A proposed bill aimed at introducing a new Work Opportunity Tax Credit (WOTC) target group is currently working its way through the legislature.

HR 2974, known more commonly as the Military Spouse Hiring Act would amend WOTC to include military spouses as an eligible target group. Employers would then be incentivized to hire spouses of the U.S. Armed Forces. 

The military spouse target group would serve the community well. Research from the Department of Defense shows that the unemployment rate for military spouses is far higher than the national average. A report by Blue Star Families finds over 40% of active-military spouses are unemployed.

House Representative Don Beyer, recently took over sponsorship of the bill and said “This bipartisan legislation would use the tax code to help overcome hurdles to employment that disproportionately affect military spouses, and show military families that their service to our country is valued.”

While the bill is still in its early stages, it has sweeping support, including 28 different military associations from every U.S. military group. 

If signed into law, military spouses would join the 10 other WOTC target groups, including:

  • Supplemental nutrition assistance program (SNAP) recipients
  • Qualified IV-A recipients
  • Qualified veterans
  • Designated community residents (DCR)
  • Vocational rehabilitation referrals 
  • Summer youth employees
  • Supplemental security income (SSI) recipients
  • Long-term family assistance recipients
  • Qualified long-term unemployment recipients 
  • Ex-felons

The long list of different target groups should encourage employers not currently participating in the WOTC program to explore the opportunity. In addition to being renewed through 2025, last year alone the program resulted in over 2 million WOTC certifications awarded by state workforce agencies.

The WOTC program is also very lucrative and a great way to generate significant savings. Employers administering the program can earn up to $9,600 per qualified candidate. According to the Department of Labor, employers earn roughly $1 billion in WOTC each year.

WOTC is a simple program and with tools like TaxAdvatange, is even simpler to integrate into your hiring process. Participating employers receive tax credits for hiring individuals who historically face barriers in finding employment. By doing so, employers offset government spending on these specific target groups, in addition to bettering the community and generating significant tax savings. 

Trusaic’s TaxAdvantage® solution seamlessly integrates with your HR hiring and onboarding systems to ensure every new hire is properly screened for eligible tax credit opportunities. In addition, the tool offers an online platform that you can access at any time to see job candidates being processed, pending WOTC certifications, and employee information. 

TaxAdvantage also includes a multi-step verification process. Candidates receive screening via both an online platform and a call center to ensure the highest level of accuracy.

Tax credits are a great way to better our community while also boosting your bottom line. To learn more about TaxAdvantage, download our introductory flyer below.

Download TaxAdvantage Product Sheet