H.R.782 - Reignite Hope Act of 2025 (119th Congress)
Summary
H.R.782, the "Reignite Hope Act of 2025," proposes amendments to the Internal Revenue Code of 1986. It introduces a tax credit for employers who hire critical employees working in qualified opportunity zones. The bill also seeks to make permanent certain expiring provisions related to the child tax credit, increasing the credit amount and modifying income limitations.
Expected Effects
The bill aims to incentivize employment in underserved areas through tax credits for hiring specific professionals. Additionally, it intends to provide ongoing financial relief to families by enhancing and extending the child tax credit. The changes to the child tax credit would provide a larger credit for younger children and adjust the income phase-out thresholds.
Potential Benefits
- Incentivizes employment of healthcare professionals, law enforcement, and childcare providers in qualified opportunity zones.
- Provides a $3,500 tax credit to employers for each critical employee hired.
- Increases the child tax credit to $3,500 per qualifying child, with a higher credit of $4,500 for children under 6.
- Makes the child tax credit provisions permanent, offering long-term financial stability for families.
- Adjusts the income thresholds for the child tax credit, potentially benefiting more middle-income families.
Potential Disadvantages
- The tax credit for hired critical employees has a sunset clause, expiring after three years, which may limit its long-term impact.
- Increased child tax credit costs may increase the national debt if not offset by other revenue increases or spending cuts.
- The income phase-out thresholds, while adjusted, may still exclude some families from receiving the full benefit of the child tax credit.
- Qualified opportunity zones may not always be effective in creating sustainable economic growth.
- The definition of 'critical employee' is limited, excluding other potentially valuable professions.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's Article I, Section 8, which grants Congress 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. The tax credits and child tax credit modifications fall under this power. The bill does not appear to infringe upon any specific constitutional rights or protections.
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).