[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4777 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4777
To amend the Internal Revenue Code of 1986 to provide an exemption for
employer payroll taxes during 2010 for wages with respect to the
employment of new hires and to provide a credit for retaining
employees.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2010
Mr. Owens 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 an exemption for
employer payroll taxes during 2010 for wages with respect to the
employment of new hires and to provide a credit for retaining
employees.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED WORKERS.
(a) In General.--Section 3111 is amended by adding at the end the
following new subsection:
``(d) Special Exemption for Certain Individuals Hired in 2010.--
``(1) In general.--Subsection (a) shall not apply to wages
paid by a qualified employer with respect to employment during
the period beginning on the day after the date of the enactment
of this subsection and ending on December 31, 2010, of any
qualified individual for services performed--
``(A) in a trade or business of such qualified
employer, or
``(B) in the case of a qualified employer exempt
from tax under section 501(a), in furtherance of the
activities related to the purpose or function
constituting the basis of the employer's exemption
under section 501.
``(2) Qualified employer.--For purposes of this
subsection--
``(A) In general.--The term `qualified employer'
means any employer other than the United States, any
State, or any political subdivision thereof, or any
instrumentality of the foregoing.
``(B) Treatment of employees of post-secondary
educational institutions.--Notwithstanding subparagraph
(A), the term `qualified employer' includes any
employer which is a public institution of higher
education (as defined in section 101(b) of the Higher
Education Act of 1965).
``(3) Qualified individual.--For purposes of this
subsection, the term `qualified individual' means any
individual who--
``(A) begins employment with a qualified employer
after February 3, 2010, and before January 1, 2011,
``(B) certifies by signed affidavit, under
penalties of perjury, that such individual has not been
employed for more than 40 hours during the 60-day
period ending on the date such individual begins such
employment,
``(C) is not employed by the qualified employer to
replace another employee of such employer unless such
other employee separated from employment voluntarily or
for cause, and
``(D) is not an individual described in section
51(i)(1) (applied by substituting `qualified employer'
for `taxpayer' each place it appears).
``(4) Election.--A qualified employer may elect to have
this subsection not apply. Such election shall be made in such
manner as the Secretary may require.''.
(b) Coordination With Work Opportunity Credit.--Section 51(c) is
amended by adding at the end the following new paragraph:
``(5) Coordination with payroll tax forgiveness.--The term
`wages' shall not include any amount paid or incurred to a
qualified individual (as defined in section 3111(d)(3)) during
the 1-year period beginning on the hiring date of such
individual by a qualified employer (as defined in section
3111(d)) unless such qualified employer makes an election not
to have section 3111(d) apply.''.
(c) Transfers to Federal Old-Age and Survivors Insurance Trust
Fund.--There are hereby appropriated to the Federal Old-Age and
Survivors Trust Fund and the Federal Disability Insurance Trust Fund
established under section 201 of the Social Security Act (42 U.S.C.
401) amounts equal to the reduction in revenues to the Treasury by
reason of the amendments made by subsection (a). Amounts appropriated
by the preceding sentence shall be transferred from the general fund at
such times and in such manner as to replicate to the extent possible
the transfers which would have occurred to such Trust Fund had such
amendments not been enacted.
(d) Effective Date.--The amendments made by this section shall
apply to wages paid after the date of the enactment of this Act.
SEC. 2. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY HIRED
INDIVIDUALS IN 2010.
(a) In General.--In the case of any taxable year ending after the
date of the enactment of this Act, the current year business credit
determined under section 38(b) of the Internal Revenue Code of 1986 for
such taxable year shall be increased by an amount equal to the product
of--
(1) $1,000, and
(2) the number of retained workers with respect to which
subsection (b)(2) is first satisfied during such taxable year.
(b) Limitation.--The increase determined under subsection (a) with
respect to any retained worker shall not exceed an amount equal to 4
percent of the wages (as defined in section 3401(a) of the Internal
Revenue Code of 1986) with respect to such retained worker for the 52
consecutive week period described in subsection (c)(2).
(c) Retained Worker.--For purposes of this section, the term
``retained worker'' means any qualified individual (as defined in
section 3111(d)(3) of the Internal Revenue Code of 1986)--
(1) who was employed by the taxpayer on any date during the
taxable year,
(2) who was so employed by the taxpayer for a period of not
less than 52 consecutive weeks, and
(3) whose wages for such employment during the last 26
weeks of such period equaled at least 80 percent of such wages
for the first 26 weeks of such period.
(d) Limitation on Carrybacks.--No portion of the unused business
credit under section 38 of the Internal Revenue Code of 1986 for any
taxable year which is attributable to the increase in the current year
business credit under this section may be carried to a taxable year
beginning before the date of the enactment of this section.
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