S.248 - Federal Government - A bill to amend the Internal Revenue Code of 1986 to permanently extend and modify the work opportunity credit, and for other purposes.

Encouraging Work Act of 2007 - Amends Internal Revenue Code provisions relating to the combined work opportunity and welfare-to-work tax credit to: (1) make such credit permanent; (2) make individuals age 18 through 39 residing in an empowerment zone, enterprise community, or renewal community (designated community residents) eligible for such credit; (3) allow vocational rehabilitation referrals under such credit after completion of certain individual work plans; and (4) allow an increased credit for the hiring of certain veterans with service-connected disabilities incurred after September 10, 2001.