[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6030 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 6030
To provide a temporary tax credit for increased payroll, to eliminate
certain tax benefits for major integrated oil companies, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 27, 2012
Mr. Levin (for himself, Mr. Rangel, Mr. Stark, Mr. McDermott, Mr. Lewis
of Georgia, Mr. Neal, Mr. Becerra, Mr. Thompson of California, Mr.
Larson of Connecticut, Mr. Blumenauer, Mr. Kind, Mr. Pascrell, Ms.
Berkley, and Mr. Crowley) introduced the following bill; which was
referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To provide a temporary tax credit for increased payroll, to eliminate
certain tax benefits for major integrated oil companies, and for other
purposes.
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 ``Hire Now Act of 2012''.
SEC. 2. TEMPORARY TAX CREDIT FOR INCREASED PAYROLL.
(a) In General.--In the case of a qualified employer who elects the
application of this section, there shall be allowed as a credit against
the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for
the taxable year which includes December 31, 2012, an amount equal to
10 percent of the excess (if any) of--
(1) the sum of the wages and compensation paid by such
qualified employer for qualified services during calendar year
2012, over
(2) the sum of such wages and compensation paid during
calendar year 2011.
(b) Limitation.--The amount of the excess taken into account under
subsection (a) with respect to any qualified employer shall not exceed
$5,000,000.
(c) Wages and Compensation.--For purposes of this section--
(1) Wages.--The term ``wages'' has the meaning given such
term under section 3121 of the Internal Revenue Code of 1986
for purposes of the tax imposed by section 3111(a) of such
Code.
(2) Compensation.--The term ``compensation'' has the
meaning given such term under section 3231 of such Code for
purposes of the portion of the tax imposed by section 3221(a)
of such Code that corresponds to the tax imposed by section
3111(a) of such Code.
(3) Application of contribution and benefit base to
calendar year 2011.--For purposes of determining wages and
compensation under subsection (a)(2), the contribution and
benefit base as determined under section 230 of the Social
Security Act shall be such amount as in effect for calendar
year 2012.
(4) Special rule when no wages or compensation in 2011.--In
any case in which the sum of the wages and compensation paid by
a qualified employer for qualified services during calendar
year 2011 is zero, then the amount taken into account under
subsection (a)(2) shall be 80 percent of the amount taken into
account under subsection (a)(1).
(5) Coordination with other employment credits.--The amount
of the excess taken into account under subsection (a) shall be
reduced by the sum of all other Federal tax credits determined
with respect to wages or compensation paid in calendar year
2012.
(d) Other Definitions.--
(1) Qualified employer.--For purposes of this section--
(A) In general.--The term ``qualified employer''
has the meaning given such term under section
3111(d)(2) of the Internal Revenue Code of 1986,
determined by substituting ``section 101 of the Higher
Education Act of 1965'' for ``section 101(b) of the
Higher Education Act of 1965'' in subparagraph (B)
thereof.
(B) Aggregation rules.--Rules similar to the rules
of sections 414(b), 414(c), 414(m), and 414(o) of such
Code shall apply to determine when multiple entities
shall be treated as a single employer, and rules with
respect to predecessor and successor employers may be
applied, in such manner as may be prescribed by the
Secretary of the Treasury or the Secretary's designee
(in this section referred to as the ``Secretary'').
(2) Qualified services.--The term ``qualified services''
means services performed by an individual who is not described
in section 51(i)(1) of such Code (applied by substituting
``qualified employer'' for ``taxpayer'' each place it
appears)--
(A) in a trade or business of the qualified
employer, or
(B) in the case of a qualified employer exempt from
tax under section 501(a) of such Code, in furtherance
of the activities related to the purpose or function
constituting the basis of the employer's exemption
under section 501 of such Code.
(e) Application of Certain Rules.--Rules similar to the rules of
sections 280C(a) and 6501(m) of the Internal Revenue Code of 1986 shall
apply with respect to the credit determined under this section.
(f) Treatment of Credit.--For purposes of the Internal Revenue Code
of 1986--
(1) Taxable employers.--
(A) In general.--The credit allowed under
subsection (a) with respect to qualified services
described in subsection (d)(2)(A) for any taxable year
shall be added to the current year business credit
under section 38(b) of such Code for such taxable year
and shall be treated as a credit allowed under subpart
D of part IV of subchapter A of chapter 1 of such Code.
(B) Limitation on carrybacks.--No portion of the
unused business credit under section 38 of such Code
for any taxable year which is attributable to an
increase in the current year business credit by reason
of subparagraph (A) may be carried to a taxable year
beginning before the date of the enactment of this
section.
(2) Tax-exempt employers.--
(A) In general.--The credit allowed under
subsection (a) with respect to qualified services
described in subsection (d)(2)(B) for any taxable
year--
(i) shall be treated as a credit allowed
under subpart C of part IV of subchapter A of
chapter 1 of such Code, and
(ii) shall be added to the credits
described in subparagraph (A) of section
6211(b)(4) of such Code.
(B) Conforming amendment.--Section 1324(b)(2) of
title 31, United States Code, is amended by inserting
``or due under section 2 of the Hire Now Act of 2012''
after ``the Housing Assistance Tax Act of 2008''.
(g) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary shall
pay to each possession of the United States with a
mirror code tax system amounts equal to the loss to
that possession by reason of the application of
subsections (a) through (f). Such amounts shall be
determined by the Secretary based on information
provided by the government of the respective possession
of the United States.
(B) Other possessions.--The Secretary shall pay to
each possession of the United States which does not
have a mirror code tax system the amount estimated by
the Secretary as being equal to the loss to that
possession that would have occurred by reason of the
application of subsections (a) through (f) if a mirror
code tax system had been in effect in such possession.
The preceding sentence shall not apply with respect to
any possession of the United States unless such
possession establishes to the satisfaction of the
Secretary that the possession has implemented (or, at
the discretion of the Secretary, will implement) an
income tax benefit which is substantially equivalent to
the income tax credit allowed under such subsections.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 against
United States income taxes for any taxable year determined by
reason of subsection (f)(1)(A) shall be taken into account with
respect to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of this section for
such taxable year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection, the term ``possession of the United
States'' includes American Samoa, Guam, the
Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, and the United States
Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, the
payments under this subsection shall be treated in the
same manner as a refund due from credit provisions
described in such section.
(h) Regulations.--The Secretary shall prescribe such regulations or
guidance as are necessary to carry out the provisions of this section.
SEC. 3. PROHIBITION ON USING LAST-IN, FIRST-OUT ACCOUNTING FOR MAJOR
INTEGRATED OIL COMPANIES.
(a) In General.--Section 472 of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(h) Major Integrated Oil Companies.--Notwithstanding any other
provision of this section, a major integrated oil company (as defined
in section 167(h)(5)(B)) may not use the method provided in subsection
(b) in inventorying of any goods.''.
(b) Effective Date and Special Rule.--
(1) In general.--The amendment made by subsection (a) shall
apply to taxable years ending after the date of the enactment
of this Act.
(2) Change in method of accounting.--In the case of any
taxpayer required by the amendment made by this section to
change its method of accounting for its first taxable year
ending after the date of the enactment of this Act--
(A) such change shall be treated as initiated by
the taxpayer,
(B) such change shall be treated as made with the
consent of the Secretary of the Treasury, and
(C) the net amount of the adjustments required to
be taken into account by the taxpayer under section 481
of the Internal Revenue Code of 1986 shall be taken
into account ratably over a period (not greater than 8
taxable years) beginning with such first taxable year.
SEC. 4. LIMITATION ON DEDUCTION FOR INTANGIBLE DRILLING AND DEVELOPMENT
COSTS OF MAJOR INTEGRATED OIL COMPANIES.
(a) In General.--Section 263(c) of the Internal Revenue Code of
1986 is amended by adding at the end the following new sentence: ``This
subsection shall not apply to amounts paid or incurred by a taxpayer in
any taxable year in which such taxpayer is a major integrated oil
company (as defined in section 167(h)(5)(B)).''.
(b) Effective Date.--The amendment made by this section shall apply
to amounts paid or incurred in taxable years ending after the date of
the enactment of this Act.
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