Right now, there is a legislative bill to add military spouses to the Work Opportunity Tax Credit (WOTC) via the Military Spouse Hiring Act. We know military spouses face employment challenges due to childcare, permanent change of station relocations, and instability of educational and career service opportunities.

If this bill passes, higher education institutions can potentially benefit from the WOTC by looking at how employing veterans and military spouses can not only support their business needs but also elevate their local communities. Individuals can make a difference by contributing their support to this bill amendment. Keep reading to learn how.

Quick Review of Work Opportunity Tax Credit (WOTC)

The WOTC generally provides a tax credit up to $2,400 for vulnerable groups who have historically faced employment barriers, which currently include qualifying veterans. More details are found at the IRS website, but the gist of the "qualified veteran" is a veteran who meets any of the following requirements:

• A member of a family receiving assistance under the Supplemental Nutrition Assistance Program (SNAP) (food stamps) for at least a 3-month period during the 15-month period ending on the hiring date.
• Unemployed for periods of time totaling at least 4 weeks (whether or not consecutive) but less than 6 months in the 1-year period ending on the hiring date.
• Unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.
• Entitled to compensation for a service-connected disability and hired not more than 1 year after being discharged or released from active duty in the U.S. Armed Forces or
• Entitled to compensation for a service-connected disability and unemployed for periods of time totaling at least 6 months (whether or not consecutive) in the 1-year period ending on the hiring date.

The Military Spouse Hiring Act Connection

Introduced in the House of Representatives in 2023, the purpose of H.R.1277 Military Spouse Hiring Act is to amend the Internal Revenue Code of 1986. The 118^th Congress is working to add military spouses as the eleventh target group of the WOTC. Below is the proposed added language from congress.gov.

"(16) QUALIFIED MILITARY SPOUSE.-The term 'qualified military spouse' means any individual who is certified by the designated local agency as being (as of the hiring date) a spouse of a member of the Armed Forces of the United States."

This bill will provide tax credit incentives for organizations that hire military spouses, whose unemployment rate of 21% is higher than the national average. According to the 2024 Department of Labor Veterans' Employment and Training Service Military Spouse Fact Sheet, military spouses tend to earn 38% less than their civilian counterparts and those earning less than 50% to the household income are at greater risk to experience food insecurity.

Role of Higher Education

Higher education institutions can leverage the WOTC by hiring student and prospective employee target populations, providing support within their workforce development programs or partnerships, and expanding inclusivity. Most colleges or universities tend to be community pillars, providing social programs and economic security. Additionally, they prepare students for the workforce and work with employers. The tax credits provide organizational financial returns but the return on investment benefits everyone.

As the WOTC target populations are disadvantaged with employment barriers, colleges and universities could play a leading role in providing job opportunities as they have training and resources. They also have connections with employers looking for skilled workers through their workforce development goals.

The WOTC groups include individuals with vocational rehabilitation, supplemental nutrition assistance program recipients, ex-felons, veterans, and certain qualifying populations located within "empowerment zones," which are geographically designated areas experiencing poverty. It was built with the intention to incentivize workplace inclusion and expand access. When thinking about inclusive campuses and higher education organizations, hiring individuals from these groups demonstrates commitment to workplace inclusion. With only 38% of military spouses holding a bachelor's level education, higher education can make a big difference in terms of both educational and employment opportunities.

Veterans and Military Spouses

The WOTC applies to qualifying veterans, and by adding qualified military spouses, those experiencing economic distress may have more pathways for relief and job opportunities. The Military Spouse Hiring Act helps to address common challenges such as career and job instability, childcare costs, and other factors related to the military lifestyle. Higher education institutions are well-suited to provide support and leverage the WOTC, which in turn, creates an ecosystem where employers, WOTC target groups, and higher education can partner together to assist those who may need it most.

Individuals can directly support the proposed bill through the Military Officers Association of America (MOAA) advocacy site or the National Military Family Association site, which includes templates to use to contact their elected officials.

Article Topics

Job Search Advice Military Friendly Institutions Policy News Serving Military in HigherEd Working as a Veteran in HigherEd

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