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Congress·In Committee·3 months ago

House Bill Would Extend and Expand Work Opportunity Tax Credit Through 2030

Also known as: Improve and Enhance the Work Opportunity Tax Credit Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Positive Impacts(1)
Snap Food Stamps
Helps

Key Points

  • Extends this hiring tax credit for employers through 2030, instead of ending in 2025.
  • Raises the main credit for many hires to 50% of the first $6,000 in wages, and adds extra credit when a worker stays at least 400 hours.
  • Adjusts key dollar limits for inflation starting after 2025, so the wage caps can rise over time.
  • Expands who can qualify: removes the upper age limit for people receiving food assistance benefits, and adds military spouses as an eligible group.
  • Directs Treasury, Commerce, Labor, and the Small Business Administration to encourage employers in key industries to use the credit when hiring targeted workers.
TaxesLabor EmploymentSmall BusinessVeterans

Milestones

2 milestones2 actions
Nov 20, 2025House

Referred to the House Committee on Ways and Means.

Nov 20, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

2026-01-01

Bigger WOTC amounts apply for most targeted-group hires who start work after Dec 31, 2025

Employers hiring eligible workers in 2026 and later could claim a larger tax credit, especially when the worker reaches 400 hours.

2026-01-01

SNAP age limit removal applies to new hires starting after Dec 31, 2025

SNAP recipients age 40+ become eligible under the SNAP-related WOTC category for jobs they start in 2026 and later, which may improve hiring chances.

Starting with tax years that begin in 2026

Inflation adjustments begin for key WOTC wage caps for tax years beginning after 2025

Over time, the wage limits that the credit is based on should rise with inflation, so the credit can stay meaningful instead of shrinking in real value.

Related News

3 articles
Tax Notes·3 months ago

Bipartisan Group Pushes for Work Credit Extension, Enhancement

Lawmakers introduced the bipartisan Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act to extend the credit through 2030. The legislation would increase the credit from 40% to 50% of qualified wages and index the credit to inflation to support an estimated 480,000 new jobs.

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Bloomberg Tax·5 months ago

Work Opportunity Tax Credit Is US Labor Strategy's Missing Piece

The bipartisan Improve and Enhance the Work Opportunity Tax Credit Act seeks to update the WOTC by aligning it with the current economic climate. Reforms would increase the credit's value and expand eligibility to help employers hire from underserved populations and reduce government reliance.

C+
Daily Tax Report·3 months ago

Cassidy Updates Bill to Help Veterans, Military Spouses Rejoin the Workforce

Senator Bill Cassidy introduced an updated version of the Improve and Enhance the Work Opportunity Tax Credit Act. The bill extends eligibility to military spouses, includes a 5-year extension through 2030, and indexes the credit to inflation to prevent value erosion.

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Source Information

Document Type

Congressional Bill

Official Title

Improve and Enhance the Work Opportunity Tax Credit Act

Bill NumberHR 6231
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(16)
D: 7R: 9

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.