S3265119th CongressWALLET

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.

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