Section 1 Short title
This Act may be cited as the “Hiring Incentive to Return Employment Act of 2021” or the “HIRE Act of 2021”.
Hiring Incentive to Return Employment Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to make certain adjustments to the work opportunity credit to modernize the credit and make it more effective as a hiring incentive, and for other purposes.
Sec. 2 Extension of work opportunity credit during COVID–19 recovery period
In general— Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(l) Adjustment to credit during COVID–19 recovery period—In the case of individuals hired after the date of the enactment of this subsection in a taxable year beginning before the date that is 2 years after such date—
“(1) Increased amount of credit—Subsection (a) shall be applied by substituting “50 percent” for “40 percent”.
“(2) Availability of credit in second year of employment
“(A) In general—Subsection (a) shall be applied by inserting “or qualified second-year wages” after “wages”.
“(B) Qualified second-year wages—For the purposes of this paragraph, the term “qualified second-year wages” means qualified wages which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to the recipient determined under subsection (b)(2).
“(3) Increase in limitation on wages taken into account—Subsection (b)(3) shall be applied by substituting “$10,000” for “$6,000”.
“(4) Eligibility of rehires
“(A) In general—Subsection (i)(2) shall not apply.
“(B) Regulations—The Secretary shall issue such regulations as the Secretary determines appropriate to ensure a reasonable application of subparagraph (A), including prohibiting attempts to claim the benefit of this section through the termination and rehiring of an employee.”
Effective date— The amendment made by this section shall apply to taxable years ending after the date of enactment of this Act.