Improve and Enhance the Work Opportunity Tax Credit Act
In Committee
Introduced:Feb 10, 2025
Primary Sponsor
Bill Cassidy
R - LA
Cosponsors
1
Quick Stats
Policy Area
Taxation
Summary
This bill enhances the Work Opportunity Tax Credit (WOTC) for employers hiring from targeted groups. It increases the credit from 40% to 50% of qualified wages and doubles wage limits for employees working 400+ hours in their first year. The bill also removes the maximum age limit for SNAP recipients, allowing employers to claim the credit for any adult SNAP beneficiary hired.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
This bill enhances the Work Opportunity Tax Credit (WOTC) for employers hiring from targeted groups. It increases the credit from 40% to 50% of qualified wages and doubles wage limits for employees working 400+ hours in their first year. The bill also removes the maximum age limit for SNAP recipients, allowing employers to claim the credit for any adult SNAP beneficiary hired.
Last updated: 12/30/2025
Official Summary
Congressional Research Service summary
<p><strong>Improve and Enhance the Work Opportunity Tax Credit Act </strong></p><p>This bill increases the work opportunity tax credit (WOTC) for wages paid during the first year of employment to certain employees. The bill also eliminates the maximum age limit applicable to Supplemental Nutrition Assistance Program (SNAP) benefit recipients for purposes of the WOTC.</p><p>Under current law, an employer generally may claim a WOTC in the amount of 40% of up to $6,000 (or of up to $24,000 for certain veterans, $3,000 for summer youth employees, and $10,000 for long-term family aid recipients) of qualified wages paid during the first year of employment to an employee who is a member of a targeted group. (Exceptions and limitations apply.)</p><p>The bill increases the WOTC to (1) 50% of up to $6,000 (or of up to $24,000 for certain veterans) of qualified first-year wages paid to an employee who is a member of a targeted group (other than a summer youth employee or recipient of long-term family aid), and (2) 50% of up to $12,000 (or of up to $48,000 for certain veterans) of qualified wages paid during the first year of employment to such employee if the employee works at least 400 hours during the year.</p><p>Finally, the bill eliminates the maximum age limit applicable to SNAP benefit recipients and, thus, allows an employer to claim the WOTC for qualified first-year wages paid to an employee who is at least 18 years old and receiving SNAP benefits for a certain period of time.</p>
Key Points
Main provisions of the bill
Increases WOTC from 40% to 50% of qualified wages
Doubles wage limits for employees working 400+ hours
Removes SNAP recipient maximum age limit
Encourages hiring from targeted disadvantaged groups
Applies to qualified first-year wages
Higher credit for certain veterans up to 48,000 dollars
How This Impacts Americans
Potential effects on citizens and communities
The enhanced WOTC would provide stronger incentives for employers to hire from traditionally disadvantaged groups including veterans, ex-offenders, SNAP recipients, and others. The increased credit percentages and wage limits make hiring these workers more financially attractive. Removing the SNAP age limit expands eligibility to older workers receiving food assistance. These changes could reduce unemployment among hard-to-employ populations while providing tax benefits to hiring businesses.
Policy Areas
Primary Policy Area
Taxation
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
492, 119th Congress (2025). "Improve and Enhance the Work Opportunity Tax Credit Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-492