This bill matters to voters because it offers a direct financial incentive to help communities rebuild and recover after devastating natural disasters. When a major disaster strikes, thousands of people can lose their homes, their jobs, and their livelihoods overnight. This bill aims to speed up economic recovery by encouraging businesses to hire these displaced individuals, providing them with much-needed income and stability.
If this bill becomes law, it could lead to more job opportunities for disaster victims, helping them get back on their feet faster and stimulating local economies. If it doesn't pass, businesses might be less inclined to prioritize hiring individuals displaced by disasters, potentially slowing down the recovery process and leaving more people struggling to find work after catastrophic events.
KEY PROVISIONS
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PROVISION 01
Expands the Work Opportunity Tax Credit (WOTC) to include "displaced disaster victims" as a target group.
This provides a tax incentive for businesses to hire individuals whose lives have been significantly impacted by major disasters.
PROVISION 02
Defines a "displaced disaster victim" as someone whose principal residence and previous job were in a qualified disaster zone and rendered uninhabitable or inoperable by the disaster, and who is currently unemployed.
This ensures the tax credit targets those most severely affected and in need of employment after a major disaster.
PROVISION 03
Requires hiring to occur within one year after the end of the disaster's incident period and restricts the credit for full-time jobs located outside the disaster zone.
This focuses the incentive on immediate post-disaster recovery and employment within or very close to the affected region.
PROVISION 04
Sets an effective date, applying to individuals who begin work for an employer on or after January 1, 2024.
This makes the credit applicable to recent major disasters, potentially providing retrospective relief for affected communities and businesses.
This bill matters to voters because it offers a direct financial incentive to help communities rebuild and recover after devastating natural disasters. When a major disaster strikes, thousands of people can lose their homes, their jobs, and their livelihoods overnight. This bill aims to speed up economic recovery by encouraging businesses to hire these displaced individuals, providing them with much-needed income and stability.
If this bill becomes law, it could lead to more job opportunities for disaster victims, helping them get back on their feet faster and stimulating local economies. If it doesn't pass, businesses might be less inclined to prioritize hiring individuals displaced by disasters, potentially slowing down the recovery process and leaving more people struggling to find work after catastrophic events.
KEY PROVISIONS
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high
Expands the Work Opportunity Tax Credit (WOTC) to include "displaced disaster victims" as a target group.
This provides a tax incentive for businesses to hire individuals whose lives have been significantly impacted by major disasters.
high
Defines a "displaced disaster victim" as someone whose principal residence and previous job were in a qualified disaster zone and rendered uninhabitable or inoperable by the disaster, and who is currently unemployed.
This ensures the tax credit targets those most severely affected and in need of employment after a major disaster.
med
Requires hiring to occur within one year after the end of the disaster's incident period and restricts the credit for full-time jobs located outside the disaster zone.
This focuses the incentive on immediate post-disaster recovery and employment within or very close to the affected region.
med
Sets an effective date, applying to individuals who begin work for an employer on or after January 1, 2024.
This makes the credit applicable to recent major disasters, potentially providing retrospective relief for affected communities and businesses.
Hiring date must be before 1 year after the last day of the incident period of the qualified disaster.
January 1, 2024
Incident period for a qualified disaster shall not be treated as beginning before.
January 1, 2024
The amendments made by this section shall apply to individuals who begin work for the employer on or after.
GLOSSARY
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Work Opportunity Tax Credit (WOTC)
A federal tax credit available to employers that hire individuals from certain target groups who have consistently faced significant barriers to employment.
Internal Revenue Code of 1986
The official compilation of federal tax laws in the United States.
Displaced Disaster Victim
An individual certified as having their primary home in a major disaster zone rendered unlivable, who was employed in that zone before the disaster and is now unemployed.
Qualified Disaster Zone
An area where the President has declared a major disaster and determined it warrants individual or public assistance since January 1, 2024.
Incident Period
The timeframe specified by the Federal Emergency Management Agency (FEMA) during which a disaster occurred, not starting before January 1, 2024, for the purpose of this bill.
Designated Local Agency
A local government body or organization responsible for certifying individuals' eligibility for certain programs, in this case, verifying if someone is a displaced disaster victim.
Principal Residence
ACTION TIMELINE
2 EVENTS
MAR 6, 25
Introduced in House
INTROREFERRAL
MAR 6, 25
Referred to the House Committee on Ways and Means.
