This bill changes the Work Opportunity Tax Credit (WOTC) in the Internal Revenue Code. It raises the basic credit rate to 50% of qualified first-year wages and creates a second 50% credit for first-year wages above $6,000 up to $12,000 if the new hire works at least 400 hours. For certain qualified veterans the wage limits are increased to higher amounts ($12,000/$24,000; $14,000/$28,000; and $24,000/$48,000 depending on veteran category). The bill also updates rules for workers who do not meet minimum employment periods, changes summer youth employee rules (setting a $3,000 cap and different percentage treatments for some youth), and gives long-term family assistance recipients a special rule of 40% of first-year wages up to $10,000 and 50% of second-year wages up to $10,000. Finally, it removes the age-40 exclusion for Supplemental Nutrition Assistance Program (SNAP) recipients. The changes apply to individuals who begin work for the employer after December 31, 2024.
No publicly available information on budgetary effects or cost estimates is included in the bill text or metadata provided.
The bill text and bill title state the purpose is to "improve and enhance the work opportunity tax credit," encourage longer-service employment, and modernize the credit to make it more effective as a hiring incentive for targeted workers. Sponsors present the changes as targeted updates to increase the credit’s reach and duration for some groups.
No publicly available information.