Title: HIRE Act of 2021
Policy area: Taxation

Summary:
Hiring Incentive to Return Employment Act of 2021 or the HIRE Act of 2021
This bill increases the rate of the work opportunity tax credit from 40% to 50% of wages paid to members of the targeted groups eligible for such credit over a two-year period. It also increases to $10,000 the amount of wages taken into account for purposes of the credit.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3449 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 3449

To amend the Internal Revenue Code of 1986 to make certain adjustments 
to the work opportunity credit to modernize the credit and make it more 
        effective as a hiring incentive, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2021

    Mr. Suozzi (for himself, Mr. Horsford, Mr. Beyer, Ms. Moore of 
Wisconsin, and Mr. Schneider) 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 make certain adjustments 
to the work opportunity credit to modernize the credit and make it more 
        effective as a hiring incentive, and for other purposes.

    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 ``Hiring Incentive to Return 
Employment Act of 2021'' or the ``HIRE Act of 2021''.

SEC. 2. EXTENSION OF WORK OPPORTUNITY CREDIT DURING COVID-19 RECOVERY 
              PERIOD.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(l) Adjustment to Credit During COVID-19 Recovery Period.--In the 
case of individuals hired after the date of the enactment of this 
subsection in a taxable year beginning before the date that is 2 years 
after such date--
            ``(1) Increased amount of credit.--Subsection (a) shall be 
        applied by substituting `50 percent' for `40 percent'.
            ``(2) Availability of credit in second year of 
        employment.--
                    ``(A) In general.--Subsection (a) shall be applied 
                by inserting `or qualified second-year wages' after 
                `wages'.
                    ``(B) Qualified second-year wages.--For the 
                purposes of this paragraph, the term `qualified second-
                year wages' means qualified wages which are 
                attributable to service rendered during the 1-year 
                period beginning on the day after the last day of the 
                1-year period with respect to the recipient determined 
                under subsection (b)(2).
            ``(3) Increase in limitation on wages taken into account.--
        Subsection (b)(3) shall be applied by substituting `$10,000' 
        for `$6,000'.
            ``(4) Eligibility of rehires.--
                    ``(A) In general.--Subsection (i)(2) shall not 
                apply.
                    ``(B) Regulations.--The Secretary shall issue such 
                regulations as the Secretary determines appropriate to 
                ensure a reasonable application of subparagraph (A), 
                including prohibiting attempts to claim the benefit of 
                this section through the termination and rehiring of an 
                employee.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of enactment of this Act.
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