WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA) and Maggie Hassan (D-NH) introduced legislation to build our workforce and help connect individuals to good jobs. The Improve and Enhance the Work Opportunity Tax Credit Act strengthens the Work Opportunity Tax Credit (WOTC), which has a proven track record of connecting disadvantaged individuals to employment and has long received bipartisan support.
The WOTC provides a federal tax credit to employers who invest in American workers who have consistently faced barriers to employment, including eligible veterans, SNAP recipients, individuals with disabilities, and long-term unemployed individuals. Employers incur higher recruitment and training costs to reach WOTC eligible populations and support their successful transition back into employment. WOTC has not been updated since its enactment twenty-seven years ago and its value has been eroded significantly due to inflation.
“It can be challenging for individuals to find jobs after being out of the workforce,” said Dr. Cassidy. “This bill helps employers help prospective employees struggling to find work, boosting the American economy and reducing the reliance on government assistance.”
“Creating economic opportunity for all Americans is essential to our country’s success,” said Senator Hassan. “Our bipartisan legislation will help connect more Americans across the country with good-paying jobs, while also lowering costs for businesses who invest in hiring veterans, people with disabilities, and others who may face barriers to employment. This tax cut is a commonsense, bipartisan way to support job growth and economic opportunity in New Hampshire and across the country.”
Companion legislation has been introduced in the U.S. House of Representatives by U.S. Representatives Lloyd Smucker (R-PA-11), Terri Sewell (D-AL-07), Brian Fitzpatrick (R-PA-01), Steven Horsford (D-NV-04), and Mike Kelly (R-PA-16).
“The restaurant industry has hundreds of thousands of jobs that it needs to fill every month, many of which can be filled by individuals who have traditionally faced barriers to employment. Getting these people back to work is valuable to the individual, the restaurant operator and the community. We appreciate Sens. Cassidy and Hassan’s efforts to improve on WOTC as a tool for restaurant operators to hire needed staff and increase their business viability,” said Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association.
“The Louisiana Restaurant Association applauds Sen. Cassidy for his leadership in introducing the Improve and Enhance the Work Opportunity Tax Credit (WOTC) Act. Restaurants in Louisiana are not just places to enjoy great food; they are training grounds for skill development and second chances for many individuals facing employment barriers. The WOTC program is essential for fostering opportunities, strengthening our workforce, and contributing to the economic vitality of our communities,” said Stan Harris, President and CEO, Louisiana Restaurant Association.
“The Critical Labor Coalition applauds Senators Cassidy and Hassan for their leadership on this important issue. The ongoing. labor shortage presents significant challenges to business owners; the Work Opportunity Tax Credit provides opportunities to those facing barriers to workforce entry and stimulates job growth. The “Improve and Enhance the Work Opportunity Tax Credit Act” also addresses the need to increase the credit after 25+ years, a much-needed adjustment for current employers,” said Misty Chally, Executive Director, Critical Labor Coalition.
“FMI – The Food Industry Association applauds Senators Bill Cassidy (R-LA) and Maggie Hassan (D-NH) for introducing this legislation to improve the Work Opportunity Tax Credit (WOTC). WOTC is an important workforce-building tool, utilized by our grocery, wholesaler, and product supplier members, to hire individuals facing barriers to employment. FMI is excited to work with Senators Cassidy and Hassan and House companion bill sponsors Representatives Lloyd Smucker (R-PA) and Terri Sewell (D-AL) on strengthening the path for veterans, SNAP participants, justice-involved individuals, and others to obtain meaningful employment in the food industry through enactment of this measure,” said Christine Pollack, FMI Vice President, Government Relations.
“The Work Opportunity Tax Credit has been a vital resource for franchise business owners that provide job opportunities to workers who have faced barriers to employment. IFA applauds Sens. Cassidy and Hassan for taking this important step to help franchised businesses hire workers from underserved communities and provide additional relief, especially since finding labor remains the most significant challenge for local franchises,” said Mike Layman, Chief Advocacy Officer, International Franchise Association.
The legislation is endorsed by the American Health Care Association, American Hotel & Lodging Association, American Seniors Housing Association, American Staffing Association, American Trucking Associations, Argentum, Associated Builders and Contractors, Associated General Contractors of America, Associated Wholesale Grocers, Inc., Due Process Institute, NAACP, NAPEO, National Association of Convenience Stores, National Association for Home Care and Hospice, National Association of Wholesaler-Distributors, National Beer Wholesalers Association, National Franchisee Association, National Grocers Association, National Urban League, NATSO, Representing America’s Travel Centers and Truck Stops, Retail Industry Leaders Association, Retail Merchants Association, SIGMA, America’s Leading Fuel Marketers, Small Business & Entrepreneurship Council, and Society for Human Resource Management.
Background:
- The National Employment Opportunity Network reports that the WOTC has saved federal governments an estimated $202 billion over ten years.
- The Improve and Enhance the Work Opportunity Tax Credit Act would update the WOTC, which has not been changed since its enactment twenty-seven years ago and encourage longer-service employment.
- The bill would (1) increase the current credit percentage from 40% to 50% of qualified wages and (2) add a second level of credit for employees who work 400 or more hours. In addition, the bill eliminates 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.
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