S 2800 IS
110th CONGRESS
2d Session
S. 2800
To increase the incentives for employers to hire qualified ex-felons by enhancing the effectiveness of the work opportunity tax credit, to reduce the backlog of applications pending certification under the work opportunity tax credit program, to enhance the effectiveness of the Federal bonding program, and to authorize a pilot program for employment-focused reentry projects.
IN THE SENATE OF THE UNITED STATES
April 2, 2008
Mr. SPECTER introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To increase the incentives for employers to hire qualified ex-felons by enhancing the effectiveness of the work opportunity tax credit, to reduce the backlog of applications pending certification under the work opportunity tax credit program, to enhance the effectiveness of the Federal bonding program, and to authorize a pilot program for employment-focused reentry projects.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Employment Access for Recidivism Reduction Nationwide' or the `EARN Act'.
SEC. 2. ENHANCING INCENTIVES UNDER THE WORK OPPORTUNITY TAX CREDIT.
(a) In General- The Secretary of Labor shall carry out activities to--
(1) reduce and eliminate any backlogs of more than 6 months for employers who apply for certifications from State workforce agencies for purposes of the work opportunity credit program under section 51 of the Internal Revenue Code of 1986;
(2) increase the awareness of employers of the Federal tax credits available for employers who employ individuals who otherwise face barriers to employment, such as recipients of long-term family assistance and ex-felons; and
(3) utilize the Internet to process pre-screening notices and certification requests for the work opportunity credit determined under section 51 of the Internal Revenue Code of 1986.
(b) Report- Not later than 90 days after the date of enactment of this Act, the Secretary of Labor shall submit to the appropriate committees of Congress, a plan that outlines the steps that will be taken by the Department of Labor to carry out activities this section to achieve the purposes of this Act.
(c) Authorization of Appropriations- There is authorized to be appropriated to carry out this section, $5,000,000 for each of fiscal years 2009 through 2014.
SEC. 3. IMPROVING THE FEDERAL BONDING PROGRAM.
(a) In General- The Secretary of Labor shall carry out activities to increase by 25 percent the number of fidelity bonds purchased and issued by States through the Federal Bonding Program.
(b) Authorization of Appropriations- There is authorized to be appropriated to carry out this section, $1,000,000 for each of fiscal years 2009 through 2014.
SEC. 4. INCREASED WORK OPPORTUNITY CREDIT FOR QUALIFIED EX-OFFENDERS HIRED UNDER CERTIFIED PROGRAMS.
(a) In General- Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
`(l) Increased Credit for Qualified Ex-Felons Hired Under Certain Programs-
`(1) IN GENERAL- In the case of a taxpayer who employs a qualified ex-felon under a program described in paragraph (3), the credit allowed under this section for any taxable year shall be increased by an amount equal to the amount which bears the same ratio to $10,000 as--
`(A) the number of days during the taxable year during which such qualified ex-felon was employed by the taxpayer, bears to
`(B) the number of days in the taxpayer's taxable year.
`(2) LIMITATION-
`(A) IN GENERAL- The aggregate credits allowed under this subsection for all taxpayers shall not exceed $10,000,000.
`(B) ALLOCATION OF CREDITS- The Secretary, in consultation with the Secretary of Labor and the Attorney General, shall allocate the credit limitation under subparagraph (A) among taxpayers with programs described in paragraph (3).
`(3) QUALIFIED EX-FELON PROGRAM- A program is described in this paragraph if such program--
`(A) is certified by the Secretary, in consultation with the Secretary of Labor and the Attorney general, and
`(B) provides that any qualified ex-felon hired under the program--
`(i) is paid wages by the taxpayer in an amount equal to or greater than 150 percent of the Federal minimum wage in effect under the Fair Labor Standards Act of 1938, and
`(ii) is provided health care benefits by the taxpayer which meet such standards as promulgated by the Secretary, in consultation with the Secretary of Labor and the Attorney General.
`(4) CERTAIN INDIVIDUALS INELIGIBLE- Rules similar to the rules under paragraphs (1), (2), and (3)(B) of subsection (i) shall apply for purposes of this subsection.
`(5) TERMINATION- This subsection shall not apply with respect to any taxable year beginning after the date that is 2 years after the date of the enactment of this subsection.'.
(b) Study and Report-
(1) IN GENERAL- Not later than 3 years after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of Labor and the Attorney General, shall submit to Congress a report on the credits allowed under section 51(l) of the Internal Revenue Code of 1986 (as added by this section).
(2) MATTERS REPORTED- The report under paragraph (1) shall include--
(A) the number of taxpayers who applied for certification of a program described in section 51(l)(3) of the Internal Revenue Code of 1986;
(B) the number of taxpayer who received certification for such a program;
(C) the number of taxpayers who claimed a credit under section 51(l) of such Code;
(D) the total amount of credits allowed under such section;
(E) the number of qualified ex-offenders who participated in such a program and who continued to be employed under such a program--
(i) 6 months after the date of hire under such program;
(ii) 12 months after the date of hire under such program;
(iii) 18 months after the date of hire under such program; and
(iv) 24 months after the date of hire under such program; and
(F) the total number of qualified ex-offenders who participated in such a program and who were incarcerated at any time within the 36-month period beginning with the date of hire under the program.
(c) Effective Date- The amendment made in subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act.
U.S. Congress - Text of S.2800 as Introduced in Senate EARN Act
