[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1177 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1177
To amend the Internal Revenue Code of 1986 to improve and enhance the
work opportunity tax credit, to encourage longer-service employment,
and to modernize the credit to make it more effective as a hiring
incentive for targeted workers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2025
Mr. Smucker (for himself, Mr. Horsford, Mr. Fitzpatrick, Mr. Suozzi,
Mr. Kelly of Pennsylvania, and Mr. Buchanan) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to improve and enhance the
work opportunity tax credit, to encourage longer-service employment,
and to modernize the credit to make it more effective as a hiring
incentive for targeted workers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improve and Enhance the Work
Opportunity Tax Credit Act''.
SEC. 2. IMPROVING AND ENHANCING WORK OPPORTUNITY TAX CREDIT.
(a) In General.--Section 51(a) of the Internal Revenue Code of 1986
is amended--
(1) 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.''.
(b) Conforming Amendments Relating to Limitation on Wages Taken
Into Account for Certain Veterans.--Section 51(b)(3) of such Code is
amended to read as follows:
``(3) Increased limitation on wages taken into account for
veterans.--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).''.
(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''.
(d) Conforming Amendments Relating to Treatment of Summer Youth
Employees.--Section 51(d)(7)(B) of such Code is amended--
(1) by striking clause (ii),
(2) by striking ``, and'' at the end of clause (i) and
inserting a period,
(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, and''.
(e) Conforming Amendments Relating to Long-Term Family Assistance
Recipients.--
(1) In general.--Section 51(e)(1) of such Code is amended
by striking ``family assistance recipient--'' and all that
follows and inserting the following: ``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''.
(f) Effective Date.--The amendments made by this section shall
apply to individuals who begin work for the employer after December 31,
2024.
SEC. 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.
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