S.Amdt. 3039

SA 3039. Ms. LANDRIEU submitted an amendment intended to be proposed to amendment SA 3011 proposed by Mr. Frist to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:

Strike section 632 and insert the following:

SEC. 632. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT.

(a) Ready Reserve-National Guard Credit.--Subpart D of part IV of subchapter A of chapter 1 (relating to business-related credits), as amended by this Act, is amended by adding at the end the following:

“SEC. 45H. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

“(a) General Rule.--For purposes of section 38, the Ready Reserve-National Guard employee credit determined under this section for any taxable year is an amount equal to 50 percent of the actual compensation amount for such taxable year.

“(b) Definition of Actual Compensation Amount.--For purposes of this section, the term ‘actual compensation amount' means the amount of compensation paid or incurred by an employer with respect to a Ready Reserve-National Guard employee on any day when the employee was absent from employment for the purpose of performing qualified active duty.

“(c) Limitations.--

“(1) Maximum period for credit per employee.--The maximum period with respect to which the credit may be allowed with respect to any Ready Reserve-National Guard employee shall not exceed the 12-month period beginning on the first day such credit is so allowed with respect to such employee.

“(2) Days other than work days.--No credit shall be allowed with respect to any day that a Ready Reserve-National Guard employee who performs qualified active duty was not scheduled to work (for reason other than to participate in qualified active duty).

“(d) Definitions and Special Rules.--For purposes of this section--

“(1) Qualified active duty.--The term ‘qualified active duty' means--

“(A) active duty, other than the training duty specified in section 10147 of title 10, United States Code (relating to training requirements for the Ready Reserve), or section 502(a) of title 32, United States Code (relating to required drills and field exercises for the National Guard), in connection with which an employee is entitled to reemployment rights and other benefits or to a leave of absence from employment under chapter 43 of title 38, United States Code, and

“(B) hospitalization incident to such duty.

“(2) Compensation.--The term ‘compensation' means any remuneration for employment, whether in cash or in kind, which is paid or incurred by a taxpayer and which is deductible from the taxpayer's gross income under section 162(a)(1).

“(3) Ready reserve-national guard employee.--The term ‘Ready Reserve-National Guard employee' means an employee who is a member of the Ready Reserve of a reserve component of an Armed Force of the United States as described in sections 10142 and 10101 of title 10, United States Code.

“(4) Certain rules to apply.--Rules similar to the rules of section 52 shall apply.”.

(b) Credit To Be Part of General Business Credit.--Subsection (b) of section 38 (relating to general business credit), as amended by this Act, is amended by striking “plus” at the end of paragraph (15), by striking the period at the end of paragraph (16) and inserting “, plus”, and by adding at the end the following:

“(17) the Ready Reserve-National Guard employee credit determined under section 45H(a).”.

(c) Denial of Double Benefit.--Section 280C(a) (relating to rule for employment credits) is amended by inserting “45H(a),” after “45A(a),”.

(d) Conforming Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 45G the following:

“Sec. 45H. Ready Reserve-National Guard employee credit.”.

(e) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred after October 6, 2001, in taxable years ending after such date.