Hiring Incentives to Reinvest and Incentivize New Growth Act of 2010 or the HIRING Act of 2010 - Amends the Internal Revenue Code to allow employers, including tax-exempt employers, a refundable tax credit for increases in wages paid during 2010 and 2011.
Directs the Secretary of the Treasury to work with state employment agencies to inform businesses of the availability of the tax credit allowed by this Act.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4437 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4437
To amend the Internal Revenue Code of 1986 to allow employers a
refundable credit for increasing employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 13, 2010
Mr. Etheridge (for himself, Mr. Kagen, Mr. Israel, Mr. Jackson of
Illinois, Mr. Hinchey, Mr. Courtney, Mr. Skelton, Mr. Butterfield, and
Mr. Price of North Carolina) 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
refundable credit 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 ``Hiring Incentives to Reinvest and
Incentivize New Growth Act of 2010'' or the ``HIRING Act of 2010''.
SEC. 2. REFUNDABLE CREDIT FOR INCREASING EMPLOYMENT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by inserting after section 36A the following new section:
``SEC. 36B. CREDIT FOR INCREASING EMPLOYMENT.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this subtitle--
``(1) for any taxable year beginning in 2010, an amount
equal to 15 percent of the excess (if any) of--
``(A) the aggregate wages paid during 2010, over
``(B) the inflation-adjusted wages paid during
2009, and
``(2) for any taxable year beginning in 2011, an amount
equal to 10 percent of the excess (if any) of--
``(A) the aggregate wages paid during 2011, over
``(B) the inflation-adjusted wages paid during
2010.
``(b) Quarterly Advance Payments of Credit.--
``(1) In general.--The Secretary shall pay (without
interest) to each employer for each calendar quarter an amount
equal to the credit percentage of the excess (if any) of--
``(A) the aggregate wages paid by the employer
during such quarter, over
``(B) the inflation-adjusted wages paid by the
employer during the comparable quarter of the preceding
calendar year.
``(2) Credit percentage.--For purposes of paragraph (1),
the credit percentage is--
``(A) 15 percent in the case of the calendar
quarters of 2010, and
``(B) 10 percent in the case of the calendar
quarters of 2011.
``(3) Reconciliation.--
``(A) In general.--If there is a payment under
paragraph (1) for 1 or more calendar quarters ending
with or within a taxable year, then the tax imposed by
this chapter for such taxable year shall be increased
by the aggregate amount of such payments.
``(B) Reconciliation.--Any increase in tax under
subparagraph (A) shall not be treated as tax imposed by
this chapter for purposes of determining the amount of
any credit (other than the credit under subsection (a))
allowable under this part.
``(4) Time for filing claim.--No claim shall be allowed
under this subsection with respect to any calendar quarter
unless filed on or before the earlier of--
``(A) the last day of the succeeding quarter, or
``(B) the time prescribed by law for filing the
return of tax imposed by this chapter for the taxable
year in which or with which such quarter ends.
``(5) Interest.--Notwithstanding paragraph (1), if the
Secretary has not paid pursuant to a claim filed under this
subsection within 45 days of the date of the filing of such
claim (20 days in the case of an electronic claim), the claim
shall be paid with interest from such date determined by using
the overpayment rate and method under section 6621.
``(c) Total Wages Must Increase.--The amount of credit allowed
under this section for any taxable year shall not exceed the amount
which would be so allowed for such year if--
``(1) the aggregate amounts taken into account as wages
were determined without any dollar limitation, and
``(2) 103 percent of the amount of wages otherwise required
to be taken into account under subsection (a)(1)(B) or
subsection (a)(2)(B), as the case may be, were taken into
account.
``(d) Inflation-Adjusted Wages; Wages.--For purposes of this
section--
``(1) Inflation-adjusted wages.--
``(A) In general.--The term `inflation-adjusted
wages' means, for any period--
``(i) the aggregate wages paid by the
employer during such period, increased by
``(ii) an amount equal to the inflation
percentage of such wages.
``(B) Inflation percentage.--The inflation
percentage is--
``(i) 3 percent for purposes of determining
inflation-adjusted wages for periods during
2009, and
``(ii) 5 percent for purposes of
determining inflation-adjusted wages for
periods during 2010.
``(2) Wages.--
``(A) In general.--Except as provided in
subparagraph (B), the term `wages' means, with respect
to any calendar year, so much of wages (as defined in
section 3121(a)) as does not exceed the median
household income in the United States for the preceding
calendar year.
``(B) Railway labor.--In the case of remuneration
subject to the tax imposed by 3201(a), the term `wages'
means, with respect to any calendar year, so much of
compensation (as defined in section 3231(e)) as does
not exceed the median household income in the United
States for the preceding calendar year.
``(e) Special Rules.--
``(1) Adjustments for certain acquisitions, etc.--
``(A) Acquisitions.--If, after December 31, 2008,
an employer acquires the major portion of a trade or
business of another person (hereinafter in this
subparagraph referred to as the `predecessor') or the
major portion of a separate unit of a trade or business
of a predecessor, then, for purposes of applying this
section for any calendar year ending after such
acquisition, the amount of wages deemed paid by the
employer during periods before such acquisition shall
be increased by so much of such wages paid by the
predecessor with respect to the acquired trade or
business as is attributable to the portion of such
trade or business acquired by the employer.
``(B) Dispositions.--If, after December 31, 2008--
``(i) an employer disposes of the major
portion of any trade or business of the
employer or the major portion of a separate
unit of a trade or business of the employer in
a transaction to which subparagraph (A)
applies, and
``(ii) the employer furnishes the acquiring
person such information as is necessary for the
application of subparagraph (A),
then, for purposes of applying this section for any
calendar year ending after such disposition, the amount
of wages deemed paid by the employer during periods
before such disposition shall be decreased by so much
of such wages as is attributable to such trade or
business or separate unit.
``(2) Change in status from self-employed to employee.--
If--
``(A) during 2009 or 2010 an individual has net
earnings from self-employment (as defined in section
1402(a)) which are attributable 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 wages for 2009 or 2010, as the case may
be, shall be increased by an amount equal to so much of the net
earnings referred to in subparagraph (A) as does not exceed the
median household income in the United States for 2009 or 2010,
as the case may be.
``(3) Certain other rules to apply.--Rules similar to the
following rules shall apply for purposes of this section:
``(A) Section 51(f) (relating to remuneration must
be for trade or business employment).
``(B) Section 51(k) (relating to treatment of
successor employers; treatment of employees performing
services for other persons).
``(C) Section 52 (relating to special rules).
``(4) Short taxable years.--If the employer has more than 1
taxable year beginning in 2010 or 2011, the credit under this
section shall be determined for the employer's last taxable
year beginning in 2010 or 2011, as the case may be.
``(f) Tax-Exempt Employers Treated as Taxpayers.--Solely for
purposes of this section and section 6402, employers exempt from tax
under section 501(a) shall be treated as taxpayers.''.
(b) Denial of Double Benefit.--Subsection (a) of section 280C of
such Code is amended by inserting ``36B(a),'' before ``45A(a)''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36B,'' after ``36A,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36A the following new item:
``Sec. 36B. Credit for increasing employment.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
(e) Notice of Availability of Credit.--The Secretary of the
Treasury shall work with the State Employment Security Agencies to
inform businesses of the availability of section 36B of the Internal
Revenue Code of 1986 (as added by this Act).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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