H.R. 7998: Building Reentry and Inclusive Development for Greater Employment Act

This bill, known as the Building Reentry and Inclusive Development for Greater Employment Act (or BRIDGE Act), primarily focuses on modifying the Work Opportunity Tax Credit (WOTC) within the Internal Revenue Code. The key elements of the bill are as follows:

Extension of the Tax Credit

The bill proposes to extend the Work Opportunity Tax Credit's expiration date from December 31, 2025, to December 31, 2030. This allows employers to continue claiming tax credits for hiring specific groups of individuals who face barriers to employment.

Expansion of Eligibility Criteria

The bill expands the eligibility for the tax credit to include:

• Qualified Criminal Justice-Impacted Individuals: This refers to individuals certified by a designated local agency as having been convicted of a felony or incarcerated for a minimum of 90 days, who are hired within three years of their conviction or release.
• Qualified Opportunity Youth: This includes individuals certified as out-of-school youth, as defined in the Workforce Innovation and Opportunity Act.

Conforming Amendments

To reflect the expanded eligibility criteria, the bill amends existing legal definitions and terminology within the tax code. The term "qualified ex-felon" will be updated to "qualified criminal justice-impacted individual," and additional qualifications for opportunity youth will be included.

Effective Date

The amendments will apply to individuals who begin working for an employer after the enactment of the Act.

Administrative Provisions

The Secretary of the Treasury is tasked with creating necessary regulations to implement the amendments. Furthermore, the Comptroller General of the United States will conduct a study on how efficiently employers can claim the tax credit. This study should include recommendations for improving the administrative process, such as better interagency coordination and streamlined informational requirements.

Relevant Companies

None found