HR 4565 IHCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow employers a refundable credit for increasing employment.CommentsClose CommentsPermalink

February 2, 2010CommentsClose CommentsPermalink

Mr. OWENS (for himself, Mr. TEAGUE, Mr. ARCURI, and Mr. MINNICK) introduced the following bill; which was referred to the Committee on Ways and MeansCommentsClose CommentsPermalink

To amend the Internal Revenue Code of 1986 to allow employers a refundable credit for increasing employment.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Rural Jobs Tax Credit Act of 2010’.CommentsClose CommentsPermalink

SEC. 2. REFUNDABLE CREDIT FOR INCREASING EMPLOYMENT.

(a) In General- Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36A the following new section:CommentsClose CommentsPermalink

‘SEC. 36B. CREDIT FOR INCREASING EMPLOYMENT.

‘(a) In General- In the case of an eligible employer, there shall be allowed as a credit against the tax imposed by this subtitle--CommentsClose CommentsPermalink





‘(1) for any taxable year beginning in 2010, an amount equal to 15 percent of the excess (if any) of--CommentsClose CommentsPermalink





‘(A) the aggregate wages paid during 2010, overCommentsClose CommentsPermalink





‘(B) the inflation-adjusted wages paid during 2009, andCommentsClose CommentsPermalink





‘(2) for any taxable year beginning in 2011, an amount equal to 10 percent of the excess (if any) of--CommentsClose CommentsPermalink





‘(A) the aggregate wages paid during 2011, overCommentsClose CommentsPermalink





‘(B) the inflation-adjusted wages paid during 2010.CommentsClose CommentsPermalink





‘(b) Eligible Employer- For purposes of this section, the term ‘eligible employer’ means any employer which conducts an active trade or business in an area other than--CommentsClose CommentsPermalink





‘(1) a city or town with a population of more than 50,000 inhabitants (based on the most recent available census data), orCommentsClose CommentsPermalink





‘(2) any urbanized area contiguous and adjacent to such a city or town.CommentsClose CommentsPermalink





‘(c) Quarterly Advance Payments of Credit-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Secretary shall pay (without interest) to each employer for each calendar quarter an amount equal to the credit percentage of the excess (if any) of--CommentsClose CommentsPermalink





‘(A) the aggregate wages paid by the employer during such quarter, overCommentsClose CommentsPermalink





‘(B) the inflation-adjusted wages paid by the employer during the comparable quarter of the preceding calendar year.CommentsClose CommentsPermalink





‘(2) CREDIT PERCENTAGE- For purposes of paragraph (1), the credit percentage is--CommentsClose CommentsPermalink





‘(A) 15 percent in the case of the calendar quarters of 2010, andCommentsClose CommentsPermalink





‘(B) 10 percent in the case of the calendar quarters of 2011.CommentsClose CommentsPermalink





‘(3) RECONCILIATION-CommentsClose CommentsPermalink





‘(A) IN GENERAL- If there is a payment under paragraph (1) for 1 or more calendar quarters ending with or within a taxable year, then the tax imposed by this chapter for such taxable year shall be increased by the aggregate amount of such payments.CommentsClose CommentsPermalink





‘(B) RECONCILIATION- Any increase in tax under subparagraph (A) shall not be treated as tax imposed by this chapter for purposes of determining the amount of any credit (other than the credit under subsection (a)) allowable under this part.CommentsClose CommentsPermalink





‘(4) TIME FOR FILING CLAIM- No claim shall be allowed under this subsection with respect to any calendar quarter unless filed on or before the earlier of--CommentsClose CommentsPermalink





‘(A) the last day of the succeeding quarter, orCommentsClose CommentsPermalink





‘(B) the time prescribed by law for filing the return of tax imposed by this chapter for the taxable year in which or with which such quarter ends.CommentsClose CommentsPermalink





‘(5) INTEREST- Notwithstanding paragraph (1), if the Secretary has not paid pursuant to a claim filed under this subsection within 45 days of the date of the filing of such claim (20 days in the case of an electronic claim), the claim shall be paid with interest from such date determined by using the overpayment rate and method under section 6621.CommentsClose CommentsPermalink





‘(d) Total Wages Must Increase- The amount of credit allowed under this section for any taxable year shall not exceed the amount which would be so allowed for such year if--CommentsClose CommentsPermalink





‘(1) the aggregate amounts taken into account as wages were determined without any dollar limitation, andCommentsClose CommentsPermalink





‘(2) 103 percent of the amount of wages otherwise required to be taken into account under subsection (a)(1)(B) or subsection (a)(2)(B), as the case may be, were taken into account.CommentsClose CommentsPermalink





‘(e) Inflation-Adjusted Wages; Wages- For purposes of this section--CommentsClose CommentsPermalink





‘(1) INFLATION-ADJUSTED WAGES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The term ‘inflation-adjusted wages’ means, for any period--CommentsClose CommentsPermalink





‘(i) the aggregate wages paid by the employer during such period, increased byCommentsClose CommentsPermalink





‘(ii) an amount equal to the inflation percentage of such wages.CommentsClose CommentsPermalink





‘(B) INFLATION PERCENTAGE- The inflation percentage is--CommentsClose CommentsPermalink





‘(i) 3 percent for purposes of determining inflation-adjusted wages for periods during 2009, andCommentsClose CommentsPermalink





‘(ii) 5 percent for purposes of determining inflation-adjusted wages for periods during 2010.CommentsClose CommentsPermalink





‘(2) WAGES-CommentsClose CommentsPermalink





‘(A) IN GENERAL- Except as provided in subparagraph (B), the term ‘wages’ means, with respect to any calendar year, so much of wages (as defined in section 3121(a)) as does not exceed the median household income in the United States for the preceding calendar year.CommentsClose CommentsPermalink





‘(B) RAILWAY LABOR- In the case of remuneration subject to the tax imposed by 3201(a), the term ‘wages’ means, with respect to any calendar year, so much of compensation (as defined in section 3231(e)) as does not exceed the median household income in the United States for the preceding calendar year.CommentsClose CommentsPermalink





‘(f) Special Rules-CommentsClose CommentsPermalink





‘(1) ADJUSTMENTS FOR CERTAIN ACQUISITIONS, ETC-CommentsClose CommentsPermalink





‘(A) ACQUISITIONS- If, after December 31, 2008, an employer acquires the major portion of a trade or business of another person (hereinafter in this subparagraph referred to as the ‘predecessor’) or the major portion of a separate unit of a trade or business of a predecessor, then, for purposes of applying this section for any calendar year ending after such acquisition, the amount of wages deemed paid by the employer during periods before such acquisition shall be increased by so much of such wages paid by the predecessor with respect to the acquired trade or business as is attributable to the portion of such trade or business acquired by the employer.CommentsClose CommentsPermalink





‘(B) DISPOSITIONS- If, after December 31, 2008--CommentsClose CommentsPermalink





‘(i) an employer disposes of the major portion of any trade or business of the employer or the major portion of a separate unit of a trade or business of the employer in a transaction to which subparagraph (A) applies, andCommentsClose CommentsPermalink





‘(ii) the employer furnishes the acquiring person such information as is necessary for the application of subparagraph (A),CommentsClose CommentsPermalink





then, for purposes of applying this section for any calendar year ending after such disposition, the amount of wages deemed paid by the employer during periods before such disposition shall be decreased by so much of such wages as is attributable to such trade or business or separate unit.CommentsClose CommentsPermalink





‘(2) CHANGE IN STATUS FROM SELF-EMPLOYED TO EMPLOYEE- If--CommentsClose CommentsPermalink





‘(A) during 2009 or 2010 an individual has net earnings from self-employment (as defined in section 1402(a)) which are attributable a trade or business, andCommentsClose CommentsPermalink





‘(B) for any portion of the succeeding calendar year such individual is an employee of such trade or business,CommentsClose CommentsPermalink





then, for purposes of determining the credit allowable for a taxable year beginning in such succeeding calendar year, the employer’s aggregate wages for 2009 or 2010, as the case may be, shall be increased by an amount equal to so much of the net earnings referred to in subparagraph (A) as does not exceed the median household income in the United States for 2009 or 2010, as the case may be.CommentsClose CommentsPermalink





‘(3) CERTAIN OTHER RULES TO APPLY- Rules similar to the following rules shall apply for purposes of this section:CommentsClose CommentsPermalink





‘(A) Section 51(f) (relating to remuneration must be for trade or business employment).CommentsClose CommentsPermalink





‘(B) Section 51(k) (relating to treatment of successor employers; treatment of employees performing services for other persons).CommentsClose CommentsPermalink





‘(C) Section 52 (relating to special rules).CommentsClose CommentsPermalink





‘(4) SHORT TAXABLE YEARS- If the employer has more than 1 taxable year beginning in 2010 or 2011, the credit under this section shall be determined for the employer’s last taxable year beginning in 2010 or 2011, as the case may be.CommentsClose CommentsPermalink





‘(g) Tax-Exempt Employers Treated as Taxpayers- Solely for purposes of this section and section 6402, employers exempt from tax under section 501(a) shall be treated as taxpayers.’.CommentsClose CommentsPermalink





(b) Denial of Double Benefit- Subsection (a) of section 280C of such Code is amended by inserting ‘36B(a),’ before ‘45A(a)’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 1324(b)(2) of title 31, United States Code, is amended by inserting ‘36B,’ after ‘36A,’.CommentsClose CommentsPermalink





(2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36A the following new item:CommentsClose CommentsPermalink





‘Sec. 36B. Credit for increasing employment.’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink





(e) Notice of Availability of Credit- The Secretary of the Treasury shall work with the State Employment Security Agencies to inform businesses of the availability of section 36B of the Internal Revenue Code of 1986 (as added by this Act).CommentsClose CommentsPermalink