In late April, House Ways and Means Committee Chairman Jason Smith unveiled 10 tax teams to prepare for the 2025 expiration of tax provisions passed in the “Tax Cuts and Jobs Act” in 2017, otherwise known as TCJA. The GOP-member tax teams are assigned to broad topic areas, such as working families, rural America and global competitiveness, for example.

 The American Workforce tax team has jurisdiction over the Work Opportunity Tax Credit (WOTC). WOTC is intended to assist targeted communities – including disabled veterans, second chance workers, and Supplemental Nutrition Assistance Program (SNAP) recipients - by offsetting a portion of wage costs. Employers who hire WOTC-eligible individuals receive a credit is 40% of qualifying wages up to $6,000, for a maximum credit of $2,400. Unfortunately, this credit has not been updated since its initial enactment 27 years ago and is set to expire at the end of 2025.

 CLC supports the extension, expansion and permanency of WOTC, as it incentivizes the hiring of individuals who may need assistance in reentering the workforce. Specifically, CLC supports the Improve and Enhance the WOTC Act which (1) increases the current credit percentage from 40% to 50% of qualified wages and (2) adds a second level of credit for employees who work 400 or more hours. In addition, the bill would importantly increase the age at which SNAP recipients are eligible for WOTC, providing an incentive to hire older workers.

 The Ways and Means tax teams have requested information to consider when drafting a 2025 tax package. CLC will be organizing, collecting and submitting a document specifically addressing the need to include and expand WOTC next year and we need your help by sharing your story below!