U.S. Senator John Boozman (R-AR) has joined Senator Bill Cassidy, M.D. (R-LA) in introducing an updated version of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act. The revised bill aims to make it easier for military spouses to find employment by extending eligibility for the federal tax credit.
The WOTC offers a tax incentive to employers who hire individuals facing barriers to employment, such as veterans, recipients of Supplemental Nutrition Assistance Program (SNAP), people with disabilities, and those who have been unemployed for extended periods. The proposed legislation would extend this credit for another five years and adjust it for inflation. It also includes a provision from Boozman’s bipartisan Military Spouse Hiring Act that encourages businesses to employ spouses of servicemembers.
Senators Roger Marshall, M.D. (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) are co-sponsoring the bill.
“Some of the most productive and reliable workers happen to be married to members of the military, but they often struggle with employment because of frequent relocation,” said Boozman. “I am pleased to join the bipartisan effort to update the Work Opportunity Tax Credit and extend eligibility to include military spouses. Doing so will only strengthen this initiative, support families serving our country and benefit our economy.”
Cassidy stated, “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.”
Marshall added, “For hardworking Americans who’ve faced real obstacles entering the workforce and pursuing their American Dream, the Work Opportunity Tax Credit has long been a vital lifeline. By extending and modernizing WOTC– and adding military spouses alongside the long-term unemployed, those transitioning off assistance, and our veterans – we’re giving more people a fair chance at meaningful work and the independence that comes with it.”
Moran noted: “Expanding the Work Opportunity Tax Credit offers support to employers in Kansas and across the country to fill critical workforce needs while providing opportunities for more Americans to find steady, meaningful jobs. This commonsense legislation will provide those who face barriers to employment, including veterans, military spouses and individuals with disabilities, the opportunity to provide for themselves and their families while working in their local communities.”
Justice commented: “Our veterans and military families have always stepped up for our country and we absolutely owe it to them to ensure they have the opportunity to succeed when they return home. Updating and extending the Work Opportunity Tax Credit (WOTC) helps our businesses and hard-working Americans. It’s common sense, pro-worker, and it strengthens our communities in West Virginia and across our nation.”
The proposal has received backing from several organizations.
Lt. General Brian T. Kelly, USAF (Ret.), President & CEO of Military Officers Association of America said: “For more than two decades, the Work Opportunity Tax Credit has been one of the federal government’s most effective tools for improving veteran employment outcomes…By strengthening WOTC, extending it through 2030, and finally adding military spouses as a new target group…These reforms will open doors, strengthen economic opportunity, and support financial stability…”
Critical Labor Coalition Executive Director Misty Chally remarked: “TheWork Opportunity Tax Credit (WOTC) supports those facing barriers…and encourages employers…This bill also adds a very important community – military spouses – as eligible workers…military spouses make significant contributions…”
Key provisions in this legislation include updating WOTC after 27 years without changes; increasing credit percentage from 40% up to 50% of qualified wages; incentivizing employee retention by expanding credits for employees working over 400 hours; removing age limits on SNAP recipient eligibility; extending credit duration by five years; expanding coverage specifically for military spouses; as well as indexing credits according to inflation.
