[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4585 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4585
To amend the Internal Revenue Code of 1986 to provide a temporary
payroll increase tax credit for certain employers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 3, 2010
Mrs. Maloney (for herself, Mr. Gene Green of Texas, and Mr. Pascrell)
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 provide a temporary
payroll increase tax credit for certain employers.
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 ``Small Business Job Creation Tax Act
of 2010''.
SEC. 2. EMPLOYER PAYROLL INCREASE CREDIT.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 6433. EMPLOYER PAYROLL INCREASE CREDITS.
``(a) In General.--Each qualified employer shall be treated as
having made a payment against the tax imposed by section 3111(a) or
section 3221(a), whichever is applicable, for each qualified quarter an
amount equal to the credit amount.
``(b) Credit Amount.--
``(1) In general.--For purposes of this section, the credit
amount with respect to any qualified quarter is equal to the
applicable percentage of the qualified payroll increase of such
employer for such qualified quarter.
``(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage with respect to any qualified
quarter is--
``(A) in the case of an employer that employs fewer
than 100 employees during such quarter, 20 percent, and
``(B) in the case of an employer that employs 100
or more employees during such quarter, 15 percent.
``(c) Dollar Limitation.--The total credit amount with respect to
any employer shall not exceed $500,000 for all qualified quarters.
``(d) Qualified Employer.--For purposes of this section, the term
`qualified employer' means any American employer other than the United
States, any State, or any instrumentality thereof.
``(e) Qualified Payroll Increase.--For purposes of this section--
``(1) In general.--The term `qualified payroll increase'
with respect to any qualified quarter means the amount, if any,
by which a qualified employer's qualified payroll for such
quarter exceeds the qualified payroll for such quarter of the
calendar year preceding the year in which such qualified
quarter falls.
``(2) Qualified payroll.--The term `qualified payroll'
means the amount of all wages (within the meaning of section
3121(a)) paid or incurred by a qualified employer to the
employees of such employer, except that, with respect to each
such employee for any quarter of the employer, such wages shall
be taken into account only to the extent that such wages do not
exceed the contribution and benefit base as determined under
section 230 of the Social Security Act.
``(3) Railway labor.--In the case of remuneration subject
to the tax imposed by section 3221(a), paragraph (1) shall be
applied by substituting `all compensation (within the meaning
of section 3231(e))' for `all wages (within the meaning of
section 3121(a))'.
``(4) Special rule for large employers.--In the case of an
employer described in subsection (b)(2)(B), no qualified
payroll increase shall be taken into account for any qualified
quarter unless the qualified payroll increase with respect to
such qualified quarter exceeds 3 percent of the qualified
payroll for such quarter of the calendar year preceding the
year in which such qualified quarter falls.
``(f) Qualified Quarter.--For purposes of this section, the term
`qualified quarter' means--
``(1) the calendar quarter which includes the date of the
enactment of the Small Business Job Creation Tax Act of 2010,
and
``(2) each of the 3 calendar quarters following such
quarter.
``(g) Definitions.--Except as provided in subsection (h)(1), any
term used in this section which is also used in section 3111 has the
same meaning as when used in such section.
``(h) Special Rules.--For purposes of this section--
``(1) Employee.--The term `employee' includes only
individuals who are citizens or lawful residents of the United
States who receive wages, remuneration, compensation, or tips
from an employer for work performed within a State or a
possession of the United States.
``(2) Maintenance of base employment requirement.--This
section shall not apply to any qualified employer for any
qualified quarter if the total number of employees of such
employer during such quarter is less than the total number of
such employees during the quarter preceding such quarter,
determined by not taking into account any employee who is a
seasonal employee during such preceding quarter.
``(3) Controlled groups.--All employers treated as a single
employer under section (a) or (b) of section 52 shall be
treated as a single employer for purposes of the dollar
limitation under subsection (c), except that any employer which
is not an American employer shall not be taken into account.
``(4) New employers.--
``(A) In general.--In the case of a qualified
employer which comes into existence after the date of
the enactment of the Small Business Job Creation Tax
Act of 2010 and before January 1, 2012--
``(i) the term `qualified quarter' means--
``(I) the first calendar quarter
for which such qualified employer is in
existence, and
``(II) each of the 3 quarters
following such quarter,
``(ii) the qualified payroll increase of
such employer for the quarter described in
clause (i)(I) shall be equal to the amount of
the employer's qualified payroll for such
quarter, and
``(iii) the qualified payroll increase of
such employer for any quarter described in
clause (i)(II) shall be the amount, if any, by
which the employer's qualified payroll for such
quarter exceeds the qualified payroll of the
quarter preceding such quarter.
``(B) Transition rule.--
``(i) In general.--In the case of a
qualified employer which comes into existence--
``(I) after the last day of the
calendar quarter which is 5 calendar
quarters before the date of the
enactment of the Small Business Job
Creation Tax Act of 2010, and
``(II) before such date of
enactment,
the qualified payroll increase of such employer
for any transition quarter shall be the amount,
if any, by which the employer's qualified
payroll for such quarter exceeds the qualified
payroll of the quarter preceding such quarter.
``(ii) Transition quarter.--For purposes of
clause (i), the term `transition quarter' means
a qualified quarter with respect to which the
qualified payroll increase cannot be determined
under subsection (e)(1) solely because the
employer was not in existence during such
quarter of the calendar year preceding the year
in which such qualified quarter falls.''.
(b) Clerical Amendment.--The table of sections for subchapter B of
chapter 65 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new item:
``Sec. 6433. Employer payroll increase credits.''.
(c) Notification.--Not later than 30 days after the date of the
enactment of this Act, the Commissioner of Internal Revenue shall
notify all employers required to withhold employment taxes under
chapter 21 or 22 of the Internal Revenue Code of 1986 of the enactment
and applicability of section 6433 of the Internal Revenue Code of 1986,
as added by this Act.
(d) Investigation and Report on Enforcement Actions.--Not later
than 6 months after the date of the enactment of this Act, and
quarterly thereafter, the Commissioner of Internal Revenue shall submit
a report to the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives on the enforcement
measures taken to prevent and penalize fraud related to section 6433 of
the Internal Revenue Code of 1986, including such information as--
(1) general statistics related to the application of such
section,
(2) cases of fraud, and
(3) the status of investigatory and prosecutorial actions
related to such cases.
(e) Effective Date.--The amendments made by subsections (a) and (b)
shall apply to calendar quarters beginning with the calendar quarter
which includes the date of the enactment of this Act.
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