[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10147 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10147
To amend the Internal Revenue Code of 1986 to allow for a credit
against tax for employers of reservists.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 15, 2024
Ms. Plaskett 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 for a credit
against tax for employers of reservists.
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 ``Reserve Employers Comprehensive
Relief and Uniform Incentives on Taxes Act of 2024'' or as the
``RECRUIT Act of 2024''.
SEC. 2. RESERVIST EMPLOYMENT CREDIT.
(a) Allowance of Credit.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new section:
``SEC. 45BB. RESERVIST EMPLOYMENT CREDIT.
``(a) Establishment of Credit.--For purposes of section 38, in the
case of an eligible employer, the reservist employment credit for any
taxable year is an amount equal to 40 percent of the wages paid or
incurred to qualified reservists by such employer during such taxable
year.
``(b) Limitation.--
``(1) In general.--The reservist employment credit
determined under subsection (a), with respect to any qualified
reservist for any taxable year, shall not exceed the reservist
credit amount.
``(2) Reservist credit amount.--For purposes of this
section, the term `reservist credit amount' means, with respect
to a qualified reservist for a taxable year, an amount equal to
the sum of--
``(A) $1,000, plus
``(B) in the case of a qualified reservist--
``(i) with 30 or more days, and fewer than
90 days, of service in the uniformed services
during such year, $3,000,
``(ii) with 90 or more days, and fewer than
180 days, of service in the uniformed services
during such year, $5,000, and
``(iii) with 180 or more days of service in
the uniformed services during such year,
$10,000.
``(3) Days of service.--For purposes of paragraph (2), any
day of service--
``(A) shall not be taken into account if such day
constitutes inactive-duty training, or active duty or
full-time National Guard duty for a period of 30 days
or less, and
``(B) shall only be taken into account with respect
to a qualified reservist employed by an eligible
employer to the extent such days are during a period of
employment of such reservist by such employer.
``(4) Qualified reservist.--The term `qualified reservist'
means, with respect to a taxable year, an individual who is, at
any time during such taxable year, a member of the National
Guard or a reserve component of the Armed Forces, as named in
section 10101 of title 10, United States Code, in active
status.
``(5) Reserve component.--The term `reserve component'
means any of the reserve components of the Armed Forces named
in section 10101 of title 10, United States Code.
``(6) National guard.--The term `National Guard' has the
meaning given such term in section 101(3) of title 32, United
States Code.
``(7) Service in the uniformed services.--The term `service
in the uniformed services' means active duty or full-time
National Guard duty for a period of more than 30 days, but does
not include active Guard and Reserve duty.
``(8) Active status.--The term `active status' has the
meaning given such term in section 101 of title 10, United
States Code.
``(9) Inactive-duty training.--The term `inactive-duty
training' has the meaning given such term in section 101 of
title 10, United States Code.
``(c) Eligible Employer.--For purposes of this section, the term
`eligible employer' means any employer which--
``(1) has an average of less than 500 employees employed on
business days during the taxable year,
``(2) meets the gross receipts test of section 448(c) for
the taxable year, and
``(3) is not a tax shelter prohibited from using the cash
receipts and disbursements method of accounting under section
448(a)(3).
In the case of any taxpayer which is not a corporation or partnership,
the gross receipts test of section 448(c) shall, for purposes of
paragraph (2) of this subsection, be applied in the same manner as if
such taxpayer were a corporation or partnership.
``(d) Aggregation Rule.--All persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414 shall be treated
as 1 employer for purposes of this section.
``(e) Election To Have Credit Not Apply.--
``(1) In general.--A taxpayer may elect to have this
section not apply for any taxable year.
``(2) Other rules.--Rules similar to the rules of
paragraphs (2) and (3) of section 51(j) shall apply for
purposes of this subsection.''.
(b) Credit Part of General Business Credit.--Section 38(b) of the
Internal Revenue Code of 1986 is amended by striking ``plus'' at the
end of paragraph (40), by striking the period at the end of paragraph
(41) and inserting ``, plus'', and by adding at the end the following
new paragraph:
``(42) in the case of an eligible employer (as defined in
section 45BB(c)), the reservist employment credit determined
under section 45BB(a).''.
(c) Credit Allowed Against AMT.--Subparagraph (B) of section
38(c)(4) of the Internal Revenue Code of 1986 is amended by
redesignating clauses (x) through (xii) as clauses (xi) through (xiii),
respectively, and by inserting after clause (ix) the following new
clause:
``(x) the credit determined under section
45BB,''.
(d) Conforming Amendments.--
(1) Denial of double benefit.--Section 280C(a) of the
Internal Revenue Code of 1986 is amended by inserting
``45BB(a),'' after ``45S(a),''.
(2) Election to have credit not apply.--Section 6501(m) of
the Internal Revenue Code of 1986 is amended by inserting
``45BB(d),'' after ``45H(g),''.
(3) Clerical amendment.--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 adding at the end the
following new item:
``Sec. 45BB. Reservist employment credit.''.
(e) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the
Treasury 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 amendments
made by this section. Such amounts shall be determined
by the Secretary of the Treasury based on information
provided by the government of the respective possession
of the United States.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States which does not have a mirror code tax system the
amount estimated by the Secretary of the Treasury as
being equal to the loss to that possession that would
have occurred by reason of the amendments made by this
section 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 in
effect after the amendments made by this section.
(2) Coordination with credit allowed against united states
income taxes.--The credit allowed under section 45BB of the
Internal Revenue Code of 1986 (as added by this section) to any
eligible employer with respect to any qualified reservist shall
be reduced by the amount of any credit (or other tax benefit
described in paragraph (1)(B)) against income taxes imposed by
a possession of the United States allowed to such employer with
respect to such reservist by reason of this section for the
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'' shall include such possessions as are
specified in section 937(a)(1) of the Internal Revenue
Code of 1986.
(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.
(f) Effective Date.--The amendments made by this section shall
apply to wages paid in taxable years beginning after December 31, 2023.
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