Bill > HR1177

This bill aims to improve and enhance the Work Opportunity Tax Credit (WOTC), a federal tax credit that incentivizes employers to hire individuals from certain targeted groups facing barriers to employment. The bill proposes several key changes to the existing tax credit: it increases the credit percentage from 40% to 50% for qualified first-year wages, raises the wage limits for different categories of workers (including veterans with varying service levels), and modifies the credit calculation for specific groups like summer youth employees and long-term family assistance recipients. For veterans, the bill introduces tiered wage limits ranging from $12,000-$24,000 to $24,000-$48,000 depending on their service classification. The bill also removes the age limit for Supplemental Nutrition Assistance Program (SNAP) benefit recipients, making more individuals eligible for the tax credit. These changes are designed to modernize the WOTC, encourage longer-term employment, and provide more robust hiring incentives for employers who recruit workers from targeted populations. All modifications will take effect for individuals beginning work after December 31, 2024, giving employers and workers time to prepare for the new provisions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1177/all-info