A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section: 25E. Credit for qualified Health Enterprise Zone workers (a) Allowance of credit In the case of a qualified Health Enterprise Zone worker, there shall be allowed as a credit against the tax imposed by this chapter for a taxable year an amount equal to 40 percent of wages received for qualified Health Enterprise Zone work. (b) Definitions For purposes of this section— (1) The term qualified Health Enterprise Zone worker means, with respect to wages, an individual whose principal place of employment while earning such wages is within a Health Enterprise Zone (as such term is defined in section 30209 of the Health Enterprise Zones Act of 2020 ). (2) The term qualified Health Enterprise Zone work has the meaning given such term in section 51. . (2) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Credit for qualified Health Enterprise Zone workers. . (3) Effective date The amendments made by this section shall apply to amounts paid or incurred after the date of the enactment of this Act. 30205. Grants (a) Authorization For each area designated under section 30202 as a Health Enterprise Zone, the Secretary may award a grant to the community-based nonprofit organization or local governmental agency that applied for such designation to support such applicant and its coalition partners in reducing health disparities and improving health outcomes in such area. (b) Use of funds Programs and activities funded through a grant under this section shall be consistent with the grantee’s plan submitted pursuant to section 30202(d)(1) and may include the following: (1) Subgrants to health care practitioners (A) In general For the purpose of improving or expanding the delivery of health care in the respective Health Enterprise Zone, the grantee may award