Reserve Component Employer Incentive, Compensation, and Relief Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 801 To amend the Internal Revenue Code of 1986 to allow for a credit against tax for employers of reservists. IN THE HOUSE OF REPRESENTATIVES JANUARY 25, 2019 Mr. RYAN (for himself and Mr. PALAZZO) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to allow for a credit against tax for employers of reservists. 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 ‘‘Reserve Component 4 Employer Incentive, Compensation, and Relief Act of 5 2019’’. 6 SEC. 2. RESERVIST EMPLOYMENT CREDIT. 7 (a) ALLOWANCE OF CREDIT.—Subpart D of part IV 8 of subchapter A of chapter 1 of the Internal Revenue Code 9 VerDate Sep 11 2014 04:09 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H801.IH H801 kjohnson on DSK79L0C42 with BILLS 2 •HR 801 IH of 1986 is amended by adding at the end the following 1 new section: 2 ‘‘SEC. 45T. RESERVIST EMPLOYMENT CREDIT. 3 ‘‘(a) ESTABLISHMENT OF CREDIT.—For purposes of 4 section 38, in the case of an eligible employer, the reservist 5 employment credit for a taxable year is an amount equal 6 to the sum of the reservist credit amount for each qualified 7 reservist employed by such employer at any time during 8 such taxable year. 9 ‘‘(b) RESERVIST CREDIT AMOUNT.—For purposes of 10 this section— 11 ‘‘(1) IN GENERAL.—The term ‘reservist credit 12 amount’ means, with respect to a qualified reservist 13 for a taxable year, an amount equal to the sum of— 14 ‘‘(A) $1,000, plus 15 ‘‘(B) in the case of a qualified reservist— 16 ‘‘(i) with 30 or more days, and fewer 17 than 90 days, of service in the uniformed 18 services during such year, $3,000, 19 ‘‘(ii) with 90 or more days, and fewer 20 than 180 days, of service in the uniformed 21 services during such year, $5,000, and 22 ‘‘(iii) with 180 or more days of service 23 in the uniformed services during such year, 24 $10,000. 25 VerDate Sep 11 2014 04:09 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H801.IH H801 kjohnson on DSK79L0C42 with BILLS 3 •HR 801 IH ‘‘(2) DAYS OF SERVICE.—For purposes of para- 1 graph (1), days of service shall only be taken into 2 account with respect to a qualified reservist em- 3 ployed by an eligible employer to the extent such 4 days are during a period of employment of such re- 5 servist by such employer. 6 ‘‘(3) QUALIFIED RESERVIST.—The term ‘quali- 7 fied reservist’ means, with respect to a taxable year, 8 an individual who is, at any time during such tax- 9 able year, a member of the National Guard or a re- 10 serve component of the Armed Forces, as named in 11 section 10101 of title 10, United States Code (ex- 12 cept for a member of the Individual Ready Reserve). 13 ‘‘(4) OTHER DEFINITIONS.—The terms ‘reserve 14 component’, ‘active service’, ‘full-time National 15 Guard duty’, ‘active Guard and Reserve duty’, and 16 ‘inactive-duty training’ have the meanings given 17 such terms in section 101 of title 10, United States 18 Code. The term ‘National Guard’ has the meaning 19 given such term in section 101(3) of title 32, United 20 States Code. The term ‘service in the uniformed 21 services’ has the meaning given such term in section 22 4303 of title 38, United States Code. 23 ‘‘(c) ELECTION TO HAVE CREDIT NOT APPLY.— 24 VerDate Sep 11 2014 04:09 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H801.IH H801 kjohnson on DSK79L0C42 with BILLS 4 •HR 801 IH ‘‘(1) IN GENERAL.—A taxpayer may elect to 1 have this section not apply for any taxable year. 2 ‘‘(2) OTHER RULES.—Rules similar to the rules 3 of paragraphs (2) and (3) of section 51(j) shall 4 apply for purposes of this subsection.’’. 5 (b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 6 Section 38(b) of the Internal Revenue Code of 1986 is 7 amended by striking ‘‘plus’’ at the end of paragraph (31), 8 by striking the period at the end of paragraph (32) and 9 inserting ‘‘, plus’’, and by adding at the end the following 10 new paragraph: 11 ‘‘(33) in the case of an eligible employer (as de- 12 fined in section 45T(c)), the reservist employment 13 credit determined under section 45T(a).’’. 14 (c) CREDIT ALLOWED AGAINST AMT.—Subpara- 15 graph (B) of section 38(c)(4) of the Internal Revenue 16 Code of 1986 is amended by redesignating clauses (x) 17 through (xii) as clauses (xi) through (xiii), respectively, 18 and by inserting after clause (ix) the following new clause: 19 ‘‘(x) the credit determined under sec- 20 tion 45T,’’. 21 (d) CONFORMING AMENDMENTS.— 22 (1) DENIAL OF DOUBLE BENEFIT.—Section 23 280C(a) of the Internal Revenue Code of 1986 is 24 amended by inserting ‘‘45T(a),’’ after ‘‘45S(a),’’. 25 VerDate Sep 11 2014 04:09 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H801.IH H801 kjohnson on DSK79L0C42 with BILLS 5 •HR 801 IH (2) ELECTION TO HAVE CREDIT NOT APPLY.— 1 Section 6501(m) of the Internal Revenue Code of 2 1986 is amended by inserting ‘‘45T(d),’’ after 3 ‘‘45S(h),’’. 4 (3) CLERICAL AMENDMENT.—The table of sec- 5 tions for subpart D of part IV of subchapter A of 6 chapter 1 of the Internal Revenue Code of 1986 is 7 amended by adding at the end the following new 8 item: 9 ‘‘Sec. 45T. Reservist employment credit.’’. (e) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to wages paid in taxable years be- 11 ginning after December 31, 2019. 12 Æ VerDate Sep 11 2014 04:09 Feb 02, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H801.IH H801 kjohnson on DSK79L0C42 with BILLS