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S. 3044: Work Opportunity Tax Credit Disability Expansion and Enhancement Act


The text of the bill below is as of Oct 21, 2021 (Introduced).


II

117th CONGRESS

1st Session

S. 3044

IN THE SENATE OF THE UNITED STATES

October 21, 2021

introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to include individuals receiving Social Security Disability Insurance benefits under the work opportunity credit and to increase the work opportunity credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients.

1.

Short title

This Act may be cited as the Work Opportunity Tax Credit Disability Expansion and Enhancement Act.

2.

Expansion of work opportunity credit to include individuals receiving Social Security Disability Insurance benefits

(a)

In general

Subsection (d) of section 51 of the Internal Revenue Code of 1986 is amended—

(1)

in paragraph (1)—

(A)

in subparagraph (I), by striking or at the end,

(B)

in subparagraph (J), by striking the period at the end and inserting , or, and

(C)

by adding at the end the following new subparagraph:

(K)

a qualified SSDI recipient.

, and

(2)

by adding at the end the following new paragraph:

(16)

Qualified SSDI recipient

The term qualified SSDI recipient means any individual who is certified by the designated local agency as receiving disability insurance benefits under section 223 of the Social Security Act (42 U.S.C. 423) for any month ending within the 60-day period ending on the hiring date.

.

(b)

Effective date

The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2021.

3.

Enhancement of Work Opportunity Credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients

(a)

In general

Section 51 of the Internal Revenue Code of 1986 is amended—

(1)

by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and

(2)

by inserting after subsection (e) the following new subsection:

(f)

Credit for second-Year wages for employment of vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients

(1)

In general

With respect to employment of a vocational rehabilitation referral, a qualified SSI recipient, or a qualified SSDI recipient—

(A)

the amount of the work opportunity credit determined under this section for the taxable year shall include 20 percent of the qualified second-year wages for such year, and

(B)

in lieu of applying subsection (b)(3), the amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to such referral or recipient shall not exceed $12,500 per year.

(2)

Qualified second-year wages

For purposes of this subsection, the term qualified second-year wages means qualified wages—

(A)

which are paid to a vocational rehabilitation referral, a qualified SSI recipient, or a qualified SSDI recipient, and

(B)

which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such referral or recipient determined under subsection (b)(2).

(3)

Special rules for agricultural and railway labor

If such referral or recipient is an employee to whom subparagraph (A) or (B) of subsection (i)(1) applies, rules similar to the rules of such subparagraphs shall apply except that—

(A)

such subparagraph (A) shall be applied by substituting $12,500 for $6,000, and

(B)

such subparagraph (B) shall be applied by substituting $1041.67 for $500.

.

(b)

Conforming amendments

(1)

Section 51 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended—

(A)

in subsection (c)(1), by striking subsection (h)(2) and inserting subsection (i)(2),

(B)

in subsection (e)(3), by striking subsection (h)(1) and inserting subsection (i)(1), and

(C)

in subsection (g)(2), by striking subsection (h)(1) and inserting subsection (i)(1).

(2)

Section 45A of such Code is amended—

(A)

in subsection (b)(1)(B), by inserting or (f)(1)(A) after subsection (e)(1)(A),

(B)

in subsection (c)(5)(A), by striking section 51(i)(1) and inserting section 51(j)(1), and

(C)

in subsection (e)(3), by striking section 51(k) and inserting section 51(l).

(3)

Section 45S(h)(2) of such Code is amended by striking section 51(j) and inserting section 51(k).

(4)

Section 1396(d)(2)(A) of such Code is amended by striking section 51(i)(1) and inserting section 51(j)(1).

(5)

Section 1397(c) of such Code is amended by striking section 51(k) and inserting section 51(l).

(6)

Section 3111(e)(3)(B) of such Code is amended by striking subsection (i)(3)(A) and inserting subsection (j)(3)(A).

(c)

Effective date

The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2021.