If a new proposal wins approval, a few direct care workers in opportunity zones could shortly receive a tax credit.
Recently, US Rep. John James (R-MI) presented the Reignite Hope Act, which, if passed, would provide direct care workers with a $3,500 tax credit.
Particularly, the measure modifies the current IRS tax code in order to establish a credit for employees of essential industries.
Reignite Hope Act-Proposal Tax Credit to Critical Employees
Rep. James proposed the Reignite Hope Act (HR 4520) last month in order to provide a tax credit of $3,500 to “critical employees” laboring in opportunity zones.
The bill’s cosponsors are Reps. Lori Chavez-DeRemer (R-OR) and Juan Ciscomani (R-AZ).
HR 4520 identifies four types of “critical employees” who qualify: law enforcement employees, caretakers, emergency personnel, and medical professionals.
Employees must work full-time for at least 75% of the tax year in an opportunity zone in order to be eligible for the tax credit for direct care workers.
James’ Reignite Hope Act is already supported by numerous business and social organizations.
The Reignite Hope Act is supported by Argentum, the primary national trade association for professionally managed senior living communities, because it promotes the organization’s efforts to serve the rapidly increasing older adult population.
According to the Workforce Projections for Senior Care Report through Argentum, there will be more than three million positions available in the senior living industry by 2040, and 20 million job openings generally over the long term.
Demand for Permanent Expansion of the Child Tax Credit
The extended child tax credit included in the 2021 American Rescue Plan Act would likewise be made permanent under this plan, in addition to the tax benefit to direct care workers. If passed, the measure would provide tax credits of up to $4,500 for each kid younger than six years old ($3,500 for each child older than six).