Bill Details
HR.782 - 119th Congress
Status
Latest action
2025-01-28 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-28
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
View cosponsors (1)
8
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AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would create a new tax credit for certain workers who are hired to work full-time in areas known as opportunity zones, and it would also make the child tax credit permanent with new, higher dollar amounts. The new worker credit would give employers a $3,500 tax credit for each qualifying “critical employee,” such as some health care workers, police officers, firefighters, rescue workers, child care providers, and home care aides, as long as they work mainly in a qualified opportunity zone. At the same time, the bill would keep the child tax credit in place after current rules expire and raise the credit amount for children, while also tightening some rules about who can claim it.
- The new worker tax credit would apply to employers who hire certain full-time critical workers in opportunity zones.
- Qualifying workers include health care professionals such as certified nursing assistants, licensed practical nurses, and registered nurses, as well as police officers, firefighters, rescue and ambulance crew members, child care providers, and home care aides.
- The worker credit would be worth $3,500 per qualifying employee and would last for 3 years after the law takes effect.
- The child tax credit would become permanent and would be set at $3,500 for each qualifying child, or $4,500 for each child under age 6. It would also allow a $500 credit for other dependents for tax years beginning before January 1, 2026.
- The child tax credit would start phasing out for higher-income families once income goes above $400,000 for joint filers and $200,000 for everyone else.
- To claim the credit, children and dependents would need valid names and identification numbers on the tax return, and the bill would keep or update several existing tax rules tied to the credit.
Official Summaries
Reignite Hope Act of 2025
This bill establishes a new nonrefundable personal tax credit (for three years) of $3,500 for critical employees. The bill also increases and makes other changes to the child tax credit.
Under the bill, a critical employee is defined as an individual who works full-time for at least 75% of the tax year (as certified by such individual’s employer) as a
- healthcare professional,
- law enforcement officer,
- member of a rescue squad or ambulance crew,
- firefighter,
- eligible child care provider,
- family child care provider, or
- personal or homecare aid.
Further, under the bill, such individual’s primary place of employment for the majority of hours worked during the tax year must be in a qualified opportunity zone. (A qualified opportunity zone is an economically distressed community where new investments may be eligible for certain tax preferences.)
This bill increases the child tax credit from $2,000 per qualifying child to $3,500 per qualifying child (or $4,500 per qualifying child under six years old).
The bill also
- increases the age limit of a qualifying child to 17 years old (from 16 years old),
- extends the threshold at which the child tax credit begins to phase out ($200,000 for single taxpayers or $400,000 for married taxpayers filing jointly),
- extends the child tax credit identification requirements applicable to qualifying children, and
- increases the refundable portion of the child tax credit for certain taxpayers with fewer than three qualifying children.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 782 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 782
To amend the Internal Revenue Code of 1986 to establish a credit for
hired critical employees and to make permanent certain expiring
provisions relating to the child tax credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2025
Mr. James (for himself and Mr. Ciscomani) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a credit for
hired critical employees and to make permanent certain expiring
provisions relating to the child tax credit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reignite Hope Act of 2025''.
SEC. 2. CREDIT FOR HIRED CRITICAL EMPLOYEES.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25E the following new section:
``SEC. 25F. CREDIT FOR HIRED CRITICAL EMPLOYEES.
``(a) Allowance of Credit.--In the case of a critical employee,
there shall be allowed $3,500 as a credit against the tax imposed by
this chapter.
``(b) Critical Employee.--For purposes of this section:
``(1) In general.--The term `critical employee' means any
of the following individuals whose employer certifies that such
individual worked full-time for not less than 75 percent of the
taxable year in such professional capacity and that such
individual's primary place of employment for the majority of
hours worked during such taxable year is located in a qualified
opportunity zone:
``(A) A healthcare professional.
``(B) A law enforcement officer (as such term is
defined in section 806 of title I of the Omnibus Crime
Control and Safe Streets Act of 1968).
``(C) A member of a rescue squad or ambulance crew
(as such term is defined in section 806 of title I of
the Omnibus Crime Control and Safe Streets Act of
1968).
``(D) A firefighter (as such term is defined in
section 806 of title I of the Omnibus Crime Control and
Safe Streets Act of 1968).
``(E) an eligible child care provider or family
child care provider (as such terms are defined in
section 658P of the Child Care and Development Block
Grant Act of 1990).
``(F) personal or home care aide (as such term is
defined in section 2008 of the Social Security Act).
``(2) Healthcare professional.--The term `healthcare
professional' means--
``(A) a certified nursing assistant, or
``(B) a licensed practical nurse or registered
professional nurse.
``(3) The term `qualified opportunity zone' means a census
tract designated as a qualified opportunity zone under section
1400z-1(b)(1) as of the date of the enactment of this section.
``(c) Sunset.--No credit shall be allowed under subsection (a) for
any taxable year beginning after the date that is 3 years after the
date of the enactment of this section.''.
(b) Clerical Amendment.--The table of section for subpart A of part
IV of subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 25E the following new item:
``Sec. 25F. Credit for hired critical employees.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this section.
SEC. 3. PERMANENT EXTENSION AND MODIFICATION OF SPECIAL RULES FOR CHILD
TAX CREDIT.
(a) In General.--Section 24 of the Internal Revenue Code of 1986 is
amended by striking subsections (a), (b), and (c) and inserting the
following new subsections:
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of--
``(1) $3,500 for each qualifying child of the taxpayer
($4,500 in the case of a qualifying child who has not attained
age 6 as of the close of the calendar year in which the taxable
year of the taxpayer begins), and
``(2) in the case of any taxable year beginning before
January 1, 2026, $500 for each qualifying dependent (other than
a qualifying child) of the taxpayer.
``(b) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowable under subsection (a) shall be reduced (but not below
zero) by $50 for each $1,000 (or fraction thereof) by which the
taxpayer's modified adjusted gross income exceeds $400,000 in the case
of a joint return ($200,000 in any other case). For purposes of the
preceding sentence, the term ``modified adjusted gross income'' means
adjusted gross income increased by any amount excluded from gross
income under section 911, 931, or 933.
``(c) Qualifying Child; Qualifying Dependent.--For purposes of this
section--
``(1) Qualifying child.--The term `qualifying child' means
any qualifying dependent of the taxpayer--
``(A) who is a qualifying child (as defined in
section 152(c)) of the taxpayer,
``(B) who has not attained age 18 at the close of
the calendar year in which the taxable year of the
taxpayer begins, and
``(C) whose name and social security number are
included on the taxpayer's return of tax for the
taxable year.
``(2) Qualifying dependent.--The term `qualifying
dependent' means any dependent of the taxpayer (as defined in
section 152 without regard to all that follows `resident of the
United States' in section 152(b)(3)(A)) whose name and TIN are
included on the taxpayer's return of tax for the taxable year.
``(3) Social security number defined.--For purposes of this
subsection, the term `social security number' means, with
respect to a return of tax, a social security number issued to
an individual by the Social Security Administration, but only
if the social security number is issued--
``(A) to a citizen of the United States or pursuant
to subclause (I) (or that portion of subclause (III)
that relates to subclause (I)) of section
205(c)(2)(B)(i) of the Social Security Act, and
``(B) on or before the due date of filing such
return.''.
(b) Portion of Credit Refundable.--Section 24(d)(1) of such Code is
amended--
(1) by striking subparagraph (A) and inserting the
following:
``(A) the credit which would be allowed under this
section determined--
``(i) without regard to subsection (a)(2),
and
``(ii) without regard to this subsection
(other than this subparagraph) and the
limitation under section 26(a), or'', and
(2) in subparagraph (B)(i), by striking ``15 percent of so
much of the taxpayer's earned income (within the meaning of
section 32) which is taken into account in computing taxable
income for the taxable year as exceeds $3,000'' and inserting
``15.3 percent of the taxpayer's earned income (within the
meaning of section 32) which is taken into account in computing
taxable income''.
(c) Conforming Amendments.--
(1) Section 24(e) of such Code is amended to read as
follows:
``(e) Taxpayer Identification Requirement.--No credit shall be
allowed under this section if the identifying number of the taxpayer
was issued after the due date for filing the return of tax for the
taxable year.''.
(2) Section 24 of such Code is amended by striking
subsection (h).
(d) Removal of Deadwood.--
(1) Section 24 of such Code is amended by striking
subsections (i), (j), and (k).
(2) Chapter 77 of such Code is amended by striking section
7527A (and by striking the item relating to section 7527A in
the table of sections for such chapter).
(3) Section 26(b)(2) of such Code is amended by inserting
``and'' at the end of subparagraph (X), by striking ``, and''
at the end of subparagraph (Y) and inserting a period, and by
striking subparagraph (Z).
(4) Section 3402(f)(1)(C) of such Code is amended by
striking ``section 24 (determined after application of
subsection (j) thereof)'' and inserting ``section 24(a)''.
(5) Section 6211(b)(4)(A) of such Code is amended--
(A) by striking ``24 by reason of subsections (d)
and (i)(1) thereof'' and inserting ``24(d)'', and
(B) by striking ``6428B, and 7527A'' and inserting
``and 6428B''.
(6) Section 1324(b)(2) of title 31, United States Code, is
amended by striking ``6431, or 7527A'' and inserting ``or
6431''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2024.
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