Expanded Work Opportunity Tax Credit Provision in the HEALS Act

On July 27 Senate Republicans announced the Health, Economic Assistance, Liability Protection and Schools (HEALS) Act as their opening bid for “Phase 4” economic relief ahead of negotiations with Senate and House Democrats.

Phase 4 relief is the anticipated follow-up legislation to the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act that was enacted on March 27th.

Expansion of the Work Opportunity Tax Credit (WOTC)

The HEALS Act would temporarily expand the Work Opportunity Tax Credit (WOTC) to employers hiring individuals in qualified groups, and would include a new targeted group defined as 2020 qualified COVID-19 unemployment recipients.

The maximum credit would be expanded from $2,400 (40 percent of the first $6,000 of qualified first-year wages) to $5,000 (50 percent of the first $10,000 of qualified first year wages).

CMS is closely monitoring the legislation, and will continue to keep you informed.

Additional Reading:

Senate Republicans Introduce The HEALS Act (Read @ Mitch McConnell, Senate Majority Leader)

Senate Republicans Introduce the HEALS Act for Coronavirus Pandemic Relief (Read @ The Tax Foundation)

Tax Provisions in the HEALS Act (Read @ American Action FORUM)

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