Tax credit in exchange for hiring persons with disability OK’d

The House of Representatives has finally passed legislation providing tax credits to employers who hire persons with disabilities after initial deliberation on the floor courted opposition from some members.

HB 12-17, authored by Rep. Jesus T. Attao, will deduct up to $10,000 from the business gross receipt tax paid by companies for each person with disabilities they employ.

The tax credit will be equal to the wages or salary paid to the employee, according to the measure.
It is now up for Senate voting where it is expected to be amended following some concerns raised by the Office of Vocational Rehabilitation.

During the House session last week, Rep. Thomas B. Pangelinan expressed his opposition on the proposal as noted that it would provide special treatment to persons with disabilities, which is contrary to their goal to assimilate themselves in the society.

“I don’t want the private sector to rush in hiring these people just because there’s tax credit,” Mr. Pangelinan told his colleagues during the session.

But Mr. Attao assured him OVR is backing the proposal, but that changes have to be made on some of the provisions once the Senate tackles it.

Earlier, the lower deferred final action after Mr. Pangelinan had noted that disabilities should also include those diseases as cancer and AIDS or HIV to expand coverage of the tax credit.

While no major changes were inserted when it passed, the proposal won 13 affirmative votes, two abstention and the lone objection from Mr. Pangelinan.

Based on the report prepared by the Committee on Ways and Means, the bill will codify the constitutional rights of individuals with disability to equal protection and permit these individuals to live life as fully as they are able.

“The cost impact that this legislation will have on the revenue resources cannot be ascertained since there is no readily available records as to how many persons would be covered by this bill,” the committee said in endorsing HB 12-17.

Once it becomes law, the Division of Vocational Rehabilitation Services jointly with the Secretary of Finance will be tasked to undertake information campaign among businesses and employers in the CNMI to decide whether they want to participate in the program.

The division and the Secretary of Labor and Immigration will then take steps to inform and assist persons with disabilities who may be eligible for the program for job placement.