I 
119TH CONGRESS 
1ST SESSION H. R. 1177 
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 HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2025 
Mr. SMUCKER (for himself, Mr. HORSFORD, Mr. FITZPATRICK, Mr. SUOZZI, 
Mr. KELLY of Pennsylvania, and Mr. BUCHANAN) introduced the fol-
lowing bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to improve 
and enhance the work opportunity tax credit, to encour-
age 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 Representa-
tives 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’’. 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 2. IMPROVING AND ENHANCING WORK OPPORTUNITY 
TAX CREDIT. 
(a) IN GENERAL.—Section 51(a) of the Internal Rev-
enue Code of 1986 is amended— 
(1) by striking ‘‘shall be equal to 40 percent’’ 
and all that follows and inserting the following: 
‘‘shall be equal to the sum of— 
‘‘(1) 50 percent of so much of the qualified 
first-year wages with respect to each individual for 
such year as does not exceed $6,000, plus 
‘‘(2) in the case of individuals who have per-
formed at least 400 hours of service for the em-
ployer, 50 percent of so much of the qualified first- 
year wages with respect to each such individual for 
such year as exceeds $6,000, and does not exceed 
$12,000.’’. 
(b) CONFORMING AMENDMENTS RELATING TO LIMI-
TATION ON WAGES TAKEN INTO ACCOUNT FOR CERTAIN 
VETERANS.—Section 51(b)(3) of such Code is amended 
to read as follows: 
‘‘(3) INCREASED LIMITATION ON WAGES TAKEN 
INTO ACCOUNT FOR VETERANS.—The $6,000 and 
$12,000 amounts under paragraphs (1) and (2) of 
subsection (a) shall be increased to— 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(A) $12,000 and $24,000, respectively, in 
the case of any individual who is a qualified vet-
eran 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 vet-
eran 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 vet-
eran by reason of subsection (d)(3)(A)(ii)(II).’’. 
(c) CONFORMING AMENDMENTS RELATING TO INDI-
VIDUALS NOT MEETING MINIMUM EMPLOYMENT PERI-
ODS.— 
(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 amend-
ed by striking ‘‘40 percent’’ and inserting ‘‘50 per-
cent’’. 
(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, 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(3) by redesignating clause (i) (as so amended) 
as clause (iv), and 
(4) by inserting before such clause (iv) (as so 
redesignated) the following new clauses: 
‘‘(i) in lieu of the amount determined 
under subsection (a), the amount of the 
work opportunity credit determined under 
this section for the taxable year shall be 
equal to 40 percent of the qualified first- 
year wages for such year, 
‘‘(ii) in the case of an individual de-
scribed in subsection (i)(3)(A), clause (i) 
shall be applied by substituting ‘25 per-
cent’ for ‘40 percent’, 
‘‘(iii) in the case of an individual de-
scribed in subsection (i)(3)(B), no wages 
shall be taken into account under clause 
(i), 
‘‘(iv) the amount of qualified first- 
year wages which may be taken into ac-
count with respect to such individual shall 
not exceed $3,000 per year, and’’. 
(e) CONFORMING
AMENDMENTS
RELATING
TO 
LONG-TERM FAMILY ASSISTANCE RECIPIENTS.— 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB
(1) IN
GENERAL.—Section 51(e)(1) of such 
Code is amended by striking ‘‘family assistance re-
cipient—’’ and all that follows and inserting the fol-
lowing: ‘‘family assistance recipient, in lieu of sub-
section (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 sec-
ond-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. 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 3. REMOVAL OF AGE LIMIT FOR QUALIFIED SUPPLE-
MENTAL NUTRITION ASSISTANCE PROGRAM 
BENEFITS RECIPIENT. 
(a) IN GENERAL.—Section 51(d)(8)(A)(i) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘but 
not age 40’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to individuals who begin work for 
the employer after December 31, 2024. 
Æ 
VerDate Sep 11 2014 
17:21 Mar 08, 2025
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6301
E:\BILLS\H1177.IH
H1177
kjohnson on DSK7ZCZBW3PROD with $$_JOB