Military Spouse Hiring Act

Bill Number: S. 1027
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Taxation
Status: Introduced
Latest Action: 2025-03-13: Read twice and referred to the Committee on Finance.
Last Updated: 2026-05-22T18:20:43Z

AI-Generated Summary

Summary of S. 1027 - Military Spouse Hiring Act

Purpose

This bill aims to encourage the hiring of spouses of military personnel by expanding eligibility for a tax credit that rewards employers for hiring certain groups of workers. Specifically, it modifies the Internal Revenue Code of 1986 to include these spouses in the Work Opportunity Tax Credit (WOTC) program, which provides financial incentives to businesses for employing individuals from targeted groups facing employment barriers.

Key Provisions

Expansion of Eligible Groups: Adds "qualified military spouse" as a new category under section 51(d)(1) of the Internal Revenue Code, alongside existing groups like veterans, ex-felons, and long-term unemployed individuals.
Definition of Qualified Military Spouse: Defines this term in a new paragraph (16) of section 51(d) as any individual certified by a designated local agency (typically a state workforce agency) as being the spouse of a member of the U.S. Armed Forces on the date of hire.
Effective Date: The changes apply to wages paid or incurred after the date of enactment for individuals hired after that date.

Significant Changes to Existing Law

The WOTC currently covers specific disadvantaged groups but does not include military spouses. This bill inserts them as a new eligible subgroup (K), making employers eligible for up to $2,400 in tax credits per qualifying hire (based on existing WOTC rules, though the bill does not alter the credit amount).
No changes to the certification process or credit calculation; it simply broadens the pool of eligible hires without requiring new administrative structures.

Potential Impacts

On Citizens: Military spouses, who often face employment challenges due to frequent relocations, may find it easier to secure jobs as employers gain a tax incentive to hire them. This could improve financial stability for military families.
On Government Agencies: The Internal Revenue Service (IRS) will administer the expanded credit, potentially increasing the volume of claims but without major new burdens, as it uses existing certification processes. The U.S. Treasury may see a modest reduction in tax revenue due to more credits claimed.
On International Relations: No direct impacts, as the bill focuses on domestic tax policy supporting U.S. military families.

Main Stakeholders Affected

Military Spouses and Families: Primary beneficiaries, gaining better job opportunities.
Employers: Businesses, especially those in areas with military bases, who can claim tax credits to offset hiring costs.
U.S. Armed Forces Members: Indirectly supported through aid to their spouses.
Government Entities: IRS for tax credit processing; state workforce agencies for certifications.

Notable Legal, Constitutional, or Political Implications

Legal: Aligns with existing tax incentive frameworks under the Internal Revenue Code, requiring no new regulations beyond standard IRS guidance. Certification by local agencies ensures compliance with anti-fraud measures in the WOTC program.
Constitutional: No apparent issues; it promotes equal employment opportunities without infringing on rights, consistent with Congress's taxing and spending powers under Article I.
Political: Bipartisan sponsorship (from senators across party lines) highlights broad support for military family initiatives. It could set a precedent for further expansions of tax credits to support underserved groups, potentially influencing future workforce development policies.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Kaine, Tim [D-VA]

Cosponsors (39)

Sen. Boozman, John [R-AR], Sen. Hassan, Margaret Wood [D-NH], Sen. Rounds, Mike [R-SD], Sen. Shaheen, Jeanne [D-NH], Sen. Hoeven, John [R-ND], Sen. Blumenthal, Richard [D-CT], Sen. Scott, Rick [R-FL], Sen. Warner, Mark R. [D-VA], Sen. Cramer, Kevin [R-ND], Sen. Cortez Masto, Catherine [D-NV], Sen. Murkowski, Lisa [R-AK], Sen. Hickenlooper, John W. [D-CO], Sen. Moran, Jerry [R-KS], Sen. Cotton, Tom [R-AR], Sen. Merkley, Jeff [D-OR], Sen. Cassidy, Bill [R-LA], Sen. Murray, Patty [D-WA], Sen. Hyde-Smith, Cindy [R-MS], Sen. Padilla, Alex [D-CA], Sen. Grassley, Chuck [R-IA], Sen. Heinrich, Martin [D-NM], Sen. Graham, Lindsey [R-SC], Sen. Gallego, Ruben [D-AZ], Sen. Ricketts, Pete [R-NE], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Justice, James C. [R-WV], Sen. Rosen, Jacky [D-NV], Sen. Moody, Ashley [R-FL], Sen. Warren, Elizabeth [D-MA], Sen. Sullivan, Dan [R-AK], Sen. King, Angus S., Jr. [I-ME], Sen. Budd, Ted [R-NC], Sen. Schiff, Adam B. [D-CA], Sen. Welch, Peter [D-VT], Sen. McCormick, David [R-PA], Sen. Marshall, Roger [R-KS], Sen. Peters, Gary C. [D-MI], Sen. Mullin, Markwayne [R-OK], Sen. Sanders, Bernard [I-VT]