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Congress·In Committee·3 months ago

Senate 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

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Review
Senate
House
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Impacts

Positive Impacts(1)
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Helps

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.
TaxesLabor EmploymentSmall BusinessVeterans

Milestones

2 milestones2 actions
Nov 20, 2025Senate

Read twice and referred to the Committee on Finance.

Nov 20, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

2026-01-01

For most targeted-group hires, the larger two-tier credit becomes available for new hires.

If you’re eligible and start a job after this date, your employer has a bigger tax reason to hire you and keep you at least 400 hours (often about 10 weeks at 40 hours/week).

Starting with tax years beginning after 2025 (generally 2026 and later)

Annual inflation increases begin for the $6,000 wage cap (and the $10,000 caps used in special rules).

Over time, employers can count more wages toward the credit, which helps keep the incentive from shrinking as pay levels rise.

2030-12-31

The Work Opportunity Tax Credit remains available through the end of 2030 if the extension takes effect.

Employers can plan to use the credit for several more years instead of facing an earlier cutoff, which may support ongoing hiring programs.

Related News

4 articles
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. 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.

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Financial Regulation News·3 months ago

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.

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Thomson Reuters Tax & Accounting·3 months ago

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.

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Source Information

Document Type

Congressional Bill

Official Title

Improve and Enhance the Work Opportunity Tax Credit Act

Bill NumberS 3265
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Finance.

Sponsor

Cosponsors

(10)
D: 6R: 4

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.