Senator Rob Portman (R-Ohio) Introduces New Bill to Make the Work Opportunity Tax Credit Permanent
The Work Opportunity Tax Credit was recently renewed for five years. Now Senator Rob Portman (R-OH) has introduced bipartisan legislation the Work Opportunity Tax Credit & Jobs Act (S.269) to make the Work Opportunity Tax Credit (WOTC), which encourages employers to hire individuals who face significant barriers to employment, permanent.
The bill currently has five cosponsors: Ben Cardin (D-MD), Roy Blunt (R-MO), Sherrod Brown (D-OH), Bill Cassidy (R-LA), and Bob Menendez (D-NJ).
WOTC provides a tax credit of between $1,200 and $9,600 per employee for hiring and retaining individuals that are part of targeted groups that have a difficult time finding work, or are often out of the labor force altogether. The tax credit amount is based on the qualified wages paid to those employees within the targeted groups.
These targeted groups include: veterans, long-term unemployed, ex-felons, the disabled, summer youth employees, as well as Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program, and Supplemental Security Income recipients.
Senator Portman is a long-time supporter of the Work Opportunity Tax Credit.
“Because of the ongoing COVID-19 pandemic, now more than ever individuals who are in the shadows are struggling to find meaningful employment,” said Senator Portman. “Encouraging employers to hire those who have the most trouble finding work is good policy, and while securing a five-year extension last year was a positive step, it’s critical that we make the Work Opportunity Tax Credit permanent.”
The National Employment Opportunity Network (NEON), and the Retail Industry Leaders Association (RILA) have voiced support for Senator Portman’s efforts to make the Work Opportunity Tax Credit permanent.
Currently, the WOTC expires on December 31, 2025
Senator @robportman has great foresight on this manner, the Work Opportunity Tax Credit is a program that benefits both the Employer and the new hire coming onboard. In addition with the net effect of moving new hires off SNAP & TANF. #WOTC
— Brian Kelly (@cmsbrian) February 11, 2021
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