When a veteran leaves the military, the mission changes, but the challenge doesn’t disappear. For many, the transition to civilian employment is not immediate, and even highly qualified veterans can struggle to translate their experience into a job offer.
That’s exactly why the Work Opportunity Tax Credit (WOTC) has mattered for more than 25 years. It’s a proven, bipartisan program that encourages employers to hire veterans and other Americans facing barriers to employment.
But today, that opportunity is at risk.
The WOTC expired on December 31, 2025, and unless Congress acts, a critical incentive that has helped connect veterans to meaningful employment will remain in limbo.
The Special Operations Association of America (SOAA) strongly supports efforts to renew, and strengthen, this important program.
Why the WOTC Matters
The WOTC is a one-time federal tax credit that employers can claim when they hire workers from certain eligible categories, including qualified veterans.
In simple terms, the WOTC reduces the risk for employers to hire someone who may need training, a second chance, or simply an opportunity to re-enter the workforce. For veterans, that “yes” from an employer can be life-changing.
The program also saves taxpayers money. The WOTC generates an estimated $17.6 billion in federal savings and $4.7 billion in state savings each year, while supporting long-term employment outcomes.
Veteran participation has grown steadily. In Fiscal Year 2023, nearly 190,000 veterans were certified for WOTC benefits–an increase of 52% since 2015.
That growth reflects a simple truth: when employers are incentivized to hire veterans, more veterans get hired.
How the WOTC Works
For businesses of all sizes and tax-exempt organizations, the WOTC offers a valuable return for hiring veterans during their transition to civilian employment.
WOTC credits for businesses that hire veteran employees typically range from between $2,400 to $9,600 based upon a veteran’s specific hiring category and their wages during their first year of employment. For businesses, the credit comes in the form of a general business credit that can be applied backwards one year, and forwards 20 years. Tax-exempt organizations receive the WOTC only if hiring qualified veterans, and the return comes by way of a refund in payroll taxes.
The WOTC provides advantages for both new hires and employers. New employees gain access to secure employment, often after a period of struggle, while the businesses who employ them can use tax relief to improve training programs, expand, or retain profitability in difficult economic times.
Though WOTC authorization is currently lapsed, the WOTC has been retroactively renewed on multiple occasions, and despite previous hiatus periods of nearly a year, employees hired during lapses have been covered.
Moves to Reauthorize the WOTC
Sen. Bill Cassidy (R-LA) has led the charge to reinvigorate the WOTC by introducing the proposed Improve and Enhance the Work Opportunity Tax Credit Act in 2025.
The legislation includes a number of updates to the WOTC, including the extension of the credit for an additional five years and the inclusion of military spouses in the eligible population. It would also account for inflation, and expand the credit amount for employees who work in excess of 400 hours per year.
The bill has drawn strong bipartisan support, including senators from both parties such as Tim Kaine (D-VA), Maggie Hassan (D-NH), and others–highlighting how broadly valued this program is across the country.
In Cassidy’s home state of Louisiana, veterans received 814 of the total 54,173 WOTC certifications in 2021, and business leaders have spoken publicly about the program’s impact.
Louisiana Works called the WOTC “a critical part of [its] mission,” noting that it “opens doors to opportunity for thousands of Louisianans each year but also supports businesses in finding and retaining skilled, motivated workers.”
Mark Leyoub, Manager at Complete Staffing LLC, described the credit as “a lifeline for Louisiana employers and workers alike,” helping “small businesses to fill critical jobs, invest in training, and bring overlooked workers–including veterans and those rebuilding after unemployment–back into the workforce.”
Retired USAF Lt. Gen. Brian T. Kelly, president and CEO of the Military Officers Association of America, said the WOTC “has been one of the federal government’s most effective tools for improving veteran employment outcomes,” emphasizing that adding military spouses would strengthen readiness and improve stability for military families.
SOAA Supports Expanding Veteran Employment Opportunities
At SOAA, we support initiatives that help veterans and their families find stable, fulfilling employment after service. The WOTC has a proven track record, strong bipartisan support, and measurable results.
Allowing it to lapse helps no one–not veterans, not employers, and not the economy.
As lawmakers work to reauthorize the Work Opportunity Tax Credit, SOAA appreciates Senator Cassidy’s leadership and urges Congress to renew this program quickly, so employers can keep hiring and veterans can keep building their next chapter.
