What does Preamble of Improve and Enhance the Work Opportunity Tax Credit Act do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to improve and enhance the work opportunity tax credit, to encourage longer-service employment, and to modernize the credit to make it more effective as a hiring incentive for targeted workers, and for other purposes,' aims to modify the Internal Revenue Code of 1986. The bill intends to improve and enhance the work opportunity tax credit. It seeks to encourage longer-service employment. The bill's purpose is to modernize the credit to function as a more effective hiring incentive for targeted workers.

What does SHORT TITLE. of Improve and Enhance the Work Opportunity Tax Credit Act do?

This bill is formally titled the Improve and Enhance the Work Opportunity Tax Credit Act.

What does IMPROVING AND ENHANCING WORK OPPORTUNITY TAX CREDIT. of Improve and Enhance the Work Opportunity Tax Credit Act do?

This section amends Section 51 of the Internal Revenue Code of 1986 to extend the Work Opportunity Tax Credit (WOTC) through December 31, 2030. The credit percentage is increased from 40% to 50% for the first $6,000 of qualified first-year wages, with an additional amount for wages exceeding that amount. The $6,000 amount is subject to annual inflation adjustments based on the cost-of-living adjustment. Special rules and increased credit amounts are established for qualified veterans and long-term family assistance recipients. Modifications are made to the credit calculation for summer youth employees, agricultural and railway labor, and individuals not meeting minimum employment periods. The age limit for qualified Supplemental Nutrition Assistance Program (SNAP) benefits recipients is removed.

What does ELIGIBILITY OF SPOUSES OF MILITARY PERSONNEL FOR THE WORK of Improve and Enhance the Work Opportunity Tax Credit Act do?

This section amends the Internal Revenue Code of 1986 to extend the Work Opportunity Credit to qualified military spouses. It adds a new subparagraph (K) to paragraph (1) of section 51(d) to include 'a qualified military spouse' as eligible. It defines 'qualified military spouse' as an individual certified by a designated local agency as the spouse of a member of the Armed Forces. The amendments apply to amounts paid or incurred after the date of enactment of this Act, for individuals who begin work for an employer after that date.

What does PROMOTION OF TARGETED GROUP MEMBER HIRING TO CERTAIN of Improve and Enhance the Work Opportunity Tax Credit Act do?

This section directs the Secretaries of the Treasury, Commerce, and Labor, and the Administrator of the Small Business Administration to promote the hiring of members of a targeted group. The promotion of hiring is to be conducted in consultation with each other and consistent with applicable law. The targeted group is defined as in section 51(d) of the Internal Revenue Code of 1986. Promotion efforts should focus on business leaders across critical industry sectors, including manufacturing, infrastructure, energy, health care, and construction.

Back to bills

Improve and Enhance the Work Opportunity Tax Credit Act

Last updated: 11/20/2025 · Introduced: 11/20/2025

Author: Bill Cassidy (R-LA)

TL;DR (AI)

The bill extends the Work Opportunity Tax Credit through December 31, 2030, and increases the credit percentage to 50% for the first $6,000 of qualified wages, with adjustments for inflation.
It expands eligibility for the Work Opportunity Tax Credit to include qualified military spouses, defined as those certified by a local agency.
The bill directs federal agencies to promote the hiring of individuals from targeted groups, as defined in the Internal Revenue Code, focusing on key industry sectors.

119th Congressin committeeHR. 6231(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 3 more.

5 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account