HIRE Act

HR 6524 Summary (as introduced)

Overview
- Bill Number: HR 6524
- Title: To amend the Internal Revenue Code of 1986 to extend the work opportunity credit and to make employers of social security disability insurance beneficiaries eligible for such credit, and for other purposes.
- Purpose: Extend the existing Work Opportunity Credit (WOTC) and expand eligibility to employers who hire Social Security Disability Insurance (SSDI) beneficiaries, among other related provisions.

What the bill would do
- Extend the Work Opportunity Credit (WOTC): The legislation would prolong the availability of the WOTC, the federal tax credit designed to encourage employers to hire individuals from certain targeted groups who face barriers to employment.
- Expand eligibility to SSDI-beneficiary employers: The bill would make employers that hire SSDI beneficiaries eligible for the WOTC. In essence, if an employer hires someone who is receiving SSDI benefits, that employer would qualify for the WOTC credit for those hires.
- Other purposes: The wording indicates additional provisions related to the WOTC (or related tax provisions) could be included, though specific details are not provided in the summary.

Key provisions and potential implications
- Eligibility and target groups:
- The bill preserves the core concept of the WOTC (a general tax credit for hiring from targeted groups) and expands the pool of eligible employers to include those who hire SSDI beneficiaries.
- By extending the credit and broadening eligibility, more employers could potentially claim the WOTC against their payroll tax liability or income tax, depending on the current WOTC structure.
- Financial impact:
- Extending the WOTC typically has a revenue impact related to reduced federal tax collections (via the credit). The precise fiscal impact would depend on the extension period, the number of qualifying hires, and the credit amount per employee.
- Administration:
- Employers would need to continue or adjust their hiring and record-keeping practices to document eligibility for the WOTC, including proof of SSDI beneficiary status for hires.
- IRS guidance and any related administrative rules would likely be issued to implement the expanded eligibility.

Who is affected
- Employers: Any business seeking to claim the WOTC, now including those hiring SSDI beneficiaries, would be affected. They may have increased opportunities to reduce tax liability through the credit.
- Workers: Individuals receiving SSDI benefits could become more attractive hires if their eligibility contributes to employer incentive to hire them.
- Tax practitioners and payroll professionals: Need to adapt to any changes in eligibility rules and documentation requirements.

Procedural and timing aspects
- Introduced: December 9, 2025
- Status: Introduced in the House; referred to the House Committee on Ways and Means on December 9, 2025
- Next steps: The committee would consider markup, potential amendments, and a reported bill before potential floor action in the House. If enacted, provisions would apply to tax years defined by the bill (exact effective date and transition rules would be specified in the text).

Notes
- The summary is based on the bill’s title and stated purpose; the full text would provide precise definitions, the duration of the extension, the exact scope of SSDI- beneficiary eligibility, credit amounts, interaction with existing WOTC rules, and any sunset or transition provisions.