What is a WOTC military spouse?
A WOTC military spouse is a proposed new target group under the Improve and Enhance the Work Opportunity Tax Credit Act, which would provide federal tax credits to employers that hire spouses of active-duty service members. Military spouses often face employment barriers stemming from frequent relocations—typically every two to three years—that disrupt career continuity, earnings progression, and professional networks. If enacted, the legislation would align WOTC more closely with military family realities by creating an additional hiring incentive for employers and formally recognizing military spouses as a distinct eligible category. Businesses could also pair these hiring incentives with Qualified education assistance programs to support reskilling and upskilling for mobile careers, further enhancing workforce readiness for this population. This change would expand the number of WOTC target groups from 10 under current federal guidance to 11, rather than from 14 to 15. However, some state and practitioner materials refer to 14 subcategories or groupings in practice.
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