Rep. Lloyd Smucker (PA-11) has introduced an updated version of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act in Congress. The legislation aims to extend and strengthen the WOTC, a federal tax credit that supports employers who hire individuals facing barriers to employment, such as veterans, SNAP recipients, people with disabilities, and those who have been unemployed for long periods.
The new bill proposes several changes: it would expand eligibility to include military spouses, increase the credit percentage from 40% to 50% of qualified wages, incentivize employee retention by expanding credits for those working over 400 hours, remove the age cap for SNAP recipients’ eligibility, extend the credit for five years, and index it to inflation.
Smucker said, “The best anti-poverty program is a good job. The Work Opportunity Tax Credit (WOTC) helps both employers and workers, as individuals transition back into the workforce. I remain dedicated to helping disadvantaged Americans return to work by advancing legislation that strengthens this proven tool. WOTC is a bipartisan, commonsense approach that every Member of Congress should champion.”
Companion legislation has also been introduced in the Senate by Senators Bill Cassidy (R-LA), John Boozman (R-AR), Roger Marshall (R-KS), Jerry Moran (R-KS), Jim Justice (R-WV), Tim Kaine (D-VA), Maggie Hassan (D-NH), Catherine Cortez Masto (D-NV), and Peter Welch (D-VT).
Senator Cassidy commented on the bill’s impact: “Veterans and military spouses deserve every opportunity to build stable, rewarding careers. By reducing the burden on employers who hire them and other individuals who have fallen through the cracks, we strengthen our economy and give people the chance they need.”
The WOTC was enacted twenty-seven years ago but has not been updated since then. Its value has decreased due to inflation over time. According to reports from organizations like EY and National Employment Opportunity Network, updating WOTC could support about 350,000 new jobs while generating $3.7 billion in labor income and contributing $5.6 billion to GDP over ten years.
Employers often face higher recruitment and training costs when hiring from these eligible groups but receive support through this tax credit.
Lloyd Smucker has represented Pennsylvania’s 11th district in Congress since 2017 after previously serving in the Pennsylvania Senate from 2009 until 2016. He was born in Lancaster County in 1964 and currently resides there.
