HIRE CREDIT Act

This bill would let employers claim the federal Work Opportunity Tax Credit when they hire people forced out of their homes and jobs by a major disaster. To qualify, the worker must be certified as someone who lived in a disaster zone that became uninhabitable, had been working at a site in that zone that was shut down by the disaster, and is currently unemployed. The hire must happen within one year after FEMA’s official “incident period” for that disaster ends .

Key points

• Who is affected: Employers and “displaced disaster victims” in areas where the President declared a major disaster on or after January 1, 2024, and FEMA approved individual assistance for residents.
• What changes: Adds displaced disaster victims as a group that qualifies an employer for the Work Opportunity Tax Credit. If the job is full-time (30+ hours/week) and located outside the disaster zone, the employer cannot claim the credit for those weeks .
• When: Applies to people who start work on or after January 1, 2024, with special transition rules for disasters that ended before the bill becomes law and for hires made before that date of enactment .