S. 492

119 S492 IS: Improve and Enhance the Work Opportunity Tax Credit Act
 U.S. Senate
 2025-02-10
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 EN
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 II  119th CONGRESS  1st Session  S. 492  IN THE SENATE OF THE UNITED STATES   February 10, 2025   Mr. Cassidy  (for himself and  Ms. Hassan ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to improve and enhance the work opportunity tax credit, to encourage longer-service employment, and to modernize the credit to make it more effective as a hiring incentive for targeted workers, and for other purposes.
1.
Short title
This Act may be cited as the   Improve and Enhance the Work Opportunity Tax Credit Act  .
2.
Improving and enhancing work opportunity tax credit
(a)
In general
 Section 51(a)  of the Internal Revenue Code of 1986 is amended—
(1)
by striking  shall be equal to 40 percent  and all that follows and inserting the following:
shall be equal to the sum of—
(1)
50 percent of so much of the qualified first-year wages with respect to each individual for such year as does not exceed $6,000, plus
(2)
in the case of individuals who have performed at least 400 hours of service for the employer, 50 percent of so much of the qualified first-year wages with respect to each such individual for such year as exceeds $6,000, and does not exceed $12,000.
 .
(b)
Conforming amendments relating to limitation on wages taken into account for certain veterans
Section 51(b)(3) of such Code is amended to read as follows:
(3)
Increased limitation on wages taken into account for veterans
The $6,000 and $12,000 amounts under paragraphs (1) and (2) of subsection (a) shall be increased to—
(A)
$12,000 and $24,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I),
(B)
$14,000 and $28,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and
(C)
$24,000 and $48,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II).
 .
(c)
Conforming amendments relating to individuals not meeting minimum employment periods
(1)
Subparagraphs (A) and (B) of section 51(i)(3) of such Code are each amended by striking  subsection (a)  and inserting  subsection (a)(1) .
(2)
Section 51(i)(3)(A) of such Code is amended by striking  40 percent  and inserting  50 percent .
(d)
Conforming amendments relating to treatment of summer youth employees
Section 51(d)(7)(B) of such Code is amended—
(1)
by striking clause (ii),
(2)
by striking  , and  at the end of clause (i) and inserting a period,
(3)
by redesignating clause (i) (as so amended) as clause (v), and
(4)
by inserting before such clause (v) (as so redesignated) the following new clauses:
(i)
in lieu of the amount determined under subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to 40 percent of the qualified first-year wages for such year,
(ii)
in the case of an individual described in subsection (i)(3)(A), clause (i) shall be applied by substituting  25 percent  for  40 percent ,
(iii)
in the case of an individual described in subsection (i)(3)(B), no wages shall be taken into account under clause (i),
(iv)
the amount of qualified first-year wages which may be taken into account with respect to such individual shall not exceed $3,000 per year, and
 .
(e)
Conforming amendments relating to long-Term family assistance recipients
(1)
In general
Section 51(e)(1) of such Code is amended by striking  family assistance recipient—  and all that follows and inserting the following:
family assistance recipient, in lieu of subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to—
(1)
40 percent of so much of the qualified first-year wages with respect to such individual for such year as does not exceed $10,000, and
(2)
50 percent of so much of the qualified second-year wages with respect to such individual for such year as does not exceed $10,000.
 .
(2)
Clerical amendment
The heading for section 51(e) of such Code is amended by striking
Credit for second-year wages   and inserting
Special rules for determining credit  .
(f)
Effective date
The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
3.
Removal of age limit for qualified supplemental nutrition assistance program benefits recipient
(a)
In general
 Section 51(d)(8)(A)(i)  of the Internal Revenue Code of 1986 is amended by striking  but not age 40 .
(b)
Effective date
The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2024.