A bipartisan coalition led by Rep. Judy Chu (D-CA) has introduced the HIRE CREDIT ACT, a new tax relief measure designed to help victims of federally-declared disasters return to work. The bill, co-sponsored by Reps. Jasmine Crockett (D-TX), Chuck Edwards (R-NC), and Jared Moskowitz (D-FL) aim to support displaced individuals and businesses struggling to rebuild in disaster-affected areas like the Eaton Fire zone in California.
Legislation to Address Post-Disaster Employment Crisis
Natural disasters leave lasting economic damage, often forcing businesses to shut down and displacing thousands of workers. According to FEMA, nearly 43% of small businesses affected by disasters never reopen, while an additional 29% close within two years. The HIRE CREDIT Act seeks to mitigate these effects by incentivizing businesses to employ disaster-displaced individuals.
Under the bill, businesses hiring workers from the newly designated “displaced disaster victims” category under the Work Opportunity Tax Credit (WOTC) Program would receive a tax credit of up to 40% on wages (capped at $6,000 per employee). To qualify, employees must:
Have lost their primary residence due to a federally declared disaster.
- Be unable to return to their previous job because their employer’s business was destroyed or severely damaged.
Congressional Support for Disaster Recovery
Rep. Judy Chu (D-CA)
“The January Eaton Fire devastated the communities of Altadena and northern Pasadena in my district—destroying 9,500 structures, making 20,000 homeless, and taking 17 lives. My HIRE CREDIT Act would help survivors of this fire and other presidentially declared disasters who lost their jobs to get back on their feet more quickly by incentivizing employers to hire them.”
Rep. Jasmine Crockett (D-TX)
“Living in the great state of Texas, I am all too familiar with the damage that disasters like tornadoes and wildfires cause to our communities.Through the HIRE CREDIT Act, businesses will be incentivized to hire displaced workers within their communities and provide them with a chance to rebuild their lives while simultaneously boosting local economies. ”
Rep. Chuck Edwards (R-NC)
“Hurricane Helene destroyed homes, businesses, and jobs across Western North Carolina. The HIRE CREDIT Act will give employers in our mountains a tax credit to hire dislocated hurricane survivors, giving businesses the federal support they need to hire new staff during this difficult time while keeping our people in our mountains.”
Rep. Jared Moskowitz (D-FL)
“As former Emergency Management Director for the state of Florida, I’ve seen how disaster events can upend every part of a family’s life and how critical it is they have the tools to get back on their feet as quickly as possible. The HIRE CREDIT Act will incentivize businesses to hire those affected by federally-designated disaster events and in the process, will help support these families and build back local economies.”
Next Steps
The bill is now under review in the House, where it is expected to gain bipartisan support. If passed, it will provide much-needed tax incentives for businesses hiring workers displaced by disasters, ultimately aiding economic recovery efforts nationwide.
For more details:
Click here for the full bill text
Click here for a one-pager on the bill
