Small Business Jobs Creation Act of 2004 - Amends the Internal Revenue Code to allow an employer with annual gross receipts of less than $25 million a business tax credit for 50 percent of the excess of unemployment insurance wages paid in the current year over 102 percent of such wages paid during the preceding calendar year. Limits the annual amount of such credit to $100,000. Terminates the credit after 2009.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4307 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4307
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for increasing employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 2004
Mr. Chocola (for himself, Mr. Davis of Tennessee, Mr. Cole, Mr.
Beauprez, Mr. Hostettler, Mrs. Wilson of New Mexico, Mr. Miller of
Florida, Mr. Feeney, Mr. Chabot, Mr. Wilson of South Carolina, Mrs.
Myrick, Mr. Jones of North Carolina, Mrs. Musgrave, Mr. Garrett of New
Jersey, Mr. Shadegg, Mr. Kline, Mr. Franks of Arizona, Ms. Ginny Brown-
Waite of Florida, Mr. Green of Wisconsin, Mr. Pence, Mr. Duncan, Mr.
Pearce, Mr. Hastings of Washington, Mr. Carter, Mr. Ehlers, Mr. Murphy,
Mr. Barrett of South Carolina, Mr. Sensenbrenner, Ms. Hart, Mr.
Doolittle, Mr. Cannon, Mr. Turner of Ohio, Mr. Boyd, Mr. Goode, Mr.
Mario Diaz-Balart of Florida, Mr. Souder, Mr. Quinn, and Mr. Gerlach)
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 allow employers a credit
against income tax for increasing employment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Jobs Creation Act of
2004''.
SEC. 2. CREDIT FOR INCREASING EMPLOYMENT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to business related
credits) is amended by adding at the end the following new section:
``SEC. 45G. CREDIT FOR INCREASING EMPLOYMENT.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible employer, the increased employment credit for any taxable year
shall be an amount equal to 50 percent of the excess of--
``(1) the aggregate unemployment insurance wages paid
during the calendar year ending during such taxable year, over
``(2) 102 percent of the aggregate unemployment insurance
wages paid during the preceding calendar year.
``(b) Eligible Employer.--For purposes of this section--
``(1) In general.--The term `eligible employer' means any
employer having gross receipts for the taxable year of less
than $25,000,000.
``(2) Gross receipts.--For purposes of this subsection,
gross receipts for any taxable year shall be reduced by returns
and allowances made during the taxable year.
``(c) Minimum Preceding Year Wages.--For purposes of determining
the amount of the credit under subsection (a) with respect to any
calendar year, the amount described in subsection (a)(2) shall be
deemed to be not less than 50 percent of the amount of such wages paid
during such preceding calendar year.
``(d) Total Wages Must Increase.--The amount of the credit
determined under this section for any taxable year shall not exceed the
amount which would be determined for such year under subsection (a)
(without regard to subsection (b)) if--
``(1) the aggregate amounts taken into account as
unemployment insurance wages were determined without any dollar
limitation, and
``(2) `105 percent' were substituted for `102 percent' in
subsection (a).
``(e) $100,000 Per Year Limitation on Credit.--The amount of the
credit determined under this section for any employer with respect to
any calendar year shall not exceed $100,000.
``(f) Unemployment Insurance Wages.--For purposes of this section,
the term `unemployment insurance wages' has the meaning given to the
term `wages' by section 3306(b).
``(g) Special Rules.--Rules similar to the following rules shall
apply for purposes of this section:
``(1) Section 51(g) (relating to United States Employment
Service to notify employers of availability of credit).
``(2) Section 51(h)(1) (relating to special rules for
agricultural labor and railway labor).
``(3) Section 52 (relating to special rules for work
opportunity credit).
``(4) Section 41(f) (relating to adjustments for certain
acquisitions, etc.).
``(h) Other Special Rules.--
``(1) Change in status from self-employed to employee.--
If--
``(A) during any calendar year an individual has
net earnings from self-employment (as defined in
section 1402(a)) which are attributable to a trade or
business, and
``(B) for any portion of the succeeding calendar
year such individual is an employee of such trade or
business,
then, for purposes of determining the credit allowable for a
taxable year beginning in such succeeding calendar year, the
employer's aggregate unemployment insurance wages for the
calendar year preceding the calendar year referred to in
subparagraph (A) shall be increased by an amount equal to so
much of the net earnings referred to in subparagraph (A) as
does not exceed $7,000.
``(2) $50,000 limitation in the case of married individuals
filing separate returns.--In the case of a husband or wife who
files a separate return, the limitation under subsection (e)
shall be $50,000 in lieu of $100,000. This subsection shall not
apply if the spouse of the taxpayer has no interest in a trade
or business for the taxable year of such spouse which ends
within or with the taxpayer's taxable year.
``(i) Termination.--This section shall not apply to any taxable
year beginning after 2009.''.
(b) Denial of Double Benefit.--Subsection (a) of section 280C of
such Code is amended by inserting ``45G(a),'' after ``45A(a),''.
(c) Credit Treated as Business Credit.--Subsection (b) of section
38 of such Code 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:
``(16) the increased employment credit determined under
section 45G(a).''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter I is amended by adding at the end
the following:
``Sec. 45G. Credit for increasing
employment.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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