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American Workers, Families, and Employers Assistance Act

On Monday, July 27, 2020, Senate Finance Committee Chairman Chuck Grassley (R-IA) officially proposed the next stimulus bill, the American Workers, Families, and Employers Assistance Act, which includes assistance to employers to reopen the economy by creating jobs and stimulating employment.

Part of the stimulus includes a temporary expansion of work opportunity tax credit (WOTC). WOTC provides an elective tax credit to employers hiring individuals who are in one or more of ten targeted groups including: TANF recipients, qualified veterans, qualified ex-felons, designated community residents; vocational rehabilitation referrals; SNAP recipients, SSI recipients, long-term family assistance recipients, and qualified long-term unemployment recipients. Generally, the maximum credit per employee is $2,400 (40 percent of the first $6,000 of qualified first-year wages), but special rules apply for certain targeted groups.

Legislative Update

Bill Proposed for Temporary Expansion of Work Opportunity Tax Credit (WOTC)

To claim the credit, an employer must obtain certification of the employee’s eligibility from the appropriate State workforce agency. Many employers work with tax credit specialists, such as Synergi Partners, to screen, process, and maximize these credits.

Section 212 of the American Workers, Families, and Employers Assistance Act adds a new WOTC targeted group, 2020 qualified COVID-19 unemployment recipients. A 2020 qualified COVID-19 unemployment recipient is an individual who is certified by the designated local agency as having received (or approved to receive) unemployment compensation under State or Federal law for the week of or immediately preceding the hiring date and who begins work after the date of enactment and prior to January 1, 2021.

The section also increases the credit amount applicable to the new targeted group to 50 percent of the first $10,000 of qualified first-year wages, or a maximum credit of $5,000 per employee.

This section removes the limitation on rehires for 2020 qualified COVID-19 unemployment recipients and also provides regulatory authority to the Secretary of the Treasury to prescribe rules to prevent abuse.

For more information on how to take advantage of these valuable tax credits, please contact Synergi Partners.

About Synergi Partners

Comprised of tax credit veterans with many years of experience serving clients of all sizes and in virtually all industries, Synergi Partners specializes in helping employers take advantage of federal and state tax credit programs, as well as disaster relief incentives.
With an executive team made up of thought leaders who have made significant contributions to the tax incentives industry, Synergi Partners’ main goal is to provide the best service available and to achieve maximum value for its clients.