Improve and Enhance the Work Opportunity Tax Credit Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
This bill, the Improve and Enhance the Work Opportunity Tax Credit Act, extends the Work Opportunity Tax Credit (WOTC) through December 31, 2030, and increases the credit amount. It enhances the credit for qualified workers, particularly veterans, youth employees, and recipients of family assistance, by adjusting the maximum credit percentage and incorporating a cost-of-living adjustment. The bill also includes changes to clarify eligibility requirements and promote the hiring of targeted groups in key industries.
Key provisions
- Extends the Work Opportunity Tax Credit (WOTC) through December 31, 2030.
- Increases the maximum WOTC credit rate to 50% for the first year of employment and 50% for subsequent years, up to twice the base amount.
- Includes a cost-of-living adjustment to the credit amount, indexed to the Consumer Price Index.
- Expands eligibility for veterans, increasing the maximum wage that can be claimed to 200%, 250%, or 400% of the base amount depending on their qualifying status.
- Modifies the credit for summer youth employees, reducing the credit rate to 25% for eligible individuals.
- Creates a special rule for family assistance recipients, allowing for a credit of up to 40% of qualified wages up to $10,000 and 50% of qualified wages up to $10,000 in the second year.
- Removes the age limit for recipients of supplemental nutrition assistance program benefits.
- Expands eligibility to include spouses of military personnel.
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