Major national senior living associations were among those signing a coalition letter supporting a tax credit targeting job opportunities and on-the-job training for disadvantaged groups.

Overall, a coalition of 94 organizations expressed support for the bipartisan legislation in a letter sent last month to U.S. Reps. Lloyd Smucker (R-PA) and Terri Sewell (D-AL), sponsors of the law. Improving and Expanding the Work Opportunity Tax Credit Act, HR 6833. Signatories included the American Seniors Housing Association, Argentum and the American Health Care Association.

The bill would make the Work Opportunity Tax Credit more effective in providing employment opportunities and on-the-job training. Significant portions of the Tax Cuts and Jobs Act of 2017 are set to expire in 2025, intensifying efforts to identify opportunities to improve workforce hiring and retention, child care and paid leave incentives, and education through of the tax code, according to Argentum.

The Work Opportunity Tax Credit, used for nearly three decades to strengthen the workforce in local communities, provides opportunities for disadvantaged groups, including those facing poverty, stigma or other barriers to employment. HR 6833 would make the first “significant improvements” to the program since its inception in 1996, according to the coalition letter.

The legislation would increase the tax credit from 40% to 50% of eligible wages and add a second tier of credit for employees who work 400 hours or more per year.

“The benefits of improving and expanding WOTC are countless,” the letter states. “An expanded credit would help target communities with lower workforce participation rates and provide relief to essential industries that are facing labor shortages.

According to the US Department of Labor2.6 million tax credits were awarded under the Work Opportunity Tax Credit in 2022, an increase of nearly 24% from 2021. The coalition said the tax credit remains a “vital lifeline” to support both businesses and individuals seeking stable employment.