Improve and Enhance the Work Opportunity Tax Credit Act

Section 51(a) of the Internal Revenue Code of 1986 is amended—

(1) by striking shall be equal to 40 percent and all that follows and inserting the following:

(1) 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 performed at least 400 hours of service for the employer, 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.

Section 51(b)(3) of such Code is amended to read as follows:

The $6,000 and $12,000 amounts under paragraphs (1) and (2) of subsection (a) shall be increased to—

(A) $12,000 and $24,000, respectively, in the case of any individual who is a qualified veteran 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 veteran 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 veteran by reason of subsection (d)(3)(A)(ii)(II).

(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 amended by striking 40 percent and inserting 50 percent.

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,

(3) by redesignating clause (i) (as so amended) as clause (v), and

(4) by inserting before such clause (v) (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 described in subsection (i)(3)(A), clause (i) shall be applied by substituting 25 percent for 40 percent,

(iii) in the case of an individual described in subsection (i)(3)(B), no wages shall be taken into account under clause (i), and

(iv) the amount of qualified first-year wages which may be taken into account with respect to such individual shall not exceed $3,000 per year, and

Section 51(e)(1) of such Code is amended by striking family assistance recipient— and all that follows and inserting the following:

family assistance recipient, in lieu of subsection (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 second-year wages with respect to such individual for such year as does not exceed $10,000.

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.

The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2024.

Section 51(d)(8)(A)(i) of the Internal Revenue Code of 1986 is amended by striking but not age 40.

The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2024.