U.S. Rep. Lloyd Smucker (R-PA) and U.S. Sen. Bill Cassidy (R-LA) on Feb. 10 proposed a bipartisan, bicameral bill that aims to help get unemployed Americans connected to good jobs by strengthening the Work Opportunity Tax Credit (WOTC).
“It’s not always easy to rejoin the workforce,” Sen. Cassidy said. “By helping employers connect with prospective employees struggling to find work, we boost the American economy and reduce the reliance on government assistance. It’s a win-win.”
“The WOTC is a bipartisan solution that every member of Congress should support,” added Rep. Smucker.
The lawmakers each sponsored the Improve and Enhance the Work Opportunity Tax Credit Act, H.R. 1177/S. 492, to bolster the WOTC, which they said has a proven track record of helping disadvantaged individuals secure employment.
Sen. Cassidy was joined in introducing S. 492 by original bill cosponsor U.S. Sen. Maggie Hassan (D-NH), while Rep. Smucker sponsored H.R. 1177 alongside five original cosponsors, including U.S. Reps. Steven Horsford (D-NV), Brian Fitzpatrick (R-PA), Mike Kelly (R-PA), and Vern Buchanan (R-FL).
“The best anti-poverty program is a good job. The WOTC is a program that supports employers and employees as they reenter the workforce,” Rep. Smucker said. “I am committed to helping disadvantaged Americans get back to work by advancing legislation to improve this proven tool.”
The WOTC provides a federal tax credit to employers who invest in American workers who have consistently faced barriers to employment, including eligible United States military veterans, food stamp recipients, individuals with disabilities, and long-term unemployed individuals. It has not been updated since its enactment 27 years ago and its value has been eroded due to inflation, according to a bill summary provided by the lawmakers.
If enacted, the bill would update the WOTC and encourage longer-service employment; increase the current credit percentage from 40 percent to 50 percent of qualified wages; add a second level of credit for employees who work 400 or more hours; and eliminate the age cap at which food stamp recipients are eligible for WOTC in an effort to provide an incentive to hire older workers and better align the credit with previously adopted work reforms, the summary says.
The legislation has been endorsed by numerous stakeholders, including the National Employment Opportunity Network, the National Restaurant Association, and the Critical Labor Coalition.