To Assist Victims of Federally-Declared Disasters Get Back into the Workforce, Rep. Chu & Bipartisan Coalition Introduce the HIRE CREDIT Act

WASHINGTON, D.C. — Today, Reps. Judy Chu (CA-28-D), Jasmine Crockett (TX-30-D), Chuck Edwards (NC-11-R), and Jared Moskowitz (FL-23-D) introduced bipartisan tax legislation—the HIRE CREDIT Act—aimed at helping victims of federally-designated disasters like the Eaton Fire in Californiato get back into the workforce. 

In the aftermath of disasters, individuals are confronted with significant hurdles in trying to rebuild their lives. Homes are severely damaged or destroyed, resulting in the displacement of families, and businesses caught in the path of these disasters are also severely damaged or destroyed, resulting in a loss of jobs. FEMA has determined that nearly 43% of small businesses affected by a disaster never reopen after the disaster, and an additional 29% go out of business within the next 2 years. This has led to countless workers losing their jobs and a steady source of income while they attempt to recover from these tragedies.

To jumpstart employment in the aftermath of natural disasters, the HIRE CREDIT Act would establish a new qualified targeted group under the Work Opportunity Tax Credit (“WOTC”) Program. The new category—“displaced disaster victims”—will be comprised of individuals (1) whose primary home has become uninhabitable as a result of the federal disaster, and (2) are no longer able to work because their employer’s facilities are no longer operable due to the damage caused by the disaster. Businesses that hire this class of individuals will be eligible to receive a tax credit of up to 40% of up to $6,000 of wages paid to this new employee.

“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,” said Rep. Chu. “Many survivors lost their jobs because their place of work was damaged or destroyed, or because their home was burnt, and they have been forced to temporarily relocate to a new community. Reps. Crockett, Edwards, Moskowitz and 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.”

“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. Not only are people often left without homes, but they are also left without their livelihoods as businesses and shops shutter their doors or vanish in the destruction,” said Congresswoman Crockett. It’s important that Congress utilize every tool available to help survivors of these disasters get back on their feet and return back to their 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. Recovery in the aftermath of federal disasters requires every team to do what they can to help constituents build back better, and I am extremely grateful my colleagues Representatives Edwards, Chu, and Moskowitz are helping lead this team with me.”

“Hurricane Helene destroyed homes, businesses, and jobs across Western North Carolina. Now, as we look to pick up the pieces, it’s become clear that finding a job to replace the one folks have lost from hurricane damage is historically more difficult to do,” said Rep. Edward. "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.”

“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,” said Rep. Moskowitz. “That means that when a disaster event impacts a job, we should help workers get back in the workforce. Our commonsense 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.” 

Click here for the bill text.

Click here for a one-pager on the bill.

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