Helping Individuals Rejoin Employment Act; HIRE Act
Summary
The Helping Individuals Rejoin Employment Act (HIRE Act) aims to amend the Internal Revenue Code of 1986 by extending the Work Opportunity Tax Credit (WOTC) through December 31, 2030. It also expands WOTC eligibility to include employers who hire Social Security Disability Insurance (SSDI) beneficiaries. This expansion seeks to incentivize the employment of individuals receiving SSDI benefits.
The bill defines a 'qualified social security disability insurance beneficiary' as someone certified by a local agency as entitled to SSDI benefits within the 60-day period ending on the hiring date. The changes introduced by this bill will apply to individuals starting work for an employer after December 31, 2025.
In short, the HIRE Act intends to encourage businesses to hire more individuals with disabilities by providing them with tax incentives.
Expected Effects
The HIRE Act will likely increase employment opportunities for individuals receiving Social Security Disability Insurance (SSDI) benefits. By extending the Work Opportunity Tax Credit (WOTC), it provides a financial incentive for employers to hire from this demographic.
This could lead to a reduction in reliance on disability benefits and an increase in the workforce participation rate among SSDI beneficiaries. The extension of the WOTC itself provides continued support for other targeted groups, promoting broader employment opportunities.
Potential Benefits
- Increased employment opportunities for SSDI beneficiaries.
- Potential reduction in reliance on social security disability insurance.
- Financial incentives for employers to hire individuals with disabilities.
- Extension of the Work Opportunity Tax Credit for other eligible groups.
- Possible boost to the economy through increased workforce participation.
Potential Disadvantages
- Potential for employers to exploit the tax credit without providing meaningful employment.
- Administrative burden for employers to certify SSDI beneficiary status.
- Possible displacement of other potential hires who do not qualify for the tax credit.
- The cost of the tax credit extension could increase the national debt.
- Limited impact if the tax credit amount is not substantial enough to incentivize hiring.
Constitutional Alignment
The HIRE Act appears to align with the Constitution's general welfare clause (Preamble). By promoting employment and reducing reliance on government assistance, it could be argued that the bill aims to 'promote the general Welfare'.
Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The HIRE Act falls under Congress's power to tax and spend for the general welfare. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).