Sponsors (2)
The bill increases direct support for families through a larger, more‑refundable child tax credit and creates targeted hiring incentives to channel workers into distressed Opportunity Zones, but those incentives reduce federal revenue, exclude many small employers and part‑time/frontline workers, are time‑limited, and create administrative and eligibility complexities that limit who benefits.
Parents and low‑income working families: increases the child tax credit to $3,500 per child ($4,500 under age 6) and makes a larger portion refundable using 15.3% of earned income, boosting after‑tax income for many families and especially helping low‑income earners.
Employers, critical workers, and distressed communities: creates a $3,500 tax credit per qualifying full‑time critical employee hired in a designated Opportunity Zone, lowering employer labor costs, increasing hiring demand for nurses, first responders, and care aides, and channeling private‑sector support into underserved areas.
Underserved communities: targeting the hiring credit to Opportunity Zones directs incentives toward distressed rural and urban communities, which may improve local access to critical services where they are most needed.
All taxpayers: the hiring tax credit reduces federal revenue, which could increase the deficit or force tradeoffs with other federal spending unless offsets are provided.
Small or non‑profitable employers: because the hiring credit is nonrefundable, employers without federal tax liability cannot use it, leaving many small, start‑up, or nonprofit employers unable to benefit.
Frontline and flexible workers: the requirement that qualifying critical employees work at least 75% full‑time in an Opportunity Zone and be located in an Opportunity Zone excludes part‑time, rotating, or multi‑site critical workers from the credit, limiting who sees benefits.
Based on analysis of 3 sections of legislative text.
Adds a temporary $3,500 credit for qualifying frontline workers in Opportunity Zones and overhauls the child tax credit to $3,500/$4,500 with new phaseouts and SSN rules.
Introduced January 28, 2025 by John James · Last progress January 28, 2025
Creates a new, temporary $3,500 nonrefundable tax credit for qualifying "critical employees" who work full time (≥75% of the year) and whose main workplace is inside a designated Qualified Opportunity Zone, and makes major, permanent changes to the child tax credit: sets the credit at $3,500 per child ($4,500 for children under 6), applies a steep income phaseout, tightens Social Security number rules, and changes how the refundable portion is calculated.