Summary#
This bill changes the Work Opportunity Tax Credit (WOTC). It extends the credit's expiration date to December 31, 2030. It increases the percentage and the dollar limits used to calculate the credit for many hires, adds inflation adjustments to key dollar amounts, and changes special rules for veterans, long-term family assistance recipients, summer youth workers, agricultural and railway labor, and Supplemental Nutrition Assistance Program (SNAP) recipients. It also adds military spouses as a new targeted group and requires several federal agencies to promote hiring of targeted group members in certain industries.
Key changes in the bill text include:
- Extension of the WOTC through 2030 (changed from Dec 31, 2025).
- General credit structure: 50% of qualified first-year wages up to $6,000, plus for employees who work at least 400 hours, an additional 50% of qualified first-year wages above that amount up to twice that dollar amount.
- Inflation adjustment: after 2025 the $6,000 and $10,000 amounts will be increased for inflation and rounded to the nearest $100.
- Veterans: higher wage limits for certain qualified veterans set at 200%, 250%, or 400% of the dollar amount in effect under the first-year rule.
- Long-term family assistance recipients: a special rule that provides 40% of qualified first-year wages up to $10,000 and 50% of qualified second-year wages up to $10,000.
- Summer youth employees: modifies percentage rates, caps the wages counted to 50% of the first-year dollar amount, and changes which youth qualify for credit.
- Agricultural and railway labor: replaces fixed dollar amounts with the dollar amount in effect under the first-year rule and sets the monthly limit as one-twelfth of that amount.
- SNAP recipients: removes the age limit that previously excluded people age 40 and over.
- Military spouses: adds “qualified military spouse” as a targeted group; such a spouse must be certified by a designated local agency as the spouse of an active member of the U.S. Armed Forces.
- Promotion: Treasury, Commerce, Labor, and the SBA must promote hiring of targeted group members to business leaders in manufacturing, infrastructure, energy, health care, and construction.
Effective dates in the bill text:
- Most amendments in Section 2 apply to individuals who begin work for the employer after December 31, 2025.
- The military spouse addition (Section 3) applies to amounts paid or incurred after enactment and to individuals who begin work after that date.
- Inflation adjustments apply for taxable years beginning after 2025.
What it means for you#
- Employers: If you hire qualifying workers after Dec 31, 2025, you may be able to claim a larger WOTC under the new percentage and dollar limits, and special rules may let you claim credits for certain veterans, long-term family assistance recipients, summer youth, SNAP recipients, agricultural and railway workers, and military spouses (once the spouse begins work after enactment).
- Job seekers in targeted groups: The bill adds military spouses to the list of eligible targeted workers and removes an age cap for SNAP recipients, which could make more people eligible for the credit when hired.
- Industries specified for promotion: Federal agencies are directed to promote hiring in manufacturing, infrastructure, energy, health care, and construction, but the bill text does not create new hiring requirements for those industries.
Expenses#
No publicly available information on estimated costs or revenue effects in the bill text or metadata provided.
Proponents' View#
No publicly available information on proponents' stated views in the provided material.
Opponents' View#
No publicly available information on opponents' stated views in the provided material.