HR2033-119

What This Bill Does

The Military Spouse Hiring Act uses the Work Opportunity Tax Credit to encourage hiring military spouses. It adds 'qualified military spouse' to the section 51 target groups. A qualified military spouse is an individual certified by the designated local agency as being, on the hiring date, the spouse of a member of the U.S. Armed Forces. The credit applies to amounts paid or incurred after enactment for individuals who begin work after enactment. The practical effect is to lower eligible employers' federal tax cost of hiring certified military spouses, who often face employment disruption from military moves and deployments.

Who Benefits and How

Military spouses benefit because employers can receive a federal hiring credit for bringing them into qualifying jobs. Employers hiring military spouses benefit from potential Work Opportunity Tax Credit savings on eligible wages. Military families benefit if the credit improves spouse employment and household income stability. Designated local workforce agencies benefit from a clear certification category for qualified military spouses.

Who Bears the Burden and How

The IRS and Treasury must administer the new Work Opportunity Tax Credit target group. Designated local agencies must certify qualified military spouse status as of the hiring date. Employers must document certification and eligible wages to claim the credit. Federal taxpayers bear revenue loss from additional WOTC claims.

Key Provisions

• Adds qualified military spouses to Work Opportunity Tax Credit target groups.
• Defines qualified military spouse by certification as spouse of a U.S. Armed Forces member on the hiring date.
• Applies to wages paid or incurred after enactment for workers who begin work after enactment.
• Uses the tax code to encourage military spouse hiring without creating a direct grant program.