Alongside government and business representatives, Senator Chris Murphy welcomed good news for employers throughout the state as a federal workforce tax credit to encourage hiring of long-term unemployed workers has been extended by Congress over the next five years.
“Creating a new job is not always an easy decision for businesses. This tax credit ”“ which passed Congress with bipartisan support ”“ may make the difference for Connecticut businesses that are thinking of hiring new workers,” said Senator Murphy.
According to Murphy”™s office, Congress renewed the Work Opportunity Tax Credit, which had expired on December 31, 2014, in the end of the year tax bill. The tax credit is now retroactive for businesses for 2015 and is extended through 2019. It provides employers who employ long-term unemployed workers ”” workers who are unemployed for six months or longer ”” with a tax credit of between $1,200 and $9,600 per employee. The recently-passed tax bill also adds a $2,400 tax credit for first year wages paid to long-term unemployed workers.
The tax credit has also been welcomed locally by the Business Council of Fairfield County with Joe McGee, Vice Presidents of Public Policy noting the impact it will have on some of the most vulnerable segments of the regional labor force.
“While the unemployment rate is clearly improving, there is still a sizable portion of the workforce who have had difficulty finding employment as the economy begins to recover,” he said. “This encourages employers to take another look at a skilled labor force who have been impacted greater in this last recession.”
The Impacts from the tax credit will be felt beyond employers bottom-line as well, said Hartford Mayor Luke Bronin.
“Jobs are key to making our streets safer, our neighborhoods stronger, and creating a sustainable tax base for our city,” he said.
With the tax credit in place for five years Murphy said next challenge will educating employers that the resource is available to them.
