Text: H.R.2082 — 112th Congress (2011-2012)All Bill Information (Except Text)

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Introduced in House (06/01/2011)


112th CONGRESS
1st Session
H. R. 2082

To amend the Internal Revenue Code of 1986 to modify the work opportunity credit.


IN THE HOUSE OF REPRESENTATIVES
June 1, 2011

Mr. Schock (for himself and Mr. Rangel) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Armed Services, 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 amend the Internal Revenue Code of 1986 to modify the work opportunity credit.

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 “Work Opportunity Credit Improvements Act”.

SEC. 2. Three-year extension of work opportunity tax credit.

(a) In general.—Subparagraph (B) of section 51(c)(4) of the Internal Revenue Code of 1986 is amended by striking “December 31, 2011” and inserting “December 31, 2014”.

(b) Effective date.—The amendment made by this section shall apply to individuals who begin work for the employer after December 31, 2011.

SEC. 3. Alternative certification for certain targeted groups.

(a) In general.—Paragraph (13) of section 51(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(D) ALTERNATIVE CERTIFICATION FOR CERTAIN TARGETED GROUPS.—Notwithstanding subparagraph (A), in the case of a recently discharged veteran, a qualified ex-felon, a designated community resident, a vocational rehabilitation referral, a qualified summer youth, or a qualified SSI recipient, an individual shall be treated as having been certified by the local designated agency as a member of a targeted group if the employer—

“(i) prior to filing a return of tax on which the employer claims a credit with respect to such individual, obtains such documentation relating to the requirements for the targeted group of which the individual is a member as would be required by the designated local agency to be submitted for certification under subparagraph (A)(i),

“(ii) meets the pre-screening requirement of subparagraph (A)(ii)(I), and

“(iii) maintains such records relating to such individual as the Secretary shall by regulation prescribe.”.

(b) Effective date.—The amendments made by this section shall apply to individuals whose hiring date (as defined in section 51(d)(11) of the Internal Revenue Code of 1986) is on or after the date of the enactment of this Act.

SEC. 4. Work opportunity credit for certain recently discharged veterans.

(a) In general.—Subparagraph (A) of section 51(d)(3) of the Internal Revenue Code of 1986 is amended by striking “means any veteran” and all that follows and inserting “means any recently discharged veteran and any veteran receiving specified benefits.”

(b) Recently discharged veteran; veteran receiving specified benefits.—Paragraph (3) of section 51(d) of such Code is amended—

(1) by redesignating subparagraphs (B) and (C) as subparagraphs (D) and (E), respectively, and

(2) by inserting after subparagraph (A) the following new subparagraphs:

“(B) RECENTLY DISCHARGED VETERAN.—For purposes of subparagraph (A), the term ‘recently discharged veteran’ means—

“(i) any individual who has served on active duty (other than active duty for training) in the Armed Forces of the United States for more than 180 days,

“(ii) any individual who has been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability, and

“(iii) any member of the National Guard who has served for more than 180 consecutive days of—

“(I) active duty (within the meaning of title 32, United States Code) other than for training,

“(II) full-time National Guard duty (within the meaning of such title 32) other than for training,

“(III) duty, other than inactive duty or duty for training, in State status (within the meaning of such title 32), or

“(IV) any combination of duty described in subclause (I), (II), or (III),

who has been discharged or released from such duty at any time during the 5-year period ending on the hiring date. Such term shall not include any veteran who begins work for the employer before the date of the enactment of this Act.

“(C) VETERAN RECEIVING SPECIFIED BENEFITS.—For purposes of subparagraph (A), the term ‘veteran receiving specified benefits’ means any veteran who is certified by the designated local agency as—

“(i) being a member of a family receiving assistance under a supplemental nutrition assistance program under the Food and Nutrition Act of 2008 for at least a 3-month period ending during the 12-month period ending on the hiring date, or

“(ii) entitled to compensation for a service-connected disability, and—

“(I) having a hiring date which is not more than 1 year after having been discharged or released from active duty in the Armed Forces of the United States, or

“(II) having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.”.

(c) Conforming amendments.—Section 51 of the such Code is amended—

(1) by striking “(d)(3)(A)(ii)” in paragraph (3) of subsection (b) and inserting “(d)(3)(C)(ii)”,

(2) by striking “For purposes of subparagraph (A)” in subparagraphs (D) and (E) of subsection (d)(3), as redesignated by subsection (b), and inserting “For purposes of subparagraph (C)”, and

(3) by adding at the end of paragraph (13) of subsection (d), as amended by this Act the following new subparagraph:

“(E) PRE-SCREENING OF RECENTLY DISCHARGED VETERANS.—

“(i) IN GENERAL.—For purposes of subparagraph (A), the term ‘pre-screening notice’ shall include any documentation provided to an individual by the Department of Defense or the National Guard upon release or discharge from the Armed Forces or from service in the National Guard which includes information sufficient to establish that such individual is a recently discharged veteran.

“(ii) ADDITIONAL CERTIFICATION NOT REQUIRED.—Subparagraph (A) shall be applied without regard to clause (ii)(II) thereof in the case of a recently discharged veteran who provides to the employer documentation described in clause (i).”.

(d) Effective date.—The amendments made by subsections (a), (b), and (c) shall apply to individuals whose hiring date (as defined in section 51(d)(11) of the Internal Revenue Code of 1986) is on or after the date of the enactment of this Act.

(e) Department of Defense documentation.—

(1) IN GENERAL.—The Department of Defense and the National Guard, as applicable, shall provide—

(A) to each individual who is discharged or released from active duty in the Armed Forces of the United States on or after the date of the enactment of this Act; and

(B) to each member of the National Guard who is released from duty described in section 51(d)(3)(B)(iii) of the Internal Revenue Code of 1986 (as added by this Act) on or after the date of the enactment of this Act;

in addition to the documentation which, without regard to this subsection, is provided at the time of such discharge or release, documentation described in paragraph (4). If the documentation which is provided without regard to this subsection at the time of the discharge or release described in the preceding sentence does not include information sufficient to satisfy the requirements of section 51(d)(13)(D)(i) of the Internal Revenue Code of 1986 (as added by this Act), the Department of Defense or the National Guard, whichever is applicable, shall provide additional documentation which includes such information.

(2) INFORMATIONAL BRIEFING AS PART OF PRESEPARATION COUNSELING.—In the case of an individual who is discharged or released from duty described in subparagraph (A) or (B) of paragraph (1) after the date of the enactment of this Act, the Department of Defense or the National Guard, whichever is applicable, shall inform such individual, as a part of the individual preseparation counseling required by section 1142 of title 10, United States Code, of the credit for employment of recently discharged veterans under section 51 of the Internal Revenue Code of 1986.

(3) REQUEST FOR DOCUMENTATION.—The Department of Defense or the National Guard, whichever is applicable, shall provide upon request the documentation required by paragraph (1) to any individual or a third party authorized by the individual who is discharged or released from duty described in subparagraph (A) or (B) of such paragraph during the 5-year period preceding and including the date of the enactment of this Act.

(4) INSTRUCTIONS FOR USE OF WORK OPPORTUNITY CREDIT.—The documentation described in this paragraph is a document which includes—

(A) instructions for an individual to ensure treatment as a recently discharged veteran for purposes of section 51(d)(3)(B) of the Internal Revenue Code of 1986 (as added by this Act),

(B) instructions for employers detailing the use of the credit under such section with respect to such individual, and

(C) the dates during which the credit under such section is available.

Such instructions shall be developed in collaboration with the Internal Revenue Service.

SEC. 5. Incentives to hire high-risk youths.

(a) In general.—Subparagraph (A) of section 51(d)(14) of the Internal Revenue Code of 1986 is amended—

(1) by striking “or disconnected youth”, and

(2) by inserting “, or any high-risk youth who so begins work during 2009, 2010, 2011, 2012, 2013, or 2014,” after “during 2009 or 2010”.

(b) Conforming amendments.—

(1) Clause (ii) of section 51(d)(14)(B) of such Code is amended—

(A) by striking “disconnected youth” and inserting “high-risk youth”, and

(B) by striking “Disconnected youth” in the heading thereof and inserting “High-risk youth”.

(2) The heading for section 51(d)(14) of such Code is amended by striking “disconnected youth” in the heading thereof and inserting “high-risk youth”.

(c) Effective date.—The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2010.