HIRE Act

Bill Number

H.R. 6524

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-12-09: Referred to the House Committee on Ways and Means.

Last Updated

2026-02-05T09:06:28Z

AI-Generated Summary

Purpose

The Helping Individuals Rejoin Employment Act (HIRE Act), H.R. 6524, aims to encourage employers to hire certain groups of workers, including those receiving Social Security Disability Insurance (SSDI), by extending and expanding a tax credit known as the Work Opportunity Tax Credit (WOTC). The WOTC provides financial incentives to businesses for employing individuals from targeted groups facing employment barriers.

Key Provisions

• Extension of the Work Opportunity Tax Credit: The credit, which was set to expire on December 31, 2025, is extended through December 31, 2030.
• Expansion to Include SSDI Beneficiaries: Employers become eligible for the credit when hiring "qualified social security disability insurance beneficiaries." This group is defined as individuals certified by a designated local agency (typically state workforce agencies) as entitled to disability insurance benefits under Title II of the Social Security Act for any month within the 60-day period ending on the hiring date.
• Effective Date: These changes apply to individuals hired after December 31, 2025.

Significant Changes to Existing Law

• Extension of Expiration Date: Under current law (Section 51(c)(4) of the Internal Revenue Code), the WOTC is temporary and expires at the end of 2025. The bill pushes this to 2030, providing longer-term stability for the program.
• Addition of New Eligible Group: The bill amends Section 51(d)(1) to add SSDI beneficiaries as a new category (subparagraph (K)) alongside existing groups like veterans, ex-felons, and long-term unemployed individuals. It also adds a definition in Section 51(d)(16) to clarify eligibility, which previously did not explicitly include active SSDI recipients.

Potential Impacts

• On Government Agencies: The Internal Revenue Service (IRS) will administer the expanded credit, potentially increasing paperwork and certification processes. The Social Security Administration (SSA) may see indirect effects through more certifications for hiring, and overall federal tax revenue could decrease due to more credits claimed, though this might be offset by reduced SSDI payments if beneficiaries return to work.
• On Citizens: SSDI beneficiaries (individuals with disabilities receiving monthly benefits) gain better job opportunities, as employers are incentivized to hire them without immediately losing benefits. This could promote financial independence and reduce reliance on disability payments.
• On Businesses: Employers, especially in sectors with labor shortages, benefit from tax savings—up to $9,600 per eligible hire under the WOTC—potentially lowering hiring costs and encouraging inclusive employment practices.
• On International Relations: No direct impacts, as the bill focuses on domestic tax policy and employment incentives.

Main Stakeholders Affected

• Employers and Businesses: Primary beneficiaries of the tax credit, particularly small and medium-sized enterprises that hire from targeted groups.
• SSDI Beneficiaries: Individuals with disabilities who may find it easier to enter or re-enter the workforce.
• Government Entities: IRS (tax credit administration), SSA (benefit certification), and state workforce agencies (eligibility verification).
• Taxpayers: Indirectly affected through potential shifts in federal spending and revenue.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The bill builds on the existing WOTC framework without altering core tax code structures, ensuring smooth integration. It requires coordination between federal tax and Social Security laws, which could lead to minor administrative challenges in certification processes.
• Constitutional Implications: None significant; the legislation falls under Congress's enumerated powers to tax and spend (Article I, Section 8), promoting general welfare through employment incentives without infringing on individual rights.
• Political Implications: Introduced with bipartisan support (from both Republican and Democratic members), it reflects a consensus on workforce development. Extending the credit could influence future tax policy debates, emphasizing incentives for hiring disadvantaged workers amid ongoing discussions on disability programs and labor participation rates.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Hill, J. French [R-AR-2]

Cosponsors (8)

Rep. Davids, Sharice [D-KS-3], Rep. Dingell, Debbie [D-MI-6], Rep. Carey, Mike [R-OH-15], Rep. Malliotakis, Nicole [R-NY-11], Rep. Vindman, Eugene Simon [D-VA-7], Rep. Tran, Derek [D-CA-45], Rep. Pou, Nellie [D-NJ-9], Rep. Pfluger, August [R-TX-11]

Recent Actions

• 2025-12-09: Referred to the House Committee on Ways and Means.
• 2025-12-09: Introduced in House
• 2025-12-09: Introduced in House

Bill Versions

• Helping Individuals Rejoin Employment Act — issued 2025-12-09 — PDF (3 pages)