S. 1271 – Reading Mode

112th CONGRESS

1st Session

S. 1271

IN THE SENATE OF THE UNITED STATES

June 23, 2011

Mr. Whitehouse introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide a temporary credit for hiring previously unemployed workers.

Short title

This Act may be cited as the Job Creation Tax Credit Act of 2011.

Job creation tax credit

(a)

In general

Subpart F of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 51 the following new section:

51A.

Job creation credit

(a)

Determination of amount

For purposes of section 38, the amount of the job creation credit determined under this section for the taxable year shall be equal to—

(1)

15 percent of the qualified 2011 wages for such year, and

(2)

10 percent of the qualified 2012 wages for such year.

(b)

Qualified wages defined

For purposes of this section—

(1)

Qualified wages

The term qualified wages means the wages paid or incurred by the employer during the taxable year to qualified individuals.

(2)

Qualified 2011 wages

The term qualified 2011 wages means, with respect to any individual, qualified wages attributable to service rendered during calendar year 2011.

(3)

Qualified 2012 wages

The term qualified 2012 wages means, with respect to any individual, qualified wages attributable to service rendered during calendar year 2012.

(4)

Limitation on wages taken into account

The amount of qualified 2011 wages, and the amount of qualified 2012 wages, which may be taken into account with respect to any individual shall not exceed the contribution and benefit base (as determined under section 230 of the Social Security Act).

(5)

Wages

The term wages has the meaning given such term under section 51(c), without regard to paragraph (4) thereof.

(c)

Qualified individual

For purposes of this section, the term qualified individual means any individual who—

(1)

begins employment with an employer after the date of the enactment of the Job Creation Tax Credit Act of 2011, and before January 1, 2013,

(2)

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, and

(3)

is not employed by the employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause.

(d)

Certain rules to apply

(1)

In general

Rules similar to the rules of section 52, and subsections (f), (g), (i) (other than paragraph (3)(A) thereof), (j), and (k) of section 51, shall apply for purposes of this section.

(2)

Credit to be part of general business credit

References to section 51 in section 38(b), 280C, 1396(c)(3), and 1400R shall apply for purposes of this section.

(e)

Coordination with work opportunity credit

If a credit is allowed under this section to an employer with respect to an individual for any taxable year, then for purposes of applying section 51 to such employer, such individual shall not be treated as a member of a targeted group for such taxable year.

(b)

Clerical amendment

The table of sections for subpart F of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 51 the following:

Sec. 51A. Job creation credit.

(c)

Effective date

The amendment made by this section shall apply to individuals hired after the date of the enactment of this Act.