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As the Coronavirus aid and spending packages are being finalized in D.C., Synergi Partners is tracking a tax title in the Omnibus bill which includes a one year extension to the Work Opportunity Tax Credit (WOTC), Federal Empowerment Zones (Fed EZ), and Indian Employment Credits (IEC), as well as expanded disaster relief. Discussions are also underway to enhance WOTC – making rehires eligible for the program.
Synergi Partners anticipates disaster relief tax credits to be included in the package for 2020 disasters. This could potentially provide tax relief to businesses impacted by the Iowa derecho, the wildfires in California and Oregon and Hurricanes Laura and Isaias, along with other storms and natural disasters.
The CARES Act Employee Retention Credit (ERC) may be extended another 6 months (currently, the eligible period for ERC is March 13, 2020 – December 31, 2020). Among other potential enhancements, the stimulus package could include an increase to the qualifying wage cap (the CARES Act has it currently set at $10,000) and increase to the percentage of credits (the CARES Act has it currently set at 50%). These modifications and enhancements to the ERC may be retroactive.
Synergi Partners is monitoring legislation closely and we are prepared to assist you in claiming these much needed and valuable credits. We anticipate tax legislation to be released within the next 24 hours. In the meantime, if you have any questions, please don’t hesitate to reach out us at 843-519-0808.
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For the latest update on the stimulus deal, please check out this Politico article.