U.S. Senator Bill Cassidy (R-LA) has introduced an updated version of the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act. The bill, reintroduced earlier this year, aims to help veterans and military spouses secure higher-paying jobs by extending eligibility for the tax credit to military spouses, providing a five-year extension of the credit, and indexing it to inflation. Without legislative action, WOTC is set to expire at the end of this year.
“Veterans and military spouses deserve every opportunity to build stable, rewarding careers,” said Dr. 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.”
The legislation is supported by several senators from both parties, including John Boozman (R-AR), Roger Marshall (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). Companion legislation was also introduced in the House by Representatives Lloyd Smucker (R-PA-11) and Steven Horsford (D-NV-04).
Senator Boozman highlighted employment challenges faced by military spouses due to frequent relocations: “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. 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.”
Senator Marshall noted WOTC’s role as a vital support for Americans facing barriers entering the workforce: “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. 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. I’m proud to join Senator Cassidy in introducing this legislation.”
Senator Moran emphasized how expanding WOTC would assist employers in meeting workforce needs: “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. 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.”
Senator Justice added: “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.”
Representative Smucker described WOTC as a proven anti-poverty measure: “The best anti-poverty program is a good job. The Work Opportunity Tax Credit (WOTC) helps both employers and workers, as individuals transition back into the workforce. I remain dedicated to helping disadvantaged Americans return to work by advancing legislation that strengthens this proven tool. WOTC is a bipartisan, commonsense approach that every Member of Congress should champion.”
The WOTC provides federal tax credits for employers hiring individuals who face significant barriers finding employment—such as eligible veterans, recipients of SNAP benefits or public assistance programs like TANF or SSI/SSDI, people with disabilities or criminal records, long-term unemployed individuals—as well as now proposed inclusion of military spouses.
Employers incur additional recruitment costs when reaching out to these populations; however, supporters argue that hiring such workers supports successful transitions back into employment while helping businesses meet staffing needs.
Since its creation 27 years ago—and without major updates since then—the value of WOTC has declined due to inflation. According to data from National Employment Opportunity Network cited in supporting materials for this bill over ten years WOTC has saved approximately $202 billion in federal spending.
Economic analysis from EY estimates that if passed into law this legislation could directly support 350,000 new jobs nationwide while generating $3.7 billion in labor income along with contributing $5.6 billion toward U.S GDP.
Louisiana Works commented on its impact locally: “The Work Opportunity Tax Credit (WOTC) is a critical part of our mission… WOTC not only opens doors to opportunity for thousands of Louisianans each year but also supports businesses in finding and retaining skilled, motivated workers. With the WOTC program set to expire at the end of this year, we respectfully urge your support for its extension and continued authorization.”
Lt. General Brian T. Kelly USAF (Ret.), President & CEO Military Officers Association of America stated: “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. By strengthening WOTC…and finally adding military spouses as a new target group…these reforms will open doors [and] strengthen economic opportunity…”
Business leaders from Louisiana echoed similar sentiments about how important these credits are for maintaining operations during periods of rising payroll costs or thin margins.
Supporters say updating WOTC would drive economic activity nationwide by encouraging hiring among groups often overlooked or facing extra hurdles returning into regular employment.
