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Tax Credit for Businesses Increasing Employee Wages

This act introduces a new tax credit for employers who increase their employees' wages. The goal is to encourage businesses to raise salaries, potentially leading to higher earnings for some workers and an improvement in their financial situation. The credit has limitations to ensure sustainable wage growth.
Key points
Businesses can receive a tax credit equal to 10% of the increase in wages for eligible employees.
The credit applies to continuously employed individuals earning up to $75,000 annually before the raise.
The maximum credit for a business is $500,000 per year, and for an individual employee, the wage increase considered is up to $25,000 above their previous earnings.
These amounts will be adjusted annually for inflation to maintain their real value.
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Additional Information
Print number: 117_HR_8675
Sponsor: Rep. Ruiz, Raul [D-CA-36]
Process start date: 2022-08-05
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

RAISE Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_8675.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-08-05.

What are the main provisions?

Key points include:

  • Businesses can receive a tax credit equal to 10% of the increase in wages for eligible employees.
  • The credit applies to continuously employed individuals earning up to $75,000 annually before the raise.
  • The maximum credit for a business is $500,000 per year, and for an individual employee, the wage increase considered is up to $25,000 above their previous earnings.
  • These amounts will be adjusted annually for inflation to maintain their real value.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Ruiz, Raul [D-CA-36].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-02.

CATEGORIES

Taxes Labor Economy