H.R. 1914: Helping Increase Realtime Employment for Communities Recovering from Emergency Disasters for an Interim Time Act

This bill, titled the Helping Increase Realtime Employment for Communities Recovering from Emergency Disasters for an Interim Time Act or the HIRE CREDIT Act, seeks to amend the Internal Revenue Code to provide tax credits to employers who hire individuals who have been displaced by disasters. Here are the key components of what the bill would do:

Work Opportunity Tax Credit Expansion

The bill proposes to expand the existing Work Opportunity Tax Credit (WOTC) to include a new category for hiring displaced disaster victims. This means that employers could receive tax incentives for hiring individuals who have lost their jobs due to disasters.

Definition of Displaced Disaster Victim

A displaced disaster victim is defined in the bill as an individual who is:

• Certified by a local agency as having a principal residence in a qualified disaster zone that was uninhabitable due to a disaster.
• Employed at a location within that disaster zone that is now inoperable because of the disaster.
• Currently unemployed.

Temporary Employment Parameters

The bill also specifies that to qualify for this tax credit, the hiring of the displaced disaster victim must occur before one year after the disaster incident period has ended.

Qualified Disaster Zone Criteria

A qualified disaster zone is defined as an area where a major disaster has been declared by the President on or after January 1, 2024. This area must also be designated to require individual or public assistance by the Federal Government following the disaster.

Incident Period Definition

The incident period refers to the time frame during which the disaster occurred, determined by the Federal Emergency Management Agency (FEMA). For the purposes of this bill, the incident period cannot start before January 1, 2024.

Effective Date and Transition Rules

The provisions of this bill will apply to individuals who start working for their employers after January 1, 2024. Additionally, there are rules in place for transitioning those affected by disasters declared before the enactment of this bill to ensure that they can still benefit from these tax credits.

Conclusion of Provisions

By providing these tax incentives, the bill aims to encourage employers to hire individuals affected by disasters, ultimately supporting their recovery and reintegration into the workforce.

Relevant Companies

• None found