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Tax Credit for Businesses Rewarding Employees with Wage Increases.

This law introduces a new tax credit designed to incentivize employers to increase wages for their long-term, lower-to-middle income employees. Businesses can claim a credit equal to 10% of the wage increase, potentially leading to higher paychecks for qualifying citizens. The goal is to boost compensation for workers earning $75,000 or less annually.
Key points
Employers receive a 10% tax credit on the amount of increased wages paid to eligible employees.
The credit applies to employees continuously employed who earned $75,000 or less in the preceding year (this amount is subject to inflation adjustment).
The maximum credit an employer can claim is $500,000 per year, and the credit is capped on the first $25,000 of wage increase per employee.
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Additional Information
Print number: 118_HR_2527
Sponsor: Rep. Ruiz, Raul [D-CA-25]
Process start date: 2023-04-06
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

RAISE Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2527.

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 2023-04-06.

What are the main provisions?

Key points include:

  • Employers receive a 10% tax credit on the amount of increased wages paid to eligible employees.
  • The credit applies to employees continuously employed who earned $75,000 or less in the preceding year (this amount is subject to inflation adjustment).
  • The maximum credit an employer can claim is $500,000 per year, and the credit is capped on the first $25,000 of wage increase per employee.
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-25].

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 2025-12-30.

CATEGORIES

Taxes Labor Economy