HIRE Act of 2021

Bill: 117-hr-3449
Sponsor: full_name: Rep. Suozzi, Thomas R. [D-NY-3]
Introduced: 2021-05-20
Policy area: Taxation
Subjects: Employee hiring

Food assistance and relief

Income tax credits

Poverty and welfare assistance

Unemployment

Veterans' education, employment, rehabilitation

Wages and earnings

Youth employment and child labor
Latest action: action_date: 2021-05-20
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-05-20
action_desc: Introduced in House
text: <p><strong>Hiring Incentive to Return Employment Act of 2021 or the HIRE Act of 2021</strong></p> <p>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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 3449 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.

1. Short title This Act may be cited as the Hiring Incentive to Return Employment Act of 2021 or the HIRE Act of 2021 . 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.