Hurricane Relief Bill

Congress passed a tax reform package that provides an employee retention tax credit to companies affected by Hurricanes Harvey, Irma, and Maria. Companies located in the disaster zones will be eligible to take a credit equal to 40 percent of an employee’s wages, paid within the timeframe that said company was rendered inoperable upon impact of the hurricane. The credit is applicable up to $6,000 of an employee’s wages, and the provisions of this disaster relief tax package will apply to all areas designated as affected locations by the U.S. Government (including Puerto Rico and the Virgin Islands).

The period of eligibility for the employee retention credit begins on August 23rd for Hurricane Harvey, September 4th for Hurricane Irma, and September 16th for Hurricane Maria and ends on January 1, 2018 across the board. 40 percent of wages paid to each employee within that time frame (up to $6,000) will be eligible under this provision. The retention credit is not a part of the Internal Revenue Code but instead will be enacted as a temporary tax provision.

Although these provisions are not part of the WOTC program, there are many similarities between the two incentives. The goal of both credits is to incentivize employers to retain individuals facing difficulties maintaining employment and/or faced with significant barriers to employment. These hurricanes have left numerous people unemployed, but furthermore, have left them with uncertainty about when and if they can resume work. For those that have lost their homes, cars, and even loved ones, maintaining income is of the utmost importance in such times of hardship.

HIREtech is proud to be headquartered in the Houston Energy Corridor, and our company has experienced the devastating effects of Hurricane Harvey firsthand. As a qualifying business ourselves under this new legislation, we understand how important these provisions are in the rebuilding process. For more information about tax credits, the WOTC program, or to learn more about how you can help victims of Hurricane Harvey, contact us at info@hiretech.com or 844-HIREtec. The bill is currently pending the President’s signature, which is expected readily.