Improve and Enhance the Work Opportunity Tax Credit Act
Sponsored By: Representative Smucker, Lloyd [R-PA-11]
Introduced
Summary
This bill would expand the Work Opportunity Tax Credit to reward longer-term hires and widen eligibility for veterans and benefit recipients. It would rewrite how the credit is calculated, raise wage limits for certain veterans, and remove an age cap for SNAP recipients.
Show full summary
- Employers and targeted hires: Employers would get a new two-tier credit. It would pay 50% of first-year wages up to $6,000 and, for workers who complete at least 400 hours, 50% of first-year wages between $6,000 and $12,000, letting long‑service hires qualify for up to $6,000.
- Veterans: For specified veteran categories the bill would raise the wage bases to $12,000/$24,000, $14,000/$28,000, or $24,000/$48,000, allowing larger credits for those veteran hires.
- Long-term Family Assistance recipients: The credit would be 40% of up to $10,000 in first‑year wages and 50% of up to $10,000 in second‑year wages.
- SNAP recipients: The bill would remove the current “not age 40” restriction so older SNAP beneficiaries can qualify.
- Summer youth workers: The youth credit would be set at 40% of qualified first‑year wages, with a 25% rate for a specified subgroup and a $3,000 annual wage cap for certain youths.
- Timing: Changes would apply to individuals who begin work after December 31, 2024.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Bigger credit for long-term assistance hires
Employers who hire long‑term family assistance recipients would use a clearer, richer formula. The credit would equal 40% of up to $10,000 of first‑year wages plus 50% of up to $10,000 of second‑year wages. These rules would apply to eligible hires who start after December 31, 2024.
Bigger hiring credit for longer-service workers
This bill would overhaul how the Work Opportunity Tax Credit is figured for year one. Employers would get 50% of up to $6,000 in first‑year wages. If the worker completes at least 400 hours, employers could also claim 50% of wages between $6,000 and $12,000 (max first‑year credit $6,000). It would also raise the percentage used when a hire does not meet the minimum employment period from 40% to 50%. These changes would apply to workers who start after December 31, 2024.
Higher wage caps for veteran hires
If enacted, more of a qualified veteran’s wages could count toward the hiring credit. For certain veteran groups, the first‑/second‑year wage caps would rise to $12,000/$24,000, $14,000/$28,000, or $24,000/$48,000. Employers could claim the credit on these larger wage amounts for eligible veteran hires who start after December 31, 2024.
Older SNAP recipients count for hiring credit
The bill would remove the age‑40 cap for the SNAP target group. SNAP recipients age 40 and older would qualify as hires who can generate the Work Opportunity Tax Credit. This would apply to people who start work after December 31, 2024.
New limits for summer youth hires
For summer youth, the hiring credit would be 40% of up to $3,000 in first‑year wages (max $1,200). Some youth defined in the law would get a 25% rate instead. Another defined subgroup would not count for the credit. These rules would apply to hires who start after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Smucker, Lloyd [R-PA-11]
PA • R
Cosponsors
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 2/10/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 2/10/2025
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 2/10/2025
Kelly (PA)
PA • R
Sponsored 2/10/2025
Buchanan
FL • R
Sponsored 2/10/2025
Johnson (GA)
GA • D
Sponsored 2/11/2025
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 2/14/2025
Rep. Malliotakis, Nicole [R-NY-11]
NY • R
Sponsored 3/4/2025
Rep. Panetta, Jimmy [D-CA-19]
CA • D
Sponsored 3/4/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 3/31/2025
McBride
DE • D
Sponsored 5/7/2025
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 5/8/2025
Van Drew
NJ • R
Sponsored 6/12/2025
Rep. Neguse, Joe [D-CO-2]
CO • D
Sponsored 6/23/2025
Rep. Mann, Tracey [R-KS-1]
KS • R
Sponsored 9/19/2025
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 10/3/2025
Roll Call Votes
No roll call votes available for this bill.
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