HIRE Act Extends Key Tax Credit Through 2031, Incentivizes Hiring Social Security Disability Recipients

The Helping Individuals Rejoin Employment Act, or HIRE Act, is all about giving employers a longer runway and a new reason to hire from groups that often face extra hurdles getting jobs. Essentially, it takes the existing Work Opportunity Tax Credit (WOTC)—a tax break for hiring people from specific targeted groups—and does two major things: it extends the credit for five years, and it expands who qualifies for it.

Five More Years of Hiring Incentives

First up, the extension. The WOTC was set to expire at the end of 2025. The HIRE Act pushes that expiration date back to January 1, 2031. For business owners, this is a big deal because it provides stability and planning certainty. They can rely on this credit being available for the next half-decade when making hiring decisions. This provision applies to wages paid to any qualified employee who starts work before that 2031 deadline. This certainty matters, especially for small businesses that rely on every financial incentive they can get when expanding their team.

The New Target Group: SSDI Beneficiaries

The second, and perhaps most impactful, change is the addition of a new targeted group: qualified Social Security Disability Insurance (SSDI) beneficiaries. Currently, the WOTC covers groups like veterans, ex-felons, and long-term unemployment recipients. The HIRE Act adds people receiving SSDI benefits to that list. Specifically, an employer can claim the credit if they hire someone certified as receiving SSDI benefits within the 60 days before their start date. This is a direct incentive aimed at breaking down barriers for people who want to return to work but might be overlooked due to their disability status.

What This Means on the Ground

Think about it this way: If you’re an employer looking at two equally qualified candidates, and one allows you to claim a significant tax credit, that credit can tip the scales. For someone receiving SSDI who is ready to re-enter the workforce, this bill acts as a financial nudge to the employer. It doesn't force a hire, but it certainly makes it more attractive. This could potentially open up thousands of jobs for a group that often struggles to find employment that accommodates their needs and respects their desire to work. The catch? These changes don't kick in immediately; they apply to individuals who begin work for an employer after December 31, 2025, which is when the existing WOTC was set to expire.