create momentum for a broader deal that includes tax and healthcare provisions. 

When Congress takes up tax legislation early next year, a few key items are likely to drive the conversation: renewing the Work Opportunity Tax Credit (WOTC), continuing the special expensing rules for film and live entertainment, maintaining the seven-year depreciation schedule for motorsports complexes, and fixing a tax error affecting professional gamblers. Because of political divides and tight vote margins, any bill will probably need bipartisan support and could get rolled into a larger spending package. 

Recent meetings on Capitol Hill with our lobbying group, NEON, went very well and those will continue in January. Lawmakers and staff across both parties voiced strong support for WOTC and its inclusion in any upcoming tax package. Key leaders — including Chairman Jason Smith, Ranking Member Richard Neal, and several other tax writers — reaffirmed their commitment to making WOTC a priority. 

Learn more about the Work Opportunity Tax Credit and how UC Alternative supports employers.