An economic incentive to hire veterans that companies could access in 2013 is now gone. As of January 1st, the Work Opportunity Tax Credit is no longer usable. While this does not directly affect veterans who are searching for jobs, according to WGRZ, it may very well affect their ability to find work with companies who may have needed the credit to hire new employees.
This credit and 54 others were not extended by Congress in 2013. It is possible for Congress to still extend the credit, and some business owners say it happens more often than people might realize. Vaughn Hromiko, owner of NorCal Tax Credit Advisors, claims that it’s happened about eight times since 1996. Companies may still apply for the credit in case it becomes viable in the future, but these applications will create a dense backlog and may slow down initial review.
According to Hromiko: "If you have employers that are counting on this, they frequently will go out and recruit from people who are in these categories. There are some companies who put off engaging the program, because they're not sure if it's actually going to start up again."
Despite the possibility of Congress reinstating the tax credit, there is no clear sign regarding where they will or not. WGRZ reported that, according to the Department of Labor, WOTC programs generated an annual net savings of $1 billion for employers who took part. Considering the current U.S. economic climate, this potential loss in revenue may be difficult for Congress to stomach.
For questions about the WOTC, click here.
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