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Tax Credit for Workers Earning Below Median Wage

This act introduces a new tax credit for individuals whose hourly wage is below the national median (set at $16.50 per hour). The goal is to provide financial support to lower-income workers, potentially increasing their disposable income. Advance payments of this credit may also be available throughout the year.
Key points
Individuals earning less than $16.50 per hour may qualify for a tax credit, boosting their annual income.
The credit amount is 50% of the difference between the median hourly wage and actual earnings, multiplied by hours worked (up to 40 per week, 2080 annually).
Regular, advance payments of this credit may be made during the year, providing ongoing financial assistance.
The act includes mechanisms for verifying and potentially recovering overpaid advances, with exceptions for lower-income individuals (below $50,000 for singles, $100,000 for joint filers).
The credit applies to tax years beginning after December 31, 2020, but not after December 31, 2023.
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Additional Information
Print number: 117_S_536
Sponsor: Sen. Hawley, Josh [R-MO]
Process start date: 2021-03-02
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Blue Collar Bonus Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_536.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-03-02.

What are the main provisions?

Key points include:

  • Individuals earning less than $16.50 per hour may qualify for a tax credit, boosting their annual income.
  • The credit amount is 50% of the difference between the median hourly wage and actual earnings, multiplied by hours worked (up to 40 per week, 2080 annually).
  • Regular, advance payments of this credit may be made during the year, providing ongoing financial assistance.
  • The act includes mechanisms for verifying and potentially recovering overpaid advances, with exceptions for lower-income individuals (below $50,000 for singles, $100,000 for joint filers).
  • The credit applies to tax years beginning after December 31, 2020, but not after December 31, 2023.
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 Sen. Hawley, Josh [R-MO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

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 Benefits