II 

118TH CONGRESS 

2D SESSION S. 5370 

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 

NOVEMBER 21, 2024 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Improve and Enhance 

5 the Work Opportunity Tax Credit Act’’. 


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1 SEC. 2. IMPROVING AND ENHANCING WORK OPPORTUNITY 

2 TAX CREDIT. 

3 (a) IN GENERAL.—Section 51(a) of the Internal Rev4 enue Code of 1986 is amended— 

5 (1) by striking ‘‘shall be equal to 40 percent’’ 

6 and all that follows and inserting the following: 

7 ‘‘shall be equal to the sum of— 

8 ‘‘(1) 50 percent of so much of the qualified 

9 first-year wages with respect to each individual for 

10 such year as does not exceed $6,000, plus 

11 ‘‘(2) in the case of individuals who have per12 formed at least 400 hours of service for the em13 ployer, 50 percent of so much of the qualified first14 year wages with respect to each such individual for 

15 such year as exceeds $6,000, and does not exceed 

16 $12,000.’’. 

17 (b) CONFORMING AMENDMENTS RELATING TO LIMI18 TATION ON WAGES TAKEN INTO ACCOUNT FOR CERTAIN

19 VETERANS.—Section 51(b)(3) of such Code is amended 

20 to read as follows: 

21 ‘‘(3) INCREASED LIMITATION ON WAGES TAKEN

22 INTO ACCOUNT FOR VETERANS.—The $6,000 and 

23 $12,000 amounts under paragraphs (1) and (2) of 

24 subsection (a) shall be increased to— 


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1 ‘‘(A) $12,000 and $24,000, respectively, in 

2 the case of any individual who is a qualified vet3 eran by reason of subsection (d)(3)(A)(ii)(I), 

4 ‘‘(B) $14,000 and $28,000, respectively, in 

5 the case of any individual who is a qualified vet6 eran by reason of subsection (d)(3)(A)(iv), and 

7 ‘‘(C) $24,000 and $48,000, respectively, in 

8 the case of any individual who is a qualified vet9 eran by reason of subsection (d)(3)(A)(ii)(II).’’. 

10 (c) CONFORMING AMENDMENTS RELATING TO INDI11 VIDUALS NOT MEETING MINIMUM EMPLOYMENT PERI12 ODS.— 

13 (1) Subparagraphs (A) and (B) of section 

14 51(i)(3) of such Code are each amended by striking 

15 ‘‘subsection (a)’’ and inserting ‘‘subsection (a)(1)’’. 

16 (2) Section 51(i)(3)(A) of such Code is amend17 ed by striking ‘‘40 percent’’ and inserting ‘‘50 per18 cent’’. 

19 (d) CONFORMING AMENDMENTS RELATING TO

20 TREATMENT OF SUMMER YOUTH EMPLOYEES.—Section 

21 51(d)(7)(B) of such Code is amended— 

22 (1) by striking clause (ii), 

23 (2) by striking ‘‘, and’’ at the end of clause (i) 

24 and inserting a period, 


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1 (3) by redesignating clause (i) (as so amended) 

2 as clause (v), and 

3 (4) by inserting before such clause (v) (as so re4 designated) the following new clauses: 

5 ‘‘(i) in lieu of the amount determined 

6 under subsection (a), the amount of the 

7 work opportunity credit determined under 

8 this section for the taxable year shall be 

9 equal to 40 percent of the qualified first10 year wages for such year, 

11 ‘‘(ii) in the case of an individual de12 scribed in subsection (i)(3)(A), clause (i) 

13 shall be applied by substituting ‘25 per14 cent’ for ‘40 percent’, 

15 ‘‘(iii) in the case of an individual de16 scribed in subsection (i)(3)(B), no wages 

17 shall be taken into account under clause 

18 (i), and 

19 ‘‘(iv) the amount of qualified first20 year wages which may be taken into ac21 count with respect to such individual shall 

22 not exceed $3,000 per year, and’’. 

23 (e) CONFORMING AMENDMENTS RELATING TO

24 LONG-TERM FAMILY ASSISTANCE RECIPIENTS.— 


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1 (1) IN GENERAL.—Section 51(e)(1) of such 

2 Code is amended by striking ‘‘family assistance re3 cipient—’’ and all that follows and inserting the fol4 lowing: ‘‘family assistance recipient, in lieu of sub5 section (a), the amount of the work opportunity 

6 credit determined under this section for the taxable 

7 year shall be equal to— 

8 ‘‘(1) 40 percent of so much of the qualified 

9 first-year wages with respect to such individual for 

10 such year as does not exceed $10,000, and 

11 ‘‘(2) 50 percent of so much of the qualified sec12 ond-year wages with respect to such individual for 

13 such year as does not exceed $10,000.’’. 

14 (2) CLERICAL AMENDMENT.—The heading for 

15 section 51(e) of such Code is amended by striking 

16 ‘‘CREDIT FOR SECOND-YEAR WAGES’’ and inserting 

17 ‘‘SPECIAL RULES FOR DETERMINING CREDIT’’. 

18 (f) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to individuals who begin work for 

20 the employer after December 31, 2024. 


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1 SEC. 3. REMOVAL OF AGE LIMIT FOR QUALIFIED SUPPLE2 MENTAL NUTRITION ASSISTANCE PROGRAM 

3 BENEFITS RECIPIENT. 

4 (a) IN GENERAL.—Section 51(d)(8)(A)(i) of the In5 ternal Revenue Code of 1986 is amended by striking ‘‘but 

6 not age 40’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to individuals who begin work for 

9 the employer after December 31, 2024. 

Æ 


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