Disability Employment Incentive Act

II 117TH CONGRESS 1ST SESSION S. 630 To amend the Internal Revenue Code of 1986 to include individuals receiving Social Security Disability Insurance benefits under the work opportunity credit, increase the work opportunity credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients, expand the disabled access credit, and enhance the deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. IN THE SENATE OF THE UNITED STATES MARCH 9, 2021 Mr. CASEY (for himself, Mr. VAN HOLLEN, Mr. BLUMENTHAL, Ms. DUCKWORTH, Mr. BROWN, Ms. KLOBUCHAR, Mrs. FEINSTEIN, and Mrs. GILLIBRAND) introduced the following bill; which was read twice and re- ferred 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, increase the work opportunity credit for vocational rehabilitation re- ferrals, qualified SSI recipients, and qualified SSDI re- cipients, expand the disabled access credit, and enhance the deduction for expenditures to remove architectural and transportation barriers to the handicapped and el- derly. VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 2 •S 630 IS Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Disability Employment 4 Incentive Act’’. 5 SEC. 2. EXPANSION OF WORK OPPORTUNITY CREDIT TO IN- 6 CLUDE INDIVIDUALS RECEIVING SOCIAL SE- 7 CURITY DISABILITY INSURANCE BENEFITS. 8 (a) IN GENERAL.—Subsection (d) of section 51 of the 9 Internal Revenue Code of 1986 is amended— 10 (1) in paragraph (1)— 11 (A) in subparagraph (I), by striking ‘‘or’’ 12 at the end, 13 (B) in subparagraph (J), by striking the 14 period at the end and inserting ‘‘, or’’, and 15 (C) by adding at the end the following new 16 subparagraph: 17 ‘‘(K) a qualified SSDI recipient.’’, and 18 (2) by adding at the end the following new 19 paragraph: 20 ‘‘(16) QUALIFIED SSDI RECIPIENT.—The term 21 ‘qualified SSDI recipient’ means any individual who 22 is certified by the designated local agency as receiv- 23 ing disability insurance benefits under section 223 of 24 the Social Security Act (42 U.S.C. 423) for any 25 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 3 •S 630 IS month ending within the 60-day period ending on 1 the hiring date.’’. 2 (b) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to individuals who begin work for 4 the employer after December 31, 2021. 5 SEC. 3. ENHANCEMENT OF WORK OPPORTUNITY CREDIT 6 FOR VOCATIONAL REHABILITATION REFER- 7 RALS, QUALIFIED SSI RECIPIENTS, AND 8 QUALIFIED SSDI RECIPIENTS. 9 (a) IN GENERAL.—Section 51 of the Internal Rev- 10 enue Code of 1986 is amended— 11 (1) by redesignating subsections (f) through (k) 12 as subsections (g) through (l), respectively, and 13 (2) by inserting after subsection (e) the fol- 14 lowing new subsection: 15 ‘‘(f) CREDIT FOR SECOND-YEAR WAGES FOR EM- 16 PLOYMENT OF VOCATIONAL REHABILITATION REFER- 17 RALS, QUALIFIED SSI RECIPIENTS, AND QUALIFIED 18 SSDI RECIPIENTS.— 19 ‘‘(1) IN GENERAL.—With respect to employ- 20 ment of a vocational rehabilitation referral, a quali- 21 fied SSI recipient, or a qualified SSDI recipient— 22 ‘‘(A) the amount of the work opportunity 23 credit determined under this section for the tax- 24 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 4 •S 630 IS able year shall include 20 percent of the quali- 1 fied second-year wages for such year, and 2 ‘‘(B) in lieu of applying subsection (b)(3), 3 the amount of the qualified first-year wages, 4 and the amount of qualified second-year wages, 5 which may be taken into account with respect 6 to such referral or recipient shall not exceed 7 $12,500 per year. 8 ‘‘(2) QUALIFIED SECOND-YEAR WAGES.—For 9 purposes of this subsection, the term ‘qualified sec- 10 ond-year wages’ means qualified wages— 11 ‘‘(A) which are paid to a vocational reha- 12 bilitation referral, a qualified SSI recipient, or 13 a qualified SSDI recipient, and 14 ‘‘(B) which are attributable to service ren- 15 dered during the 1-year period beginning on the 16 day after the last day of the 1-year period with 17 respect to such referral or recipient determined 18 under subsection (b)(2). 19 ‘‘(3) SPECIAL RULES FOR AGRICULTURAL AND 20 RAILWAY LABOR.—If such referral or recipient is an 21 employee to whom subparagraph (A) or (B) of sub- 22 section (i)(1) applies, rules similar to the rules of 23 such subparagraphs shall apply except that— 24 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 5 •S 630 IS ‘‘(A) such subparagraph (A) shall be ap- 1 plied by substituting ‘$12,500’ for ‘$6,000’, and 2 ‘‘(B) such subparagraph (B) shall be ap- 3 plied by substituting ‘$1041.67’ for ‘$500’.’’. 4 (b) CONFORMING AMENDMENTS.— 5 (1) Section 51 of the Internal Revenue Code of 6 1986, as amended by subsection (a), is amended— 7 (A) in subsection (c)(1), by striking ‘‘sub- 8 section (h)(2)’’ and inserting ‘‘subsection 9 (i)(2)’’, 10 (B) in subsection (e)(3), by striking ‘‘sub- 11 section (h)(1)’’ and inserting ‘‘subsection 12 (i)(1)’’, and 13 (C) in subsection (g)(2), by striking ‘‘sub- 14 section (h)(1)’’ and inserting ‘‘subsection 15 (i)(1)’’. 16 (2) Section 45A of such Code is amended— 17 (A) in subsection (b)(1)(B), by inserting 18 ‘‘or (f)(1)(A)’’ after ‘‘subsection (e)(1)(A)’’, 19 (B) in subsection (c)(5)(A), by striking 20 ‘‘section 51(i)(1)’’ and inserting ‘‘section 21 51(j)(1)’’, and 22 (C) in subsection (e)(3), by striking ‘‘sec- 23 tion 51(k)’’ and inserting ‘‘section 51(l)’’. 24 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 6 •S 630 IS (3) Section 45S(h)(2) of such Code is amended 1 by striking ‘‘section 51(j)’’ and inserting ‘‘section 2 51(k)’’. 3 (4) Section 1396(d)(2)(A) of such Code is 4 amended by striking ‘‘section 51(i)(1)’’ and inserting 5 ‘‘section 51(j)(1)’’. 6 (5) Section 1397(c) of such Code is amended by 7 striking ‘‘section 51(k)’’ and inserting ‘‘section 8 51(l)’’. 9 (6) Section 3111(e)(3)(B) of such Code is 10 amended by striking ‘‘subsection (i)(3)(A)’’ and in- 11 serting ‘‘subsection (j)(3)(A)’’. 12 (c) EFFECTIVE DATE.—The amendments made by 13 this section shall apply to individuals who begin work for 14 the employer after December 31, 2021. 15 SEC. 4. EXPANSION OF DISABLED ACCESS CREDIT. 16 (a) ELIGIBLE ACCESS EXPENDITURES.—Subsection 17 (a) of section 44 of the Internal Revenue Code of 1986 18 is amended by striking ‘‘$10,250’’ and inserting 19 ‘‘$20,250’’. 20 (b) ELIGIBLE SMALL BUSINESS.—Subsection (b)(1) 21 of section 44 of the Internal Revenue Code of 1986 is 22 amended— 23 (1) in subparagraph (A), by striking 24 ‘‘$1,000,000’’ and inserting ‘‘$3,000,000’’, and 25 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 7 •S 630 IS (2) in subparagraph (B), by striking ‘‘30 full- 1 time employees’’ and inserting ‘‘60 full-time employ- 2 ees’’. 3 (c) EFFECTIVE DATE.—The amendments made by 4 this section shall apply to taxable years beginning after 5 December 31, 2021. 6 SEC. 5. EXPANSION OF DEDUCTION FOR EXPENDITURES TO 7 REMOVE ARCHITECTURAL AND TRANSPOR- 8 TATION BARRIERS TO THE HANDICAPPED 9 AND ELDERLY. 10 (a) INCLUSION OF IMPROVEMENTS IN 11 ACCESSABILITY TO INTERNET AND TELECOMMUNI- 12 CATIONS OPERATIONS.—Subsection (b) of section 190 of 13 the Internal Revenue Code of 1986 is amended by adding 14 at the end the following: 15 ‘‘(4) INCLUSION OF IMPROVEMENTS IN 16 ACCESSABILITY TO INTERNET AND TELECOMMUNI- 17 CATIONS OPERATIONS.—The term ‘architectural and 18 transportation barrier removal expenses’ shall in- 19 clude an expenditure for the purpose of improving 20 accessibility for handicapped and elderly individuals 21 to any internet or telecommunications services pro- 22 vided within any facility or public transportation ve- 23 hicle owned or leased by the taxpayer for use in con- 24 nection with their trade or business.’’. 25 VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS 8 •S 630 IS (b) INCREASE IN DEDUCTION LIMITATION 1 AMOUNT.—Subsection (c) of section 190 of the Internal 2 Revenue Code of 1986 is amended by striking ‘‘$15,000’’ 3 and inserting ‘‘$30,000’’. 4 (c) EFFECTIVE DATE.—The amendments made by 5 this section shall apply to taxable years beginning after 6 December 31, 2021. 7 Æ VerDate Sep 11 2014 00:58 Apr 05, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\S630.IS S630 kjohnson on DSK79L0C42PROD with BILLS