Congress Passes Tax Extenders Agreement

Congress Passes Tax Extenders Agreement

Congress Passes Tax Extenders Agreement

Early this morning, Congress passed a budget deal that extends various tax relief and tax incentive provisions which expired at the end of 2016. The House of Representatives voted 240-186, with the Senate previously approving the proposal earlier in the day. In doing so, Congress has revived many of the “Tax Extenders” that were not included in last year’s reform package. Notably, the bill includes the extension of the Indian Employment Credit, a tax incentive that provides businesses with an incentive to hire certain individuals who live on or near an Indian reservation, as well as the Empowerment Zone Tax Credit, which offers tax incentives to businesses that hire individuals who live in federally designated zones.

Now that the Indian Employment Tax Credit is extended through 2017, employers can again offset their federal tax liability on their 2017 return by claiming a tax credit on the first $20,000 in wages paid to each “qualified employee.” A qualified employee under the Indian Employment Tax Credit must meet the following criteria:

(A) the employee is an enrolled member of an Indian tribe or the spouse of an enrolled member of an Indian tribe,

(B) substantially all of the services performed during such period by such employee for such employer are performed within an Indian reservation,

(C) the principal place of abode of such employee while performing such services is on or near the reservation in which the services are performed.

Further, the Department of Labor designates Empowerment Zones throughout the country, and the tax relief for these economically distressed regions is now available through 2017 under the new agreement. These tax benefits include “tax-exempt bonds, employment credits, increased expensing, and gain exclusion from the sale of certain small-business stock.”

HIREtech will continue to monitor the status of these and other tax incentive programs. For more information on how HIREtech can help your company save time, save money, and reduce risk, contact us at 844.hiretec or This email address is being protected from spambots. You need JavaScript enabled to view it..

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