Extension and expansion of work opportunity tax credit

(a)

Extension of credit

Section 51(c)(4) of the Internal Revenue Code of 1986 is amended by striking December 31, 2025 and inserting December 31, 2030. (b)

Expansion of credit

(1)

Qualified ex-felon

Section 51(d)(4) of such Code is amended to read as follows:

(4)

Qualified criminal justice-impacted individual

The term qualified criminal justice-impacted individual means any individual who is certified by the designated local agency— (A)as having been— (i)convicted of a felony under any statute of the United States or any State, or (ii)incarcerated in any Federal, State, or local correctional institution, or placed on probation, for a period of at least 90 days, and (B)as having a hiring date which is not more than 3 years after— (i)in the case of an individual to whom only clause (i) of subparagraph (A) applies, the last date on which such individual was so convicted or was released from prison, (ii)in the case of an individual to whom only clause (ii) of subparagraph (A) applies, the last date on which such individual was released from such incarceration or was discharged from such probation, and (iii)in the case of an individual to whom both clauses (i) and (ii) of subparagraph (A) apply, the later of the dates specified in clauses (i) and (ii) of this subparagraph.

(2)

Qualified opportunity youth

Section 51(d) of such Code is amended by adding at the end the following new paragraph:

(16)

Qualified opportunity youth

The term qualified opportunity youth means any individual who is certified by the designated local agency as being an out-of-school youth (as defined in section 129(a)(1)(B) of the Workforce Innovation and Opportunity Act).

(c)

Conforming amendments

Section 51(d)(1) of such Code is amended— (1)in subparagraph (C), by striking qualified ex-felon and inserting qualified criminal justice-impacted individual, (2)in subparagraph (I), by striking or, (3)in subparagraph (J), by striking the period at the end and inserting , or, and (4)by adding at the end the following new subparagraph:

(K)a qualified opportunity youth.

(d)

Effective date

The amendments made by subsections (a), (b), and (c) shall apply to individuals who begin work for the employer after the date of the enactment of this Act. (e)

Administrative provisions

(1)

Regulations by Secretary of the Treasury

The Secretary of the Treasury shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of the amendments made by subsections (a), (b), and (c), including by implementing the recommendations described in subclauses (I) and (II) of paragraph (2)(B)(i). (2)

Study by Comptroller General

(A)

In general

The Comptroller General of the United States shall conduct a study on the efficiency of the administrative process through which employers may claim the credit determined under section 51(a) of the Internal Revenue Code of 1986. (B)

Report

Not later than 1 year after the date of the enactment of this Act, the Comptroller General shall submit to Congress and the Secretary of the Treasury a report on the study described in subparagraph (A), and such report shall include— (i)recommendations for enhancing the efficiency of the administrative process referred to in such subparagraph, including by— (I)improving interagency coordination and data collection procedures for purposes of carrying out such administrative process, and (II)consolidating and simplifying any informational requirements on employers claiming the credit determined under section 51(a) of the Internal Revenue Code of 1986, and (ii)such other information as the Comptroller General determines appropriate.