HR6231-119

What This Bill Does

The bill extends the Work Opportunity Tax Credit from the end of 2025 through 2030. It increases the credit for qualified first-year wages to 50 percent for workers meeting the hours threshold, adds a 50 percent credit for additional wages above the first $6,000 up to twice that amount, and indexes the $6,000 and $10,000 wage caps after 2025. It raises veteran-related wage limits by referencing multiples of the indexed amount, removes the upper age limit for SNAP recipients, adds qualified military spouses as a new targeted group, and requires Treasury, Commerce, Labor, and the Small Business Administration to promote targeted-group hiring to business leaders in manufacturing, infrastructure, energy, health care, and construction.

Who Benefits and How

Employers hiring WOTC-targeted workers benefit from a larger and longer-lasting tax credit. Veterans, military spouses, SNAP recipients over age 40, long-term family assistance recipients, and other targeted workers benefit from stronger hiring incentives. Tax-credit consultants, payroll providers, and workforce agencies benefit from continued demand for WOTC screening and certification support. Industries named for outreach receive a clearer Federal push to use the credit.

Who Bears the Burden and How

The Treasury Department, IRS, Labor Department, Commerce Department, and SBA must administer the expanded credit, update guidance, promote hiring, and process certifications. Federal revenue is reduced by larger credits and a five-year extension. Employers claiming the credit must continue documentation, certification, and compliance work to substantiate eligible hires and wages.

Key Provisions

• Extends the Work Opportunity Tax Credit from December 31, 2025, to December 31, 2030.
• Increases credit percentages and adds additional wage amounts for eligible workers who meet work-hour thresholds.
• Indexes the $6,000 and $10,000 wage caps after 2025 and raises veteran wage limits using multiples of those amounts.
• Removes the upper age limit for SNAP recipient eligibility and adds qualified military spouses as a WOTC target group.
• Requires Treasury, Commerce, Labor, and SBA outreach to promote targeted-group hiring in manufacturing, infrastructure, energy, health care, and construction.