Improve and Enhance the Work Opportunity Tax Credit Act

This bill amends the Internal Revenue Code to improve and enhance the Work Opportunity Tax Credit (WOTC) by extending it, increasing credit percentages and wage limits, adding inflation adjustments, removing an age limit for certain recipients, adding military spouses as a new targeted group, and promoting hiring of targeted workers in critical industries.

Sec. 2, Improving and enhancing the Work Opportunity Tax Credit: Extends the credit through December 31, 2030. Increases the basic credit to 50% of qualified first-year wages up to $6,000, plus an additional 50% of wages between $6,000 and $12,000 for employees working at least 400 hours. Adds inflation adjustments for the $6,000 and $10,000 amounts starting in 2026. Modifies rules for certain veterans, long-term family assistance recipients, summer youth employees, and agricultural and railway labor. Removes the age limit (under age 40) for qualified Supplemental Nutrition Assistance Program (SNAP) benefit recipients. These changes apply to individuals who begin work after December 31, 2025.

Sec. 3, Eligibility of spouses of military personnel for the Work Opportunity Credit: Adds "qualified military spouse" as a new targeted group for the credit. Defines a qualified military spouse as an individual certified by a designated local agency as being the spouse of a member of the U.S. Armed Forces at the time of hiring. This applies to amounts paid or incurred after the date of enactment for individuals who begin work after that date.

Sec. 4, Promotion of targeted group member hiring to certain industries: Directs the Secretaries of the Treasury, Commerce, and Labor, and the Administrator of the Small Business Administration to promote hiring of targeted group members to business leaders in critical industry sectors, including manufacturing, infrastructure, energy, health care, and construction.