Article Link: http://exchangepress.com/article/recent-tax-law-changes-relief-but-no-simplification/5011984/
In August 1997, President Clinton signed a major tax bill, the Taxpayer Relief Act of 1997. Provisions of this act, both business and personal, are explained below. The year before, in 1996, there were four major pieces of tax legislation (as explained in "The Good, the Bad, and the Ugly!," Child Care Information Exchange, January/February 1997) affecting business and individual tax and retirement planning. Further, a recent new ruling, IRS Revenue Procedure 96-31, will benefit businesses which, for whatever reason, did not claim all the depreciation expenses they were entitled to over the years. This provision is also explained below.- Provisions Affecting Your BUSINESS TAXES -
- Work Opportunity Credit Extension
This credit is extended through June 30, 1998, to employees hired after September 30, 1996. Eligibility is also extended to families who have been receiving AFDC benefits and/or SSI benefits.
You must employ them for at least 120 hours, and the credit is 25% for the first 400 hours or 40% for 400 or more hours for up to $6,000 of wages. The employer must receive certification of the individual from the State Employment Security Agency.
- Welfare to Work Credit
For wages paid to long-term family assistance recipients (AFDC) who begin work ...