Improve and Enhance the Work Opportunity Tax Credit Act
Senate Bill Would Extend and Expand Work Opportunity Tax Credit Through 2030
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- Extends this hiring tax credit so it can be used through 2030, instead of ending in 2025.
- Raises the main credit to 50% of the first $6,000 in first-year wages, and adds another 50% on wages from $6,000 to $12,000 if the worker reaches 400 hours.
- Adds automatic inflation increases to the wage limits, so the credit can grow over time instead of staying stuck at the same dollar amounts.
- Expands who can qualify by removing an age limit for certain food-assistance recipients and adding military spouses as an eligible group.
- Directs federal agencies to promote this hiring credit to employers in fields like manufacturing, construction, health care, energy, and infrastructure.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articles
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. The bill, introduced by Rep. Lloyd Smucker and Sen. Bill Cassidy, would extend the credit through 2030 and increase its value to address labor shortages.
Rep. Smucker introduces bill to extend, enhance Work Opportunity Tax Credit
Legislation introduced by Rep. Lloyd Smucker (R-PA) would extend the WOTC through 2030, increase the credit from 40% to 50% of qualified wages, and add a second tier for employees working 400+ hours. It also indexes the credit to inflation and expands eligibility to military spouses.
Bipartisan Group Pushes for Work Credit Extension, Enhancement
Lawmakers introduced the bicameral Improve and Enhance the WOTC Act to extend the credit for five years through 2030. The bill would boost the credit percentage to 50%, index it to inflation, and remove the age cap for SNAP recipients while adding military spouses as a target group.
Source Information
Document Type
Congressional Bill
Official Title
Improve and Enhance the Work Opportunity Tax Credit Act
Data Sources
Sponsor
Cosponsors
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