The HIRE CREDIT Act amends the Internal Revenue Code to include displaced disaster victims in the Work Opportunity Tax Credit program, incentivizing businesses to hire individuals who lost their homes or jobs due to a major disaster declared on or after January 1, 2024.
Jasmine Crockett
Representative
TX-30
The HIRE CREDIT Act amends the Internal Revenue Code to include "displaced disaster victims" in the Work Opportunity Tax Credit program. A "displaced disaster victim" is defined as someone whose residence or employment location within a qualified disaster zone became inoperable due to a major disaster, and who is currently unemployed. This provision applies to individuals hired within one year after the disaster's incident period, starting on or after January 1, 2024, aiming to incentivize employment in communities recovering from emergencies. The act also includes transition rules for disasters where the incident period ended before the enactment of the Act.
Tax Break for Businesses Hiring Disaster Victims: New 'HIRE CREDIT Act' Offers Relief
The "Helping Increase Realtime Employment for Communities Recovering from Emergency Disasters for an Interim Time Act," or the HIRE CREDIT Act, throws a lifeline to both businesses and individuals slammed by recent disasters. This bill updates the existing Work Opportunity Tax Credit (WOTC) program to include a new category: "displaced disaster victims." Basically, it gives employers a tax break for hiring folks who've lost their homes or jobs because of a major disaster declared on or after January 1, 2024 (SEC. 2).
Making Disaster Relief Work
This isn't just about handing out cash. It's about getting people back on their feet and boosting local economies. To qualify, someone must have lived in a designated "qualified disaster zone" where their home became unlivable, or their workplace in that zone was shut down due to the disaster (SEC. 2). And, of course, they need to be currently unemployed. Think of the waitress whose diner was destroyed by a flood, or the factory worker whose plant was leveled by a tornado. If they're hired within a year after the official end of the disaster's "incident period" (as defined by FEMA), their new employer could be eligible for the tax credit.
Real-World Rollout
Imagine a small business owner in a town hit hard by wildfires. They want to rebuild and rehire, but funds are tight. This tax credit could make a real difference, letting them bring back former employees or hire new ones who were also affected. It's a win-win: The business gets help, and displaced workers get back to work.
There are some important details. If a "displaced disaster victim" is hired but their main workplace is outside the disaster zone, and they work 30 or more hours a week there, those wages won't count towards the tax credit (SEC. 2). This makes sense, as the goal is to help the affected areas recover. Also, there are transition rules for disasters that happened before this Act was put in place, giving a bit of extra time for hiring and figuring out who qualifies.
The Bottom Line
This bill focuses on immediate needs: jobs and economic recovery. By adding "displaced disaster victims" to the Work Opportunity Tax Credit, the HIRE CREDIT Act aims to get people back to work quickly and help communities rebuild after major disasters. It's a targeted approach that recognizes the unique challenges faced by both individuals and businesses in these situations.