This bill changes the Work Opportunity Tax Credit (WOTC). It extends the credit to December 31, 2030. It raises the basic credit calculation to 50 percent of qualified first-year wages up to $6,000, and it adds an extra 50 percent for workers who work at least 400 hours on wages above that $6,000 amount up to a higher limit. The bill creates a cost-of-living adjustment for key dollar limits starting after 2025 and rounds increases to the nearest $100.
The bill also changes several special rules: it raises the wage limits for certain veterans by set percentages (200%, 250%, 400% of the base amount depending on veteran status); changes credit rules for summer youth employees; sets a first- and second-year credit rule for long-term family assistance recipients (40% of first-year wages up to $10,000 and 50% of second-year wages up to $10,000); and aligns agricultural and railway labor wage limits with the new dollar amounts. The bill removes an age limit for recipients of Supplemental Nutrition Assistance Program (SNAP) benefits. It adds spouses of military service members as an eligible targeted group. It directs Treasury, Commerce, Labor, and the SBA to promote hiring of targeted group members to leaders in several industries.
Several amendments take effect for individuals who begin work after December 31, 2025. The military spouse eligibility applies to amounts paid or incurred after the date of enactment for individuals who begin work after that date.
No publicly available information on overall budgetary effects or an official cost estimate (for example, a Congressional Budget Office score). The bill does change credit rates, wage limits, and the credit's duration (extension to 2030) and adds a cost-of-living adjustment for key dollar amounts.
No publicly available information.
No publicly available information.