NATSO Supports Legislation to Enhance, Extend Work Opportunity Tax Credit
NATSO joined with a broad coalition representing thousands of businesses nationwide in supporting S. 3265/H.R. 6231, the Improve and Enhance the Work Opportunity Tax Credit Act.
Introduced by Senators Bill Cassidy (R-LA.) and Margaret Wood Hassan (D-N.H.) and Representatives Lloyd Smucker (R-PA.) and Steven Horsford (D-N.V.), S. 3265/H.R. 6231 would extend the expiration date of the Work Opportunity Tax Credit (WOTC) from December 31, 2025, to December 31, 2030, allowing employers to continue to benefit from this tax credit for an additional five years.
The bill also increases the WOTC from 40 percent to 50 percent of qualified first-year wages up to $6,000. If an employee works for at least 400 hours for the same employer, the credit will apply to additional wages—increasing the cap to $12,000 for those individuals. The bill further includes provisions for annual inflation adjustments to the wage limits starting from 2026, ensuring the amounts remain relevant over time.
S. 3265/H.R. 6231 further provide higher wage limits for certain qualified veterans, which vary based on their specific circumstances and removes the age limit currently in place for individuals receiving supplemental nutrition assistance (SNAP), allowing younger individuals to qualify.
In a letter to lawmakers, NATSO said, the Work Opportunity Tax Credit is an important hiring incentive that has been utilized for three decades to build strong workforces in communities across the country. WOTC-eligible workers live in every state in the United States, and an expanded credit would help target communities with lower workforce participation rates and provide relief to essential industries that are facing workforce shortages.
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