I 112th CONGRESS 1st Session H. R. 1663 IN THE HOUSE OF REPRESENTATIVES April 15, 2011 Mr. West (for himself, Mr. Walsh of Illinois, Ms. Richardson, and Ms. Ros-Lehtinen) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to temporarily provide the work opportunity tax credit for small businesses hiring unemployed individuals.

1.

Work opportunity tax credit for small businesses hiring unemployed individuals

(a)

In general

Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (l)

Temporary credit for unemployed individuals hired by small businesses

(1)

In general

In the case of an employer which is a specified small business— (A)any specified unemployed individual shall be treated as a member of a targeted group for purposes of this section, and (B)in the case of a high unemployment zone individual, subsection (b)(3) shall be applied by substituting $12,000 for $6,000. (2)

Specified small business

For purposes of this subsection, the term specified small business means, with respect to any taxable year, any employer— (A)whose gross receipts for the preceding taxable year did not exceed $20,000,000, or (B)who is an eligible employer (as defined in section 408(p)(2)(C)(i)(I)) for such taxable year. (3)

Specified unemployed individual

For purposes of this subsection, the term specified unemployed individual means any individual who is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. (4)

High unemployment zone individual

For purposes of this subsection— (A)

In general

The term high unemployment zone individual means any specified unemployed individual who is certified by the designated local agency as having his principal place of abode in a high unemployment zone. (B)

High unemployment zone

(i)

In general

The term high unemployment zone means any county if the unemployment rate in such county exceeds the greater of— (I)4 percent, and (II)the national unemployment rate. (ii)

Determination of unemployment rates

Determinations under clause (i) shall be made by the Secretary, after consultation with the Secretary of Labor, on the basis of the most recent available data. Such determinations shall be made with respect to each calendar year for which this subsection applies and the Secretary shall make the list of high unemployment zones with respect to each such calendar year publicly available not later than the beginning of the calendar year for which the list applies. (5)

Termination

This subsection shall not apply with respect to any individual who begins work for the employer after December 31, 2013. . (b)

Effective date

The amendment made by this section shall apply with respect to individuals who begin work for the employer after December 31, 2011.