Improve and Enhance the Work Opportunity Tax Credit Act
Sponsored By: Senator Cassidy, Bill [R-LA]
Introduced
Summary
Expands and strengthens the Work Opportunity Tax Credit (WOTC) to make hiring targeted groups more generous and to push agencies to promote hiring in key industries. The bill would boost credit rates, index wage limits for inflation, add military spouses as an eligible group, and modernize wage rules and special categories.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bigger Work Opportunity Tax Credit
If enacted, the Work Opportunity Tax Credit program would run through December 31, 2030. The bill would change the credit to two parts: 50% of first-year wages up to $6,000 and another 50% on wages between $6,000 and $12,000, but the second half would apply only when the worker did at least 400 hours. The $6,000 and $10,000 dollar limits would be indexed for inflation after 2025 with increases rounded to the next $100. The bill would also raise some veteran wage caps (to 200%, 250%, or 400% of the base), change summer youth and long-term family assistance rules, adjust agriculture and railway wage rules, remove the SNAP age limit, and increase some minimum-period credit rates to 50%. These changes would apply to employees who begin work for the employer after December 31, 2025.
Work Opportunity Credit for Military Spouses
If enacted, the bill would add a new eligible group: qualified military spouses. Employers would be able to claim the Work Opportunity Tax Credit for hires who are certified by the designated local agency as the spouse of a U.S. Armed Forces member on the hire date. This change would apply to wages paid or incurred after the law is enacted and to employees who begin work after that date.
Agencies to Promote Targeted Hiring
If enacted, the Treasury, Commerce, and Labor Secretaries and the SBA Administrator would be directed to promote hiring of WOTC-targeted groups to business leaders. The promotion would focus on critical industries like manufacturing, infrastructure, energy, health care, and construction. The bill would not appropriate extra funds or change who is eligible for the credit.
Sponsors & CoSponsors
Sponsor
Cassidy, Bill [R-LA]
LA • R
Cosponsors
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 11/20/2025
John Boozman
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
Peter Welch
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
Gary Peters
MI • D
Sponsored 12/11/2025
Elissa Slotkin
MI • D
Sponsored 12/18/2025
Sen. Sheehy, Tim [R-MT]
MT • R
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov