What This Bill Does
This bill creates a new tax credit called the Healthcare Worker Tax Credit to help people who work in healthcare settings. Workers can receive money back on their taxes, with half the payment sent to them twice a year instead of waiting until tax time.
Who It Affects
Healthcare workers who are employees or contractors, the Internal Revenue Service (the federal tax agency), and the Department of the Treasury.
Key Provisions
• Workers receive a tax credit of $1,000 per year, or $2,000 if filing taxes jointly with a spouse, as long as they meet eligibility requirements (Sec. 36C(a))
• To qualify, a person must work in a healthcare setting as an employee or contractor for an average of at least 20 hours per week and work at least three months during each six-month period of the year (Sec. 36C(b)(1)(A))
• Eligible workers must have a gross income not exceeding $100,000 (or $200,000 for joint filers or surviving spouses) (Sec. 36C(b)(1)(B))
• Healthcare settings include hospitals, nursing homes, community-based healthcare centers, school or college campuses, primary care facilities, assisted living facilities, hospice or home care, emergency medical services, and other licensed facilities providing medical services (Sec. 36C(b)(2))
• The government will make two equal payments per year to eligible workers, with the amount estimated based on expected tax credit eligibility (Sec. 7527B(a))
What Changes
If this law passes, healthcare workers earning up to $100,000 (or $200,000 if filing jointly) who work an average of 20 hours per week will receive tax credits. Instead of receiving the full amount when filing taxes, workers will get half the money twice during the year through direct payment from the government.
Important Definitions
• "Healthcare setting" means an organization providing healthcare services in hospitals, nursing homes, community-based healthcare centers, school or college campuses, primary care facilities, assisted living facilities, hospice or home care, emergency medical services, or any other licensed facility extending medical, nursing or ancillary (supporting) services to patients including the elderly and disabled (Sec. 36C(b)(2))
• "Eligible individual" means a person who works in a healthcare setting as an employee or contractor for at least 20 hours per week and three months during each half of the tax year, with gross income not exceeding the income limits (Sec. 36C(b)(1))
Effective Date
The bill applies to tax years beginning after December 31, 2022. The advance payment program must be established as soon as practicable (as soon as reasonably possible) after the bill becomes law (Sec. 2(c)).
I
118TH CONGRESS
1ST SESSION H. R. 1215
To amend the Internal Revenue Code of 1986 to establish a refundable
healthcare worker tax credit with semiannual advance payment.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 2023
Mr. MAGAZINER (for himself, Ms. HOYLE of Oregon, Ms. TOKUDA, and Ms.
SCHOLTEN) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to establish
a refundable healthcare worker tax credit with semi-
annual advance payment.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Healthcare Worker Re-
4
tention Act’’.
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SEC. 2. ESTABLISHMENT OF REFUNDABLE HEALTHCARE
1
WORKER TAX CREDIT WITH SEMIANNUAL AD-
2
VANCE PAYMENT.
3
(a) IN GENERAL.—Subpart C of part IV of sub-
4
chapter A of chapter 1 of the Internal Revenue Code of
5
1986 (relating to refundable credits) is amended by insert-
6
ing after section 36B the following new section:
7
‘‘SEC. 36C. HEALTHCARE WORKER TAX CREDIT.
8
‘‘(a) IN GENERAL.—In the case of an eligible indi-
9
vidual, there shall be allowed as a credit against the tax
10
imposed by this subtitle for any taxable year an amount
11
equal to $1,000 ($2,000 in the case of eligible individuals
12
filing a joint return).
13
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of this
14
section—
15
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible
16
individual’ means, with respect to a taxable year,
17
any individual—
18
‘‘(A) who works in a healthcare setting as
19
an employee or contractor for at least—
20
‘‘(i) an average of 20 hours per week,
21
and
22
‘‘(ii) three months during each half of
23
such taxable year, and
24
‘‘(B) with a gross income that does not ex-
25
ceed—
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•HR 1215 IH
‘‘(i) $200,000 in the case of a joint
1
return or a surviving spouse (as defined in
2
section 2(a)), and
3
‘‘(ii) $100,000 in any other case.
4
‘‘(2)
HEALTHCARE
SETTING.—The
term
5
‘healthcare setting’ means an organization which
6
provides healthcare services in any of the following
7
settings:
8
‘‘(A) A hospital.
9
‘‘(B) A nursing home.
10
‘‘(C) A community-based healthcare center.
11
‘‘(D) A school or college campus.
12
‘‘(E) A primary care facility.
13
‘‘(F) An assisted living facility.
14
‘‘(G) Hospice or home care.
15
‘‘(H) Emergency medical services.
16
‘‘(I) Any other licensed facility which ex-
17
tends medical, nursing or ancillary services to
18
patients, including the elderly and disabled.
19
‘‘(c) RECONCILIATION OF CREDIT AND ADVANCE RE-
20
FUNDS OF CREDIT.—The amount of the credit allowed
21
under this section to any taxpayer for any taxable year
22
shall be reduced (but not below zero) by the aggregate
23
amount of payments made under section 7527B to such
24
taxpayer during such taxable year. Any failure to so re-
25
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•HR 1215 IH
duce the credit shall be treated as arising out of a mathe-
1
matical or clerical error and assessed according to section
2
6213(b)(1).
3
‘‘(d) REGULATIONS.—The Secretary shall issue such
4
regulations or other guidance as the Secretary determines
5
necessary or appropriate to carry out the purposes of this
6
section.
7
‘‘(e) TERMINATION.—This section shall not apply to
8
taxable years beginning after December 31, 2024.’’.
9
(b) ADVANCE PAYMENT OF CREDIT.—
10
(1) IN GENERAL.—Chapter 77 of such Code is
11
amended by inserting after section 7527A the fol-
12
lowing new section:
13
‘‘SEC. 7527B. ADVANCE PAYMENT OF HEALTHCARE WORK-
14
ER TAX CREDIT.
15
‘‘(a) IN GENERAL.—The Secretary shall establish a
16
program for making semiannual payments to taxpayers
17
which, in the aggregate during any calendar year, equal
18
the annual advance amount determined with respect to
19
such taxpayer for such calendar year. Semiannual pay-
20
ments made to any taxpayer for any calendar year shall
21
be in equal amounts.
22
‘‘(b) ANNUAL ADVANCE AMOUNT.—For purposes of
23
this section, the term ‘annual advance amount’ means,
24
with respect to any taxpayer for any calendar year, the
25
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•HR 1215 IH
amount (if any) which is estimated by the Secretary as
1
being equal to the amount which would be allowed under
2
subpart C of part IV of subchapter A of chapter 1 by rea-
3
son of section 36C(a) for the taxpayer’s taxable year be-
4
ginning in such calendar year.
5
‘‘(c) NOTICE OF PAYMENTS.—Not later than Janu-
6
ary 31 of the calendar year following any calendar year
7
during which the Secretary makes one or more payments
8
to any taxpayer under this section, the Secretary shall pro-
9
vide such taxpayer with a written notice which includes
10
the taxpayer’s taxpayer identity (as defined in section
11
6103(b)(6)), the aggregate amount of such payments
12
made to such taxpayer during such calendar year, and
13
such other information as the Secretary determines appro-
14
priate.
15
‘‘(d) ADMINISTRATIVE PROVISIONS.—
16
‘‘(1) APPLICATION
OF
DIRECT
DEPOSIT
RE-
17
QUIREMENT.—For purposes of section 3332 of title
18
31, United States Code (and notwithstanding the
19
last sentence of subsection (j)(3) thereof), the pay-
20
ments made by the Secretary under subsection (a)
21
shall be treated as Federal payments.
22
‘‘(2) TIMING.—The Secretary shall, subject to
23
the provisions of this title, refund or credit any over-
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•HR 1215 IH
payment attributable to this subsection as rapidly as
1
possible.
2
‘‘(3)
DELIVERY
OF
PAYMENTS.—Notwith-
3
standing any other provision of law, the Secretary
4
may certify and disburse refunds payable under this
5
section electronically to—
6
‘‘(A) any account to which the payee re-
7
ceived or authorized, on or after January 1,
8
2022, a refund of taxes under this title or of a
9
Federal payment (as defined in section 3332 of
10
title 31, United States Code),
11
‘‘(B) any account belonging to a payee
12
from which that individual, on or after January
13
1, 2022, made a payment of taxes under this
14
title, or
15
‘‘(C) any Treasury-sponsored account (as
16
defined in section 208.2 of title 31, Code of
17
Federal Regulations).
18
‘‘(4) WAIVER
OF
CERTAIN
RULES.—Notwith-
19
standing section 3325 of title 31, United States
20
Code, or any other provision of law, with respect to
21
any payment of a refund under this section, a dis-
22
bursing official in the executive branch of the United
23
States Government may modify payment information
24
received from an officer or employee described in
25
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•HR 1215 IH
section 3325(a)(1)(B) of such title for the purpose
1
of facilitating the accurate and efficient delivery of
2
such payment. Except in cases of fraud or reckless
3
neglect, no liability under section 3325, 3527, 3528,
4
or 3529 of title 31, United States Code, shall be im-
5
posed with respect to payments made under this
6
paragraph.
7
‘‘(e) APPLICATION.—No payments shall be made
8
under the program established under subsection (a) with
9
respect to any taxable year beginning after December 31,
10
2024.’’.
11
(2) CONFORMING AMENDMENTS.—
12
(A) Section 6211(b)(4)(A) of such Code is
13
amended by striking ‘‘and 7527A’’ and insert-
14
ing ‘‘7527A, and 7527B’’.
15
(B) Paragraph (2) of section 1324(b) of
16
title 31, United States Code, is amended—
17
(i) by inserting ‘‘36C,’’ after ‘‘36B,’’,
18
and
19
(ii) by striking ‘‘ or 7527A’’ and in-
20
serting ‘‘7527A, or 7527B’’.
21
(C) The table of sections for subpart C of
22
part IV of subchapter A of chapter 1 of the In-
23
ternal Revenue Code of 1986 is amended by in-
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•HR 1215 IH
serting after the item relating to section 36C
1
the following new item:
2
‘‘Sec. 36C. Healthcare worker tax credit.’’.
(D) The table of sections for chapter 77 of
3
the Internal Revenue Code of 1986 is amended
4
by inserting after the item relating to section
5
7527A the following new item:
6
‘‘Sec. 7527B. Advance payment of healthcare worker tax credit.’’.
(c) EFFECTIVE DATE.—
7
(1) IN GENERAL.—The amendments made by
8
this section shall apply to taxable years beginning
9
after December 31, 2022.
10
(2) ESTABLISHMENT
OF
ADVANCE
PAYMENT
11
PROGRAM.—The Secretary of the Treasury (or the
12
Secretary’s delegate) shall establish the program de-
13
scribed in section 7527B of the Internal Revenue
14
Code of 1986 as soon as practicable after the date
15
of the enactment of this Act.
16
Æ
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