Hotel Business Magazine, | The Newspaper For Lodging Decision Makers

AH&LA Assesses Impact of Fiscal Cliff Legislation

Monday January 7th, 2013 - 12:07AM

WASHINGTON, DC–The American Hotel & Lodging Association has weighed in on what the newly enacted American Taxpayer Relief Act of 2012 accomplishes.

H.R. 8, as the bill is known, stopped many  automatic tax increases, which were scheduled to go into effect immediately, temporarily averting the so-called budgetary fiscal cliff. Among the bill's provisions cited by the AH&LA was the reauthorization of the Work Opportunity Tax Credit known as WOTC through the end of 2013 (and retroactively covering 2012). These tax credits allow hotel owners to hire disabled and disadvantaged workers, youth and veterans. Generally, the tax credit is equal to 40% of the first year of wages up to $6,000.