S.Amdt. 726

1. Adds SEC. ___. EXPANSION OF WORK OPPORTUNITY TAX CREDIT TO INCLUDE THE EMPLOYMENT OF CERTAIN MILITARY VETERANS AND MEMBERS OF THE READY RESERVE AND NATIONAL GUARD at the end of the bill

   Adds a section

   In S. 1619 · Placed on Calendar Senate

   The Exchange Rates and International Economic Policy Coordination Act of 1988 (22 U.S.C. 5301 et seq.) is repealed.

   Inserted: SEC. ___. EXPANSION OF WORK OPPORTUNITY TAX CREDIT TO INCLUDE THE EMPLOYMENT OF CERTAIN MILITARY VETERANS AND MEMBERS OF THE READY RESERVE AND NATIONAL GUARD.

   Inserted: (a) Increased Credit Amount for Certain Military Veterans.--Paragraph (3) of section 51(b) of the Internal Revenue Code of 1986 is amended by striking "($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii))" and inserting "($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and $24,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))".

   Inserted: (b) Inclusion of Unemployed Veterans.--Section 51(d)(3)(A) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of paragraph (3)(A)(i), and inserting the following new paragraphs after paragraph (ii)--

   Inserted: "(iii) having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 4 weeks (but less than 6 months), or

   Inserted: "(iv) having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.".

   Inserted: (c) Inclusion of Unemployed Members of Ready Reserve and National Guard.--

   Inserted: (1) In general.--Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting ", or", and by adding at the end the following new subparagraph:

   Inserted: "(J) qualified member of Ready Reserve or National Guard.".

   Inserted: (2) Definition.--Subsection (d) of section 51 of such Code is amended by redesignating paragraphs (11) through (14) as paragraphs (12) through (15), respectively, and by inserting after paragraph (10) the following new paragraph:

   Inserted: "(11) Qualified member of ready reserve or national guard.--The term 'qualified member of Ready Reserve or National Guard' means an individual who is certified by the local designated agency as having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 4 weeks and who is a member of--

   Inserted: "(A) the Ready Reserve (as described in section 10142 of title 10, United States Code), or

   Inserted: "(B) the National Guard (as defined in section 101(c)(1) of such title 10).".

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   Inserted: (d) Simplified Certification.--Section 51(d) of the Internal Revenue Code of 1986, as amended by subsection (c)(2), is amended by adding at the end the following new paragraph:

   Inserted: "(16) Simplified certification for unemployed veterans and members of the ready reserve and national guard.--

   Inserted: "(A) In general.--Any individual under paragraph (3)(A)(ii)(II), (3)(A)(iii), (3)(A)(iv), or (11) will be treated as certified by the designated local agency as having aggregate periods of unemployment described in such paragraph if--

   Inserted: "(i) in the case of an individual under paragraph (3)(A)(ii)(II) or (3)(A)(iv), the individual is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 6 months during the 1-year period ending on the hiring date,

   Inserted: "(ii) in the case of an individual under paragraph (3)(A)(iii), the individual 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 (but less than 6 months) during the 1-year period ending on the hiring date, and

   Inserted: "(iii) in the case of an individual under paragraph (11), the individual 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.

   Inserted: "(B) Regulatory authority.--The Secretary in the Secretary's discretion may provide alternative methods for certification.".

   Inserted: (e) Credit Made Available to Tax-exempt Employers in Certain Circumstances.--Section 52(c) of the Internal Revenue Code of 1986 is amended--

   Inserted: (1) by striking "No credit" and inserting:

   Inserted: "(1) In general.--Except as provided in paragraph (2), no", and

   Inserted: (2) by adding at the end the following new paragraph:

   Inserted: "(2) Exception.--

   Inserted: "(A) In general.--In the case of any tax-exempt employer, there shall be treated as a credit allowable under subpart C (and not allowable under subpart D) the lesser of--

   Inserted: "(i) the amount of the work opportunity credit determined under this subpart with respect to such employer that is related to the hiring of individuals described in paragraphs (3)(A)(ii)(II), (3)(A)(iii), (3)(A)(iv), or (11), or

   Inserted: "(ii) the amount of the payroll taxes of the employer during the calendar year in which the taxable year begins.

   Inserted: "(B) Credit amount.--In the case of any tax-exempt employer, the work opportunity credit under subparagraph (A) shall be determined by substituting '26 percent' for '40 percent' in subsections (a) and (i)(3)(A) of section 51 and by substituting '16.25 percent' for '25 percent' in section 51(i)(3)(A).

   Inserted: "(C) Tax-exempt employer.--For purposes of this paragraph, the term 'tax-exempt employer' means an employer which is--

   Inserted: "(i) an organization described in section 501(c) and exempt from taxation under section 501(a), or

   Inserted: "(ii) a public higher education institution (as defined in section 101 of the Higher Education Act of 1965).

   Inserted: "(D) Payroll taxes.--For purposes of this paragraph, the term 'payroll taxes' means--

   Inserted: "(i) amounts required to be withheld from the employees of the tax-exempt employer under section 3402(a),

   Inserted: "(ii) amounts required to be withheld from such employees under section 3101, and

   Inserted: "(iii) amounts of the taxes imposed on the tax-exempt employer under section 3111.".

   Inserted: (f) Treatment of Possessions.--

   Inserted: (1) Payments to possessions.--

   Inserted: (A) Mirror code possessions.--The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of the amendments made by this section (other than this subsection). Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession of the United States.

   Inserted: (B) Other possessions.--The Secretary of the Treasury shall pay to each possession of the United States, which does not have a mirror code tax system, amounts estimated by the Secretary of the Treasury as being equal to the aggregate credits that would have been provided by the possession by reason of the application of the amendments made by this section (other than this subsection) if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments.

   Inserted: (2) Coordination with credit allowed against united states income taxes.--No increase in the credit determined under section 38(b) of the Internal Revenue Code of 1986 that is attributable to the credit provided by the amendments made by this section (other than this subsection) shall be taken into account with respect to any person--

   Inserted: (A) to whom a credit is allowed against taxes imposed by the possession of the United States by reason of the amendments made by this section for such taxable year, or

   Inserted: (B) who is eligible for a payment under a plan described in paragraph (1)(B) with respect to such taxable year.

   Inserted: (3) Definitions and special rules.--

   Inserted: (A) Possession of the united states.--For purposes of this subsection, the term "possession of the United States" includes American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the United States Virgin Islands.

   Inserted: (B) Mirror code tax system.--For purposes of this subsection, the term "mirror code tax system" means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

   Inserted: (C) Treatment of payments.--For purposes of paragraph (2) of section 1324(b) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from any credit allowed under a section specified in such paragraph.

   Inserted: (g) Effective Date.--The amendments made by this section shall apply to individuals who begin work for the employer after the date of the enactment of this Act.

   Inserted: (h) Rescission of Unspent Federal Funds to Offset Loss in Revenues.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, of all available unobligated funds, appropriated discretionary funds are hereby rescinded in such amounts as determined by the Director of the Office of Management and Budget such that the aggregate amount of such rescission equals the reduction in revenues to the Treasury by reason of the amendments made by this section.

   Inserted: (2) Implementation.--The Director of the Office of Management and Budget shall determine and identify from which appropriation accounts the rescission under paragraph (1) shall apply and the amount of such rescission that shall apply to each such account. Not later than 60 days after the date of the enactment of this Act, the Director of the Office of Management and Budget shall submit a report to the Secretary of the Treasury and Congress of the accounts and amounts determined and identified for rescission under the preceding sentence.

   Inserted: (3) Exception.--This subsection shall not apply to the unobligated funds of the Department of Veterans Affairs or the Social Security Administration.

   Original wording

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