119-hr782

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 782 Introduced in House

    (IH) ]

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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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