The Improve and Enhance the Work Opportunity Tax Credit Act modifies the federal tax credit that employers receive when hiring workers from targeted groups, including individuals receiving government assistance, long-term unemployed workers, and veterans. The bill increases the credit rate from 40 percent to 50 percent for most workers earning up to $6,000 in first-year wages, with an additional 50 percent credit available for those completing at least 400 hours of service on wages between $6,000 and $12,000. Veterans receive even higher wage thresholds and credit amounts, ranging from $12,000 to $48,000 depending on their military service status. The legislation also removes an age restriction for individuals receiving food assistance benefits, making more workers eligible for the tax credit. These changes take effect for workers hired after December 31, 2024, and are designed to incentivize employers to hire and retain workers from disadvantaged populations.
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