H.R. 6524: Helping Individuals Rejoin Employment Act

This bill, titled the Helping Individuals Rejoin Employment Act, aims to amend the Internal Revenue Code to make two primary changes related to the Work Opportunity Tax Credit (WOTC).

Extension of the Work Opportunity Tax Credit

The bill proposes to extend the current deadline for the Work Opportunity Tax Credit, which was set to expire on December 31, 2025. The new expiration date will be December 31, 2030. This extension allows employers to continue to receive tax credits when they hire individuals from certain targeted groups who face barriers to employment.

Inclusion of Social Security Disability Insurance Beneficiaries

Secondly, the bill expands eligibility for the Work Opportunity Tax Credit to include employers who hire individuals receiving Social Security Disability Insurance (SSDI). Here are the key points:

• Eligibility Criteria: Employers can claim the tax credit when they hire individuals classified as "qualified social security disability insurance beneficiaries." This classification includes those who have been certified by the designated local agency as entitled to SSDI benefits within a specified time frame ending on their hiring date.
• Qualified Beneficiary Definition: A "qualified social security disability insurance beneficiary" is defined as an individual who is certified as entitled to SSDI benefits during the 60 days preceding the date they start work.

Effective Date

The provisions of this bill will be effective for individuals who begin working for employers after December 31, 2025, ensuring that the new tax credits and eligibility rules apply to future hires.

Impact on Employers

The legislation is designed to incentivize employers to hire individuals who are part of traditionally underrepresented groups in the workforce, particularly those with disabilities. By providing a financial benefit in the form of tax credits, the bill encourages the creation of job opportunities for those who may otherwise struggle to find employment.

Relevant Companies

• None found