Work opportunity tax credit for hiring displaced disaster victims

(a)

In general

Section 51(d) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting , or, and by adding at the end the following new subparagraph:

(K)a displaced disaster victim.

(b)

Displaced disaster victim

Section 51(d) of such Code is amended by adding at the end the following new paragraph:

(16)

Displaced disaster victim

(A)

In general

The term displaced disaster victim means any individual who is certified by the designated local agency—(i)as having a principal residence (as defined in section 1033(h)(4)) in a qualified disaster zone which was rendered uninhabitable as a result of the qualified disaster with respect to such qualified disaster zone, (ii)as being employed (immediately prior to the incident period with respect to such qualified disaster) at a location in such qualified disaster zone which was rendered inoperable as a result of such qualified disaster, and(iii)as being in a period of unemployment.(B)

Temporary status

The term displaced disaster victim shall not include any individual unless the hiring date with respect to such individual is before the date which is 1 year after the last day of the incident period with respect to the qualified disaster referred to in subparagraph (A).(C)

Exclusion of full-time employment outside of qualified disaster zone

If the principal place of employment by the taxpayer of any displaced disaster victim is outside of the qualified disaster zone with respect to such individual, the term qualified wages shall not include any amount paid or incurred by such employer as compensation for the services of such individual with respect any calendar week if such individual provided 30 or more hours of services to such employer during such week.(D)

Qualified disaster zone

The term qualified disaster zone means any area—(i)with respect to which a major disaster was declared, on or after January 1, 2024, by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, and(ii)which was determined by the President, on or after January 1, 2024, to warrant individual or individual and public assistance from the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act by reason of the qualified disaster with respect to such disaster area.(E)

Qualified disaster

The term qualified disaster means, with respect to any qualified disaster zone, the disaster by reason of which a major disaster was declared with respect to such area.(F)

Incident period

The term incident period means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred (except that for purposes of this paragraph such period shall not be treated as beginning before January 1, 2024).

(c)

Effective date

The amendments made by this section shall apply to individuals who begin work for the employer on or after January 1, 2024.(d)

Transition rules

In the case of any qualified disaster the incident period of which ends before the date of the enactment of this Act—(1)section 51(d)(16)(B) of the Internal Revenue Code of 1986 shall be applied by substituting the date of the enactment of this Act for the last day and all that follows, and(2)in the case of an individual who begins work for the employer before the date of the enactment of this Act, section 51(d)(15)(A)(iii) shall be determined with respect to the period before the date on which such individual so begins such work.