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Pennsylvania state Rep. Joe Webster is proposing a state Work Opportunity Tax Credit for employers, with a maximum of up to $2,400 per qualified employer under an October 1, 2026, co-sponsorship memo. Employers cannot claim it now: the memo says the proposal has not yet been submitted for introduction, and it does not provide bill text or a filing process.

What is the Pennsylvania proposal?

Webster, who represents Pennsylvania House District 150, circulated a co-sponsorship memo on October 1, 2026, saying he plans to introduce legislation for a state tax credit based on the federal Work Opportunity Tax Credit (WOTC). The memo describes a credit for qualified employers of up to $2,400. It is a proposal, not an introduced bill or enacted tax benefit. Read the memo.

The proposed credit would be an employer tax credit, not a $2,400 payment to a worker. The memo does not explain whether the maximum would apply per hire, per year, or under another calculation; it gives no complete formula or fiscal estimate.

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Who might qualify?

The memo gives veterans, people with disabilities, formerly incarcerated people, and people unemployed for long periods as examples of people who may face barriers to employment. It does not establish a final list of eligible workers, define the terms, or specify what employers would need to do to verify eligibility. Those details would have to be set out in bill text or subsequent rules.

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Federal WOTC offers context, but its eligibility list should not be treated as the state proposal’s rules. The IRS describes the federal program as an employer credit for hiring people in targeted groups, including some recipients of Temporary Assistance for Needy Families (TANF) or Supplemental Nutrition Assistance Program (SNAP), qualified veterans, and vocational rehabilitation referrals. Webster’s memo does not say Pennsylvania would adopt all federal categories or procedures. IRS overview of federal WOTC.

Can employers claim the credit now?

No. The memo explicitly says, “This document has not been submitted for introduction yet.” There is no introduced bill number, enacted credit, effective date, application form, or state claim procedure described in the memo. Employers should not treat the proposed $2,400 maximum as an available benefit or make hiring and tax decisions on the assumption that it will become law.

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How the proposed state credit differs from federal WOTC

The Pennsylvania idea is a separate prospective state measure. Calling it “based on” federal WOTC does not extend the federal credit or confirm that the state would copy federal eligibility and filing rules.

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Question Pennsylvania proposal Federal WOTC
Status and jurisdiction State proposal in a co-sponsorship memo circulated by Rep. Joe Webster on October 1, 2026; not yet submitted for introduction. Memo. Federal employer tax credit; the IRS says it does not apply to employees who begin work after December 31, 2025. IRS notice.
Eligible workers Memo examples include veterans, people with disabilities, formerly incarcerated people, and people unemployed for long periods; final groups are not established. Memo. Federal targeted groups include examples such as qualified veterans, TANF and SNAP recipients, and vocational rehabilitation referrals. IRS overview.
Maximum and calculation Up to $2,400 for qualified employers, according to the memo; no full calculation formula is provided. Memo. Not stated in the cited IRS sources for this comparison.
Certification and filing Not stated in the memo. The IRS says Form 8850 is no longer in use. IRS notice.
Reporting and oversight The memo proposes annual employer reports to the Pennsylvania Department of Labor and Industry and a biennial department report to the General Assembly. Memo. Not stated in the cited IRS sources for this comparison.

A separate federal proposal, H.R. 6231, the Improve and Enhance the Work Opportunity Tax Credit Act, was introduced on November 20, 2025, and referred to the House Committee on Ways and Means. That record does not establish enactment or renewal of federal WOTC. GovInfo bill record.

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What reporting would the Pennsylvania memo require?

The memo proposes that employers submit an annual report to the Pennsylvania Department of Labor and Industry listing the number of qualified employees and how long they had been employed. The department would then provide the General Assembly with a participation report every two years. The memo does not specify reporting deadlines, forms, enforcement, or how employment duration would affect the credit.

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What employers should watch for

  • Whether Webster files a bill and what the introduced text says about eligible employers and workers.
  • Whether the final proposal defines the $2,400 limit and explains how the credit is calculated and claimed.
  • Whether the legislation establishes an effective date, certification steps, and reporting requirements.
  • Whether federal WOTC rules change; the IRS guidance currently excludes employees who begin work after December 31, 2025.

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