Both sides have signed this (Bill Ranking)
H.R. 1177 · 119th Congress (2025-2026)
18 members · Left 5 · Center 3 · Right 10 (Bill Ranking)
| Sponsor | Rep. Smucker, Lloyd (R-PA) (Introduced 02/10/2025) |
|---|---|
| Sponsor Voting Record | Lean right · DW-NOMINATE +0.46 · measured from every roll-call vote this member has cast (voteview.com) (Sponsor Ranking) |
| Support |
LLLCLRR support across the spectrum: 18 members signed on (Bill Ranking) this bill: sponsor + current cosponsors, each once |
| Committees | House - Ways and Means Committee |
| Latest Action | 02/10/2025 Referred to the House Committee on Ways and Means. |
| Roll Call Votes | There have been no roll call votes |
| Source | view on congress.gov → |
Introduced in House (02/10/2025)
Improve and Enhance the Work Opportunity Tax Credit Act
This bill increases the work opportunity tax credit (WOTC) for wages paid during the first year of employment to certain employees. The bill also eliminates the maximum age limit applicable to Supplemental Nutrition Assistance Program (SNAP) benefit recipients for purposes of the WOTC.
Under current law, an employer generally may claim a WOTC in the amount of 40% of up to $6,000 (or of up to $24,000 for certain veterans, $3,000 for summer youth employees, and $10,000 for long-term family aid recipients) of qualified wages paid during the first year of employment to an employee who is a member of a targeted group. (Exceptions and limitations apply.)
The bill increases the WOTC to (1) 50% of up to $6,000 (or of up to $24,000 for certain veterans) of qualified first-year wages paid to an employee who is a member of a targeted group (other than a summer youth employee or recipient of long-term family aid), and (2) 50% of up to $12,000 (or of up to $48,000 for certain veterans) of qualified wages paid during the first year of employment to such employee if the employee works at least 400 hours during the year.
Finally, the bill eliminates the maximum age limit applicable to SNAP benefit recipients and, thus, allows an employer to claim the WOTC for qualified first-year wages paid to an employee who is at least 18 years old and receiving SNAP benefits for a certain period of time.
119 HR 1177 IH: Improve and Enhance the Work Opportunity Tax Credit Act U.S. House of Representatives 2025-02-10 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I119th CONGRESS1st SessionH. R. 1177IN THE HOUSE OF REPRESENTATIVESFebruary 10, 2025Mr. Smucker (for himself, Mr. Horsford, Mr. Fitzpatrick, Mr. Suozzi, Mr. Kelly of Pennsylvania, and Mr. Buchanan) introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to improve and enhance the work opportunity tax credit, to encourage longer-service employment, and to modernize the credit to make it more effective as a hiring incentive for targeted workers, and for other purposes.
1.Short titleThis Act may be cited as the Improve and Enhance the Work Opportunity Tax Credit Act.
2.Improving and enhancing work opportunity tax credit (a)In generalSection 51(a) of the Internal Revenue Code of 1986 is amended— (1)by striking shall be equal to 40 percent and all that follows and inserting the following: shall be equal to the sum of— (1)50 percent of so much of the qualified first-year wages with respect to each individual for such year as does not exceed $6,000, plus (2)in the case of individuals who have performed at least 400 hours of service for the employer, 50 percent of so much of the qualified first-year wages with respect to each such individual for such year as exceeds $6,000, and does not exceed $12,000.. (b)Conforming amendments relating to limitation on wages taken into account for certain veteransSection 51(b)(3) of such Code is amended to read as follows: (3)Increased limitation on wages taken into account for veteransThe $6,000 and $12,000 amounts under paragraphs (1) and (2) of subsection (a) shall be increased to— (A)$12,000 and $24,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I), (B)$14,000 and $28,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and (C)$24,000 and $48,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II).. (c)Conforming amendments relating to individuals not meeting minimum employment periods (1)Subparagraphs (A) and (B) of section 51(i)(3) of such Code are each amended by striking subsection (a) and inserting subsection (a)(1). (2)Section 51(i)(3)(A) of such Code is amended by striking 40 percent and inserting 50 percent. (d)Conforming amendments relating to treatment of summer youth employeesSection 51(d)(7)(B) of such Code is amended— (1)by striking clause (ii), (2)by striking , and at the end of clause (i) and inserting a period, (3)by redesignating clause (i) (as so amended) as clause (iv), and (4)by inserting before such clause (iv) (as so redesignated) the following new clauses: (i)in lieu of the amount determined under subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to 40 percent of the qualified first-year wages for such year, (ii)in the case of an individual described in subsection (i)(3)(A), clause (i) shall be applied by substituting 25 percent for 40 percent, (iii)in the case of an individual described in subsection (i)(3)(B), no wages shall be taken into account under clause (i), (iv)the amount of qualified first-year wages which may be taken into account with respect to such individual shall not exceed $3,000 per year, and. (e)Conforming amendments relating to long-Term family assistance recipients (1)In generalSection 51(e)(1) of such Code is amended by striking family assistance recipient— and all that follows and inserting the following: family assistance recipient, in lieu of subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to— (1)40 percent of so much of the qualified first-year wages with respect to such individual for such year as does not exceed $10,000, and (2)50 percent of so much of the qualified second-year wages with respect to such individual for such year as does not exceed $10,000.. (2)Clerical amendmentThe heading for section 51(e) of such Code is amended by striking Credit for second-year wages and inserting Special rules for determining credit. (f)Effective dateThe amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
3.Removal of age limit for qualified supplemental nutrition assistance program benefits recipient (a)In generalSection 51(d)(8)(A)(i) of the Internal Revenue Code of 1986 is amended by striking but not age 40. (b)Effective dateThe amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
The bill's own words, from our database (synced from the GPO BILLS XML); paragraph breaks added at the bill's section boundaries, nothing else changed.
| Date | Chamber | All Actions |
|---|---|---|
| 02/10/2025 | Library of Congress | Introduced in House |
| 02/10/2025 | Library of Congress | Introduced in House |
| 02/10/2025 | House floor actions | Referred to the House Committee on Ways and Means. |
| Title Type | Title |
|---|---|
| Display Title | Improve and Enhance the Work Opportunity Tax Credit Act |
| Short Title(s) as Introduced | Improve and Enhance the Work Opportunity Tax Credit Act |
| Official Title as Introduced | To amend the Internal Revenue Code of 1986 to improve and enhance the work opportunity tax credit, to encourage longer-service employment, and to modernize the credit to make it more effective as a hiring incentive for targeted workers, and for other purposes. |
There are no amendments to this bill.
* = Original cosponsor
| Committee | Activity |
|---|---|
| House - Ways and Means Committee | 02/10/2025 Referred To |
Policy Area: Taxation
No legislative subjects have been assigned yet.
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