Advocacy News – Oct. 21, 2026
What’s happening: The Michigan Chamber has joined the U.S. Chamber and a national coalition of business organizations urging Congress to restore and strengthen the Work Opportunity Tax Credit (WOTC) – a proven federal incentive that helps employers hire individuals facing barriers to employment.
Why it matters: With Michigan employers still struggling to fill open positions, WOTC helps connect businesses with untapped talent, including veterans, SNAP recipients, formerly incarcerated individuals and long-term unemployed workers.
The credit expired at the end of 2025. Congress has historically renewed WOTC after temporary lapses, and employers have continued hiring eligible workers in anticipation of its return. Retroactive renewal would help preserve those incentives and provide greater certainty for businesses.
What’s proposed: Pending bipartisan legislation (H.R. 6231 and S. 3265) would:
- Restore WOTC retroactively to Jan. 1, 2026, and extend it through 2030.
- Increase the credit from 40% to 50% of qualified wages and adjust it for inflation.
- Strengthen incentives for longer-term employee retention.
- Expand eligibility to include spouses of active-duty military personnel.
The bottom line: Michigan ranks 40th nationally in labor force participation. Strengthening WOTC could help more employers fill jobs while creating lasting employment opportunities for people too often left on the sidelines. As Congress considers year-end tax legislation, renewing this proven workforce tool should be a bipartisan priority.
Qs? Contact Wendy Block, executive VP of business advocacy.