In Congress, Rep. Lloyd Smucker (PA-11) has introduced HR 6833, the Improve and Enhance the Work Opportunity Tax Credit Act. The bill, which would update the WOTC for the first time since 1996, has bipartisan support and has been referred to the House Ways and Means Committee.
As currently drafted, the bill would increase the current credit percentage from 40% to 50% of qualified wages and add a second level of credit for employees who work 400 or more hours in their first year of employment. In addition, the bill eliminates the age cap at which people who receive benefits under the Supplemental Nutrition Assistance Program are eligible for WOTC. This change will provide an incentive for employers to hire workers older than 40.
The WOTC provides federal tax credits to employers that invest in American workers who have consistently faced barriers to employment, including eligible veterans, SNAP recipients, individuals with disabilities, and long-term unemployed individuals. The National Employment Opportunity Network reports that the WOTC has saved federal and state governments an estimated $20.2 billion in entitlement spending over 10 years.
ASA is part of a coalition of trade associations urging Congress to pass HR 6833 and has signed on to this letter of support.
The post Bipartisan House Bill Introduced to Improve and Enhance the Work Opportunity Tax Credit appeared first on American Staffing Association.