The Work Opportunity Tax Credit enables employers to claim tax credits provided all requirements are met under the provisions of the federal tax credit such as the timely filing of the tax forms with the State Workforce Agency and the hiring of individuals within the specified qualified target populations.
The call under U.S. Public Law 110-229 to transition foreign workers out of the CNMI presents an opportunity for employers to start looking into the benefits of the WOTC, an initiative backed by Gov. Eloy S. Inos. The CNMI DOL Workforce Investment Agency Division is tasked to take the lead for this implementation and is also working closely with the CNMI Revenue and Tax Office.
Congress has legislative authority for all WOTC target groups, which most recently expired on Dec. 31, 2013. As a result, the program is currently undergoing an authorization lapse and thus requires legislative approval or reauthorization by Congress for certification of eligibility. Despite the current lapse, the USDOL Employment and Training Administration has issued a guidance (TEGL 8-13) to all State Workforce Agencies to accept, date stamp, log, and retain certification requests for employers’ new hires made on or after Jan. 1, 2014, until informed otherwise by USDOL ETA. Under the same guidance, states may not issue eligibility certifications unless the program is reauthorized by Congress. They may however issue Conditional Certifications with ETA Form 9062.
Employers are encouraged to visit the IRS site at HYPERLINK "http://www.irs.gov/"www.irs.gov to learn more about the WOTC and other required forms for downloading that will be necessary for filing with the SWA and CNMI Revenue and Tax Office should the US Congress approve legislation to reauthorize the WOTC. The WOTC credit is also listed under NMTIT section 51. (Office of the Governor)