TaxAlmanac:Featured article/November 17, 2011
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From TaxAlmanac
3% Withholding Repeal and Job Creation Act of 2011
3% Withholding Repeal and Job Creation Act of 2011
On November 16, 2011, Congress passed the "3% Withholding Repeal and Job Creation Act of 2011" (H.R. 674). President Obama signed the bill into law on November 21, 2011. The bill contains the following main measures:
- Permanently repeal the 3 percent withholding provision on government contractors
- Tax credits for businesses that hire veterans
- $5,600 credit for hiring long-term unemployed veterans
- $2,400 credit for hiring short-term unemployed veterans
- Credits of up to $9,600 for hiring unemployed veterans with service-related disabilities
- Simplify the certification process to make it easier for businesses to get the tax credit
- Modifies the income definition for determining eligibility for exchange subsidies, Medicaid and the Children’s Health Insurance Program – conforming the definition of income in the health law to the standards used by other federal low-income programs such as food stamps and public housing
