Summary

The New Market Tax Credit Program provides tax credits to projects in depressed areas. The program’s tax credits can be sold providing an infusion of capital into the project. This program was first used by Sioux City officials in conjunction with the redevelopment of a downtown property to serve as a corporate facility for Northwest Airlines and has since been utilized to assist various industrial projects. 

The main objective of this program is to enable individuals to become employed, earn a steady income and become contributing taxpayers. WOTC joins other workforce programs that help provide incentives for workplace diversity and improve access to good jobs for American workers.

The Department of the Treasury and the Internal Revenue Service (IRS) recently issued Notice 2020-23. In addition to other relief, the notice extends the due date for certain time-sensitive acts specified in Revenue Procedure 2018-58, 2018-50 IRB 990. Under the notice, a time-sensitive act due to be performed on or after April 1, 2020, and before July 15, 2020, can be performed by July 15, 2020. This includes the requirement for an employer seeking to qualify to claim the Work Opportunity Tax Credit to send IRS Form 8850 to a State Workforce Agency no later than 28 days after an individual begins working for the employer. As a result, under the notice, employers that otherwise would be required to submit IRS Form 8850 to a State Workforce Agency on or after April 1, 2020, and before July 15, 2020, have until July 15, 2020, to submit IRS Form 8850. See Notice 2020-23 for additional information at below.