Improve and Enhance the Work Opportunity Tax Credit Act
Summary
The "Improve and Enhance the Work Opportunity Tax Credit Act" (S. 3265) aims to modify and extend the Work Opportunity Tax Credit (WOTC) program. It extends the program through 2030 and increases the credit amount for employers who hire individuals from targeted groups. The bill also includes provisions for inflation adjustments and expands eligibility to include spouses of military personnel.
Expected Effects
The bill is likely to incentivize employers to hire individuals from targeted groups, potentially reducing unemployment within these populations. It also provides additional tax relief to businesses, which could stimulate economic activity. The inclusion of military spouses expands the scope of the program, offering support to military families.
Potential Benefits
- Increased hiring of individuals from targeted groups, leading to reduced unemployment.
- Enhanced tax credits for employers, potentially stimulating business growth.
- Inflation adjustments to maintain the real value of the credit over time.
- Expanded eligibility to include qualified military spouses, supporting military families.
- Promotion of targeted group member hiring in critical industries.
Potential Disadvantages
- Increased complexity in calculating the tax credit due to multiple tiers and adjustments.
- Potential for employers to prioritize hiring based on tax credits rather than qualifications.
- Administrative burden on businesses to comply with certification requirements.
- Possible displacement of non-targeted group members in the labor market.
- The cost of the tax credits could increase the budget deficit.
Constitutional Alignment
The bill aligns with the Constitution's Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to provide for the general welfare of the United States. The WOTC program, as amended by this bill, falls under this power as it aims to incentivize employment and stimulate economic activity. The bill does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).