Congress expands tax break to boost military spouse hiring
S. 1027 — Military Spouse Hiring Act · Filed by Tim Kaine (D-VA) · 39 cosponsors · Introduced Mar 13, 2025 · Referred to committee
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What it does
This bill expands the federal Work Opportunity Tax Credit (WOTC) — a tax break for employers who hire people from targeted groups — to include spouses of active-duty military members. Employers who hire a military spouse will receive a tax credit on wages paid to that employee, reducing their federal tax liability.
Why we flagged it
The bill's sole mechanism is to expand an existing tax-credit program to a new eligible population. It is a straightforward employment-support measure with no hidden riders or complex cross-references.
What the text implies
- The credit's value depends on the wage-credit formula in IRC §51(b), which is not restated here; the actual tax benefit per hire is determined by existing statute, not this bill.
- Effectiveness depends on employer awareness and uptake; if employers do not know about the credit or find certification burdensome, the hiring incentive may be weak.
The full analysis lists 3 implications of this text.
Who stands to gain
employers hiring military spouses (via reduced federal tax liability)