Weighted first-order model counting (WFOMC) is a central task in lifted probabilistic inference: It asks for the weighted sum of all models of a first-order sentence over a finite domain. A long line of work has identified domain-liftable fragments of first-order logic, that is, syntactic classes for which WFOMC can be solved in time polynomial in the domain size. Among them, the two-variable fragment with counting quantifiers,
C2, is one of the most expressive known liftable fragments. Existing algorithms for
C2, however, establish tractability through multi-stage reductions that eliminate counting quantifiers via cardinality constraints, which introduces substantial practical overhead as the domain size grows. In this paper, we introduce IncrementalWFOMC3, a lifted algorithm for WFOMC on
C2 and its modulo counting extension,
Cmod2. Instead of relying on reduction techniques, IncrementalWFOMC3 operates directly on a Scott normal form that retains counting quantifiers throughout inference. This direct treatment yields two main results. First, we derive a tighter data-complexity bound for WFOMC in
C2, reducing the degree of the polynomial from quadratic to linear in the counting parameters. Second, we prove that
Cmod2 is domain-liftable, extending tractability from
C2 to a richer fragment with native modulo counting support. Finally, our empirical evaluation shows that IncrementalWFOMC3 delivers orders-of-magnitude runtime improvements and better scalability than both existing WFOMC algorithms and state-of-the-art propositional model counters.