H.R. 782 — Reignite Hope Act of 2025

This section establishes a $3,500 tax credit (new IRC §25F) for critical employees whose employers certify that they worked full-time for at least 75% of the taxable year in such capacity with their primary place of employment in a qualified opportunity zone (i.e., a population census tract designated under IRC §1400Z–1 as of enactment). Critical employees include (1) healthcare professionals (i.e., certified nursing assistants, licensed practical nurses, or registered nurses); (2) law enforcement officers, rescue squad or ambulance crew members, and firefighters (as defined in the Omnibus Crime Control and Safe Streets Act of 1968); (3) eligible or family child care providers (as defined in the Child Care and Development Block Grant Act of 1990); and (4) personal or home care aides (as defined in the Social Security Act). The credit applies to taxable years beginning after enactment and sunsets for taxable years beginning more than three years after enactment.

This section permanently extends and modifies the child tax credit (CTC)—which provides a tax credit against income tax liability for qualifying children and dependents, with a refundable portion (additional child tax credit, or ACTC) for low-income families—for taxable years beginning after December 31, 2024, by (1) increasing the credit to $3,500 per qualifying child under age 18 ($4,500 if under age 6) from $2,000 per qualifying child under age 17, and providing $500 per qualifying dependent (other than a qualifying child) only for taxable years beginning before January 1, 2026; (2) retaining the phaseout of $50 for each $1,000 (or fraction thereof) of modified adjusted gross income exceeding $400,000 (joint return) or $200,000 (other cases), with modified adjusted gross income defined to include amounts excluded under sections 911, 931, or 933; (3) revising the refundable ACTC to the lesser of the CTC allowable without regard to the $500 dependent amount or nonrefundable limits, or 15.3% of earned income taken into account in computing taxable income (from 15% of such income exceeding $3,000); and (4) requiring a Social Security number (issued timely to U.S. citizens or certain lawful residents) for qualifying children and a taxpayer identification number for qualifying dependents and the taxpayer, while striking advance payment authority and related provisions.