Improve and Enhance the Work Opportunity Tax Credit Act
Sponsored By: Representative Smucker, Lloyd [R-PA-11]
Introduced
Summary
Restructures and extends the Work Opportunity Tax Credit. It would push the program's expiration to December 31, 2030, replace the credit formula with a two‑part wage test that preserves a $6,000 maximum first‑year credit, add inflation adjustments after 2025, and expand who can qualify.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 4 benefits, 0 costs, 1 mixed.
Bigger hiring tax credit, inflation updates
For most hires, employers would be able to claim 50% of first‑year wages up to $6,000. If a worker reaches at least 400 hours, employers could also claim 50% of wages above $6,000, up to $12,000 of wages total. The short‑service calculation would also use 50%. Starting with tax years after 2025, the $6,000 and $10,000 limits would rise with inflation, with increases rounded to the nearest $100. For some veterans, wage caps would be 200%, 250%, or 400% of the yearly amount. Farm and railroad hires would use a monthly cap equal to 1/12 of the yearly amount. These changes would apply to hires who start after December 31, 2025; inflation updates would start for tax years after 2025.
Work Opportunity Tax Credit through 2030
This bill would keep the Work Opportunity Tax Credit going through December 31, 2030. Employers could claim the credit for eligible hires who start work after December 31, 2025 and before the end of 2030.
Special hiring credit rules for youth and long‑term aid
Summer youth hires would use special rules. The usual rate would be 40% of wages, capped at half of the yearly wage amount; one shorter‑service subgroup would use 25%, and another subgroup would not count. Long‑term family assistance recipients would have a combined rule: 40% of up to $10,000 in first‑year wages, plus 50% of up to $10,000 in second‑year wages. These changes would apply to hires who start after December 31, 2025.
More hires qualify: SNAP any age, military spouses
Military spouses would become a targeted group if a local agency certifies the spouse on the hiring date. That change would apply to amounts paid or incurred, and to hires, after enactment. The SNAP age‑40 limit would be removed, so SNAP recipients of any age could qualify. That change would apply to hires who start after December 31, 2025.
Agencies promote hiring in key industries
If enacted, Treasury, Commerce, Labor, and the Small Business Administration would promote hiring from WOTC groups. They would focus on business leaders in manufacturing, infrastructure, energy, health care, and construction. This is an outreach push, not a direct payment.
Sponsors & CoSponsors
Sponsor
Smucker, Lloyd [R-PA-11]
PA • R
Cosponsors
Rep. Horsford, Steven [D-NV-4]
NV • D
Sponsored 11/20/2025
Kelly (PA)
PA • R
Sponsored 11/20/2025
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 11/20/2025
Kustoff
TN • R
Sponsored 11/20/2025
Rep. Moore, Blake D. [R-UT-1]
UT • R
Sponsored 11/20/2025
Rep. Miller, Max L. [R-OH-7]
OH • R
Sponsored 11/20/2025
DelBene
WA • D
Sponsored 11/20/2025
Webster (FL)
FL • R
Sponsored 11/25/2025
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 11/25/2025
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 12/1/2025
Rep. Carey, Mike [R-OH-15]
OH • R
Sponsored 12/1/2025
Rep. Gottheimer, Josh [D-NJ-5]
NJ • D
Sponsored 12/9/2025
Rep. Morelle, Joseph D. [D-NY-25]
NY • D
Sponsored 12/9/2025
Rep. Tenney, Claudia [R-NY-24]
NY • R
Sponsored 12/9/2025
Rep. Murphy, Gregory F. [R-NC-3]
NC • R
Sponsored 12/16/2025
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 12/16/2025
McGuire
VA • R
Sponsored 2/10/2026
LaLota
NY • R
Sponsored 3/4/2026
McBath
GA • D
Sponsored 3/4/2026
Escobar
TX • D
Sponsored 3/24/2026
Rep. Miller, Carol D. [R-WV-1]
WV • R
Sponsored 4/15/2026
Davis (NC)
NC • D
Sponsored 5/13/2026
Rep. Bice, Stephanie I. [R-OK-5]
OK • R
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov