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 also aims to modernize the credit to improve its effectiveness as a 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, modifying the Work Opportunity Tax Credit (WOTC). The credit percentage for qualified first-year wages is generally increased from 40% to 50%, with tiered wage limits. For individuals, the first $6,000 of wages qualifies for 50% of the credit, and wages exceeding $6,000 up to $12,000 also qualify for 50% of the credit. The wage limits and credit percentages are increased for qualified veterans based on their service. Specific adjustments are made to the treatment of summer youth employees, including alternative credit calculations and wage limits. Special rules are established for long-term family assistance recipients, providing a 40% credit for the first $10,000 of wages and a 50% credit for the first $10,000 of second-year wages. The amendments apply to individuals who begin work for the employer after December 31, 2024.

What does REMOVAL OF AGE LIMIT FOR QUALIFIED SUPPLEMENTAL NUTRITION of Improve and Enhance the Work Opportunity Tax Credit Act do?

This section amends Section 51(d)(8)(A)(i) of the Internal Revenue Code of 1986. The amendment removes the age limit of 40 for Qualified Supplemental Nutrition Assistance Program (SNAP) benefits recipients. The amendment applies to individuals who begin work for an employer after December 31, 2024.

Back to bills

Improve and Enhance the Work Opportunity Tax Credit Act

Last updated: 2/10/2025 · Introduced: 2/10/2025

Author: Bill Cassidy (R-LA)

TL;DR (AI)

The bill increases the Work Opportunity Tax Credit percentage from 40% to 50% for qualified first-year wages, with tiered wage limits and adjustments for qualified veterans.
The bill removes the age limit of 40 for Supplemental Nutrition Assistance Program (SNAP) recipients who are eligible for the Work Opportunity Tax Credit.
These changes apply to individuals who begin work for an employer after December 31, 2024.

119th Congressin committeeOfficial 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 2 more.

4 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