U.S. Rep. Lloyd Smucker (R-PA) recently reintroduced legislation in the U.S. House of Representatives that would help connect people to jobs.
“The best anti-poverty program is a good job,” Smucker said.
The Improve and Enhance the Work Opportunity Tax Credit Act, H.R. 1177, was sponsored by Smucker on Feb. 10. The bill would update the Work Opportunity Tax Credit (WOTC), which has not been changed since its enactment 27 years ago.
The WOTC provides a federal tax credit to employers who hire workers facing barriers to employment such as individuals with disabilities, individuals experiencing long-term unemployment, SNAP recipients, and veterans. To reach and train WOTC-eligible people, employers incur higher costs.
The legislation, if enacted, would increase the credit percentage to 50 percent of qualified wages from 40 percent, add a second level of credit for employees who work 400 or more hours, and eliminate the age cap when SNAP recipients are eligible for WOTC. Updating that arbitrary age cap aligns the credit with other work reforms and provides an incentive to hire older workers, the congressman’s office said.
“The Work Opportunity Tax Credit is a program that supports employers and employees as they reenter the workforce,” Smucker said. “I am committed to helping disadvantaged Americans get back to work by advancing legislation to improve this proven tool.”
The bill’s cosponsors include U.S. Reps. Brian Fitzpatrick (R-PA) and Mike Kelly (R-PA).