Healthcare Worker Retention Act

Subjects: Taxation

Summary:  <p> <strong>Healthcare Worker Retention Act </strong></p> <p>This bill establishes through 2024 a new refundable health care worker tax credit, equal to $1,000 for individual taxpayers (1) who work in a healthcare setting as an employee or contractor for at least an average of 20 hours per week, and 3 months during each half of a taxable year; and (2) whose gross income does not exceed $100,000 ($200,000 for joint returns or for a surviving spouse). The bill defines <em>healthcare setting</em> as an organization that provides healthcare services in specified settings, including a hospital, a nursing home, a community-based healthcare center, a school or college campus, a primary care facility, an assisted living facility, a hospice or home care, emergency medical services, or any other licensed facility that extends healthcare services to patients, including the elderly and disabled.</p> <p>The bill directs the Internal Revenue Service to establish a program to make semiannual advance payments of healthcare worker tax credit amounts.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1215 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1215

 To amend the Internal Revenue Code of 1986 to establish a refundable 
     healthcare worker tax credit with semiannual advance payment.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2023

 Mr. Magaziner (for himself, Ms. Hoyle of Oregon, Ms. Tokuda, and Ms. 
  Scholten) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to establish a refundable 
     healthcare worker tax credit with semiannual advance payment.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Healthcare Worker Retention Act''.

SEC. 2. ESTABLISHMENT OF REFUNDABLE HEALTHCARE WORKER TAX CREDIT WITH 
              SEMIANNUAL ADVANCE PAYMENT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36B the following new section:

``SEC. 36C. HEALTHCARE WORKER TAX CREDIT.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
for any taxable year an amount equal to $1,000 ($2,000 in the case of 
eligible individuals filing a joint return).
    ``(b) Eligible Individual.--For purposes of this section--
            ``(1) Eligible individual.--The term `eligible individual' 
        means, with respect to a taxable year, any individual--
                    ``(A) who works in a healthcare setting as an 
                employee or contractor for at least--
                            ``(i) an average of 20 hours per week, and
                            ``(ii) three months during each half of 
                        such taxable year, and
                    ``(B) with a gross income that does not exceed--
                            ``(i) $200,000 in the case of a joint 
                        return or a surviving spouse (as defined in 
                        section 2(a)), and
                            ``(ii) $100,000 in any other case.
            ``(2) Healthcare setting.--The term `healthcare setting' 
        means an organization which provides healthcare services in any 
        of the following settings:
                    ``(A) A hospital.
                    ``(B) A nursing home.
                    ``(C) A community-based healthcare center.
                    ``(D) A school or college campus.
                    ``(E) A primary care facility.
                    ``(F) An assisted living facility.
                    ``(G) Hospice or home care.
                    ``(H) Emergency medical services.
                    ``(I) Any other licensed facility which extends 
                medical, nursing or ancillary services to patients, 
                including the elderly and disabled.
    ``(c) Reconciliation of Credit and Advance Refunds of Credit.--The 
amount of the credit allowed under this section to any taxpayer for any 
taxable year shall be reduced (but not below zero) by the aggregate 
amount of payments made under section 7527B to such taxpayer during 
such taxable year. Any failure to so reduce the credit shall be treated 
as arising out of a mathematical or clerical error and assessed 
according to section 6213(b)(1).
    ``(d) Regulations.--The Secretary shall issue such regulations or 
other guidance as the Secretary determines necessary or appropriate to 
carry out the purposes of this section.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2024.''.
    (b) Advance Payment of Credit.--
            (1) In general.--Chapter 77 of such Code is amended by 
        inserting after section 7527A the following new section:

``SEC. 7527B. ADVANCE PAYMENT OF HEALTHCARE WORKER TAX CREDIT.

    ``(a) In General.--The Secretary shall establish a program for 
making semiannual payments to taxpayers which, in the aggregate during 
any calendar year, equal the annual advance amount determined with 
respect to such taxpayer for such calendar year. Semiannual payments 
made to any taxpayer for any calendar year shall be in equal amounts.
    ``(b) Annual Advance Amount.--For purposes of this section, the 
term `annual advance amount' means, with respect to any taxpayer for 
any calendar year, the amount (if any) which is estimated by the 
Secretary as being equal to the amount which would be allowed under 
subpart C of part IV of subchapter A of chapter 1 by reason of section 
36C(a) for the taxpayer's taxable year beginning in such calendar year.
    ``(c) Notice of Payments.--Not later than January 31 of the 
calendar year following any calendar year during which the Secretary 
makes one or more payments to any taxpayer under this section, the 
Secretary shall provide such taxpayer with a written notice which 
includes the taxpayer's taxpayer identity (as defined in section 
6103(b)(6)), the aggregate amount of such payments made to such 
taxpayer during such calendar year, and such other information as the 
Secretary determines appropriate.
    ``(d) Administrative Provisions.--
            ``(1) Application of direct deposit requirement.--For 
        purposes of section 3332 of title 31, United States Code (and 
        notwithstanding the last sentence of subsection (j)(3) 
        thereof), the payments made by the Secretary under subsection 
        (a) shall be treated as Federal payments.
            ``(2) Timing.--The Secretary shall, subject to the 
        provisions of this title, refund or credit any overpayment 
        attributable to this subsection as rapidly as possible.
            ``(3) Delivery of payments.--Notwithstanding any other 
        provision of law, the Secretary may certify and disburse 
        refunds payable under this section electronically to--
                    ``(A) any account to which the payee received or 
                authorized, on or after January 1, 2022, a refund of 
                taxes under this title or of a Federal payment (as 
                defined in section 3332 of title 31, United States 
                Code),
                    ``(B) any account belonging to a payee from which 
                that individual, on or after January 1, 2022, made a 
                payment of taxes under this title, or
                    ``(C) any Treasury-sponsored account (as defined in 
                section 208.2 of title 31, Code of Federal 
                Regulations).
            ``(4) Waiver of certain rules.--Notwithstanding section 
        3325 of title 31, United States Code, or any other provision of 
        law, with respect to any payment of a refund under this 
        section, a disbursing official in the executive branch of the 
        United States Government may modify payment information 
        received from an officer or employee described in section 
        3325(a)(1)(B) of such title for the purpose of facilitating the 
        accurate and efficient delivery of such payment. Except in 
        cases of fraud or reckless neglect, no liability under section 
        3325, 3527, 3528, or 3529 of title 31, United States Code, 
        shall be imposed with respect to payments made under this 
        paragraph.
    ``(e) Application.--No payments shall be made under the program 
established under subsection (a) with respect to any taxable year 
beginning after December 31, 2024.''.
            (2) Conforming amendments.--
                    (A) Section 6211(b)(4)(A) of such Code is amended 
                by striking ``and 7527A'' and inserting ``7527A, and 
                7527B''.
                    (B) Paragraph (2) of section 1324(b) of title 31, 
                United States Code, is amended--
                            (i) by inserting ``36C,'' after ``36B,'', 
                        and
                            (ii) by striking `` or 7527A'' and 
                        inserting ``7527A, or 7527B''.
                    (C) The table of sections for subpart C of part IV 
                of subchapter A of chapter 1 of the Internal Revenue 
                Code of 1986 is amended by inserting after the item 
                relating to section 36C the following new item:

``Sec. 36C. Healthcare worker tax credit.''.
                    (D) The table of sections for chapter 77 of the 
                Internal Revenue Code of 1986 is amended by inserting 
                after the item relating to section 7527A the following 
                new item:

``Sec. 7527B. Advance payment of healthcare worker tax credit.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years beginning after December 31, 2022.
            (2) Establishment of advance payment program.--The 
        Secretary of the Treasury (or the Secretary's delegate) shall 
        establish the program described in section 7527B of the 
        Internal Revenue Code of 1986 as soon as practicable after the 
        date of the enactment of this Act.
                                 &lt;all&gt;
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