Improve and Enhance the Work Opportunity Tax Credit Act | ChamberLight
Bills · HR 6231
IN COMMITTEE· 119TH CONGRESS
House BillHR 6231Taxation
Improve and Enhance the Work Opportunity Tax Credit Act
INTRO NOV 20· LAST ACTION NOV 20
READING
7MIN
COSPONSORS
25BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
Voters should care about this bill because it aims to boost employment among populations that often face barriers to entering or re-entering the workforce. By making the Work Opportunity Tax Credit more generous and extending its availability, it could lead to more jobs for veterans, individuals transitioning off welfare, and others who need employment most. If this bill becomes law, businesses might be more inclined to invest in training and retaining these workers, potentially lowering unemployment rates in these communities and fostering economic self-sufficiency.
Without this bill, the current tax credit would expire at the end of 2025, removing a key incentive for businesses to hire from targeted groups. The existing credit is also less substantial and doesn't account for rising costs over time. This bill addresses those issues by making the credit more valuable, expanding its scope, and making it a longer-term part of the tax code, thereby potentially increasing its impact on job creation and support for vulnerable populations.
KEY PROVISIONS
5AI-extracted
PROVISION 01
Extends the Work Opportunity Tax Credit (WOTC) from its current expiration date of December 31, 2025, to December 31, 2030.
This ensures the tax incentive continues for businesses hiring targeted workers for an additional five years, providing stability and encouraging ongoing hiring efforts.
PROVISION 02
Increases the general credit amount to 50% of the first $6,000 in qualified first-year wages and adds an additional 50% credit on wages between $6,000 and $12,000 for employees who work at least 400 hours.
This makes the credit more valuable for businesses and provides a stronger incentive for hiring and retaining employees from targeted groups for longer periods.
PROVISION 03
Adds an annual cost-of-living adjustment to the qualified wage amounts ($6,000 and $10,000) that can be used to calculate the credit, starting after 2025.
This ensures the value of the credit keeps pace with inflation, preventing its impact from diminishing over time due to rising wages and costs.
PROVISION 04
Removes the age limit for individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits to qualify for the WOTC.
This expands the pool of eligible workers, allowing businesses to claim the credit for hiring SNAP recipients over the age of 40.
PROVISION 05
Modifies the credit for certain veterans, allowing employers to claim the credit on a significantly higher amount of wages depending on the veteran's specific eligibility criteria.
This provides a stronger financial incentive for businesses to hire veterans who may face particular challenges in the job market, encouraging their employment and economic integration.
Voters should care about this bill because it aims to boost employment among populations that often face barriers to entering or re-entering the workforce. By making the Work Opportunity Tax Credit more generous and extending its availability, it could lead to more jobs for veterans, individuals transitioning off welfare, and others who need employment most. If this bill becomes law, businesses might be more inclined to invest in training and retaining these workers, potentially lowering unemployment rates in these communities and fostering economic self-sufficiency.
Without this bill, the current tax credit would expire at the end of 2025, removing a key incentive for businesses to hire from targeted groups. The existing credit is also less substantial and doesn't account for rising costs over time. This bill addresses those issues by making the credit more valuable, expanding its scope, and making it a longer-term part of the tax code, thereby potentially increasing its impact on job creation and support for vulnerable populations.
KEY PROVISIONS
AI-extracted
high
Extends the Work Opportunity Tax Credit (WOTC) from its current expiration date of December 31, 2025, to December 31, 2030.
This ensures the tax incentive continues for businesses hiring targeted workers for an additional five years, providing stability and encouraging ongoing hiring efforts.
high
Increases the general credit amount to 50% of the first $6,000 in qualified first-year wages and adds an additional 50% credit on wages between $6,000 and $12,000 for employees who work at least 400 hours.
This makes the credit more valuable for businesses and provides a stronger incentive for hiring and retaining employees from targeted groups for longer periods.
med
Adds an annual cost-of-living adjustment to the qualified wage amounts ($6,000 and $10,000) that can be used to calculate the credit, starting after 2025.
This ensures the value of the credit keeps pace with inflation, preventing its impact from diminishing over time due to rising wages and costs.
med
Removes the age limit for individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits to qualify for the WOTC.
This expands the pool of eligible workers, allowing businesses to claim the credit for hiring SNAP recipients over the age of 40.
high
Modifies the credit for certain veterans, allowing employers to claim the credit on a significantly higher amount of wages depending on the veteran's specific eligibility criteria.
This provides a stronger financial incentive for businesses to hire veterans who may face particular challenges in the job market, encouraging their employment and economic integration.
Work Opportunity Tax Credit (WOTC) program extension until
December 31, 2025
Amendments to WOTC apply to individuals who begin work for an employer after
2025
Cost-of-living adjustment for wage amounts in WOTC begins for taxable years after
GLOSSARY
AI-written
Work Opportunity Tax Credit (WOTC)
A federal tax credit available to employers who hire and retain individuals from certain targeted groups who have consistently faced significant barriers to employment.
Internal Revenue Code of 1986
The primary body of federal tax law in the United States, which outlines how taxes are collected and what credits and deductions are available.
Qualified First-Year Wages
The taxable wages paid by an employer to a qualified individual during their first year of employment that can be used to calculate the tax credit.
Targeted Workers/Groups
Specific categories of individuals, defined by law, whose employment qualifies a business for the Work Opportunity Tax Credit, such as veterans, long-term unemployed, or recipients of certain government benefits.
Cost-of-Living Adjustment
An increase in a benefit or amount to account for inflation, ensuring its purchasing power remains relatively constant over time.
Supplemental Nutrition Assistance Program (SNAP)
A federal program that provides food benefits to low-income individuals and families to supplement their grocery budget.
Qualified Veteran
ACTION TIMELINE
2 EVENTS
NOV 20, 25
Introduced in House
INTROREFERRAL
NOV 20, 25
Referred to the House Committee on Ways and Means.
A veteran who meets specific criteria defined in the tax code, often related to periods of unemployment or service-connected disabilities, making them eligible for enhanced WOTC benefits.
