Several bills that impact WOTC have now emerged in the 117th Congress.
Most of these bills won’t be enacted singly, but now that WOTC is safe for five years, we’re working to ensure enactment of a considerable list of desirable improvements that TIA has recommended in the past.
The most effective approach to the chairmen of the tax-writing committees is for our congressional supporters to consolidate and lay our proposals before the full committee in a bill and/or testimony. At the same time, many congressional supporters have their own priorities for WOTC, and some have already proposed bills which, if enacted, would enhance WOTC significantly.
What follows is a description of some of the most significant bills that deserve our attention and support.
If you are pleased, thank congressional sponsors for their hard work shaping legislation to expand and enhance WOTC. If you see provisions you cannot support, or are problematic, let us know so we can act to resolve the issue.
The bills below don’t reflect TIA's full list of desired improvements to the WOTC program. In a future report, we’ll discuss where we stand with those proposals.
We can interject here, regarding an important goal of the past four years, that the President’s Budget calls for replacement of the BEAT tax (Base Erosion and Anti-Abuse Tax) that unfairly taxes some of the largest WOTC employers. Senate Finance Committee Chairman Wyden had already decided on a means to remedy the injustice of BEAT, but the President’s approach would replace it entirely. The administration’s approach is detailed in the Green Book accompanying the budget, and we’ll soon learn Senator Wyden’s reaction.
Here are the WOTC bills you should know about:
S. 269, WOTC and Jobs Act, Senator Rob Portman (R-OH)
This bill would make WOTC a permanent part of the tax code. Our friend, Senator Portman, has introduced this measure in every Congress.
S. 1560, A bill to amend the Internal Revenue Code of 1986 to modify WOTC for certain youth employees, Senator Richard Durbin (D-IL)
There is no “at-risk youth” target group in WOTC, and this important bill sets a “disconnected youth” target group for ages 16-25, doubles the maximum wage for summer youth ages 16-17, expands the summer youth program to include year-round employment, and requires youth, who are in school, to work no more than 20 hours a week. An identical bill has been introduced in the House by Congresswoman Robin Kelly (D-IL).
S. 784, Jobs for Economic Recovery Act, Senator Ron Wyden (D-OR)
Senator Wyden, chairman of the Senate Finance Committee, introduced this measure to grant a second-year credit, at 40 percent of a maximum $6,000 qualified wages, for any employee who worked the prior year in a job subsidized by the government. The bill also directs the GAO to evaluate the effectiveness of the coronavirus Employee Retention Credit. An identical bill was introduced in the House by Congressman Danny Davis (D-IL), a subcommittee chairman of Ways and Means.
H.R. 3449, To amend the Internal Revenue Code of 1986 to make certain adjustments to WOTC to modernize the credit and make it a more effective hiring incentive, Congressman Tom Suozzi (D-NY)
Congressman Suozzi, a Ways and Means Committee member has introduced a vehicle for improvements we are supporting. The text of the bill is not yet final.
S. 630, Disability Employment Incentive Act, Senator Bob Casey (D-PA)
Senator Casey’s bill extends WOTC eligibility to individuals receiving cash Social Security Disability Insurance (SSDI), increases the amount of the credit, provides a second-year credit, and extends these increased benefits not only to SSDI recipients, but also to SSI and Vocational Rehabilitation recipients.
S. 1532, A bill to provide a WOTC for military spouses and to provide for flexible spending arrangements for childcare services for uniformed services families, Senator Tim Kaine (D-VA).
With support of 27 major veterans organizations united in The Military Coalition, we are working with Senator Kaine and others to ensure enactment of this goal, for which there is a strong case, too long deferred.
There are other bills in the works, but in the meantime, we welcome your feedback on the foregoing bills, which are works in progress.
On the Senate side: Once the Commerce Committee marks up its surface transportation title, depending on how conversations between the White House and Republican negotiators continue to go we will have a better idea as to the prospects of the bill.
Please contact Senators Tester and Sinema to thank them for their support and to ask them to press Chair Cantwell to include S.659 in the committee’s base bill.
In addition, we will need to be prepared for a potential amendment strategy, which means reaching out to the 5 Republicans who are not yet cosponsors (Sens. Thune, Fischer, Sullivan, Lee, and Johnson) and shoring up their support for S.659.
On the House side: The T&I Committee is continuing to move on the surface bill. Please continue to encourage House members, particularly Democrats, to support/cosponsor H.R.1745.
Dear Chairs DeFazio and Norton:
On behalf of TIA, we are pleased the House Committee on Transportation and Infrastructure is moving forward with the transportation reauthorization process through the introduction of H.R. 3684, the “INVEST in America Act.” TIA is generally supportive of the bill, are happy to see legislation progressing through regular order and would like to work with you on the areas identified below which we believe would improve the bill substantially for America’s highway users. We hope to continue to have a dialogue on items within the bill as Congress moves forward to – we fervently hope – timely enactment of reauthorization legislation.
TIA members are especially appreciative of the robust funding levels and programmatic stability provided by the bill. The five-year authorization period and the $319 billion allocated for highways (exclusive of earmarks, NHTSA and FMCSA funds), provides a significant increase over FAST Act levels. The combination allows for the funding stability necessary for both industry and State transportation department planning and project delivery purposes. From TIA's perspective, this is extremely positive.
TIA is also very supportive of the substantial funding increase for the Highway Safety Improvement Program included in H.R. 3684. 38,680 people were killed on U.S. roadways in 2020 and working to reduce that number toward zero deaths is one of our top priorities.
We look forward to a continued dialogue regarding provisions permitting the flexing of FHWA HSIP funds to non-infrastructure projects and continue to be concerned with the flexing of these funds.
There are a few areas in which we believe the bill could be strengthened. We would like to discuss these items as the reauthorization process proceeds:
The deadline to reauthorize surface transportation programs is quickly approaching. TIA is ready to work with all parties moving forward to ensure a long-term bill will be signed into law before we face an absence of program authorizations. Failure to act promptly could halt important road and bridge projects and will further disrupt America’s economic recovery.
TIA members are eager to work with your Committees and all concerned as the process unfolds. We are here to serve as a resource for you and look forward to working together to enact legislation this summer. Addressing the nation’s infrastructure needs will help every individual and business as we emerge from the pandemic.
Thank you for your time and consideration.
Sincerely,
TIA