Encouraging Work Act of 2005

H.R. 1272, the Encouraging Work Act of 2005, proposes to simplify and expand federal tax credits available to businesses that hire individuals from specific groups who often face barriers to employment. The bill would merge the existing Work Opportunity Tax Credit and the Welfare-to-Work Tax Credit into a single, permanent program, providing employers with a financial incentive to hire long-term family assistance recipients, certain ex-felons, and older food stamp recipients. By easing eligibility requirements and increasing the credit amount for hiring long-term welfare recipients, the legislation aims to increase job opportunities for these populations and encourage long-term workforce participation.