S. 492: Improve and Enhance the Work Opportunity Tax Credit Act

Introduced Feb 10, 20251 cosponsors

Sponsor

Bill Cassidy

Republican · LA

Hiring workers with barriers gets a bigger tax break

4 min readLast updated July 29, 2026

Why it matters

Up to $6,000 per hire — and up to $24,000 for some veterans — is the new hiring incentive Congress is proposing. S. 492 would increase the Work Opportunity Tax Credit and let employers claim it for SNAP recipients over 39, changing the math on who gets a second look.

S. 492 raises the main Work Opportunity Tax Credit for targeted workers. Under the bill, employers could claim 50% of the first $6,000 in first-year wages, then another 50% of wages from $6,000 to $12,000 if the worker stays at least 400 hours.

That means a standard qualifying hire could be worth up to $6,000 in tax credits instead of the smaller credit employers generally get today. The bill is built to reward retention, not just a quick hire that ends a few weeks later.

Veteran hires would qualify for higher wage caps than other workers. Depending on the veteran category, the bill would let employers apply the credit to as much as $24,000, $28,000, or $48,000 in wages — making the maximum potential credit much larger.

S. 492 also removes the age cutoff for SNAP recipients. If you're over 39 and receiving SNAP benefits, an employer could still claim the credit for hiring you — something current law generally blocks.

The bill does not send money directly to workers. It uses the tax code to make certain hires more financially attractive to employers, which supporters argue could help people with weaker job prospects get in the door and stay employed longer.

Bill Progress

IntroducedFeb 10

Committee

Pass Senate

Pass House

Signed

Law

Latest Action · Feb 10, 2025

1/2

Read twice and Referred to Finance. for review

S. 492 Bill Summary

What S. 492 actually does.

Standard qualifying hires become worth up to $6,000

For most targeted workers, employers could claim 50% of the first $6,000 in wages, plus 50% of the next $6,000 if the employee works at least 400 hours. That adds up to a maximum $6,000 credit per qualifying worker.

Longer-lasting jobs get rewarded more

The second layer of credit only kicks in after 400 hours of work. That ties the larger benefit to employees who stay on the job longer.

Veteran hires qualify for much larger credits

Depending on the veteran category, employers could apply the credit to up to $24,000, $28,000, or $48,000 in wages. At a 50% rate, that means the maximum credit could be substantially higher than for other qualifying workers.

SNAP recipients over 39 become eligible

The bill removes the current age ceiling for SNAP recipients. Employers could claim the credit for qualifying hires over age 39 who receive SNAP benefits.

Some family assistance hires get a second-year boost

For long-term family assistance recipients, employers could claim 40% of up to $10,000 in first-year wages and 50% of up to $10,000 in second-year wages.

Who benefits from S. 492?

Job seekers who face hiring barriers

If you're in a group covered by the Work Opportunity Tax Credit, S. 492 tries to make you more attractive to hire by increasing the employer's tax benefit.

SNAP recipients over 39

Older low-income workers are the clearest newly eligible group. The bill removes the age cutoff that currently prevents employers from claiming the credit for many SNAP recipients once they turn 40.

Veterans in qualifying categories

Employers hiring certain veterans could claim credits on much larger wage amounts — as high as $48,000 in wages for some categories — which could make those applicants more competitive.

Employers willing to retain workers longer

Businesses that keep qualifying workers on the job for at least 400 hours would unlock the larger two-tier credit, making retention part of the payoff.

Who is affected by S. 492?

Employers claiming the credit

Businesses would see a larger potential tax benefit, but they would still need to document eligible hires and track hours worked to claim the full amount.

Workers not in covered categories

If you do not fall into a Work Opportunity Tax Credit group, this bill does not create a hiring credit tied to your job application.

Federal revenue

A more generous credit would reduce tax collections compared with current law. The bill text provided does not include an official revenue estimate.

Summer youth hires and special subgroups

The bill keeps the summer youth credit at 40% up to $3,000 in wages, but some special cases would receive a lower rate or have wages excluded.

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Tracking floor activity — no debate on S. 492 yet. Updates when a legislator speaks on the record.

S492 Legislative Journey

1 actions

Committee Action

Feb 10, 2025

Read twice and referred to the Committee on Finance.

About the Sponsor

Bill Cassidy

Republican, LA · 17 years in Congress

Committees: Health, Education, Labor, and Pensions, Veterans' Affairs, Finance

View full profile →

Cosponsors (1)

This bill has 1 cosponsor: 1 Democrat. Cosponsors represent 1 state: New Hampshire.

1Democrat·1 state

Maggie Hassan

Democrat · NH

Committee Sponsors

Finance Committee

12D14R1I

|1 signed26 not yet

1 of 27 committee members cosponsored

Maggie Hassan

14 Republicans across this committee haven't cosponsored yet. Mobilize their constituents

What laws does S. 492 change?

1 changes

Full Text

Sections Amended

Section 51(e) of such Code

striking ``Credit for Second-year Wages'' and inserting ``Special Rules for Determining Credit''

S. 492 Quick Facts

Cosponsors

Committee: Finance
Chamber: Senate
Policy: Taxation
Introduced: Feb 10, 2025

Read twice and Referred to Finance. for review

Feb 10, 2025

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S. 492 Common Questions

How much would the Work Opportunity Tax Credit be under S. 492?

For many qualifying hires, up to $6,000. Employers could claim 50% of the first $6,000 in wages, plus 50% of the next $6,000 if the worker stays at least 400 hours.

Does S. 492 make the credit larger for veterans?

Yes. The bill raises the wage caps for qualifying veterans to $24,000, $28,000, or $48,000 depending on category, which can produce much larger credits.

Can employers claim the credit for SNAP recipients over 39?

Yes. S. 492 removes the current age cutoff, so qualifying SNAP recipients over 39 could count toward the hiring credit.

Do workers get this money directly?

No. The credit goes to the employer, not the worker. The bill's theory is that a bigger tax break could make employers more likely to hire and retain eligible people.

Why does the bill care about 400 hours worked?

Because the larger second layer of the credit only applies if the employee reaches 400 hours. S. 492 is designed to reward longer-lasting jobs, not just quick hires.

What happens for long-term family assistance recipients?

Employers could claim 40% of up to $10,000 in first-year wages and 50% of up to $10,000 in second-year wages for qualifying workers in that category.

Would the bill change the summer youth credit?

Mostly no. It keeps that credit at 40% of up to $3,000 in wages, though some special cases would get a lower rate or no counted wages.

When would S. 492 take effect?

The bill says the changes would apply to people who begin work for an employer after December 31, 2024.

Based on S. 492 bill text

S. 492 Bill Text

PDF

“To amend the Internal Revenue Code of 1986 to improve and enhance the work opportunity tax credit, to encourage longer-service employment, and to modernize the credit to make it more effective as a hiring incentive for targeted workers, and for other purposes.”

Source: U.S. Government Publishing Office