Improve and Enhance the Work Opportunity Tax Credit Act

Senate Bill

S. 3265

119th Congress

Improve and Enhance the Work Opportunity Tax Credit Act

In Committee

Introduced:Nov 20, 2025

Primary Sponsor

Bill Cassidy

R - LA

Cosponsors

10

Quick Stats

Summary

Extends and significantly enhances the Work Opportunity Tax Credit (WOTC) through December 31, 2030. Increases the credit from 40% to 50% of qualified wages and raises the wage cap from $6,000 to $12,000 for employees who work 400+ hours. Adds military spouses as a new targeted group and removes the age limit for SNAP recipients, encouraging employers to hire disadvantaged workers.

Latest Action

Read twice and referred to the Committee on Finance.

AI Summary

Plain-English explanation of this bill

Extends and significantly enhances the Work Opportunity Tax Credit (WOTC) through December 31, 2030. Increases the credit from 40% to 50% of qualified wages and raises the wage cap from $6,000 to $12,000 for employees who work 400+ hours. Adds military spouses as a new targeted group and removes the age limit for SNAP recipients, encouraging employers to hire disadvantaged workers.

Last updated: 12/27/2025

Key Points

Main provisions of the bill

Extends WOTC from December 31, 2025 to December 31, 2030
Increases credit rate from 40% to 50% of qualified wages
Adds second tier of up to $12,000 in wages for employees with 400+ hours
Adds inflation adjustment starting after 2025
Adds military spouses as a new qualified targeted group
Removes age 40 limit for SNAP recipients
Broad bipartisan support with 10 cosponsors

How This Impacts Americans

Potential effects on citizens and communities

Benefits employers hiring from targeted groups including veterans, ex-felons, SNAP recipients, long-term unemployed, and now military spouses. Provides larger tax incentives for sustained employment. Military families gain employment assistance as spouses move with service members. Estimated to encourage hiring of millions of disadvantaged workers annually.

Policy Areas

No policy areas assigned yet.

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

3265, 119th Congress (2025). "Improve and Enhance the Work Opportunity Tax Credit Act". Source: Voter's Right Platform. https://votersright.org/bills/119-s-3265