S 829 ISCommentsClose CommentsPermalink

To provide a Federal income tax credit for Patriot employers, and for other purposes.CommentsClose CommentsPermalink

April 20, 2009CommentsClose CommentsPermalink

Mr. DURBIN (for himself and Mr. BROWN) introduced the following bill; which was read twice and referred to the Committee on FinanceCommentsClose CommentsPermalink

To provide a Federal income tax credit for Patriot employers, and for other purposes.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 ‘Patriot Employers Act’.CommentsClose CommentsPermalink

SEC. 2. REDUCED TAXES FOR PATRIOT EMPLOYERS.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 45R. REDUCTION IN TAX OF PATRIOT EMPLOYERS.

‘(a) In General- In the case of any taxable year with respect to which a taxpayer is certified by the Secretary as a Patriot employer, the Patriot employer credit determined under this section for purposes of section 38 shall be equal to 1 percent of the taxable income of the taxpayer which is properly allocable to all trades or businesses with respect to which the taxpayer is certified as a Patriot employer for the taxable year.CommentsClose CommentsPermalink





‘(b) Patriot Employer- For purposes of subsection (a), the term ‘Patriot employer’ means, with respect to any taxable year, any taxpayer which--CommentsClose CommentsPermalink





‘(1) maintains its headquarters in the United States if the taxpayer has ever been headquartered in the United States,CommentsClose CommentsPermalink





‘(2) pays at least 60 percent of each employee’s health care premiums,CommentsClose CommentsPermalink





‘(3) has in effect, and operates in accordance with, a policy requiring neutrality in employee organizing drives,CommentsClose CommentsPermalink





‘(4) if such taxpayer employs at least 50 employees on average during the taxable year--CommentsClose CommentsPermalink





‘(A) maintains or increases the number of full-time workers in the United States relative to the number of full-time workers outside of the United States,CommentsClose CommentsPermalink





‘(B) compensates each employee of the taxpayer at an hourly rate (or equivalent thereof) not less than an amount equal to the Federal poverty level for a family of three for the calendar year in which the taxable year begins divided by 2,080,CommentsClose CommentsPermalink





‘(C) provides either--CommentsClose CommentsPermalink





‘(i) a defined contribution plan which for any plan year--CommentsClose CommentsPermalink





‘(I) requires the employer to make nonelective contributions of at least 5 percent of compensation for each employee who is not a highly compensated employee, orCommentsClose CommentsPermalink





‘(II) requires the employer to make matching contributions of 100 percent of the elective contributions of each employee who is not a highly compensated employee to the extent such contributions do not exceed the percentage specified by the plan (not less than 5 percent) of the employee’s compensation, orCommentsClose CommentsPermalink





‘(ii) a defined benefit plan which for any plan year requires the employer to make contributions on behalf of each employee who is not a highly compensated employee in an amount which will provide an accrued benefit under the plan for the plan year which is not less than 5 percent of the employee’s compensation, andCommentsClose CommentsPermalink





‘(D) provides full differential salary and insurance benefits for all National Guard and Reserve employees who are called for active duty, andCommentsClose CommentsPermalink





‘(5) if such taxpayer employs less than 50 employees on average during the taxable year, either--CommentsClose CommentsPermalink





‘(A) compensates each employee of the taxpayer at an hourly rate (or equivalent thereof) not less than an amount equal to the Federal poverty level for a family of 3 for the calendar year in which the taxable year begins divided by 2,080, orCommentsClose CommentsPermalink





‘(B) provides either--CommentsClose CommentsPermalink





‘(i) a defined contribution plan which for any plan year--CommentsClose CommentsPermalink





‘(I) requires the employer to make nonelective contributions of at least 5 percent of compensation for each employee who is not a highly compensated employee, orCommentsClose CommentsPermalink





‘(II) requires the employer to make matching contributions of 100 percent of the elective contributions of each employee who is not a highly compensated employee to the extent such contributions do not exceed the percentage specified by the plan (not less than 5 percent) of the employee’s compensation, orCommentsClose CommentsPermalink





‘(ii) a defined benefit plan which for any plan year requires the employer to make contributions on behalf of each employee who is not a highly compensated employee in an amount which will provide an accrued benefit under the plan for the plan year which is not less than 5 percent of the employee’s compensation.’.CommentsClose CommentsPermalink





(b) Allowance as General Business Credit- Section 38(b) of the Internal Revenue Code or 1986 is amended by striking ‘plus’ at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ‘, plus’, and by adding at the end the following:CommentsClose CommentsPermalink





‘(36) the Patriot employer credit determined under section 45R.’.CommentsClose CommentsPermalink





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