Health insurance tax credits aren’t the only subsidies set to expire next month that could further squeeze Americans struggling in an uncertain economy. 

Half a decade after Congress last extended it, the Work Opportunity Tax Credit (WOTC), which incentivizes businesses to hire recipients of government aid, disabled and unemployed veterans, ex-felons, Americans facing long-term unemployment and other target groups dealing with employment barriers, is scheduled to sunset Dec. 31. 

Rep. Steven Horsford (D-NV) thinks he can save it. On Thursday, he will join a bipartisan group of lawmakers to introduce an updated version of his bill to expand the tax credit, which would renew the program for another five years. 

“The Work Opportunity Tax Credit creates opportunities for vulnerable workers who want to work, while supporting local businesses,” Horsford said. “Extending the WOTC is not only good for Nevadans, but it will incentivize job growth and reduce the need for public assistance.”

The original bill, introduced in February, increased the credit percentage from 40 percent to 50 percent of qualified wages, doubled the qualified wages for employees working 400 hours or more in their first year of employment and eliminated the WOTC age limit of 40 for Supplemental Nutrition Assistance Program recipients. 

The new version incorporates provisions of the Military Spouse Hiring Act, which expands eligibility to workers married to service members. It also tasks the secretaries of the Treasury, Commerce, Labor and the administrator of the Small Business Administration with promoting hiring of targeted groups in the manufacturing, infrastructure, energy, health care and construction industries. Finally, the bill allows the value of the credit to rise alongside inflation. 

The Military Officers Association of America has endorsed the expanded tax credit. 

“The credit has become one of the federal government’s most effective tools for improving veteran employment outcomes,” retired Air Force Lt. Gen. Brian T. Kelly, the president and CEO of the officers association, wrote in a Nov. 19 letter to the bill’s sponsors. “These changes will pay dividends in workforce participation and economic opportunity for veterans and other underserved groups.”

Critics of the WOTC say it’s ineffective at getting employers to hire people from disadvantaged groups and it rewards employers for temporary hires. But other evidence helps rebut those claims. A 2013 study by the Wharton School of Business’ Peter Cappelli found the average tenure of a WOTC hire was 2.3 years. Several papers have found that the WOTC does seem to boost employment for targeted groups. 

Economic analysts have also found job growth and decreased social program spending partially offsets the lost revenue. 

Members of the minority party often struggle to get their bills signed into law. But the legislation has support from both parties in both chambers, with Reps. Lloyd Smucker (R-PA), Mike Kelly (R-PA) and Don Beyer (D-VA) co-sponsoring it in the House and Sens. Bill Cassidy (R-LA), Maggie Hassan (D-NH), Tim Kaine (D-VA) and John Boozman (R-AR) sponsoring the Senate version. 

“Simply put, this is the only bipartisan, bicameral realistic path to keeping WOTC alive past December,” Horsford spokesperson Dan Lindner said.