BRIDGE Act

Legislative bill overview

HR 7998 amends the Internal Revenue Code to extend and expand the Work Opportunity Tax Credit (WOTC), a tax incentive that encourages employers to hire individuals from targeted groups facing significant barriers to employment. The bill extends the duration of this credit and broadens its eligibility parameters or increases benefit amounts for participating employers.

Why is this important

The WOTC directly affects hiring decisions for disadvantaged workers, including veterans, ex-offenders, long-term unemployed individuals, and other groups with documented employment barriers. Expanding this credit could increase job opportunities for these populations while reducing labor costs for employers, though the fiscal impact depends on how substantially the credit is expanded and how many employers utilize it.

Potential points of contention

• Cost to federal revenue: Expanding tax credits reduces government revenue; critics may argue these funds should be allocated elsewhere or that the credit is inefficient at creating net new jobs versus simply subsidizing existing hiring
• Effectiveness debate: Questions exist about whether tax credits genuinely expand employment or primarily benefit employers who would hire these workers regardless, reducing the program's actual impact
• Scope of eligibility: Disagreement may arise over which groups qualify for the expanded credit and whether certain populations are appropriately included or excluded