WASHINGTON—U.S. Senator John Boozman (R-AR) joined Senator Bill Cassidy, M.D. (R-LA) to introduce an updated version of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act to further assist military spouses in securing employment.  

The WOTC provides a federal tax credit to employers who invest in American workers known to consistently face barriers to employment, including eligible veterans, SNAP recipients, individuals with disabilities and long-term unemployed individuals. The bill would extend the tax credit for another five years, indexed to inflation, with the updated provision that incorporates Boozman’s bipartisan Military Spouse Hiring Act to incentivize hiring of servicemembers’ spouses. 

Senators Roger Marshall, M.D. (R-KS), Jerry Moran (R-KS), Jim Justice (R-WV), Tim Kaine (D-VA), Maggie Hassan (D-NH), Catherine Cortez Masto (D-NV) and Peter Welch (D-VT) joined Boozman and Cassidy in introducing the updated legislation. 

“Some of the most productive and reliable workers happen to be married to members of the military, but they often struggle with employment because of frequent relocation,” said Boozman. “I am pleased to join the bipartisan effort to update the Work Opportunity Tax Credit and extend eligibility to include military spouses. Doing so will only strengthen this initiative, support families serving our country and benefit our economy.”

“Veterans and military spouses deserve every opportunity to build stable, rewarding careers,” said Cassidy. “By reducing the burden on employers who hire them and other individuals who have fallen through the cracks, we strengthen our economy and give people the chance they need.”  

“For hardworking Americans who’ve faced real obstacles entering the workforce and pursuing their American Dream, the Work Opportunity Tax Credit has long been a vital lifeline,” said Marshall. “By extending and modernizing WOTC – and adding military spouses alongside the long-term unemployed, those transitioning off assistance, and our veterans – we’re giving more people a fair chance at meaningful work and the independence that comes with it.”

“Expanding the Work Opportunity Tax Credit offers support to employers in Kansas and across the country to fill critical workforce needs while providing opportunities for more Americans to find steady, meaningful jobs,” said Moran. “This commonsense legislation will provide those who face barriers to employment, including veterans, military spouses and individuals with disabilities, the opportunity to provide for themselves and their families while working in their local communities.”

“Our veterans and military families have always stepped up for our country and we absolutely owe it to them to ensure they have the opportunity to succeed when they return home. Updating and extending the Work Opportunity Tax Credit (WOTC) helps our businesses and hard-working Americans. It’s common sense, pro-worker, and it strengthens our communities in West Virginia and across our nation,” said Justice.

The measure has gained support from multiple organizations. Here’s what they are saying about the bill.

“For more than two decades, the Work Opportunity Tax Credit has been one of the federal government’s most effective tools for improving veteran employment outcomes,” said President and CEO of the Military Officers Association of America Lt. General Brian T. Kelly, USAF (Ret.). “By strengthening WOTC, extending it through 2030, and finally adding military spouses as a new target group, this legislation aligns federal hiring incentives with the lived realities of today’s military families. These reforms will open doors, strengthen economic opportunity, and support the financial stability and readiness of the all-volunteer force.”

“The Work Opportunity Tax Credit (WOTC) supports those facing barriers to entry into the job market and encourages employers to hire those who may need an extra hand to pull them into the workforce,” said Critical Labor Coalition Executive Director Misty Chally. “This bill also adds a very important community – military spouses – as eligible workers. By supporting those who serve this country, military spouses make significant contributions to this country and our economy.” 

The Improve and Enhance the WOTC Act would:

• Update the WOTC, which has not been changed since its enactment 27 years ago, and encourage longer-service employment. 
• Increase the current credit percentage from 40 percent to 50 percent of qualified wages.
• Incentivize employee retention by expanding the credit for those who work 400 or more hours. 
• Eliminate the arbitrary age cap at which SNAP recipients are eligible for WOTC. This change will provide an incentive to hire older workers and better align the credit with previously adopted work reforms.  
• Extend the credit for 5 years. 
• Expand eligibility to military spouses. 
• Index the credit to inflation.