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119-hr-782119th CongressWALLET

Reignite Hope Act of 2025

Sponsored By: Representative James, John [R-MI-10]

Introduced

Summary

Expands the child tax credit and creates a targeted $3,500 credit for certain frontline workers in distressed neighborhoods. This bill would raise child credit amounts, widen who counts as a qualifying child, and add a time-limited employee tax credit tied to work in qualified opportunity zones.

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  • Families: Raises the child tax credit from $2,000 to $3,500 per child and to $4,500 for children under six, and raises the qualifying age to 17. It also keeps higher phase-out thresholds at $200,000 for single filers and $400,000 for joint filers.
  • Critical workers: Creates a new nonrefundable $3,500 credit for a “critical employee” who works at least 75% of the year full time and whose main workplace is in a qualified opportunity zone. The credit would last for three years and covers nurses, law enforcement, firefighters, rescue squad members, child care providers, and personal or home care aides.
  • Low-income taxpayers and rules: Extends child identification requirements and increases the refundable portion of the child tax credit for some taxpayers with fewer than three qualifying children.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Bigger child tax credit for families

If enacted, you would be able to claim a $3,500 tax credit for each qualifying child. If a child is under age 6 at year-end, the credit would be $4,500. For tax years before January 1, 2026 (tax year 2025), you would also be able to claim $500 for each qualifying dependent who is not a qualifying child. The refundable part would be 15.3% of your earned income used in computing taxable income (the bill removes the prior $3,000 earned-income floor). The credit would be reduced by $50 for each $1,000 (or fraction) your modified AGI is over $400,000 for joint filers, or $200,000 for other filers. You could not get the credit if the taxpayer identifying number was issued after the return due date. The rules would apply to tax years starting after December 31, 2024.

New employer credit for critical hires

If enacted, employers would be able to claim a $3,500 tax credit for each certified 'critical employee.' Employers would need to certify the worker was full-time at least 75% of the taxable year and that the worker's main workplace (majority of hours) was in a qualified opportunity zone as designated on the date of enactment. Covered jobs would include certain healthcare workers (CNA, LPN, RN), law enforcement, rescue squad or ambulance crew members, firefighters, eligible child care providers, and personal or home care aides. The credit would apply for tax years starting after enactment and would not be allowed for tax years beginning more than three years after enactment.

Sponsors & CoSponsors

Sponsor

James, John [R-MI-10]

MI • R

Cosponsors

  • Rep. Ciscomani, Juan [R-AZ-6]

    AZ • R

    Sponsored 1/28/2025

Roll Call Votes

No roll call votes available for this bill.

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