Lawmakers seek Work Opportunity Tax Credit permanency

Sens. Rob Portman (R-OH), Ben Cardin (D-MD), Roy Blunt (R-MO), Sherrod Brown (D-OH), Bill Cassidy (R-LA) and Bob Menendez (D-NJ) recently introduced a bill designed to give the Work Opportunity Tax Credit (WOTC) permanency.

© Shutterstock

The Work Opportunity Tax Credit & Jobs Act would make the WOTC, which encourages employers to hire individuals who face significant barriers to employment, permanent.

The WOTC provides an employer tax credit of between $1,200 and $9,600 per employee for hiring and retaining individuals part of certain targeted groups representing populations having difficult time finding work, or are often out of the labor force altogether.

The targeted groups include veterans, the long-term unemployed, ex-felons, the disabled, summer youth employees and Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program and Supplemental Security Income recipients.

“Our economy is creating jobs and increasing wages and that’s good news, but we have much more work ahead to help those individuals who are in the shadows and struggling to find meaningful employment,” Portman said. “Encouraging employers to hire those who have the most trouble finding work is good policy, and that’s why we should make the Work Opportunity Tax Credit permanent.”

Cardin said the Work Opportunity Tax Credit is one of the nation’s best tools to promote the employment of those who find it hardest to get a job.

“But to be effective, employers need the certainty a permanent extension provides and tens of thousands of families in Maryland need to know we have their back from now on,” Cardin said. “That’s why we need to invest in this effective program permanently, to ensure those who need the most help are getting it.”