U.S. Sen. Rob Portman (R-OH) recently offered a bipartisan bill that would make permanent the Work Opportunity Tax Credit (WOTC), which is set to expire on Dec. 31, 2025.
The WOTC provides an employer a tax credit of between $1,200 and $9,600 per employee for hiring and retaining individuals who are part of certain targeted groups, including U.S. military veterans, long-term unemployed, ex-felons, the disabled, summer youth employees, and recipients of support from federal programs such as Temporary Assistance for Needy Families, the Supplemental Nutrition Assistance Program, and Supplemental Security Income.
“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 on Feb. 8 sponsored the Work Opportunity Tax Credit and Jobs Act, S. 269, with original cosponsors including U.S. Sens. Roy Blunt (R-MO), Bill Cassidy (R-LA), and Ben Cardin (D-MD).
“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,” said Sen. Blunt. “Making the Work Opportunity Tax Credit permanent will help get more Americans who have difficulty finding employment into the workforce.”
Sen. Cassidy noted the challenges that Americans face with finding jobs once they are out of the workforce. “This Work Opportunity Tax Credit permanency bill ensures those struggling to find work are helped by continuing to incentivize businesses to hire them,” Sen. Cassidy said.
The National Employment Opportunity Network and the Retail Industry Leaders Association endorsed the bill, which has been referred for consideration to the U.S. Senate Finance Committee.