To amend the Internal Revenue Code of 1986 to provide to employers a tax credit for compensation paid during the period employees are performing service as members of the Ready Reserve or the National Guard.

Amends the Internal Revenue Code to provide employers a business tax credit for a portion of compensation that was not paid with respect to members of the Ready Reserve or National Guard who were absent from work on active duty. Limits such credit to $2,000 with respect to any one Ready Reserve-National Guard employee.