Employers could retain federal tax credits

SBJ Staff

Posted online October 8, 2006 | 11:00 pm

Missouri has received conditional approval of a request to avoid $102.8 million in federal tax credit reductions given to the state’s employers, Gov. Matt Blunt announced Sept. 27.

In 2003 and 2004, the Missouri Division of Employment Security borrowed money from the federal government to pay for unemployment insurance benefits. As of January 2005, the state owed the federal government $288 million.

As a result of repayment delays, the state has been in jeopardy of losing its employer credits provided by the Federal Unemployment Tax Act.

The U.S. Department of Labor determined that Missouri has met the requirements to receive conditional approval of a request Blunt made in June to hold on to the credits. The federal government is expected to give final approval in November, according to a news release from Blunt’s office.

This story originally appeared in SBJ’s Sept. 27 free e-news Daily Update. Click here to register.[[In-content Ad]]