Groups Urge Congress to Extend Hiring Tax Credit
Employers that hire veterans and workers facing barriers would lose a federal incentive if the credit is not renewed.
Updated on Nov. 2, 2026 in Military Jobs
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Should Congress extend the Work Opportunity Tax Credit for employers hiring hard-to-place workers?
The Food Industry Association joined 473 other organizations and employers in a broad industry letter urging Congress to extend the Work Opportunity Tax Credit, a federal hiring incentive. The letter, dated November 2, 2026, asks lawmakers to act on the program's extension and modest reforms.
Why it matters
The Work Opportunity Tax Credit lowers the cost of hiring from groups that face employment barriers, so its expiration would change the hiring math for employers that rely on it. Coalition action now reflects employers' effort to secure the credit before lawmakers take it up again.
A coalition of 474 organizations, including the Food Industry Association, has urged Congress to extend the Work Opportunity Tax Credit, which FMI has supported for 30 years. The letter reflects broad employer backing across industries, though the source does not report the credit's dollar value or number of workers hired through it.
The players
Food Industry Association (FMI)
A trade association representing food retailers and wholesalers, which has supported the Work Opportunity Tax Credit since its inception 30 years ago.
Critical Labor Coalition
A coalition of employers and workforce groups that launched the WOTC Works campaign to push for extension of the Work Opportunity Tax Credit.
The details
The Work Opportunity Tax Credit lets employers claim a federal credit when they hire people from targeted groups, including veterans, justice-involved individuals, and SNAP participants. FMI members use the credit to hire from these groups, which the association says helps employers fill roles while supporting workers facing barriers to employment. The credit's continuation depends on Congress, which the coalition is pressing to extend it and enact modest program reforms through the bipartisan Improve and Enhance the Work Opportunity Tax Credit Act, designated H.R. 6231/S. 3265.
Timeline
Earlier in 2026: The Critical Labor Coalition launched its WOTC Works campaign.
November 2, 2026: FMI and 473 other groups sent the letter urging Congress to extend the credit.
Market Landscape
The Work Opportunity Tax Credit has been a standing federal tool for employers hiring from targeted groups for three decades. The current push pairs an employer-led letter with a separate Critical Labor Coalition campaign, signaling that the credit's renewal is being treated as a priority across sectors.
Employers that use the Work Opportunity Tax Credit should track whether Congress acts to extend it, since its lapse would change the cost of hiring from targeted groups. HR and finance teams should confirm how their current hiring credits are documented and consult a qualified accountant about how any extension or reform would affect their filings.
The takeaway
Employers relying on federal hiring incentives should watch the legislative calendar for the Improve and Enhance the Work Opportunity Tax Credit Act (H.R. 6231/S. 3265). Operators should consult qualified counsel or an accountant before adjusting hiring plans around any change to the credit.
Further reading
For more on how federal hiring incentives affect veteran recruitment, see Military Jobs.
Source note: This article includes information reported by Mass Market Retailers.
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Should Congress extend the Work Opportunity Tax Credit for employers hiring hard-to-place workers?
