S.Amdt. 581

1. Adds SEC. ____. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT at the end of subtitle C of title V

   Adds a section

   In S. 1054 · Placed on Calendar Senate

   (c) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued after the date of enactment of this section in taxable years ending after such date.

   Inserted: SEC. ____. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT.

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

   Inserted: "SEC. 45G. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

   Inserted: "(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.

   Inserted: "(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 during a taxable year when the employee was absent from employment for the purpose of performing qualified active duty.

   Inserted: "(c) Limitations.--

   Inserted: "(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.

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

   Inserted: "(d) Definitions.--For purposes of this section--

   Inserted: "(1) Qualified active duty.--The term 'qualified active duty' means--

   Inserted: "(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

   Inserted: "(B) hospitalization incident to such duty.

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   Inserted: "(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).

   Inserted: "(3) Ready reserve-national guard employee.--The term 'Ready Reserve-National Guard employee' means an employee who is a member of the Ready Reserve or of the National Guard.

   Inserted: "(4) National guard.--The term 'National Guard' has the meaning given such term by section 101(c)(1) of title 10, United States Code.

   Inserted: "(5) Ready reserve.--The term 'Ready Reserve' has the meaning given such term by section 10142 of title 10, United States Code.".

   Inserted: (b) Credit To Be Part of General Business Credit.--Subsection (b) of section 38 (relating to general business credit) is amended by striking "plus" at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting ", plus", and by adding at the end the following:

   Inserted: "(16) the Ready Reserve-National Guard employee credit determined under section 45G(a).".

   Inserted: (c) Conforming Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 45F the following:

   Inserted: "Sec. 45G. Ready Reserve-National Guard employee credit.".

   Inserted: (d) Revision of Partial Exclusion of Dividends Received By Individuals.--Section 116(a)(2)(B) of the Internal Revenue Code of 1986, as added by section 201, is amended by striking "2007" and inserting "2008".

   Inserted: (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

   Original wording

   At the end of subtitle C of title V add the following:

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As printed