119-s492

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 492 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 492

 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 SENATE OF THE UNITED STATES

 February 10, 2025

Mr. Cassidy (for himself and Ms. Hassan) introduced the following bill; 
 which was read twice and referred to the Committee on Finance

_______________________________________________________________________

 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
            (v) , and

    (4) 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 
 $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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