--- title: "Capitol Insights: WOTC Extension and Proposed Enhancements" description: Lawmakers are pushing not only to renew the Work Opportunity Tax Credit (WOTC), but also to expand it. See the latest bipartisan proposals and what they mean for employers. image: https://maximus-tces.com/hubfs/Capitol-Insights-Featured-Week2.jpg --- [![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg) ![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg)](https://maximus-tces.com) [![maximus-logo](https://maximus-tces.com/hubfs/Logo/maximus-logo.svg)](https://maximus-tces.com) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location-based Tax Incentives](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) - [About Maximus](https://maximus-tces.com/about) - Resources - [Insights](https://maximus-tces.com/insights) - [Case Studies](https://maximus-tces.com/case-studies) - [WOTC Savings Calculator](https://maximus-tces.com/wotc-calculator) - [I-9 Potential Fines Calculator](https://maximus-tces.com/i-9-potential-fines-calculator) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location-based Tax Incentives](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) - [About Maximus](https://maximus-tces.com/about) - Resources - [Insights](https://maximus-tces.com/insights) - [Case Studies](https://maximus-tces.com/case-studies) - [WOTC Savings Calculator](https://maximus-tces.com/wotc-calculator) - [I-9 Potential Fines Calculator](https://maximus-tces.com/i-9-potential-fines-calculator) [Contact an expert](https://maximus-tces.com/contact) # Capitol Insights: WOTC Extension and Proposed Enhancements Sep 22, 2025 ![Capitol Insights: WOTC Extension and Proposed Enhancements](https://maximus-tces.com/hubfs/Capitol-Insights-Featured-Week2.jpg) Capitol Insights is our weekly series covering the latest developments in Washington that affect the Work Opportunity Tax Credit (WOTC). Each update highlights key legislative activity and what it means for employers. *Last Week’s Update* Our first Capitol Insights update looked at Congress’s September 30 government funding deadline and what it could mean for WOTC’s renewal. [Read Week 1 here](https://maximus-tces.com/insights/capitol-insights-wotc-outlook-sept-30-deadline) . --- ### At a Glance: - WOTC excluded from the One Big Beautiful Bill Act (P.L. 119-21), while other expiring provisions were made permanent - Multiple bipartisan proposals seek to strengthen and expand WOTC eligibility - Risks remain if WOTC lapses and is renewed retroactively, creating budget uncertainty - Expiring Affordable Care Act premium tax credits may serve as the legislative vehicle for WOTC renewal - Outlook: growing momentum for renewal, with potential enhancements on the table --- Congress returned from recess this month with two major tax issues on the table: the looming expiration of the Work Opportunity Tax Credit (WOTC) and the future of enhanced premium healthcare tax credits. ## WOTC Excluded from OBBBA While the *One Big Beautiful Bill Act (P.L. 119-21)* made permanent other expiring business provisions like R&D expensing and bonus depreciation, WOTC was left out. Advocates and lawmakers are now focused on ensuring WOTC is included in any year-end tax package. ## Proposals to Strengthen WOTC Several lawmakers are pushing not just for renewal, but for enhancements that would expand the program’s reach and impact: - Rep. Lloyd Smucker (R-PA): *Improve and Enhance the WOTC Act* – raises the credit from 40% to 50% of first-year wages, with an additional tier for employees working more than 400 hours. - Rep. Don Beyer (D-VA): *Military Spouse Hiring Act* – extends eligibility to employers who hire military spouses. - Sen. Jacky Rosen (D-NV) & Sen. Jerry Moran (R-KS): *Hire Student Veterans Act* – lowers the hour requirement from 400 to 120 hours, allowing student veterans using GI Bill benefits to qualify for WOTC. - Rep. Steven Horsford (D-NV): introduced an amendment to extend WOTC eligibility to veterans affected by federal workforce reduction-in-force actions (though it failed in markup). These proposals show bipartisan momentum not only for WOTC’s continuation, but also for expanding its benefits to new groups of workers. ## Risks of a Retroactive Extension Industry stakeholders warn that if WOTC lapses and is extended retroactively, employers could face budget uncertainty and a potential multibillion-dollar tax increase. For service providers, expiration would also disrupt certification processes and outreach efforts. ## Healthcare Credits May Carry WOTC Forward Enhanced premium tax credits under the Affordable Care Act are also set to expire at the end of 2025. Without action, the Congressional Budget Office projects 3.8 million people annually could lose coverage, with premiums jumping 75% on average. - Because of the political stakes around healthcare, analysts expect these credits to be the foundation of a bipartisan extenders package. - If that happens, **WOTC could be included as part of the same bill**. ## Outlook With multiple bipartisan proposals in play, WOTC advocates are optimistic that Congress won’t just extend the program but also modernize and expand it. Employers should follow these developments closely, as the enhancements could increase credit values and broaden the pool of eligible hires. We’ll continue tracking negotiations and provide updates as legislative activity unfolds this fall. [![reevaluate-wotc-vendor](https://no-cache.hubspot.com/cta/default/457810/interactive-195954007695.png)](https://maximus-tces.com/hs/cta/wi/redirect?encryptedPayload=AVxigLLbzlEiIrDpBlXYddIfttYgf77rAObvxNUuzDkZAkXcMS7jui7ZK%2BLcwuFuheMePsGApF%2BEWIf4c2qFwnyn%2B5jALWE%2F7wm3u4kwaFUP%2Fyl9YwYTqYBVHWnTXmLK%2BxbXigm3g%2BBiBppxzHkajL6tUVD89wEftg6cvCZmcYeFMvxH%2BQqNfqTZ9YXAAzUOk4Jk5Ws5mcM1sHqRaBJYgw%3D%3D&webInteractiveContentId=195954007695&portalId=457810) **Topic:** [WOTC,](https://maximus-tces.com/insights/topic/wotc) [Capitol Insights](https://maximus-tces.com/insights/topic/capitol-insights) ![Kitty Leggieri](https://maximus-tces.com/hs-fs/hubfs/KL%20Headshot.jpg?width=50&height=50&name=KL%20Headshot.jpg) Kitty Leggieri As Vice President, Kitty is responsible for business development and strategy, partnering with employers to administer the Work Opportunity Tax Credit Program, and serving on the board of the National Employment Opportunity Network (NEON). [![maximus-logo-white](https://maximus-tces.com/hubfs/maximus-logo-white.svg)](https://maximus-tces.com) At Maximus Tax Credit and Employer Services, we’ve been helping businesses maximize tax credits and employer incentives since 1978. We specialize in administering the Work Opportunity Tax Credit (WOTC) and other federal, state, and local tax credit programs across all 50 states. Through our comprehensive employer services, we ensure compliance, support workforce needs, and optimize every opportunity to increase your tax credit potential. ###### Services - [Tax Credits](https://maximus-tces.com/tax-credits) - [Work Opportunity Tax Credit (WOTC)](https://maximus-tces.com/work-opportunity-tax-credit) - [Location Benefits](https://maximus-tces.com/location-benefits) - [I-9 Management](https://maximus-tces.com/i-9-management) - [MAXOutreach](https://maximus-tces.com/maxoutreach) ###### Resources - [Case Studies](https://maximus-tces.com/case-studies) - [Insights](https://maximus-tces.com/insights) ###### Find out how many WOTC credits you're eligible for. [![](https://maximus-tces.com/hubfs/wotc-calculator-icon-01-1.svg)Try our free calculator »](https://maximus-tces.com/wotc-calculator) ###### Estimate your potential I-9 fines. 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