Federal RuleAug 21
62
DOL Rewrites Disability Rules for 'Merit-Based Opportunity' Push
RuleLabor DepartmentFederal Contract Compliance Programs OfficeSignificant Wallet
119-s-3265119th CongressWALLET
Improve and Enhance the Work Opportunity Tax Credit Act
Sponsored By: Senator Cassidy, Bill [R-LA]
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
Cassidy, Bill [R-LA]
LA • R
Cosponsors
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 11/20/2025
Sen. Boozman, John [R-AR]
AR • R
Sponsored 11/20/2025
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 11/20/2025
Sen. Marshall, Roger [R-KS]
KS • R
Sponsored 11/20/2025
Sen. Welch, Peter [D-VT]
VT • D
Sponsored 11/20/2025
Sen. Moran, Jerry [R-KS]
KS • R
Sponsored 11/20/2025
Sen. Justice, James C. [R-WV]
WV • R
Sponsored 11/20/2025
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 11/20/2025
Sen. Peters, Gary C. [D-MI]
MI • D
Sponsored 12/11/2025
Sen. Slotkin, Elissa [D-MI]
MI • D
Sponsored 12/18/2025
Sen. Sheehy, Tim [R-MT]
MT • R
Sponsored 5/12/2026
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 6/4/2026
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 9/16/2026
Sen. Husted, Jon [R-OH]
OH • R
Sponsored 9/17/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov