Work Opportunity and Welfare-to-Work Tax Credits

 

The Working Families Tax Relief Act of 2004 (Public Law 108-
311) extended the work opportunity tax credit and the welfareto-
work tax credit through December 31, 2005. These tax credits
encourage employers to hire individuals from several targeted
groups. Eligible workers under the work opportunity tax credit
include economically disadvantaged youths, Vietnam veterans,
and welfare recipients. Eligible workers under the welfare-towork
tax credit include long-term recipients of family assistance.
Without these tax credits, employers might have less incentive to
hire individuals from the targeted groups.

 

The U.S. Chamber believes that extension of the credits is a step
in the right direction, but that both credits should be extended
permanently. They provide employers with an added incentive to
hire disadvantaged individuals, which in turn benefits the local
and national economies. Permanent extensions would provide
continuity and certainty to the income tax system and maximize
the beneficial aspects of the credits. The Chamber will continue to support efforts to permanently extend both credits.

 

(202) 463-5620
pberam@uschamber.com.