WOTC Extension Passes Congress

Through an interesting series of events, a significant extension and expansion of the Work Opportunity Tax Credit is about to become law. As The New York Times reports, President Bush has won his standoff with Congress to receive a war funding bill that does not include any timetable for withdrawal. The bill includes billions of dollars in "pork," and also includes the first federal increase in minimum wage in 10 years. And since the beginning of the minimum wage increase effort, certain tax credits have been bundled along to make it more palatable.

In the version that appears likely to be signed now by the President, the WOTC is extended until August 31, 2011 which is the longest single extension the program has ever received. But perhaps more importantly, the bill makes changes to the credit itself which will significantly enhance its value.