Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1177 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1177
5	5	To amend the Internal Revenue Code of 1986 to improve and enhance
6	6	the work opportunity tax credit, to encourage longer-service employment,
7	7	and to modernize the credit to make it more effective as a hiring
8	8	incentive for targeted workers, and for other purposes.
9	9	IN THE HOUSE OF REPRESENTATIVES
10	10	FEBRUARY10, 2025
11	11	Mr. S
12	12	MUCKER(for himself, Mr. HORSFORD, Mr. FITZPATRICK, Mr. SUOZZI,
13	13	Mr. K
14	14	ELLYof Pennsylvania, and Mr. BUCHANAN) introduced the fol-
15	15	lowing bill; which was referred to the Committee on Ways and Means
16	16	A BILL
17	17	To amend the Internal Revenue Code of 1986 to improve
18	18	and enhance the work opportunity tax credit, to encour-
19	19	age longer-service employment, and to modernize the
20	20	credit to make it more effective as a hiring incentive
21	21	for targeted workers, and for other purposes.
22	22	Be it enacted by the Senate and House of Representa-1
23	23	tives of the United States of America in Congress assembled, 2
24	24	SECTION 1. SHORT TITLE. 3
25	25	This Act may be cited as the ‘‘Improve and Enhance 4
26	26	the Work Opportunity Tax Credit Act’’. 5
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29	29	•HR 1177 IH
30	30	SEC. 2. IMPROVING AND ENHANCING WORK OPPORTUNITY 1
31	31	TAX CREDIT. 2
32	32	(a) I
33	33	NGENERAL.—Section 51(a) of the Internal Rev-3
34	34	enue Code of 1986 is amended— 4
35	35	(1) by striking ‘‘shall be equal to 40 percent’’ 5
36	36	and all that follows and inserting the following: 6
37	37	‘‘shall be equal to the sum of— 7
38	38	‘‘(1) 50 percent of so much of the qualified 8
39	39	first-year wages with respect to each individual for 9
40	40	such year as does not exceed $6,000, plus 10
41	41	‘‘(2) in the case of individuals who have per-11
42	42	formed at least 400 hours of service for the em-12
43	43	ployer, 50 percent of so much of the qualified first- 13
44	44	year wages with respect to each such individual for 14
45	45	such year as exceeds $6,000, and does not exceed 15
46	46	$12,000.’’. 16
47	47	(b) C
48	48	ONFORMINGAMENDMENTSRELATING TOLIMI-17
49	49	TATION ONWAGESTAKENINTOACCOUNT FORCERTAIN 18
50	50	V
51	51	ETERANS.—Section 51(b)(3) of such Code is amended 19
52	52	to read as follows: 20
53	53	‘‘(3) I
54	54	NCREASED LIMITATION ON WAGES TAKEN 21
55	55	INTO ACCOUNT FOR VETERANS .—The $6,000 and 22
56	56	$12,000 amounts under paragraphs (1) and (2) of 23
57	57	subsection (a) shall be increased to— 24
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60	60	•HR 1177 IH
61	61	‘‘(A) $12,000 and $24,000, respectively, in 1
62	62	the case of any individual who is a qualified vet-2
63	63	eran by reason of subsection (d)(3)(A)(ii)(I), 3
64	64	‘‘(B) $14,000 and $28,000, respectively, in 4
65	65	the case of any individual who is a qualified vet-5
66	66	eran by reason of subsection (d)(3)(A)(iv), and 6
67	67	‘‘(C) $24,000 and $48,000, respectively, in 7
68	68	the case of any individual who is a qualified vet-8
69	69	eran by reason of subsection (d)(3)(A)(ii)(II).’’. 9
70	70	(c) C
71	71	ONFORMINGAMENDMENTS RELATING TOINDI-10
72	72	VIDUALSNOTMEETINGMINIMUMEMPLOYMENT PERI-11
73	73	ODS.— 12
74	74	(1) Subparagraphs (A) and (B) of section 13
75	75	51(i)(3) of such Code are each amended by striking 14
76	76	‘‘subsection (a)’’ and inserting ‘‘subsection (a)(1)’’. 15
77	77	(2) Section 51(i)(3)(A) of such Code is amend-16
78	78	ed by striking ‘‘40 percent’’ and inserting ‘‘50 per-17
79	79	cent’’. 18
80	80	(d) C
81	81	ONFORMING AMENDMENTS RELATING TO 19
82	82	T
83	83	REATMENT OF SUMMERYOUTHEMPLOYEES.—Section 20
84	84	51(d)(7)(B) of such Code is amended— 21
85	85	(1) by striking clause (ii), 22
86	86	(2) by striking ‘‘, and’’ at the end of clause (i) 23
87	87	and inserting a period, 24
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90	90	•HR 1177 IH
91	91	(3) by redesignating clause (i) (as so amended) 1
92	92	as clause (iv), and 2
93	93	(4) by inserting before such clause (iv) (as so 3
94	94	redesignated) the following new clauses: 4
95	95	‘‘(i) in lieu of the amount determined 5
96	96	under subsection (a), the amount of the 6
97	97	work opportunity credit determined under 7
98	98	this section for the taxable year shall be 8
99	99	equal to 40 percent of the qualified first- 9
100	100	year wages for such year, 10
101	101	‘‘(ii) in the case of an individual de-11
102	102	scribed in subsection (i)(3)(A), clause (i) 12
103	103	shall be applied by substituting ‘25 per-13
104	104	cent’ for ‘40 percent’, 14
105	105	‘‘(iii) in the case of an individual de-15
106	106	scribed in subsection (i)(3)(B), no wages 16
107	107	shall be taken into account under clause 17
108	108	(i), 18
109	109	‘‘(iv) the amount of qualified first- 19
110	110	year wages which may be taken into ac-20
111	111	count with respect to such individual shall 21
112	112	not exceed $3,000 per year, and’’. 22
113	113	(e) C
114	114	ONFORMING AMENDMENTS RELATING TO 23
115	115	L
116	116	ONG-TERMFAMILYASSISTANCERECIPIENTS.— 24
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119	119	•HR 1177 IH
120	120	(1) IN GENERAL.—Section 51(e)(1) of such 1
121	121	Code is amended by striking ‘‘family assistance re-2
122	122	cipient—’’ and all that follows and inserting the fol-3
123	123	lowing: ‘‘family assistance recipient, in lieu of sub-4
124	124	section (a), the amount of the work opportunity 5
125	125	credit determined under this section for the taxable 6
126	126	year shall be equal to— 7
127	127	‘‘(1) 40 percent of so much of the qualified 8
128	128	first-year wages with respect to such individual for 9
129	129	such year as does not exceed $10,000, and 10
130	130	‘‘(2) 50 percent of so much of the qualified sec-11
131	131	ond-year wages with respect to such individual for 12
132	132	such year as does not exceed $10,000.’’. 13
133	133	(2) C
134	134	LERICAL AMENDMENT .—The heading for 14
135	135	section 51(e) of such Code is amended by striking 15
136	136	‘‘C
137	137	REDIT FORSECOND-YEARWAGES’’ and inserting 16
138	138	‘‘S
139	139	PECIALRULES FORDETERMININGCREDIT’’. 17
140	140	(f) E
141	141	FFECTIVEDATE.—The amendments made by 18
142	142	this section shall apply to individuals who begin work for 19
143	143	the employer after December 31, 2024. 20
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146	146	•HR 1177 IH
147	147	SEC. 3. REMOVAL OF AGE LIMIT FOR QUALIFIED SUPPLE-1
148	148	MENTAL NUTRITION ASSISTANCE PROGRAM 2
149	149	BENEFITS RECIPIENT. 3
150	150	(a) I
151	151	NGENERAL.—Section 51(d)(8)(A)(i) of the In-4
152	152	ternal Revenue Code of 1986 is amended by striking ‘‘but 5
153	153	not age 40’’. 6
154	154	(b) E
155	155	FFECTIVEDATE.—The amendment made by 7
156	156	this section shall apply to individuals who begin work for 8
157	157	the employer after December 31, 2024. 9
158	158	Æ
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