Given the current schedule for the U.S. House of Representatives, it appears likely that Congress will adjourn for the year later this week without passing a bill to extend several expiring tax provisions. This means that many of the business community’s favorite tax credits and deductions will expire Dec. 31. However, history has shown that failure to renew a program does not mean the program is going away.
Earlier this year, it seemed almost certain that a tax extenders bill would be brought to the House and Senate floor in December, as this was one of the few bills that could still generate bipartisan support. However, following the 43-day federal government shutdown, Congress had only three weeks to complete three months’ worth of work, and a tax extenders package was low on the list of priorities. Thus, valuable floor time had to be reserved for bills that must be passed by the end of the year.
But just because it was low on the list of priorities doesn’t mean it is not a priority. The package is important to many lawmakers, and the tax credits and deductions—including the Work Opportunity Tax Credit—can be extended retroactively. That’s what happened in 2014, when Congress let the WOTC and other tax credits expire before retroactively reviving them nearly a year later. Given the current state of the economy and the labor market, there is a good chance Congress will pass a tax extenders package next year and make it retroactive to the beginning of the year.
Because there is no set timeline for a tax extenders bill to be considered, staffing firms that hire applicants in targeted WOTC groups should continue to collect WOTC prescreening forms and certifications and should regularly consult with their tax professionals or WOTC credit providers to ensure they are taking the necessary steps to preserve their claims. Staffing firms should make sure to stay in touch with ASA, as the association will continue to update members on any developments regarding future tax extenders legislation.
Of course, nothing motivates lawmakers more than hearing from voters. Staffing firms that work with the WOTC program should take a moment to reach out to members of the House Ways and Means Committee and the Senate Finance Committee, and urge them to prioritize a tax extenders package that includes an extension of the WOTC program and is retroactive to Jan. 1, 2026.
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