11/17/2025
Is the Work Opportunity Tax Credit going away?!
Maybe, but maybe not!
The WOTC is scheduled to expire at the end of this year unless Congress takes action to extend it again---as it has five times in the past. Most recently it was extended in the 2017 Tax Cuts and Jobs Act. Two of those extensions were not at the time of expiration, but several months later and employers were able to send in WOTC forms retro-actively.
As of this writing, there is no legislation pending to extend the program this year. There is, however, legislation pending that will enhance the program when it is extended:
Improve and Enhance the WOTC Act; sponsored by Senator Bill Cassidy (R-LA) and cosponsored by Senator Margaret Wood Hassen (D-NH). This bill increases the credit rate, removes the age cap for SNAP recipients and increases military wage caps.
Military Spouse Hiring Act; sponsored by Representative Donald S. Beyer (D-VA-8) and cosponsored by over 100 bipartisan House Representatives. The bill adds military spouses as a target group.
Work Opportunity Tax Credit & Jobs Act; sponsored by Senator Rob Portman (R-OH) and cosponsored by Senator Benjamin Cardin (D-MD), Senator Roy Blunt (R-MO), Senator Sherrod Brown (D-OH), Senator Bill Cassidy (R-LA) and Senator Robert Menendez (D-MO). This bill will make WOTC permanent.
So, what should employers do?
Keep doing what you are doing!
Hire these great workers from the WOTC target groups.
Have every candidate/new hire fill out the WOTC form and send it in to your state or to your WOTC provider to handle for you.
Write or call your Senators and Representatives and remind them what a great program this is for your small business.
WOTC may hit a bump in the road, but if history is any indication, it won't be gone for long!