Smucker Leads Legislation to Help Americans Get Back to Work

WASHINGTON –Rep. Lloyd Smucker (PA-11) has reintroduced the Improve and Enhance the Work Opportunity Tax Credit Act to build the U.S. workforce and help connect individuals to good jobs. The bill will strengthen the Work Opportunity Tax Credit (WOTC), which has a proven track record of helping disadvantaged individuals secure employment. Smucker has introduced the legislation in the House with colleagues Reps. Steven Horsford (NV-4), Brian Fitzpatrick (PA-01), Mike Kelly (PA-16), Vern Buchanan (FL-16), and Tom Suozzi (NY-03). Companion legislation was introduced in the Senate by Senators Bill Cassidy, M.D. (R-LA) and Maggie Hassan (D-NH). 

“The best anti-poverty program is a good job. The Work Opportunity Tax Credit (WOTC) is a program that supports employers and employees as they reenter the workforce. I am committed to helping disadvantaged Americans get back to work by advancing legislation to improve this proven tool. WOTC is a bipartisan solution that every Member of Congress should support,” said Representative Smucker.

“It’s not always easy to rejoin the workforce,” said Dr. Cassidy. “By helping employers connect with prospective employees struggling to find work, we boost the American economy and reduce the reliance on government assistance. It’s a win-win.” 

The WOTC provides a federal tax credit to employers who invest in American workers who have consistently faced barriers to employment, including eligible veterans, SNAP recipients, individuals with disabilities, and long-term unemployed individuals. Employers incur higher recruitment and training costs to reach WOTC eligible populations and support their successful transition back into employment. 

WOTC has not been updated since its enactment twenty-seven years ago, and its value has been eroded significantly due to inflation. The National Employment Opportunity Network reports that the WOTC has saved federal governments an estimated $202 billion over ten years.

The Improve and Enhance the Work Opportunity Tax Credit Act would:

1. Update the WOTC, which has not been changed since its enactment twenty-seven years ago and encourage longer-service employment. 
2. Increase the current credit percentage from 40% to 50% of qualified wages.
3. Add a second level of credit for employees who work 400 or more hours. 
4. Eliminate the arbitrary age cap at which SNAP recipients are eligible for WOTC. This change will provide an incentive to hire older workers and better align the credit with previously adopted work reforms.  

The legislation has received praise and support from stakeholders. 

“As a constituent of Congressman Smucker and the President of the National Employment Opportunity Network (NEON), an organization dedicated to incentives to encourage the hiring of disadvantaged and marginalized individuals, I am pleased to endorse the “Improve and Enhance the Work Opportunity Tax Credit Act”. This legislation expands and updates the work opportunity credit to further facilitate the hiring of individuals on public assistance programs.   

Congressman Smucker’s bill would provide employers with greater resources to extend employment opportunities to those who face barriers to employment by increasing the WOTC wage base, which has been unchanged for nearly thirty years, and by eliminating the thirty-nine year old upper age limit for the WOTC SNAP category. Congressman Smucker’s bill recognizes that the costs of on-boarding and providing on-the-job training have increased dramatically since WOTC started and will facilitate the hiring of older Americans who find themselves in need of rejoining the workforce. 

Congressman Smucker understands that we all benefit when job opportunities are extended to individuals who face barriers in the workforce, and I urge Congress to adopt as soon as possible his proposals to update and expand a very successful program,” said Kitty Leggieri, President of the National Employment Opportunity Network.

“The restaurant industry is full of jobs that can kickstart a career, and operators are often willing to fill their entry-level positions with individuals who have traditionally faced barrier to employment. Getting these people back to work is valuable to the individual, the restaurant operator and the community. We appreciate Rep. Smucker’s efforts to improve on WOTC as a tool for restaurant operators to hire needed staff and increase their business viability,” said Sean Kennedy, Executive Vice President of Public Affairs, National Restaurant Association.

“America’s workforce is facing a perfect storm. The labor shortage, exacerbated by demographic shifts, aging population, declining participation, mismatch of skills and the lingering effects of the pandemic, has left employers struggling to fill jobs in critical industries. The Critical Labor Coalition strongly supports the Improve and Enhance the Work Opportunity Tax Credit Act, which will modernize WOTC to reflect today’s labor market realities and ensure that businesses—especially those hit hardest by workforce shortages—are incentivized to hire individuals from historically underemployed groups who may otherwise face barriers to entering the workforce,” said Misty Chally, Executive Director, Critical Labor Coalition.

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