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H.R. 1018: Reservist Pay Equity Act of 2021

The text of the bill below is as of Feb 11, 2021 (Introduced).



1st Session

H. R. 1018


February 11, 2021

(for himself and Mr. Wenstrup) introduced the following bill; which was referred to the Committee on Ways and Means


To amend the Internal Revenue Code of 1986 to increase the differential wage payment credit.


Short title

This Act may be cited as the Reservist Pay Equity Act of 2021.


Expansion of employer wage credit for employees who are active duty members of the uniformed services


Increase in differential wage payment credit

Section 45P(a) of the Internal Revenue Code of 1986 is amended by striking 20 percent and inserting 50 percent.


Adjustment for inflation

Section 45P(b) of such Code is amended by adding at the end the following new paragraph:


Adjustment for inflation

In the case of any taxable year beginning after 2021, the $20,000 amount in paragraph (1) shall be increased by an amount equal to—


such dollar amount, multiplied by


the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 2020 for calendar year 1996 in subparagraph (A)(ii) thereof.

If the amount as increased under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.



Effective date

The amendments made by this section shall apply to payments made after December 31, 2020.