Help Our Patriotic Employers at Helping Our Military Employees Act or HOPE at HOME Act - Entitles a Federal employee who is a member of a reserve component and is absent from Federal employment under a call or order to active duty for a period of more than 30 days to the difference between the amount of the civilian base pay that would otherwise have been payable to such employee for such period and the amount of military compensation received for the active-duty service. Continues such entitlement: (1) while the employee is hospitalized for, or convalescing from, an injury or illness incurred in or aggravated during such active duty; or (2) during the 14-day period following the end of such active duty.
Amends the Internal Revenue Code to provide as a general business credit for employers a Ready Reserve-National Guard employee credit equal to the lesser of: (1) 50 percent of the actual compensation paid with respect an employee who is absent from employment during the above periods; or (2) $30,000.
Provides for the tax treatment of differential wage payments made under this Act.
Provides an employer credit for income differential payments made with respect to the employment of activated military reservist and replacement personnel.
Permits, without loss of tax benefits, employer payments to an individual retirement plan while an employee is performing active duty military service for a period of more than 30 days.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 838 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 838
To ensure that the reserve components are able to maintain adequate
retention and recruitment levels by protecting the financial security
of the families of activated members of the National Guard and of the
Reserve.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 16, 2005
Mr. Lantos (for himself, Mr. Graves, Mr. McGovern, Mr. Shays, Mr.
Olver, Ms. Watson, Mr. George Miller of California, Ms. Kaptur, Mr.
Ruppersberger, Mrs. Capps, Mr. Strickland, Mr. Grijalva, Mr. Cummings,
Mr. Gene Green of Texas, Ms. DeLauro, Mrs. McCarthy, Mr. Blumenauer,
Mr. Owens, Mr. McDermott, Mr. Brown of Ohio, Mr. Jefferson, Mr. Moore
of Kansas, Mr. Delahunt, Mr. Etheridge, Ms. Norton, Mr. Chandler, Mrs.
Maloney, Mr. Faleomavaega, Mr. Clay, Mr. Costello, Mr. Jones of North
Carolina, and Mr. Stark) introduced the following bill; which was
referred to the Committee on Ways and Means, and in addition to the
Committee on Government Reform, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To ensure that the reserve components are able to maintain adequate
retention and recruitment levels by protecting the financial security
of the families of activated members of the National Guard and of the
Reserve.
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 ``Help Our Patriotic Employers at
Helping Our Military Employees Act'' or the ``HOPE at HOME Act''.
SEC. 2. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS SERVING ON ACTIVE
DUTY IN A RESERVE COMPONENT OF THE UNIFORMED SERVICES.
(a) In General.--Subchapter IV of chapter 55 of title 5, United
States Code, is amended by adding at the end the following new section:
``Sec. 5538. Nonreduction in pay while serving on active duty in a
reserve component
``(a) An employee who is also a member of a reserve component and
is absent from a position of employment with the Federal Government
under a call or order to serve on active duty for a period of more than
30 days shall be entitled to receive, for each pay period described in
subsection (b), an amount equal to the difference (if any) between--
``(1) the amount of civilian basic pay that would otherwise
have been payable to the employee for such pay period if the
employee's civilian employment with the Government had not been
interrupted by the service on active duty; and
``(2) the amount of military compensation that is payable
to the employee for the service on active duty and is allocable
to such pay period.
``(b)(1) Amounts under this section shall be payable with respect
to each pay period (which would otherwise apply if the employee's
civilian employment had not been interrupted) that occurs--
``(A) while the employee serves on active duty for a period
of more than 30 days;
``(B) while the employee is hospitalized for, or
convalescing from, an illness or injury incurred in, or
aggravated during, the performance of such active duty; or
``(C) during the 14-day period beginning at the end of such
active duty or the end of the period referred to in
subparagraph (B).
``(2) Paragraph (1) shall not apply with respect to a pay period
for which the employee receives civilian basic pay (including by taking
any annual, military, or other paid leave) to which the employee is
entitled by virtue of the employee's civilian employment with the
Government.
``(c) Any amount payable under this section to an employee shall be
paid--
``(1) by the employing agency of the employee;
``(2) from the appropriations or fund that would be used to
pay the employee if the employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would civilian basic pay if the employee's
civilian employment had not been interrupted.
``(d) In consultation with Secretary of Defense, the Office of
Personnel Management shall prescribe such regulations as may be
necessary to carry out this section.
``(e) In consultation with the Office of Personnel Management, the
head of each employing agency shall prescribe procedures to ensure that
the rights under this section apply to the employees of such agency.
``(f) In this section:
``(1) The terms `active duty for a period of more than 30
days', `member', and `reserve component' have the meanings
given such terms in section 101 of title 37.
``(2) The term `civilian basic pay', with respect to an
employee, includes any amount payable under section 5304 of
this title or under such other law providing for the
compensation of the employee by the employing agency for work
performed.
``(3) The term `employing agency', as used with respect to
an employee entitled to any payments under this section, means
the agency with respect to which the employee has reemployment
rights under chapter 43 of title 38. The term `agency' has the
meaning given such term in subparagraph (C) of section
2302(a)(2) of this title, except that the term includes
Government corporations and agencies excluded by clause (i) or
(ii) of such subparagraph.
``(4) The term `military compensation' has the meaning
given the term `pay' in section 101(21) of title 37, except
that the term includes allowances under chapter 7 of such
title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 55 of title 5, United States Code, is amended by inserting
after the item relating to section 5537 the following new item:
``5538. Nonreduction in pay while serving on active duty in a reserve
component.''.
(c) Application of Amendment.--Section 5538 of title 5, United
States Code, as added by subsection (a), shall apply with respect to
pay periods (as described in subsection (b) of such section) beginning
on or after the date of the enactment of this Act.
SEC. 3. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT ADDED TO GENERAL
BUSINESS CREDIT.
(a) Addition of Credit.--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. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT.
``(a) General Rule.--For purposes of section 38, the Ready Reserve-
National Guard employee credit determined under this section for any
taxable year with respect to each Ready Reserve-National Guard employee
of an employer is an amount equal to the lesser of--
``(1) 50 percent of the actual compensation amount paid
with respect to such Ready Reserve-National Guard employee for
such taxable year while the employee is absent from employment
for a reason described in subsection (b); or
``(2) $30,000.
``(b) Covered Pay Periods.--Subsection (a) shall apply with respect
to a Ready Reserve-National Guard employee--
``(1) while the employee serves on active duty for a period
of more than 30 days;
``(2) while the employee is hospitalized for, or
convalescing from, an illness or injury incurred in, or
aggravated during, the performance of such active duty; or
``(3) during the 14-day period beginning at the end of such
active duty or the end of the period referred to in
subparagraph (B).
``(c) Limitation.--No credit shall be allowed under subsection (a)
with respect to a Ready Reserve-National Guard employee on any day on
which the employee was not scheduled to work (for a reason other than
such service on active duty) and ordinarily would not have worked.
``(d) Portion of Credit Refundable.--
``(1) In general.--In the case of an employer described in
paragraph (2), the aggregate credits allowed to a taxpayer
under subpart C shall be increased by the lesser of--
``(A) the credit which would be allowed under this
section without regard to this subsection and the
limitation under section 38(c), or
``(B) the amount by which the aggregate amount of
credits allowed by this subpart (determined without
regard to this subsection) would increase if the
limitation imposed by section 38(c) for any taxable
year were increased by the amount of employer payroll
taxes imposed on the taxpayer during the calendar year
in which the taxable year begins.
The amount of the credit allowed under this subsection shall
not be treated as a credit allowed under this subpart and shall
reduce the amount of the credit otherwise allowable under
subsection (a) without regard to section 38(c).
``(2) Employer described.--An employer is described in this
paragraph if the employer is--
``(A) an organization exempt from tax under this
chapter,
``(B) any State or political subdivision thereof,
the District of Columbia, any possession of the United
States, or any agency or instrumentality of any of the
foregoing, or
``(C) any Indian tribal government (within the
meaning of section 7871) or any agency or
instrumentality thereof.
``(3) Employer payroll taxes.--For purposes of this
subsection--
``(A) In general.--The term `employer payroll
taxes' means the taxes imposed by--
``(i) section 3111(b), and
``(ii) sections 3211(a) and 3221(a)
(determined at a rate equal to the rate under
section 3111(b)).
``(B) Special rule.--A rule similar to the rule of
section 24(d)(2)(C) shall apply for purposes of
subparagraph (A).
``(e) Definitions.--In this section--
``(1) The terms `active duty for a period of more than 30
days', `member', and `reserve component' have the meanings
given such terms in section 101 of title 37, United States
Code.
``(2) The term `compensation' means any remuneration for
employment, whether in cash or in kind, which is paid or
incurred by a taxpayer and which is deductible from the
taxpayer's gross income under section 162(a)(1).
``(3) The term `Ready Reserve-National Guard employee' with
respect to an employer, means an employee of the employer who
is also a member of a reserve component during a taxable
year.''.
(b) Credit to Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to general business credit) is
amended by striking ``plus'' at the end of paragraph (18), by striking
the period at the end of paragraph (19) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(20) the active-duty reserve component employee credit
determined under section 45J(a).''.
(c) Conforming Amendment.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``or 45J'' after ``section
35''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
is amended by inserting after the item relating to section 45I
the following new item:
``Sec. 45J. Active-duty reserve component employee credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 4. DIFFERENTIAL WAGE PAYMENTS.
(a) Income Tax Withholding.--Section 3401 of the Internal Revenue
Code of 1986 (relating to definitions) is amended by adding at the end
the following new subsection:
``(i) Differential Wage Payments to Active Duty Members of the
Uniformed Services.--
``(1) In general.--For purposes of subsection (a), any
differential wage payment shall be treated as a payment of
wages by the employer to the employee.
``(2) Differential wage payment.--For purposes of paragraph
(1), the term `differential wage payment' means any payment
which--
``(A) is made by an employer to an individual with
respect to any period during which the individual is
performing service in the uniformed services while on
active duty for a period of more than 30 days, and
``(B) represents all or a portion of the wages the
individual would have received from the employer if the
individual were performing service for the employer.''.
(b) Treatment of Differential Wage Payments for Retirement Plan
Purposes.--
(1) Pension plans.--
(A) In general.--Section 414(u) of such Code
(relating to special rules relating to veterans'
reemployment rights under USERRA) is amended by adding
at the end the following new paragraph:
``(11) Treatment of differential wage payments.--
``(A) In general.--Except as provided in this
paragraph, for purposes of applying this title to a
retirement plan to which this subsection applies--
``(i) an individual receiving a
differential wage payment shall be treated as
an employee of the employer making the payment,
``(ii) the differential wage payment shall
be treated as compensation, and
``(iii) the plan shall not be treated as
failing to meet the requirements of any
provision described in paragraph (1)(C) by
reason of any contribution which is based on
the differential wage payment.
``(B) Special rule for distributions.--
``(i) In general.--Notwithstanding
subparagraph (A)(i), for purposes of section
401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii),
403(b)(11)(A), or 457(d)(1)(A)(ii), an
individual shall be treated as having been
severed from employment during any period the
individual is performing service in the
uniformed services described in section
3401(i)(2)(A).
``(ii) Limitation.--If an individual elects
to receive a distribution by reason of clause
(i), the plan shall provide that the individual
may not make an elective deferral or employee
contribution during the 6-month period
beginning on the date of the distribution.
``(C) Nondiscrimination requirement.--Subparagraph
(A)(iii) shall apply only if all employees of an
employer performing service in the uniformed services
described in section 3401(i)(2)(A) are entitled to
receive differential wage payments on reasonably
equivalent terms and, if eligible to participate in a
retirement plan maintained by the employer, to make
contributions based on the payments . For purposes of
applying this subparagraph, the provisions of
paragraphs (3), (4), and (5), of section 410(b) shall
apply.
``(D) Differential wage payment.--For purposes of
this paragraph, the term `differential wage payment'
has the meaning given such term by section
3401(i)(2).''.
(B) Conforming amendment.--The heading for section
414(u) of such Code is amended by inserting ``and to
Differential Wage Payments to Members on Active Duty''
after ``USERRA''.
(2) Differential wage payments treated as compensation for
individual retirement plans.--Section 219(f)(1) of such Code
(defining compensation) is amended by adding at the end the
following new sentence: ``The term `compensation' includes any
differential wage payment (as defined in section 3401(i)(2))''.
(c) Effective Dates.--
(1) Subsection (a).--The amendments made by subsection (a)
shall apply to remuneration paid after December 31, 2004.
(2) Subsection (b).--The amendments made by subsection (b)
shall apply to plan years beginning after December 31, 2004.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any plan or
annuity contract amendment--
(A) such plan or contract shall be treated as being
operated in accordance with the terms of the plan or
contract during the period described in paragraph
(2)(B)(i), and
(B) except as provided by the Secretary of the
Treasury, such plan shall not fail to meet the
requirements of the Internal Revenue Code of 1986 or
the Employee Retirement Income Security Act of 1974 by
reason of such amendment.
(2) Amendments to which section applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any amendment made by this
section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2007.
(B) Conditions.--This subsection shall not apply to
any plan or annuity contract amendment unless--
(i) during the period beginning on the date
the amendment described in subparagraph (A)(i)
takes effect and ending on the date described
in subparagraph (A)(ii) (or, if earlier, the
date the plan or contract amendment is
adopted), the plan or contract is operated as
if such plan or contract amendment were in
effect; and
(ii) such plan or contract amendment
applies retroactively for such period.
SEC. 5. CREDIT FOR INCOME DIFFERENTIAL FOR EMPLOYMENT OF ACTIVATED
MILITARY RESERVIST AND REPLACEMENT PERSONNEL.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to foreign tax credit,
etc.) is amended by adding at the end the following new section:
``SEC. 30B. EMPLOYER WAGE CREDIT FOR ACTIVATED MILITARY RESERVISTS.
``(a) General Rule.--There shall be allowed as a credit against the
tax imposed by this chapter for the taxable year an amount equal to the
sum of--
``(1) in the case of a small business employer, the
employment credit with respect to all qualified employees and
qualified replacement employees of the taxpayer, plus
``(2) the self-employment credit of a qualified self-
employed taxpayer.
``(b) Employment Credit.--For purposes of this section--
``(1) Qualified employees.--
``(A) In general.--The employment credit with
respect to a qualified employee of the taxpayer for any
taxable year is equal to 50 percent of the lesser of--
``(i) the excess, if any, of--
``(I) the qualified employee's
average daily qualified compensation
for the taxable year, over
``(II) the average daily military
pay and allowances received by the
qualified employee during the taxable
year, while participating in qualified
reserve component duty to the exclusion
of the qualified employee's normal
employment duties for the number of
days the qualified employee
participates in qualified reserve
component duty during the taxable year,
including time spent in a travel
status, or
``(ii) $30,000.
The employment credit, with respect to all qualified
employees, is equal to the sum of the employment
credits for each qualified employee under this
subsection.
``(B) Average daily qualified compensation and
average daily military pay and allowances.--As used
with respect to a qualified employee--
``(i) the term `average daily qualified
compensation' means the qualified compensation
of the qualified employee for the taxable year
divided by the difference between--
``(I) 365, and
``(II) the number of days the
qualified employee participates in
qualified reserve component duty during
the taxable year, including time spent
in a travel status, and
``(ii) the term `average daily military pay
and allowances' means--
``(I) the amount paid to the
qualified employee during the taxable
year as military pay and allowances on
account of the qualified employee's
participation in qualified reserve
component duty, divided by
``(II) the total number of days the
qualified employee participates in
qualified reserve component duty,
including time spent in travel status.
``(C) Qualified compensation.--When used with
respect to the compensation paid or that would have
been paid to a qualified employee for any period during
which the qualified employee participates in qualified
reserve component duty, the term `qualified
compensation' means--
``(i) compensation which is normally
contingent on the qualified employee's presence
for work and which would be deductible from the
taxpayer's gross income under section 162(a)(1)
if the qualified employee were present and
receiving such compensation,
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and with respect to which the number
of days the qualified employee participates in
qualified reserve component duty does not
result in any reduction in the amount of
vacation time, sick leave, or other nonspecific
leave previously credited to or earned by the
qualified employee, and
``(iii) group health plan costs (if any)
with respect to the qualified employee.
``(D) Qualified employee.--The term `qualified
employee' means a person who--
``(i) has been an employee of the taxpayer
for the 31-day period immediately preceding the
period during which the employee participates
in qualified reserve component duty, and
``(ii) is a member of the Ready Reserve of
a reserve component of an Armed Force of the
United States as defined in sections 10142 and
10101 of title 10, United States Code.
``(2) Qualified replacement employees.--
``(A) In general.--The employment credit with
respect to a qualified replacement employee of the
taxpayer for any taxable year is equal to 50 percent of
the lesser of--
``(i) the individual's qualified
compensation attributable to service rendered
as a qualified replacement employee, or
``(ii) $12,000.
The employment credit, with respect to all qualified
replacement employees, is equal to the sum of the
employment credits for each qualified replacement
employee under this subsection.
``(B) Qualified compensation.--When used with
respect to the compensation paid to a qualified
replacement employee, the term `qualified compensation'
means--
``(i) compensation which is normally
contingent on the qualified replacement
employee's presence for work and which is
deductible from the taxpayer's gross income
under section 162(a)(1),
``(ii) compensation which is not
characterized by the taxpayer as vacation or
holiday pay, or as sick leave or pay, or as any
other form of pay for a nonspecific leave of
absence, and
``(iii) group health plan costs (if any)
with respect to the qualified replacement
employee.
``(C) Qualified replacement employee.--The term
`qualified replacement employee' means an individual
who is hired to replace a qualified employee or a
qualified self-employed taxpayer, but only with respect
to the period during which such employee or taxpayer
participates in qualified reserve component duty,
including time spent in travel status.
``(D) Failure to make differential wage payments.--
The employment credit with respect to a qualified
replacement employee of the taxpayer for any taxable
year shall be zero if the taxpayer does not make all
differential wage payments (as defined by section
3401(i)(2)) for the taxable year to the qualified
employee or the qualified self-employed taxpayer (as
the case may be) who is replaced by the qualified
replacement employee.
``(c) Self-Employment Credit.--For purposes of this section--
``(1) In general.--The self-employment credit of a
qualified self-employed taxpayer for any taxable year is equal
to 50 percent of the lesser of--
``(A) the excess, if any, of--
``(i) the self-employed taxpayer's average
daily self-employment income for the taxable
year over
``(ii) the average daily military pay and
allowances received by the taxpayer during the
taxable year, while participating in qualified
reserve component duty to the exclusion of the
taxpayer's normal self-employment duties for
the number of days the taxpayer participates in
qualified reserve component duty during the
taxable year, including time spent in a travel
status, or
``(B) $30,000.
``(2) Average daily self-employment income and average
daily military pay and allowances.--As used with respect to a
self-employed taxpayer--
``(A) the term `average daily self-employment
income' means the self-employment income (as defined in
section 1402(b)) of the taxpayer for the taxable year
plus the amount paid for insurance which constitutes
medical care for the taxpayer for such year (within the
meaning of section 162(l)) divided by the difference
between--
``(i) 365, and
``(ii) the number of days the taxpayer
participates in qualified reserve component
duty during the taxable year, including time
spent in a travel status, and
``(B) the term `average daily military pay and
allowances' means--
``(i) the amount paid to the taxpayer
during the taxable year as military pay and
allowances on account of the taxpayer's
participation in qualified reserve component
duty, divided by
``(ii) the total number of days the
taxpayer participates in qualified reserve
component duty, including time spent in travel
status.
``(3) Qualified self-employed taxpayer.--The term
`qualified self-employed taxpayer' means a taxpayer who--
``(A) has net earnings from self-employment (as
defined in section 1402(a)) for the taxable year, and
``(B) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States.
``(d) Credit in Addition to Deduction.--The employment credit or
the self-employment credit provided in this section is in addition to
any deduction otherwise allowable with respect to compensation actually
paid to a qualified employee, qualified replacement employee, or
qualified self-employed taxpayer during any period the qualified
employee or qualified self-employed taxpayer participates in qualified
reserve component duty to the exclusion of normal employment duties.
``(e) Coordination With Other Credits.--The amount of credit
otherwise allowable under sections 51(a) and 1396(a) with respect to
any employee shall be reduced by the credit allowed by this section
with respect to such employee.
``(f) Limitations.--
``(1) Application with other credits.--The credit allowed
under subsection (a) for any taxable year shall not exceed the
excess (if any) of--
``(A) the regular tax for the taxable year reduced
by the sum of the credits allowable under subpart A and
sections 27, 29, and 30, over
``(B) the tentative minimum tax for the taxable
year.
``(2) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of the
armed forces of the united states.--No credit shall be allowed
under subsection (a) to a taxpayer for--
``(A) any taxable year, beginning after the date of
the enactment of this section, in which the taxpayer is
under a final order, judgment, or other process issued
or required by a district court of the United States
under section 4323 of title 38 of the United States
Code with respect to a violation of chapter 43 of such
title, and
``(B) the 2 succeeding taxable years.
``(3) Disallowance with respect to persons ordered to
active duty for training.--No credit shall be allowed under
subsection (a) to a taxpayer with respect to any period by
taking into account any person who is called or ordered to
active duty for any of the following types of duty:
``(A) Active duty for training under any provision
of title 10, United States Code.
``(B) Training at encampments, maneuvers, outdoor
target practice, or other exercises under chapter 5 of
title 32, United States Code.
``(C) Full-time National Guard duty, as defined in
section 101(d)(5) of title 10, United States Code.
``(g) General Definitions and Special Rules.--For purposes of this
section--
``(1) Small business employer.--
``(A) In general.--The term `small business
employer' means, with respect to any taxable year, any
employer who employed an average of 50 or fewer
employees on business days during such taxable year.
``(B) Controlled groups.--For purposes of
subparagraph (A), all persons treated as a single
employer under subsection (b), (c), (m), or (o) of
section 414 shall be treated as a single employer.
``(2) Military pay and allowances.--The term `military pay'
means pay as that term is defined in section 101(21) of title
37, United States Code, and the term `allowances' means the
allowances payable to a member of the Armed Forces of the
United States under chapter 7 of that title.
``(3) Qualified reserve component duty.--The term
`qualified reserve component duty' includes only active duty
performed, as designated in the reservist's military orders, in
support of a contingency operation as defined in section
101(a)(13) of title 10, United States Code.
``(4) Special rule for certain manufacturers.--
``(A) In general.--In the case of any qualified
manufacturer, paragraph (1)(A) of this subsection shall
be applied by substituting `100' for `50'.
``(B) Qualified manufacturer.--For purposes of this
paragraph, the term `qualified manufacturer' means any
person if--
``(i) the primary business of such person
is classified in sector 31, 32, or 33 of the
North American Industrial Classification
System, and
``(ii) all of such person's facilities
which are used for production in such business
are located in the United States.
``(5) Carryback and carryforward allowed.--
``(A) In general.--If the credit allowable under
subsection (a) for a taxable year exceeds the amount of
the limitation under subsection (f)(1) for such taxable
year (in this paragraph referred to as the `unused
credit year'), such excess shall be a credit carryback
to each of the 3 taxable years preceding the unused
credit year and a credit carryforward to each of the 20
taxable years following the unused credit year.
``(B) Rules.--Rules similar to the rules of section
39 shall apply with respect to the credit carryback and
credit carryforward under subparagraph (A).
``(6) Certain rules to apply.--Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall apply.''.
(b) Conforming Amendment.--Section 55(c)(2) of the Internal Revenue
Code of 1986 is amended by inserting ``30B(f)(1),'' after
``30(b)(3),''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end of 30A the following new item:
``Sec. 30B. Employer wage credit for activated military reservists.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
SEC. 6. EMPLOYER CONTRIBUTIONS TO IRAS OF CERTAIN MEMBERS OF THE
UNIFORMED SERVICES.
(a) In General.--Section 3121 of the Internal Revenue Code of 1986
is amended by adding at the end the following:
``(z) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (a) (other
than paragraphs (1) and (5)) shall exclude from the term `wages' any
employer payment on behalf of an individual to an individual retirement
plan if such payment is made by the employer to such plan with respect
to any period during which the individual is performing service in the
uniformed services while on active duty for a period of more than 30
days.''.
(b) Railroad Retirement.--Subsection (e) of Section 3231 of such
Code is amended by adding at the end the following new paragraph:
``(1) Employer contributions to iras of certain members of
the uniformed services.--Nothing in any paragraph of this
subsection (other than paragraph (2)) shall exclude from the
term `compensation' any amount described in section 3121(z).''.
(c) Federal Unemployment Tax.--Section 3306 of such Code is amended
by adding at the end the following:
``(u) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (b) (other
than paragraphs (1) and (5)) shall exclude from the term `wages' any
employer payment on behalf of an individual to an individual retirement
plan if such payment is made by the employer to such plan with respect
to any period during which the individual is performing service in the
uniformed services while on active duty for a period of more than 30
days.''.
(d) Withholding.--Section 3401(a) of such Code is amended by adding
at the end the following new subsection:
``(u) Employer Contributions to IRAs of Certain Members of the
Uniformed Services.--Nothing in any paragraph of subsection (a) (other
than paragraph (12)) shall exclude from the term `wages' any amount
described in section 3121(z).''.
(e) Effective Date.--The amendments made by this section shall
apply to amounts paid after December 31, 2004.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E261-263)
Referred to the Committee on Ways and Means, and in addition to the Committee on Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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