H.R. 1177 · Where this bill is now
In committee
Introduced in the House, sent to the Committee on Ways and Means, Feb 10, 2025
What this bill does
In plain words · AI-written from the official summaryBoosts tax credits for hiring certain workers
This bill makes it more valuable for employers to hire people from groups that often face barriers to employment. It increases the tax credit—a reduction in taxes owed—that employers can claim when they hire someone from a targeted group and pay them during their first year on the job. The bill also removes an age limit that previously prevented older people receiving food assistance from qualifying for this credit.
How it affects you
If you're someone looking for work and are part of a group the law targets (like veterans, young people seeking summer jobs, or people receiving food assistance), this bill could make employers more eager to hire you, since they'll get a bigger tax break for doing so. The change removing the age limit means older workers receiving food assistance now have the same opportunity as younger workers to help employers claim this credit.
Read the official summary (Introduced in House, Feb 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.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionH. R. 1177
A BILL
Improve and Enhance the Work Opportunity Tax Credit Act
Sponsor: Rep. Lloyd Smucker (R-PA-11) · Introduced Feb 10, 2025 · Taxation · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 10, 2025: “Referred to the House Committee on Ways and Means.”