I
115th CONGRESS
1st Session
H. R. 2313
IN THE HOUSE OF REPRESENTATIVES
May 3, 2017
Mr. McNerney (for himself, Mr. Evans, Mrs. Napolitano, Ms. Clarke of New York, and Mr. Ryan of Ohio) 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 encourage hiring unemployed individuals.
Short title
This Act may be cited as the Small Business Relief and Job Creation Act
.
Temporary work opportunity credit for small businesses
In general
Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
Small business credit for hiring certain unemployed individuals during 2018 and 2019
In general
In the case of an eligible unemployed individual who begins work for an eligible small business during 2018 or 2019, the taxpayer may elect to treat such individual as a member of a targeted group for purposes of this subpart, subject to the modifications in paragraph (5) and in lieu of treating such individual as a member of any other targeted group.
Eligible small business
For purposes of this subsection, the term eligible small business
means any person if—
either—
the gross receipts of such person for the preceding taxable year did not exceed $20,000,000, or
in the case of a person to which subparagraph (A) does not apply, such person employed not more than 100 full-time employees during the preceding taxable year, and
such person elects the application of this subsection for the taxable year.
Eligible unemployed individual
For purposes of this section, the term eligible unemployed individual
means any individual—
who is certified by the designated local agency as being eligible to receive unemployment compensation under State or Federal law during the 1-year period ending on the hiring date, or
whose employment with the employer was terminated before January 1, 2018.
Employee must be full-time
No wages shall be taken into account with respect to any individual for any taxable year unless such individual is employed by the employer an average of at least 30 hours per week in the taxable year (in the case of the taxable year during which the individual begins work, beginning with the day the individual begins work).
Modifications
For purposes of this subsection, the modifications described in this paragraph are as follows:
Percentage of wages
Subsection (a) shall be applied—
in the case of wages paid or incurred by the employer during 2018, by substituting 7.5 percent
for 40 percent
, and
in the case of wages paid or incurred by the employer during 2019, by substituting 5 percent
for 40 percent
.
Qualified wages during 2018 and 2019 taken into account
Subsection (b)(2) shall be applied by substituting during 2018 and 2019
for during the 1-year period beginning with the day the individual begins work for the employer
.
$75,000 wage limitation
Subsection (b)(3) shall be applied by substituting $75,000
for $6,000
.
Double credit in counties with high unemployment
In general
In the case of an employer located in a county which is a high unemployment county for the month during which the employee begins work for the employer, clauses (i) and (ii) of subparagraph (A) shall be applied by substituting 15 percent
and 10 percent
for 7.5 percent
and 5 percent
, respectively.
High unemployment county
For purposes of this subparagraph, the term high unemployment county
means, with respect to any month, a county for which the rate of unemployment exceeds the national rate of unemployment (as determined by the Bureau of Labor Statistics of the Department of Labor).
Credit to apply for all 2018 and 2019
This subsection shall be applied without regard to subsection (c)(4).
Certain rehires eligible
Subsection (i)(2) shall not apply to an individual whose employment with the employer was terminated before January 1, 2018.
.
Effective date
The amendments made by this section shall apply to employees hired after December 31, 2017.