Improve and Enhance the Work Opportunity Tax Credit Act

This legislation, titled the "Improve and Enhance the Work Opportunity Tax Credit Act," aims to strengthen and extend the Work Opportunity Tax Credit (WOTC). It proposes to extend the credit's expiration date from December 31, 2025, to December 31, 2030 , ensuring its continued availability for employers hiring from targeted groups. The bill also introduces an annual cost-of-living adjustment for the credit's wage base amounts, starting in 2025, to maintain its value over time. A key enhancement is the increase in the credit calculation. Instead of 40 percent of the first $6,000 in wages, the credit would be 50 percent of the first $6,000 of qualified first-year wages. For individuals who perform at least 400 hours of service, an additional 50 percent credit would apply to wages between $6,000 and $12,000, effectively increasing the maximum potential credit per eligible hire. The bill expands eligibility for the WOTC by adding qualified military spouses as a new targeted group, defined as spouses of U.S. Armed Forces members certified by a local agency. Furthermore, it removes the existing age restriction for qualified Supplemental Nutrition Assistance Program (SNAP) benefits recipients, allowing individuals over age 40 to qualify. These changes aim to broaden the credit's reach and incentivize hiring from a wider pool of job seekers. Conforming amendments are also included to adjust credit calculations for other specific targeted groups, such as veterans, summer youth employees, and long-term family assistance recipients, generally increasing the wage amounts considered for their respective credits. Finally, the bill directs federal agencies, including the Treasury, Commerce, Labor, and Small Business Administration, to promote the hiring of targeted group members to business leaders in critical industries like manufacturing, infrastructure, energy, healthcare, and construction.