Bipartisan legislation recently introduced by Rep. Aaron Schock (R-Ill.) would make permanent a tax incentive for employers who hire veterans, younger workers and others who face high unemployment rates.
Rep. Charles Rangel (D-N.Y.) signed on as an original co-sponsor of the bill, which would permanently extend the Work Opportunity Tax Credit (WOTC), according to a press release.
“As Illinois businesses seek growth opportunities and unemployed workers seek jobs, the WOTC helps these workers transition into the labor force and get essential training to build their careers,” Schock said. “The WOTC is a critical link for many prospective workers seeking re-entry to the job market. I am pleased to work with my colleague, Rep. Charlie Rangel on the Ways and Means Committee, to make this tax provision permanent. Whether job seekers living in Harlem, Peoria, or anywhere else in the country, the WOTC will help them find long term employment and good-paying jobs.”
Federal taxpayers save an average of $18,000 for each individual who is hired under WOTC because they no longer require federal assistance and Medicaid benefits. At the state level, WOTC saves approximately $1.7 billion each year.
“This important piece of legislation will help discharged veterans and high-risk youth find jobs and economic security in today’s increasingly competitive market,” Rangel said. “I am incredibly proud to introduce this bipartisan bill with Rep. Schock to provide millions of people with the opportunity to get back to work.”
The bill would provide employers with a tax credit of up to $5,600 for hiring individuals who have been unemployed for more than six months over the 12-month period proceeding the hiring date. A tax credit of up to $2,400 would be available for employers who hire individuals who were unemployed for at least four weeks prior to the date of hire.