Work Opportunity Tax Credit Disability Expansion and Enhancement Act
Bill: S.3044 | Sponsor: Sen. Casey, Robert P., Jr. (D-PA)
Policy area: Taxation

Summary:
Work Opportunity Tax Credit Disability Expansion and Enhancement Act
This bill expands the work opportunity tax credit to include as a member of a targeted group a qualified SSDI recipient (i.e., an individual certified as receiving disability insurance benefits for any month ending within the 60-day period ending on the hiring date). For employers who hire vocational rehabilitation referrals, Supplemental Security Income recipients, or qualified SSDI recipients, the bill also (1) increases the amount of wages that may be taken into account for purposes of the credit, and (2) allows an additional credit for second-year wages.

To amend the Internal Revenue Code of 1986 to include individuals 
receiving Social Security Disability Insurance benefits under the work 
  opportunity credit and to increase the work opportunity credit for 
  vocational rehabilitation referrals, qualified SSI recipients, and 
                       qualified SSDI recipients.

    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 ``Work Opportunity Tax Credit 
Disability Expansion and Enhancement Act''.

SEC. 2. EXPANSION OF WORK OPPORTUNITY CREDIT TO INCLUDE INDIVIDUALS 
              RECEIVING SOCIAL SECURITY DISABILITY INSURANCE BENEFITS.

    (a) In General.--Subsection (d) of section 51 of the Internal 
Revenue Code of 1986 is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (I), by striking ``or'' at the 
                end,
                    (B) in subparagraph (J), by striking the period at 
                the end and inserting ``, or'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(K) a qualified SSDI recipient.'', and
            (2) by adding at the end the following new paragraph:
            ``(16) Qualified ssdi recipient.--The term `qualified SSDI 
        recipient' means any individual who is certified by the 
        designated local agency as receiving disability insurance 
        benefits under section 223 of the Social Security Act (42 
        U.S.C. 423) for any month ending within the 60-day period 
        ending on the hiring date.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2021.

SEC. 3. ENHANCEMENT OF WORK OPPORTUNITY CREDIT FOR VOCATIONAL 
              REHABILITATION REFERRALS, QUALIFIED SSI RECIPIENTS, AND 
              QUALIFIED SSDI RECIPIENTS.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended--
            (1) by redesignating subsections (f) through (k) as 
        subsections (g) through (l), respectively, and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Credit for Second-Year Wages for Employment of Vocational 
Rehabilitation Referrals, Qualified SSI Recipients, and Qualified SSDI 
Recipients.--
            ``(1) In general.--With respect to employment of a 
        vocational rehabilitation referral, a qualified SSI recipient, 
        or a qualified SSDI recipient--
                    ``(A) the amount of the work opportunity credit 
                determined under this section for the taxable year 
                shall include 20 percent of the qualified second-year 
                wages for such year, and
                    ``(B) in lieu of applying subsection (b)(3), the 
                amount of the qualified first-year wages, and the 
                amount of qualified second-year wages, which may be 
                taken into account with respect to such referral or 
                recipient shall not exceed $12,500 per year.
            ``(2) Qualified second-year wages.--For purposes of this 
        subsection, the term `qualified second-year wages' means 
        qualified wages--
                    ``(A) which are paid to a vocational rehabilitation 
                referral, a qualified SSI recipient, or a qualified 
                SSDI recipient, and
                    ``(B) which are attributable to service rendered 
                during the 1-year period beginning on the day after the 
                last day of the 1-year period with respect to such 
                referral or recipient determined under subsection 
                (b)(2).
            ``(3) Special rules for agricultural and railway labor.--If 
        such referral or recipient is an employee to whom subparagraph 
        (A) or (B) of subsection (i)(1) applies, rules similar to the 
        rules of such subparagraphs shall apply except that--
                    ``(A) such subparagraph (A) shall be applied by 
                substituting `$12,500' for `$6,000', and
                    ``(B) such subparagraph (B) shall be applied by 
                substituting `$1041.67' for `$500'.''.
    (b) Conforming Amendments.--
            (1) Section 51 of the Internal Revenue Code of 1986, as 
        amended by subsection (a), is amended--
                    (A) in subsection (c)(1), by striking ``subsection 
                (h)(2)'' and inserting ``subsection (i)(2)'',
                    (B) in subsection (e)(3), by striking ``subsection 
                (h)(1)'' and inserting ``subsection (i)(1)'', and
                    (C) in subsection (g)(2), by striking ``subsection 
                (h)(1)'' and inserting ``subsection (i)(1)''.
            (2) Section 45A of such Code is amended--
                    (A) in subsection (b)(1)(B), by inserting ``or 
                (f)(1)(A)'' after ``subsection (e)(1)(A)'',
                    (B) in subsection (c)(5)(A), by striking ``section 
                51(i)(1)'' and inserting ``section 51(j)(1)'', and
                    (C) in subsection (e)(3), by striking ``section 
                51(k)'' and inserting ``section 51(l)''.
            (3) Section 45S(h)(2) of such Code is amended by striking 
        ``section 51(j)'' and inserting ``section 51(k)''.
            (4) Section 1396(d)(2)(A) of such Code is amended by 
        striking ``section 51(i)(1)'' and inserting ``section 
        51(j)(1)''.
            (5) Section 1397(c) of such Code is amended by striking 
        ``section 51(k)'' and inserting ``section 51(l)''.
            (6) Section 3111(e)(3)(B) of such Code is amended by 
        striking ``subsection (i)(3)(A)'' and inserting ``subsection 
        (j)(3)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2021.
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