BRIDGE Act
- Bill Number
- H.R. 7998
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-03-19: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-10T08:06:21Z
AI-Generated Summary
Purpose
The BRIDGE Act (H.R. 7998) aims to extend and broaden the Work Opportunity Tax Credit (WOTC), a tax incentive that encourages employers to hire individuals from certain disadvantaged groups. WOTC provides employers with a tax credit (a dollar-for-dollar reduction in taxes owed) for wages paid to eligible new hires.
Key Provisions
- Extension of WOTC: Extends the program's availability from December 31, 2025, to December 31, 2030.
- Expanded Eligibility Groups:
- Replaces "qualified ex-felon" with "qualified criminal justice-impacted individual": Includes people convicted of a felony or incarcerated/probation for at least 90 days in federal, state, or local facilities. Eligible if hired within 3 years of their last conviction, release from prison, or end of probation.
- Adds "qualified opportunity youth": Out-of-school youth (ages 16-24 not attending school or working full-time, as defined in the Workforce Innovation and Opportunity Act).
- Certification Process: Local agencies must certify eligibility for these groups.
- Effective Date: Applies to hires starting after the bill's enactment.
- Administrative Measures:
- Treasury Secretary must issue regulations to implement changes, including efficiency improvements.
- Comptroller General (GAO) must study the WOTC claims process and report recommendations to Congress and Treasury within 1 year, focusing on better coordination, data collection, and simplified employer requirements.
Significant Changes to Existing Law
- Prolongs WOTC by 5 years beyond its prior expiration.
- Broadens the ex-felon category to include more people with criminal justice involvement (e.g., shorter incarcerations or probation), removing the prior focus on only those incarcerated 1+ year post-felony.
- Newly introduces opportunity youth as an eligible group.
- Updates references in the Internal Revenue Code (Section 51) to incorporate these changes.
Potential Impacts
- Employers: Increased access to tax credits (up to $9,600 per eligible hire, depending on wages and group), potentially lowering hiring costs for targeted groups.
- Individuals: Greater job opportunities for those with criminal records (aiding reentry) and disconnected youth, promoting employment and reducing recidivism or poverty.
- Government Agencies: IRS/Treasury faces more claims and must streamline processes; local workforce agencies handle more certifications; potential short-term revenue loss from credits but long-term economic gains via employment.
- No direct international relations impact.
Main Stakeholders Affected
- Employers (especially in hiring hard-to-place workers).
- Qualified individuals (criminal justice-impacted people and opportunity youth).
- Government entities (IRS, Treasury, local certifying agencies, GAO).
- Taxpayers (via reduced federal revenue from credits).
Notable Legal, Constitutional, or Political Implications
- Legal: Modifies tax code without altering credit amounts, relying on existing certification by state/local workforce agencies; mandates GAO study for process improvements, enhancing administrative efficiency.
- Constitutional: No apparent issues; uses Congress's taxing and spending powers.
- Political: Incentivizes workforce inclusion for marginalized groups, potentially bipartisan appeal for economic and reentry policies, but may spark debate on tax expenditures vs. direct spending.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Del. Norton, Eleanor Holmes [D-DC-At Large]
Recent Actions
- 2026-03-19: Referred to the House Committee on Ways and Means.
- 2026-03-19: Introduced in House
- 2026-03-19: Introduced in House
Bill Versions
- Building Reentry and Inclusive Development for Greater Employment Act — issued 2026-03-19 — PDF (5 pages)