Healthcare Worker Retention Act

To amend the Internal Revenue Code of 1986 to establish a refundable healthcare worker tax credit with semiannual advance payment. 1. Short title This Act may be cited as the Healthcare Worker Retention Act 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 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 (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 (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: 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 (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 7527A, and 7527B (B) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended— (i) by inserting 36C, 36B, (ii) by striking or 7527A 7527A, or 7527B (C) The table of sections for subpart C of part IV of subchapter A of chapter 1 Sec. 36C. Healthcare worker tax credit. . (D) The table of sections for chapter 77 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

Summary: Healthcare Worker Retention Act 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 healthcare setting 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. The bill directs the Internal Revenue Service to establish a program to make semiannual advance payments of healthcare worker tax credit amounts.