Congress Extends Work Opportunity Tax Credit

Over the weekend Congress finally managed to pass an extension of the federal Welfare to Work and Work Opportunity Tax Credits. Both of these programs had expired as of 12/31/2005 and employers have been frustrated waiting for the traditional short-term renewals that Congress keeps passing. Assuming the President's signature, the program will be renewed retroactively and will be set to expire as of 12/31/2007. This kind of system ensures steady employment for lobbyists.

This time around, however, there are actually some substantive changes to enhance the program. The 21 day time limit for submitting forms is being extended to 28 days, income restrictions are being lifted from the ex-felon category, the age limit is being increased for food-stamp recipients, and the two programs are being fused into one.