WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced an updated version of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act that was reintroduced earlier this year to help veterans and military spouses find high-paying jobs. The bill enables business owners to invest in staffing, training, wages, and benefits to expand employment opportunities for workers. The updated legislation extends eligibility to military spouses, includes a 5-year extension of the credit, and indexes the credit to inflation. Without Congressional action, WOTC will expire at the end of this year.
“Veterans and military spouses deserve every opportunity to build stable, rewarding careers,” said Dr. Cassidy. “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.”
Cassidy was joined by U.S. Senators 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).
Companion legislation was introduced in the U.S. House of Representatives by U.S. Representatives Lloyd Smucker (R-PA-11) and Steven Horsford (D-NV-04).
“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 Senator 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.”
“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,” said Senator Marshall. “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. I’m proud to join Senator Cassidy in introducing this legislation.”
“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,” said Senator Moran. “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.”
“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,” said Senator Justice.
“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,” said Representative Smucker.
The WOTC provides a federal tax credit to employers who invest in American workers who have consistently faced barriers to employment, including eligible veterans, SNAP recipients, individuals with disabilities, and long-term unemployed individuals. Employers incur higher recruitment and training costs to reach WOTC-eligible populations and support their successful transition back into employment. WOTC has not been updated since its enactment twenty-seven years ago, and its value has been eroded significantly due to inflation. The National Employment Opportunity Network reports that the WOTC has saved the federal government an estimated $202 billion over ten years. According to EY, the legislation is estimated to directly support 350,000 new jobs, generating $3.7 billion in labor income and contributing $5.6 billion to GDP.
The Improve and Enhance the Work Opportunity Tax Credit Act would:
- Update the WOTC, which has not been changed since its enactment twenty-seven years ago, and encourage longer-service employment.
- Increase the current credit percentage from 40% to 50% of qualified wages.
- Incentivize employee retention by expanding the credit for those who work 400 or more hours.
- Eliminate the arbitrary age cap at which SNAP recipients are eligible for WOTC. This change will provide an incentive to hire older workers and better align the credit with previously adopted work reforms.
- Extend the credit for 5 years.
- Expand eligibility to military spouses.
- Index the credit to inflation.
“The Work Opportunity Tax Credit (WOTC) is a critical part of our mission… WOTC not only opens doors to opportunity for thousands of Louisianans each year but also supports businesses in finding and retaining skilled, motivated workers. With the WOTC program set to expire at the end of this year, we respectfully urge your support for its extension and continued authorization.” – Louisiana Works
“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, this legislation aligns federal hiring incentives with the lived realities of today’s military families. These reforms will open doors, strengthen economic opportunity, and support the financial stability and readiness of the all-volunteer force.” –Lt. General Brian T. Kelly, USAF (Ret.), President and CEO of the Military Officers Association of America
“WOTC tax credits are a great benefit to job seekers finding meaningful employment opportunities. It’s a WIN/WIN for both the job seeker and the employer. Not continuing this program would be a huge setback to workforce ecosystem.” – Brandon Smith, Flexicrew Tech
“I am writing on behalf of our restaurants in the Louisiana Market. The WOTC credit is crucial to the financial success of our business in the state of Louisiana that the WOTC tax credits are extended. These are one of the main reasons we are still able to maintain profitability and keep those 10 restaurants open. We employee over 500 people with a weekly payroll of over $100,000.” — Christopher Ballard, Human Resource Director, Big River Restaurants
“The Work Opportunity Tax Credit is a lifeline for Louisiana employers and workers alike. It helps small businesses fill critical jobs, invest in training, and bring overlooked workers — including veterans and those rebuilding after unemployment — back into the workforce. Senator Cassidy’s legislation to extend and strengthen WOTC will keep these opportunities growing and our communities thriving.”— Mark Leyoub, Manager, Complete Staffing LLC, Lake Charles, LA
“WOTC helps Louisiana employers fill open jobs, reduces hiring costs, and supports workforce stability by encouraging employers to bring in workers who might otherwise be overlooked. For many Louisiana small businesses, WOTC provides a financial bridge to invest in training and retention for new hires, helping individuals move from public assistance to employment and empowering families to achieve long-term financial independence.” – Quinn Jones, CFO & Owner, Cabildo, New Orleans
“With six Buffalo Wild Wing locations in Louisiana, the WOTC provides much needed assistance on rising payroll costs in an already thin margin business. This credit assists with the viability of our entities and allows us to continue operations, employ other individuals throughout our restaurants and support the local community via fundraising and sponsorship.” – Matt Soderman, Chief Financial Officer, Patton Wings, Inc.
“The updated ‘Improve and Enhance the Work Opportunity Tax Credit Act’ not only strengthens WOTC — it will drive economic activity in communities across the country, assist individuals such as veterans, the long-term unemployed, and SNAP and TANF recipients get off the sidelines and into good-paying jobs, and reduce the cost of federal and state social assistance programs. This program has been valuable for our company and growth opportunities, and we look forward to working in a bipartisan manner to enact it.” – Scott Adams, Corporate Tax Director, Turner Industries Group, Baton Rouge LA
“This legislation includes ‘the most significant improvements to the program since its inception, will drive economic activity in communities across the country, and encourage employers to hire spouses of active-duty members, many of whom have sacrificed their careers in service of our country.” – Charles Daroca, CFO, Restaurant Antoine, New Orleans, LA
“The Critical Labor Coalition applauds Senators Cassidy and Hassan for leading the charge to encourage workforce growth. The Work Opportunity Tax Credit (WOTC) supports those facing barriers to entry into the job market and encourages employers to hire those who may need an extra hand to pull them into the workforce. By extending WOTC, the “Improve and Enhance the WOTC Act” supports the continuation of a tax credit which has helped America’s workers and job creators for over 25 years. This bill also adds a very important community – military spouses – as eligible workers. By supporting those who serve this country, military spouses make significant contributions to this country and our economy.” – Misty Chally, Critical Labor Coalition