Improve and Enhance the Work Opportunity Tax Credit Act
Sponsored By: Senator Bill Cassidy
Introduced
Summary
Extends and modernizes the Work Opportunity Tax Credit (WOTC). The bill would raise the value of the credit, add new eligible groups, and start inflation adjustments to key wage limits.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 5 benefits, 0 costs, 0 mixed.
Bigger hiring tax credit for employers
This bill would raise and recalculate the Work Opportunity Tax Credit (WOTC) for hires who start after December 31, 2025. Employers would get 50% of the first $6,000 in qualified wages (up to $3,000). If a worker does at least 400 hours, employers would also get 50% of wages between $6,000 and $12,000 (another possible $3,000), so one hire could generate up to $6,000. The bill would also extend the WOTC program through December 31, 2030 and index key dollar caps for inflation each year, with special larger caps for some veterans (200%, 250%, or 400% of the base amount).
Higher hiring credit for families
The bill would change WOTC treatment for long-term family assistance recipients who start work after December 31, 2025. Employers would get 40% of up to $10,000 in first-year wages (up to $4,000). They would also get 50% of up to $10,000 in second-year wages (up to $5,000). These two-year rules would replace the general first-year rules for these hires.
New hiring credit for summer youth
For summer youth hires who start after December 31, 2025, the bill would set clearer WOTC rules. The base rate would be 40% of qualified wages. For a subgroup described in the statute the rate would be 25%. For another subgroup, no wages would count. Wages counted for these youth would be limited to 50% of the dollar amount in effect under the main first-year wage cap.
More workers eligible for hiring credit
The bill would add qualified military spouses to the WOTC targeted groups for hires after enactment. A qualified military spouse would be anyone certified by the local agency as the spouse of a U.S. service member as of the hiring date. The bill would also remove the age-40 exclusion for SNAP recipients, so SNAP recipients age 40 and older who begin work after December 31, 2025 would be eligible for WOTC.
Agencies to promote targeted hiring
The bill would direct Treasury, Commerce, Labor, and the Small Business Administration to coordinate outreach that promotes hiring of WOTC-targeted groups. They would focus on business leaders in manufacturing, infrastructure, energy, health care, and construction. This is outreach only and does not create new tax payments. It would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Bill Cassidy
LA • R
Cosponsors
Maggie Hassan
NH • D
Sponsored 11/20/2025
John Boozman
AR • R
Sponsored 11/20/2025
Timothy Kaine
VA • D
Sponsored 11/20/2025
Roger Marshall
KS • R
Sponsored 11/20/2025
Peter Welch
VT • D
Sponsored 11/20/2025
Jerry Moran
KS • R
Sponsored 11/20/2025
James Justice
WV • R
Sponsored 11/20/2025
Catherine Cortez Masto
NV • D
Sponsored 11/20/2025
Gary Peters
MI • D
Sponsored 12/11/2025
Elissa Slotkin
MI • D
Sponsored 12/18/2025
Roll Call Votes
No roll call votes available for this bill.
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