H.R. 6231

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6231 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6231

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

November 20, 2025

Mr. Smucker (for himself, Mr. Horsford, Mr. Kelly of Pennsylvania, Mr. 
Beyer, Mr. Kustoff, Mr. Moore of Utah, Mr. Miller of Ohio, and Ms. 
DelBene) 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) Extension.--Section 51(c)(4) of the Internal Revenue Code of 
1986 is amended by striking ``December 31, 2025'' and inserting 
``December 31, 2030''.
(b) Enhancement of Credit.--
(1) In general.--Section 51(a) of the Internal Revenue Code 
of 1986 is amended 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 twice such dollar amount.''.
(2) Inflation adjustment.--Section 51 of such Code is 
amended by adding at the end the following new subsection:
``(l) Cost-of-Living Adjustment.--
``(1) In general.--In the case of any taxable year 
beginning after 2025, the $6,000 amount in paragraphs (1) and 
(2) of subsection (a) and the $10,000 amount in subparagraphs 
(A) and (B) of subsection (e)(1) shall be increased by an 
amount equal to--
``(A) such dollar amount, multiplied by
``(B) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, determined by substituting 
`calendar year 2024' for `calendar year 2016' in 
subparagraph (A)(ii) thereof.
``(2) Rounding.--Any increase determined under paragraph 
(1) shall be rounded to the nearest multiple of $100.''.
(3) Conforming amendments.--
(A) 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 
certain veterans.--
``(A) In general.--In the case of a qualified 
veteran described in subparagraph (B), subsection (a) 
shall be applied by substituting `the applicable 
amount' for `$6,000' each place it appears.
``(B) Applicable amount.--For purposes of this 
paragraph, the applicable amount is--
``(i) in the case of any individual who is 
a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(I), 200 percent of the dollar 
amount in effect for the taxable year under 
subsection (a)(1),
``(ii) in the case of any individual who is 
a qualified veteran by reason of subsection 
(d)(3)(A)(iv), 250 percent of the dollar amount 
in effect for the taxable year under subsection 
(a)(1), and
``(iii) in the case of any individual who 
is a qualified veteran by reason of subsection 
(d)(3)(A)(ii)(II), 400 percent of the dollar 
amount in effect for the taxable year under 
subsection (a)(1).''.
(B) Summer youth employees.--Section 51(d)(7)(B) of 
such Code is amended--
(i) by striking clause (ii),
(ii) by striking ``, and'' at the end of 
clause (i) and inserting a period,
(iii) by redesignating clause (i) (as so 
amended) as clause (v), and
(iv) by inserting before such clause (v) 
(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 50 
percent of the dollar amount in effect for the 
taxable year under subsection (a)(1), and''.
(C) Long-term family assistance recipients.--
(i) 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--
``(A) 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
``(B) 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.''.
(ii) 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''.
(D) Agricultural and railway labor.--
(i) In general.--Section 51(h)(1) of such 
Code is amended--
(I) by striking ``$6,000'' in 
subparagraph (A) and inserting ``the 
dollar amount in effect for the taxable 
year under subsection (a)(1)'', and
(II) by striking ``$500 per month'' 
in subparagraph (B) and inserting ``\1/
12\ of the dollar amount in effect 
under subsection (a)(1) per month''.
(ii) Related conforming amendments.--
Section 51(e)(3) of such Code is amended by 
striking subparagraphs (A) and (B) and 
inserting the following:
``(A) such subparagraph (A) shall be applied by 
substituting `the dollar amount in effect under 
subsection (e)(1)' for `the dollar amount in effect 
under subsection (a)(1)', and
``(B) such subparagraph (B) shall be applied by 
substituting one `\1/12\ of the dollar amount in effect 
under subsection (e)(1)' for `\1/12\ of the dollar 
amount in effect under subsection (a)(1)'.''.
(E) Individuals not meeting minimum employment 
periods.--
(i) Subparagraphs (A) and (B) of section 
51(i)(3) of such Code are each amended by 
striking ``subsection (a)'' and inserting 
``subsection (a)(1)''.
(ii) Section 51(i)(3)(A) of such Code is 
amended by striking ``40 percent'' and 
inserting ``50 percent''.
(c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2025.

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, 2025.

SEC. 4. ELIGIBILITY OF SPOUSES OF MILITARY PERSONNEL FOR THE WORK 
OPPORTUNITY CREDIT.

(a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (I), by 
striking the period at the end of subparagraph (J) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
``(K) a qualified military spouse.''.
(b) Qualified Military Spouse.--Subsection (d) of section 51 of 
such Code is amended by adding at the end the following new paragraph:
``(16) Qualified military spouse.--The term `qualified 
military spouse' means any individual who is certified by the 
designated local agency as being (as of the hiring date) a 
spouse of a member of the Armed Forces of the United States.''.
(c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act to individuals who begin work for the employer after such 
date.

SEC. 5. PROMOTION OF TARGETED GROUP MEMBER HIRING TO CERTAIN 
INDUSTRIES.

The Secretary of the Treasury, the Secretary of Commerce, the 
Secretary of Labor, and the Administrator of the Small Business 
Administration (or their respective delegates), in consultation with 
each other and consistent with applicable law, shall promote the hiring 
of members of a targeted group (as defined in section 51(d) of the 
Internal Revenue Code of 1986) to business leaders across critical 
industry sectors, including manufacturing, infrastructure, energy, 
health care, and construction.
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