The Detroit Regional Chamber joined a nationwide coalition of business organizations and employers on Oct. 30 in a letter urging congressional leaders to pass the bipartisan Improve and Enhance the Work Opportunity Tax Credit Act. As lawmakers finalize the year-end legislative agenda before the 119th Congress adjourns, it is essential to include this vital legislation in an upcoming tax package to address persistent workforce challenges.
For nearly 30 years, the Work Opportunity Tax Credit (WOTC) has served as a proven incentive for employers to recruit, hire, and retain individuals who face significant barriers to employment. Eligible populations include qualified veterans, Supplemental Nutrition Assistance Program (SNAP) recipients, second-chance workers, and the long-term unemployed. The credit provides up to $9,600 in tax credits to the employer for hiring certain qualified candidates, giving companies a practical tool to fill open positions while expanding economic opportunity.
Despite its track record of success, the credit expired on Dec. 31, 2025. Because Congress has historically renewed the program retroactively following previous lapses, employers have continued to recruit and train eligible workers in good faith throughout 2026. Failing to restore the credit retroactively to Jan. 1, 2026, would undermine that reliability and penalize businesses that have actively invested in building a more inclusive workforce during the lapse.
This tax incentive is a smart, necessary step to help employers overcome ongoing talent shortages. Specifically, H.R. 6231 and S. 3265 would strengthen and modernize the program in five key ways:
- Extend the credit retroactively from Jan. 1, 2026, through Dec. 31, 2030.
- Increase the credit rate from 40% to 50% of qualified wages.
- Index the credit to inflation to preserve its real-world value for hiring managers.
- Provide an additional credit for employees who complete at least 400 hours of service, rewarding longer-term retention.
- Expand eligibility to include employers that hire the spouses of currently serving military personnel.
Enacting these improvements before the end of the year will give businesses the certainty required to plan future hiring, strengthen talent pipelines, and sustain economic growth across the state.
View the letter below.