H. R. 4437
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
To amend the Internal Revenue Code of 1986 to allow employers a refundable credit for increasing employment.
This Act may be cited as the
Hiring Incentives to Reinvest and
Incentivize New Growth Act of 2010 or the
HIRING Act of 2010 .
Refundable credit for increasing employment
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:
Credit for increasing employment
There shall be allowed as a credit against the tax imposed by this subtitle—
for any taxable year beginning in 2010, an amount equal to 15 percent of the excess (if any) of—
the aggregate wages paid during 2010, over
the inflation-adjusted wages paid during 2009, and
for any taxable year beginning in 2011, an amount equal to 10 percent of the excess (if any) of—
the aggregate wages paid during 2011, over
the inflation-adjusted wages paid during 2010.
Quarterly advance payments of credit
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—
the aggregate wages paid by the employer during such quarter, over
the inflation-adjusted wages paid by the employer during the comparable quarter of the preceding calendar year.
For purposes of paragraph (1), the credit percentage is—
15 percent in the case of the calendar quarters of 2010, and
10 percent in the case of the calendar quarters of 2011.
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.
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.
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—
the last day of the succeeding quarter, or
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.
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.
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—
the aggregate amounts taken into account as wages were determined without any dollar limitation, and
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.
Inflation-Adjusted wages; wages
For purposes of this section—
The term inflation-adjusted wages means, for any period—
the aggregate wages paid by the employer during such period, increased by
an amount equal to the inflation percentage of such wages.
The inflation percentage is—
3 percent for purposes of determining inflation-adjusted wages for periods during 2009, and
5 percent for purposes of determining inflation-adjusted wages for periods during 2010.
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.
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.
Adjustments for certain acquisitions, etc
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.
If, after December 31, 2008—
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
the employer furnishes the acquiring person such information as is necessary for the application of subparagraph (A),
Change in status from self-employed to employee
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
for any portion of the succeeding calendar year such individual is an employee of such trade or business,
Certain other rules to apply
Rules similar to the following rules shall apply for purposes of this section:
Section 51(f) (relating to remuneration must be for trade or business employment).
Section 51(k) (relating to treatment of successor employers; treatment of employees performing services for other persons).
Section 52 (relating to special rules).
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.
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.
Denial of double benefit
Subsection (a) of section 280C of such Code is amended by
Section 1324(b)(2) of title 31, United
States Code, is amended by inserting
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
The amendments made by this section shall apply to taxable years beginning after December 31, 2009.
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).