HB1914, titled the HIRE CREDIT Act, would amend the Internal Revenue Code to expand the federal Work Opportunity Tax Credit (WOTC) to include employers who hire “displaced disaster victims.” The bill defines that term as individuals whose principal residence was in a federally declared qualified disaster zone, whose prior workplace in that zone was rendered inoperable by the disaster, and who are unemployed. To qualify, the individual must be certified by a designated local agency, and the hiring must occur within one year after the end of the disaster’s incident period.
The bill is limited to disasters declared on or after January 1, 2024, and it applies retroactively to individuals who begin work on or after that date. It also includes transition rules for disasters whose incident periods ended before enactment, allowing the credit to apply in certain circumstances after the bill becomes law. The legislation further narrows the credit by excluding wages for weeks in which the worker provides 30 or more hours of service for an employer outside the disaster zone.
Impact
If enacted, HB1914 would amend section 51(d) of the Internal Revenue Code by adding displaced disaster victims as a new WOTC target group, thereby reducing federal income tax liability for eligible employers that hire qualifying workers from disaster-affected areas. It would affect employers, displaced workers, state and local workforce agencies that certify eligibility, and disaster recovery hiring practices in areas designated under the Stafford Act. The bill does not change disaster relief law itself, but it creates a tax incentive tied to federally declared disasters and FEMA incident periods.
Sentiment
There is limited recorded debate or voting history in the provided materials, so the overall sentiment appears neutral to supportive based on the bill’s purpose and sponsorship. The measure is framed as a disaster-recovery employment incentive, suggesting a policy goal of helping residents and workers regain employment after major disasters. No committee transcript or vote data is available to indicate opposition or amendment activity.
Contention
The main points of potential contention are administrative and scope-related rather than ideological. The bill relies on certification by a designated local agency, which could raise questions about implementation, verification, and burden on local workforce systems. It also limits eligibility to disasters declared on or after January 1, 2024, and only for a one-year hiring window after the incident period, which may be viewed as either appropriately targeted or too narrow. Another possible issue is the exclusion of wages when the worker is employed outside the disaster zone for 30 or more hours in a week, which may complicate employer eligibility and mixed-worksite arrangements.