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For employers and workforce professionals who follow the Work Opportunity Tax Credit (WOTC) program, recent activity in Congress offers an encouraging sign.
The Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6231 / S. 3265), legislation currently serving as a vehicle for the next reauthorization of the WOTC program while also expanding eligibility to military spouses, continues to attract bipartisan support in both the House and Senate.
The bipartisan coalition supporting this bill extends well beyond the legislation’s original sponsors, with additional lawmakers continuing to join as cosponsors months after the bills were introduced.
As of late May, the House bill includes one sponsor and 24 cosponsors, while the companion Senate bill includes one sponsor and 11 cosponsors.
Most recently, Representatives Stephanie Bice (R-OK), Donald Davis (D-NC), and Maggie Goodlander (D-NH), along with Senator Tim Sheehy (R-MT), added their names as cosponsors during May 2026. Their participation follows a steady stream of lawmakers who have joined the legislation since its introduction in late 2025.
For supporters of WOTC, this continued growth in cosponsorship may be one of the most encouraging developments during the program’s current reauthorization cycle.
You can examine the bills’ lists of sponsors and other legislative information here:
In the U.S. House of Representatives – H.R. 6231
In the U.S. Senate – S 3265
WOTC Planet does not provide tax, accounting, or legal advice. This content is for informational purposes only.
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WOTC’s 2026 reauthorization cycle and current legislative pause naturally raise an important question for employers:
Should we continue screening new hires for WOTC while Congress is navigating the program’s reauthorization cycle?
When a tax credit’s legislation enters a reauthorization cycle, it’s reasonable to pause and evaluate. This article provides context based on the program’s long history and how WOTC has been administered during past reauthorization cycles.
While only Congress can authorize or reauthorize the program, the consistent best practice (based on decades of precedent and agency guidance) is to continue screening and submitting applications. Continue reading to understand why.
A Pattern That Has Repeated Over Decades
During its 30-year history, the Work Opportunity Tax Credit (WOTC) has been renewed thirteen times as part of the federal “tax extenders” process. In more than half of those occasions, Congress allowed the program to enter a temporary hiatus while new legislation was being crafted and approved. Every time, the pause was followed by a full retroactive reinstatement.
In other words, Congress reauthorized WOTC, and employers who continued screening new hires and filing their applications were rewarded with the full tax credit amount.
From a legislative standpoint, the current reauthorization cycle follows a familiar pattern.
What Happened During Previous Cycles?
During prior reauthorization cycles, the U.S. Department of Labor instructed State Workforce Agencies (SWAs) to continue receiving WOTC applications within the required filing timeframes. Employers were expected to continue timely screening. While certifications could not be issued until reauthorization legislation was approved, state agencies continued to receive applications and then issued the certifications after Congress acted.
State agencies are communicating similar expectations today. For example, the California Employment Development Department’s WOTC web page currently states:
Employers should continue submitting WOTC applications within [the] required timeframes. Applications with start dates of January 1, 2026, and after will be accepted and retained pending federal reauthorization.
See EDD CA WOTC
What Does This Mean to Employers Today?
Historically, employers who continued screening and submitting applications during reauthorization cycles were positioned to receive tax credits once the program was reinstated. By contrast, if screening is paused or otherwise missed, WOTC-eligibility information is not collected, and applications can not be filed. When the program is later reauthorized, most, if not all, of the potential credits can be lost.
Reauthorization depends on Congressional action, so non-renewal is possible. However, the program’s long history of consistent renewal, combined with strong bipartisan support in Congress, reinforces the expectation that it will continue as it has in prior cycles.
The consistent best practice (based on decades of precedent and agency guidance) is to continue screening and submitting WOTC applications
For more information, Work Opportunity Tax Credit (WOTC) Reauthorization Update: What Employers Should Know.
WOTC Planet does not provide tax, accounting, or legal advice. This content is for informational purposes only. Employers should consult their tax and legal advisors when evaluating changes to HR or PII handling policies.
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An employer submits a WOTC application, along with supporting documents, for a newly hired employee. Everything appears to be in order except that key details on the supporting documents, such as portions of the employee’s Social Security Number, date of birth, or address, have been redacted.
A few weeks later, the response comes back. The WOTC agency is unable to verify the employee’s eligibility based on the information provided. The application is delayed, and additional follow-up is required. In some cases like this one, the credit is ultimately lost.
The issue wasn’t eligibility. It was redaction.
WOTC Requires Personally Identifiable Information
In business situations, protecting personally identifiable information (PII) is essential. Redacting details such as Social Security Numbers, addresses, and other personal data is standard practice—and an important one.
However, certain documentation requirements under the Work Opportunity Tax Credit (WOTC) program often require an exception to the redaction rule.
To support a WOTC certification, employers are often required to provide documentation such as W-4 forms, government-issued identification, or veteran-related records. These documents frequently contain sensitive information, including Social Security Numbers, addresses, dates of birth, and, in some cases, disability-related details.
For WOTC purposes, State Workforce Agencies use these documents to verify key elements of eligibility like age, residence, or disabled veteran status. The personal information on the document also serves to confirm that the document corresponds to the individual who is the subject of the WOTC application. If any of that information is redacted, the agency may be unable to complete that verification.
In many cases, the PII on the document is the very information being verified—so redacting it defeats the purpose of the document itself.
In practice, redactions can lead to delays, follow-up requests, or even denial of the tax credit if documentation cannot be properly validated. In some states, agencies may reject the document outright if it shows signs of redaction, requiring a complete, unaltered version before processing can continue.
The Right Approach for WOTC
WOTC always requires protecting sensitive information. But employers must also meet compliance requirements when documenting the facts of their employee’s WOTC case. Don’t file information beyond what is necessary for verification, but be aware that in some cases, if you redact information, the document might be rejected and tax credits potentially lost.
Contact your state workforce agency to discuss its policies regarding WOTC-supporting documentation and assurances of information security. The U.S. Department of Labor publishes a handy directory that lists the name and contact information for each State WOTC Coordinator. I have found State Coordinators to be friendly and helpful when I reach out to them with questions.
Click here: WOTC State Coordinators
WOTC Planet does not provide tax, accounting, or legal advice. This content is for informational purposes only. Employers should consult their tax and legal advisors when evaluating changes to HR or PII handling policies.
PUBLISHED IN
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WOTC’s 2026 reauthorization cycle and current legislative pause naturally raise an important question for employers:
Should we continue screening new hires for WOTC while Congress is navigating the program’s reauthorization cycle?
When a tax credit’s legislation enters a reauthorization cycle, it’s reasonable to pause and evaluate. This article provides context based on the program’s long history and how WOTC has been administered during past reauthorization cycles.
While only Congress can authorize or reauthorize the program, the consistent best practice (based on decades of precedent and agency guidance) is to continue screening and submitting applications. Continue reading to understand why.
A Pattern That Has Repeated Over Decades
During its 30-year history, the Work Opportunity Tax Credit (WOTC) has been renewed thirteen times as part of the federal “tax extenders” process. In more than half of those occasions, Congress allowed the program to enter a temporary hiatus while new legislation was being crafted and approved. Every time, the pause was followed by a full retroactive reinstatement.
In other words, Congress reauthorized WOTC, and employers who continued screening new hires and filing their applications were rewarded with the full tax credit amount.
From a legislative standpoint, the current reauthorization cycle follows a familiar pattern.
What Happened During Previous Cycles?
During prior reauthorization cycles, the U.S. Department of Labor instructed State Workforce Agencies (SWAs) to continue receiving WOTC applications within the required filing timeframes. Employers were expected to continue timely screening. While certifications could not be issued until reauthorization legislation was approved, state agencies continued to receive applications and then issued the certifications after Congress acted.
State agencies are communicating similar expectations today. For example, the California Employment Development Department’s WOTC web page currently states:
Employers should continue submitting WOTC applications within [the] required timeframes. Applications with start dates of January 1, 2026, and after will be accepted and retained pending federal reauthorization.
See EDD CA WOTC
What Does This Mean to Employers Today?
Historically, employers who continued screening and submitting applications during reauthorization cycles were positioned to receive tax credits once the program was reinstated. By contrast, if screening is paused or otherwise missed, WOTC-eligibility information is not collected, and applications can not be filed. When the program is later reauthorized, most, if not all, of the potential credits can be lost.
Reauthorization depends on Congressional action, so non-renewal is possible. However, the program’s long history of consistent renewal, combined with strong bipartisan support in Congress, reinforces the expectation that it will continue as it has in prior cycles.
The consistent best practice (based on decades of precedent and agency guidance) is to continue screening and submitting WOTC applications.
For more information, Work Opportunity Tax Credit (WOTC) Reauthorization Update: What Employers Should Know.
WOTC Planet does not provide tax, accounting, or legal advice. This content is for informational purposes only. Employers should consult their tax and legal advisors when evaluating changes to HR or PII handling policies.
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