This bill expands and strengthens the Work Opportunity Tax Credit, a federal tax incentive that encourages employers to hire workers from disadvantaged groups. The legislation extends the program through December 31, 2030 (from its current December 2025 expiration), increases the tax credit percentage from 40 percent to up to 50 percent of qualifying wages, and raises wage caps from $6,000 to higher amounts with automatic inflation adjustments. The bill also adds military spouses as a new eligible category, removes an age limit for recipients of nutrition assistance benefits, and provides enhanced credits for workers who complete at least 400 hours of service. Additionally, it directs federal agencies to promote hiring of targeted workers in critical industries including manufacturing, infrastructure, energy, healthcare, and construction. The amendments apply to workers who begin employment after December 31, 2025, making the credit a more attractive hiring incentive for businesses while supporting employment for vulnerable populations.
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