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Employer Tax Credit Program Extension Likely

Feb. 6, 2002
No. 02-09

Commissioner of Labor and Workforce Development, Ed Flanagan, announced today that the federal Work Opportunity Tax Credit (WOTC) and Welfare-to-Work (WtW) programs providing employers tax savings to hire from targeted groups, which expired the end of 2001, are likely to be extended as a result of recent congressional activity. The programs offer valuable tax savings (up to $8,500 per eligible worker under WtW, and up to $2,400 per eligible worker under WOTC) as incentives to hire job seekers from among select groups such as qualified public assistance recipients and veterans. 

"We're optimistic that Congress will extend the programs and make them retroactive to January 1, 2002 so there will be no gaps in providing these important tax credits," Commissioner Flanagan said. "This will help Alaska's employers keep their tax bills down, while helping their fellow Alaskans enter the workforce."

As Congress continues to debate the economic stimulus package, it is widely recognized among members of the tax-writing committees that these expired tax provisions must be addressed as soon as possible. 

Because an extension is likely, employers are encouraged to continue submitting the required WOTC and WtW forms to the Department of Labor and Workforce Development within the 21-day timeframe. The Department will act on all timely requests as soon as it is notified that the programs have been extended. 

Employer tax credits are an important part of the diverse strategies designed to help people gain on-the-job experience and acquire better employment. 

For more information about the programs or the required forms, contact Jeanne Walker, WOTC Coordinator, at the Alaska Department of Labor, P.O. Box 115509, Juneau, AK 99811-5509, or call (907) 465-5953.

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