A bipartisan bill called the Work Opportunity Tax Credit & Jobs Act has been introduced in the U.S. Senate that would make the Work Opportunity Tax Credit permanent.
The Work Opportunity Tax Credit is a tax break that encourages companies to hire veterans, people with disabilities and other groups who face barriers to employment, according to Accounting Today. The bill’s sponsors include U.S. Senators Rob Portman (R-OH) and Sherrod Brown (D-OH) as well as Ben Cardin (D-MD), Roy Blunt (R-MO), Bill Cassidy (R-LA), and Bob Menendez (D-NJ). If the bill is not passed, the credit would expire at the end of the year.
The Work Opportunity Tax Credit provides an employer tax credit of between $1,200 and $9,600 per employee for hiring and retaining individuals that are part of certain groups that represent populations that have a difficult time finding work or are often out of the labor force according to the Tire Industry Association (TIA). The credit amount is based on the qualified wages paid to those employees within the targeted groups. These targeted groups include: veterans, long-term unemployed, ex-felons, the disabled, summer youth employees, and Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program and Supplemental Security Income recipients. TIA supports the legislation.
“Hard work doesn’t pay off like it used to, with too many workers trying but struggling to get ahead,” Brown said. “People can and want to contribute to their communities, and they deserve a fair shot. The WOTC provides that opportunity, and awards companies for investing in their greatest asset – the American worker.”
The bill has been sent to the Senate Finance Committee for consideration.
