Businesses Back Federal Hiring Tax Credit

A group of businesses are urging Congress to renew and expand a federal tax credit that encourages employers to hire veterans and others who face employment barriers.

The Work Opportunity Tax Credit expired at the end of 2025.

Congress has allowed the credit to lapse before, but has generally renewed it retroactively.

Lawmakers introduced the Improve and Enhance the Work Opportunity Tax Credit Act, extending the program through 2030, with bipartisan support.

The nearly three-decade-old program provides employers with a tax credit for hiring qualified veterans, Supplemental Nutrition Assistance Program recipients, people with criminal records, and those who experienced long-term unemployment.

Work Opportunity Tax Credit

The credit can be worth up to $9,600 for certain veterans.

The bill increases the credit from 40% to 50% of qualified wages, adjusts it for inflation, and provides an additional credit for employees who work at least 400 hours.

It also expands eligibility to employers that hire spouses of active-duty service members.

The bill increases the credit from 40% to 50% of qualified wages and adjusts it for inflation.

A national coalition of employers and business organizations, including CBIA, is calling on Congress to include the legislation in a year-end tax package.

“WOTC has helped Connecticut employers fill jobs and has helped many people return to the workforce,” CBIA senior policy director Jack DeOliveira said.

“We appreciate the bipartisan support behind this bill and hope Congress will take it up before the end of the year.”

The legislation remains before committees in the House and Senate.

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For more information, contact CBIA’s Jack DeOliveira.