PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Feb 10, 2025
Improve and Enhance the Work Opportunity Tax Credit Act
This bill increases the work opportunity tax credit (WOTC) for wages paid during the first year of employment to certain employees. The bill also eliminates the maximum age limit applicable to Supplemental Nutrition Assistance Program (SNAP) benefit recipients for purposes of the WOTC.
Under current law, an employer generally may claim a WOTC in the amount of 40% of up to $6,000 (or of up to $24,000 for certain veterans, $3,000 for summer youth employees, and $10,000 for long-term family aid recipients) of qualified wages paid during the first year of employment to an employee who is a member of a targeted group. (Exceptions and limitations apply.)
Showing the opening paragraphs of the official summary.
The bill increases the WOTC to (1) 50% of up to $6,000 (or of up to $24,000 for certain veterans) of qualified first-year wages paid to an employee who is a member of a targeted group (other than a summer youth employee or recipient of long-term family aid), and (2) 50% of up to $12,000 (or of up to $48,000 for certain veterans) of qualified wages paid during the first year of employment to such employee if the employee works at least 400 hours during the year.
Finally, the bill eliminates the maximum age limit applicable to SNAP benefit recipients and, thus, allows an employer to claim the WOTC for qualified first-year wages paid to an employee who is at least 18 years old and receiving SNAP benefits for a certain period of time.
People & committees
Rep. Smucker, Lloyd [R-PA-11] · R–PA
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Aug 25, 2026. Consult Congress.gov for the current record.
AI Conversation Starters
Choose a perspective, copy a prompt, and paste it into your preferred AI. Each prompt includes the bill version and available official source links, and asks for counterarguments as well as supporting evidence.
Analyze H.R.1177 as objectively as possible. Explain its main provisions, who would be affected, possible benefits and harms, implementation, exceptions, and uncertainties. Present the strongest arguments for and against it, and identify evidence needed to assess its public impact.
Examine H.R.1177 through a progressive lens, focusing on fairness, access, economic inequality, and effects on vulnerable communities. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and distinguish stated goals from demonstrated outcomes.
Examine H.R.1177 through a conservative lens, focusing on fiscal responsibility, institutional stability, federalism, and the scope of government. Explain potential benefits, costs, and unintended consequences. Consider the strongest counterarguments and any provisions that challenge this perspective.
Examine H.R.1177 through a civil-liberties and limited-government lens. Consider individual rights, privacy, voluntary choice, accountability, and government power. Explain tradeoffs, possible safeguards, and the strongest counterarguments without assuming the proposal is beneficial or harmful.
PlainBill explanation
Based on the full Introduced in House · 2025-02-10 text. This explanation has not received human editorial review. This overview describes the proposal’s major provisions; it does not establish what its real-world effects would be.
The bill proposes increasing the general employer tax-credit calculation for qualifying hires, with additional wages eligible when a worker completes at least 400 hours of service. Separate calculations would apply to specified worker categories. It also proposes removing the age-40 cutoff for qualifying recipients of Supplemental Nutrition Assistance Program benefits. The changes would apply to workers starting after December 31, 2024. These are proposals in the supplied introduced text, not evidence of enacted law.
by striking shall be equal to 40 percent and all that follows and inserting the following: shall be equal to the sum of— (1) 50 percent of so much of the qualified first-year wages with respect to each individual for such year as does not exceed $6,000, plus (2) in the case of individuals who have performed at least 400 hours of service for the employer, 50 percent of so much of the qualified first-year wages with respect to each such individual for such year as exceeds $6,000, and does not exceed $12,000.
Conforming amendments relating to treatment of summer youth employees
Conforming amendments relating to long-Term family assistance recipients
3. Removal of age limit for qualified supplemental nutrition assistance program benefits recipient (a) In general Section 51(d)(8)(A)(i) of the Internal Revenue Code of 1986 is amended by striking but not age 40. (b) Effective date The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
Section 1 would name the bill the Improve and Enhance the Work Opportunity Tax Credit Act.
This Act may be cited as the Improve and Enhance the Work Opportunity Tax Credit Act.
Section 2 would replace the general credit calculation beginning at 40 percent with 50 percent of the first $6,000 in qualifying first-year wages. For workers completing at least 400 hours for the employer, it would add a credit equal to 50 percent of qualifying first-year wages above $6,000 through $12,000. Separate rules would apply to specified worker categories.
by striking shall be equal to 40 percent and all that follows and inserting the following: shall be equal to the sum of— (1) 50 percent of so much of the qualified first-year wages with respect to each individual for such year as does not exceed $6,000, plus (2) in the case of individuals who have performed at least 400 hours of service for the employer, 50 percent of so much of the qualified first-year wages with respect to each such individual for such year as exceeds $6,000, and does not exceed $12,000.
Conforming amendments relating to limitation on wages taken into account for certain veterans
Conforming amendments relating to treatment of summer youth employees
Conforming amendments relating to long-Term family assistance recipients
For three categories of qualified veterans, Section 2 would replace the general $6,000 and $12,000 wage thresholds with $12,000 and $24,000; $14,000 and $28,000; or $24,000 and $48,000, respectively. The applicable pair would depend on the veteran's category under the cited tax-code provisions, whose definitions are not reproduced.
The $6,000 and $12,000 amounts under paragraphs (1) and (2) of subsection (a) shall be increased to— (A) $12,000 and $24,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I), (B) $14,000 and $28,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and (C) $24,000 and $48,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II).
Section 2 would update the existing minimum-employment rules to refer to the first part of the new credit formula, subsection (a)(1), and replace a reference to 40 percent with 50 percent. The supplied amendment does not reproduce those existing rules, so it does not establish their complete operation.
(c) Conforming amendments relating to individuals not meeting minimum employment periods (1) Subparagraphs (A) and (B) of section 51(i)(3) of such Code are each amended by striking subsection (a) and inserting subsection (a)(1). (2) Section 51(i)(3)(A) of such Code is amended by striking 40 percent and inserting 50 percent.
For summer youth employees, Section 2 would provide a separate credit of 40 percent of qualifying first-year wages, with no more than $3,000 in wages counted per worker per year. The rate would be 25 percent for workers described in subsection (i)(3)(A), and no wages would be counted under the separate summer-youth credit clause (i) for workers described in subsection (i)(3)(B). Those referenced rules are not reproduced. The amendment also assigns clause number (iv) both to an existing clause being renumbered and to the new wage-limit clause; the supplied text does not resolve that numbering conflict.
(d) Conforming amendments relating to treatment of summer youth employees
(3) by redesignating clause (i) (as so amended) as clause (iv), and (4) by inserting before such clause (iv) (as so redesignated) the following new clauses:
(i) in lieu of the amount determined under subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to 40 percent of the qualified first-year wages for such year, (ii) in the case of an individual described in subsection (i)(3)(A), clause (i) shall be applied by substituting 25 percent for 40 percent, (iii) in the case of an individual described in subsection (i)(3)(B), no wages shall be taken into account under clause (i), (iv) the amount of qualified first-year wages which may be taken into account with respect to such individual shall not exceed $3,000 per year
For long-term family assistance recipients, Section 2 would substitute a separate calculation: 40 percent of up to $10,000 in qualifying first-year wages and 50 percent of up to $10,000 in qualifying second-year wages. It would also rename the heading of section 51(e) from “Credit for second-year wages” to “Special rules for determining credit.”
(e) Conforming amendments relating to long-Term family assistance recipients
family assistance recipient, in lieu of subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to— (1) 40 percent of so much of the qualified first-year wages with respect to such individual for such year as does not exceed $10,000, and (2) 50 percent of so much of the qualified second-year wages with respect to such individual for such year as does not exceed $10,000.
(2) Clerical amendment The heading for section 51(e) of such Code is amended by striking Credit for second-year wages and inserting Special rules for determining credit.
Section 3 would remove the words “but not age 40” from the tax-code eligibility provision for qualified Supplemental Nutrition Assistance Program benefits recipients. It does not reproduce or replace the remaining eligibility requirements.
3. Removal of age limit for qualified supplemental nutrition assistance program benefits recipient (a) In general Section 51(d)(8)(A)(i) of the Internal Revenue Code of 1986 is amended by striking but not age 40.
Both the credit-calculation amendments and the age-limit amendment would apply to individuals beginning work for the employer after December 31, 2024.
(f) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
(b) Effective date The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2024.
The supplied official-actions snapshot, updated August 25, 2026, records introduction in the House and referral to the House Committee on Ways and Means on February 10, 2025.
Source snapshot updated 2026-08-25T08:05:48Z. 2025-02-10: Referred to the House Committee on Ways and Means. 2025-02-10: Introduced in House
A closer look
Reviewed version: Introduced in House · 2025-02-10. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or policy change attached to appropriations was identified after reviewing the complete supplied introduced text. This conclusion is limited to that version and does not establish absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for particular recipients or places was identified after reviewing the complete supplied introduced text. This conclusion is limited to that version; it does not establish absence in other versions or accompanying materials, or resolve formal earmark status without disclosure and legislative materials.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied introduced text contains category-specific exceptions to the general tax-credit calculation that warrant scrutiny as targeted benefits. This classification does not imply improper treatment or establish that the benefits are newly created relative to existing law.
Employers hiring workers in three specified qualified-veteran categories would receive higher wage thresholds for calculating the credit than the general $6,000 and $12,000 thresholds. This is preferential tax-credit treatment within the bill's main policy. The source identifies the categories only through references to existing law, so their precise boundaries are unavailable.
The $6,000 and $12,000 amounts under paragraphs (1) and (2) of subsection (a) shall be increased to— (A) $12,000 and $24,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I), (B) $14,000 and $28,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and (C) $24,000 and $48,000, respectively, in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II).
Employers hiring long-term family assistance recipients would use a separate calculation in place of the proposed general formula: 40 percent of up to $10,000 in qualifying first-year wages and 50 percent of up to $10,000 in qualifying second-year wages. The second-year component is a category-specific benefit within the bill's main tax-credit policy, whose proposed general formula addresses first-year wages. The supplied text does not establish how this treatment differs from existing law or that it is more favorable in every case.
(e) Conforming amendments relating to long-Term family assistance recipients
family assistance recipient, in lieu of subsection (a), the amount of the work opportunity credit determined under this section for the taxable year shall be equal to— (1) 40 percent of so much of the qualified first-year wages with respect to such individual for such year as does not exceed $10,000, and (2) 50 percent of so much of the qualified second-year wages with respect to such individual for such year as does not exceed $10,000.
shall be equal to the sum of— (1) 50 percent of so much of the qualified first-year wages with respect to each individual for such year as does not exceed $6,000, plus (2) in the case of individuals who have performed at least 400 hours of service for the employer, 50 percent of so much of the qualified first-year wages with respect to each such individual for such year as exceeds $6,000, and does not exceed $12,000.
Full text preserved for this analysis. Legislative record snapshot: Aug 25, 2026. How PlainBill uses AI