Improve and Enhance the Work Opportunity Tax Credit Act

This bill updates the Work Opportunity Tax Credit to make it larger and to reward workers who stay on the job longer. Employers could claim 50% of a new hire’s first-year wages, up to $6,000 for most workers, and up to $12,000 if the worker completes at least 400 hours, boosting support for longer-service employment. It also raises the limits for some veterans, allowing wages up to $24,000, $28,000, or $48,000 to count toward the credit, depending on the veteran’s category. Special rules remain for summer youth jobs (40% of up to $3,000 in first-year wages) and for long-term family assistance recipients (40% of up to $10,000 in the first year and 50% of up to $10,000 in the second year). The bill also removes the age limit for workers on SNAP so adults of any age on SNAP can qualify their employer for the credit. These changes would apply to people who start work after December 31, 2024.

Key points

• Who is affected: Employers hiring certain workers, including veterans, people receiving SNAP, summer youth employees, and long-term family assistance recipients .
• What changes: Higher credit rate (50%) with larger wage caps for longer hours; bigger caps for certain veterans; clear rules for summer youth and long-term family assistance recipients; no age cap for SNAP recipients .
• When: Applies to hires starting after December 31, 2024.