“To amend the Internal Revenue Code of 1986 to allow an increased work opportunity credit with respect to veterans, and for other purposes.”
No CRS summary available for this bill.
This section revises the Work Opportunity Tax Credit (WOTC)—which provides employers a tax credit for hiring individuals from targeted groups such as veterans and the long-term unemployed—as follows: (1) increases the general credit rate for qualified veterans to 50% of qualified first-year wages (from 40%) and sets the rate at 40% for all other targeted groups; (2) increases the limitation on qualified first-year wages taken into account for veterans to $18,000 (from $12,000), $21,000 (from $14,000), and $36,000 (from $24,000), depending on the veteran's prior unemployment duration or disability status; and (3) reduces the credit rate to 25% (instead of 50% for veterans or 40% for others) for individuals not meeting minimum employment periods. The amendments apply to individuals who begin work for the employer after the date of enactment.