Bill > S492

This bill aims to improve and enhance the Work Opportunity Tax Credit (WOTC), a tax incentive for employers who hire individuals from certain targeted groups facing barriers to employment. The bill makes several key changes to the existing tax credit: it increases the tax credit percentage from 40% to 50% for qualified first-year wages, with different wage thresholds for different types of workers; introduces a higher credit percentage (50%) for employees who work at least 400 hours; creates special higher wage limits for veterans depending on their specific veteran status; modifies rules for summer youth employees by adjusting credit percentages; and updates provisions for long-term family assistance recipients by allowing a 40% credit on the first $10,000 of first-year wages and a 50% credit on the first $10,000 of second-year wages. Additionally, the bill removes the previous age limit (previously capped at 40 years old) for individuals receiving Supplemental Nutrition Assistance Program (SNAP) benefits who are eligible for the tax credit. These changes are designed to make the WOTC more attractive to employers and encourage hiring of workers from targeted groups. All amendments would apply to individuals who begin work for an employer after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/492/all-info