Overview
Title
To amend the Internal Revenue Code of 1986 to allow the work opportunity tax credit for hiring displaced disaster victims.
ELI5 AI
H. R. 1914 is a rule that lets companies get a little bit of money back from the government as a thank you when they give jobs to people who had to leave their homes because of a big disaster, like a storm or fire. This way, the companies help people find work, and they both get something good out of it!
Summary AI
H. R. 1914 proposes changes to the Internal Revenue Code to allow employers to receive a tax credit when they hire individuals displaced by disasters. This bill introduces the term "displaced disaster victim," defining it as those whose homes or jobs in disaster-declared areas have been rendered uninhabitable or inoperable. The tax credit is designed to encourage employment of these individuals, offering financial incentives to employers who hire them. The bill specifies conditions for employment eligibility and restrictions, ensuring the tax credit applies only in certain disaster situations after January 1, 2024.
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AnalysisAI
Summary of the Bill
H.R. 1914, also known as the "Helping Increase Realtime Employment for Communities Recovering from Emergency Disasters for an Interim Time Act" or "HIRE CREDIT Act," proposes an amendment to the Internal Revenue Code of 1986. Its main objective is to grant a work opportunity tax credit to employers who hire individuals displaced by disasters. The bill defines "displaced disaster victims" as those whose homes or workplaces have been rendered uninhabitable, leading to unemployment. It sets forth criteria about the qualifications for this status and the conditions under which the tax credit applies.
Significant Issues
Several issues are apparent within the bill. One prominent concern is the ambiguity surrounding the definition of a "displaced disaster victim." The bill requires certification by a "designated local agency," which could lead to inconsistencies in application, as the process and standards for certification are not clearly defined. Additionally, the term "qualified wages" lacks clarity regarding how wages are treated if the employment location is outside the disaster zone. These ambiguities may complicate implementation and financial planning for both employers and employees.
The bill also places a restriction on the hiring date, which might exclude those impacted by extended recovery durations from benefiting. Furthermore, the effective date specified may disadvantage individuals who began their employment slightly before January 1, 2024, and thus potentially miss out on the tax credit. Lastly, the short title "HIRE CREDIT Act," while catchy, may mislead stakeholders about the bill's specific content and purpose.
Impact on the Public
This bill aims to incentivize employers to hire individuals who have been displaced by disasters. If successfully implemented, it could aid communities in recovering faster from the economic impacts of such events by stimulating job opportunities for those most affected. However, the administrative burden imposed by certification and eligibility criteria might impede the program's effectiveness and restrict the benefits to a narrower group than intended.
Impact on Specific Stakeholders
Employers are direct stakeholders who might benefit from the tax credit by reducing their tax liabilities when hiring displaced disaster victims. However, the complexities in certifying eligible employees and meeting the location-based wage criteria could pose administrative challenges, potentially discouraging participation.
For displaced individuals seeking employment, the bill offers a supportive mechanism to re-enter the workforce. Nonetheless, those who start their jobs just outside the stipulated timelines or areas could be inadvertently excluded, which might create inequities among similarly affected individuals.
Local governments and administrative bodies responsible for implementing and overseeing the certification process may face increased responsibilities and the need for additional resources, which could strain existing systems.
In conclusion, while H.R. 1914 presents a potentially beneficial plan to assist disaster victims, success depends on addressing the highlighted issues to ensure that its benefits are broadly and effectively accessible.
Issues
The criteria for identifying a 'displaced disaster victim' in Section 2 are potentially ambiguous, notably regarding the certification by a designated local agency and the definition of 'qualified disaster zone.' This could lead to inconsistency in application, impacting the individuals and businesses involved.
The term 'qualified wages' in Section 2 is unclear concerning how wages paid to displaced disaster victims are treated if their employment is outside the qualified disaster zone. This lack of clarity could affect both employers and employees financially and administratively.
The requirement for the hiring date in Section 2 is restrictive, possibly excluding individuals affected by long recovery periods from benefiting from the tax credit, thereby undermining the bill's intent to support all displaced disaster victims.
The effective date clause in Section 2 might disadvantage individuals who started employment shortly before the specified date, creating legal and financial complications for employers and employees trying to benefit from the work opportunity tax credit.
The short title in Section 1 could induce confusion. 'HIRE CREDIT Act' is a catchy acronym but it may mislead stakeholders about the bill's content, affecting public understanding and implementation.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of the act states that it can be referred to as the “Helping Increase Realtime Employment for Communities Recovering from Emergency Disasters for an Interim Time Act” or simply the “HIRE CREDIT Act.”
2. Work opportunity tax credit for hiring displaced disaster victims Read Opens in new tab
Summary AI
The text describes an amendment to the Internal Revenue Code, introducing a work opportunity tax credit for employers who hire displaced disaster victims. A displaced disaster victim is defined as someone whose home or job has been made unsafe or unusable due to a disaster, and who is currently unemployed; however, this status is temporary and excludes those employed full-time outside the affected area.