U.S. Sens. Rob Portman (R-OH), Bill Cassidy (R-LA), and Roy Blunt (R-MO) on Feb. 8 introduced a bipartisan bill that would permanently extend the Work Opportunity Tax Credit (WOTC), which is set to expire at the end of 2025.
“Because of the ongoing COVID-19 pandemic, now more than ever individuals who are in the shadows are struggling to find meaningful employment,” said Sen. Portman. “Encouraging employers to hire those who have the most trouble finding work is good policy, and while securing a five-year extension last year was a positive step, it’s critical that we make the Work Opportunity Tax Credit permanent.”
Sen. Portman sponsored the Work Opportunity Tax Credit and Jobs Act, S. 269, with five original cosponsors, including Sens. Cassidy and Blunt, as well as U.S. Sen. Ben Cardin (D-MD).
The WOTC is a federal tax credit available to employers for hiring individuals from certain targeted groups, such as low-income Americans, U.S. military veterans, summer youth employees, and former felons, who have consistently faced significant barriers to employment, according to the Internal Revenue Service (IRS).
Specifically, the WOTC provides an employer tax credit of between $1,200 and $9,600 per employee for hiring and retaining these individuals. The credit amount is based on the qualified wages paid to those employees within the targeted groups, which also include the long-term unemployed, the disabled, and recipients of funds from government-subsidized programs such as Temporary Assistance for Needy Families, the Supplemental Nutrition Assistance Program, and Supplemental Security Income.
“It can be difficult for Americans to find a job when they’re out of the workforce,” Sen. Cassidy said. “This Work Opportunity Tax Credit permanency bill ensures those struggling to find work are helped by continuing to incentivize businesses to hire them.”
Sen. Blunt agreed, and noted that “having a job is about more than just bringing home a paycheck; it’s about having pride in your work and confidence in your future.”
The bill has been referred for consideration to the U.S. Senate Finance Committee.