Disability Employment Incentive Act

I 116TH CONGRESS 1ST SESSION H. R. 3992 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 HOUSE OF REPRESENTATIVES JULY 25, 2019 Mr. HARDER of California (for himself and Mr. FITZPATRICK) 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 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. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 3992 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Disability Employment 2 Incentive Act’’. 3 SEC. 2. EXPANSION OF WORK OPPORTUNITY CREDIT TO IN- 4 CLUDE INDIVIDUALS RECEIVING SOCIAL SE- 5 CURITY DISABILITY INSURANCE BENEFITS. 6 (a) IN GENERAL.—Subsection (d) of section 51 of the 7 Internal Revenue Code of 1986 is amended— 8 (1) in paragraph (1)— 9 (A) in subparagraph (I), by striking ‘‘or’’ 10 at the end, 11 (B) in subparagraph (J), by striking the 12 period at the end and inserting ‘‘, or’’, and 13 (C) by adding at the end the following new 14 subparagraph: 15 ‘‘(K) a qualified SSDI recipient.’’, and 16 (2) by adding at the end the following new 17 paragraph: 18 ‘‘(16) QUALIFIED SSDI RECIPIENT.—The term 19 ‘qualified SSDI recipient’ means any individual who 20 is certified by the designated local agency as receiv- 21 ing disability insurance benefits under section 223 of 22 the Social Security Act (42 U.S.C. 423) for any 23 month ending within the 60-day period ending on 24 the hiring date.’’. 25 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 3992 IH (b) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to individuals who begin work for 2 the employer after December 31, 2019. 3 SEC. 3. ENHANCEMENT OF WORK OPPORTUNITY CREDIT 4 FOR VOCATIONAL REHABILITATION REFER- 5 RALS, QUALIFIED SSI RECIPIENTS, AND 6 QUALIFIED SSDI RECIPIENTS. 7 (a) IN GENERAL.—Section 51 of the Internal Rev- 8 enue Code of 1986 is amended— 9 (1) by redesignating subsections (f) through (k) 10 as subsections (g) through (l), respectively, and 11 (2) by inserting after subsection (e) the fol- 12 lowing new subsection: 13 ‘‘(f) CREDIT FOR SECOND-YEAR WAGES FOR EM- 14 PLOYMENT OF VOCATIONAL REHABILITATION REFER- 15 RALS, QUALIFIED SSI RECIPIENTS, AND QUALIFIED 16 SSDI RECIPIENTS.— 17 ‘‘(1) IN GENERAL.—With respect to employ- 18 ment of a vocational rehabilitation referral, a quali- 19 fied SSI recipient, or a qualified SSDI recipient— 20 ‘‘(A) the amount of the work opportunity 21 credit determined under this section for the tax- 22 able year shall include 20 percent of the quali- 23 fied second-year wages for such year, and 24 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 3992 IH ‘‘(B) in lieu of applying subsection (b)(3), 1 the amount of the qualified first-year wages, 2 and the amount of qualified second-year wages, 3 which may be taken into account with respect 4 to such referral or recipient shall not exceed 5 $12,500 per year. 6 ‘‘(2) QUALIFIED SECOND-YEAR WAGES.—For 7 purposes of this subsection, the term ‘qualified sec- 8 ond-year wages’ means qualified wages— 9 ‘‘(A) which are paid to a vocational reha- 10 bilitation referral, a qualified SSI recipient, or 11 a qualified SSDI recipient, and 12 ‘‘(B) which are attributable to service ren- 13 dered during the 1-year period beginning on the 14 day after the last day of the 1-year period with 15 respect to such referral or recipient determined 16 under subsection (b)(2). 17 ‘‘(3) SPECIAL RULES FOR AGRICULTURAL AND 18 RAILWAY LABOR.—If such referral or recipient is an 19 employee to whom subparagraph (A) or (B) of sub- 20 section (i)(1) applies, rules similar to the rules of 21 such subparagraphs shall apply except that— 22 ‘‘(A) such subparagraph (A) shall be ap- 23 plied by substituting ‘$12,500’ for ‘$6,000’, and 24 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 3992 IH ‘‘(B) such subparagraph (B) shall be ap- 1 plied by substituting ‘$1,041.67’ for ‘$500’.’’. 2 (b) CONFORMING AMENDMENTS.— 3 (1) Section 51 of the Internal Revenue Code of 4 1986, as amended by subsection (a), is amended— 5 (A) in subsection (c)(1), by striking ‘‘sub- 6 section (h)(2)’’ and inserting ‘‘subsection 7 (i)(2)’’, 8 (B) in subsection (e)(3), by striking ‘‘sub- 9 section (h)(1)’’ and inserting ‘‘subsection 10 (i)(1)’’, and 11 (C) in subsection (g)(2), by striking ‘‘sub- 12 section (h)(1)’’ and inserting ‘‘subsection 13 (i)(1)’’. 14 (2) Section 45A of such Code is amended— 15 (A) in subsection (b)(1)(B), by inserting 16 ‘‘or (f)(1)(A)’’ after ‘‘subsection (e)(1)(A)’’, 17 (B) in subsection (c)(5)(A), by striking 18 ‘‘section 51(i)(1)’’ and inserting ‘‘section 19 51(j)(1)’’, and 20 (C) in subsection (e)(3), by striking ‘‘sec- 21 tion 51(k)’’ and inserting ‘‘section 51(l)’’. 22 (3) Section 45S(h)(2) of such Code is amended 23 by striking ‘‘section 51(j)’’ and inserting ‘‘section 24 51(k)’’. 25 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 3992 IH (4) Section 1396(d)(2)(A) of such Code is 1 amended by striking ‘‘section 51(i)(1)’’ and inserting 2 ‘‘section 51(j)(1)’’. 3 (5) Section 1397(c) of such Code is amended by 4 striking ‘‘section 51(k)’’ and inserting ‘‘section 5 51(l)’’. 6 (6) Section 3111(e)(3)(B) of such Code is 7 amended by striking ‘‘subsection (i)(3)(A)’’ and in- 8 serting ‘‘subsection (j)(3)(A)’’. 9 (c) EFFECTIVE DATE.—The amendments made by 10 this section shall apply to individuals who begin work for 11 the employer after December 31, 2019. 12 SEC. 4. EXPANSION OF DISABLED ACCESS CREDIT. 13 (a) ELIGIBLE ACCESS EXPENDITURES.—Subsection 14 (a) of section 44 of the Internal Revenue Code of 1986 15 is amended by striking ‘‘$10,250’’ and inserting 16 ‘‘$20,250’’. 17 (b) ELIGIBLE SMALL BUSINESS.—Subsection (b)(1) 18 of section 44 of the Internal Revenue Code of 1986 is 19 amended— 20 (1) in subparagraph (A), by striking 21 ‘‘$1,000,000’’ and inserting ‘‘$3,000,000’’, and 22 (2) in subparagraph (B), by striking ‘‘30 full- 23 time employees’’ and inserting ‘‘60 full-time employ- 24 ees’’. 25 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 3992 IH (c) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to taxable years beginning after 2 December 31, 2019. 3 SEC. 5. EXPANSION OF DEDUCTION FOR EXPENDITURES TO 4 REMOVE ARCHITECTURAL AND TRANSPOR- 5 TATION BARRIERS TO THE HANDICAPPED 6 AND ELDERLY. 7 (a) INCLUSION OF IMPROVEMENTS IN 8 ACCESSABILITY TO INTERNET AND TELECOMMUNI- 9 CATIONS OPERATIONS.—Subsection (b) of section 190 of 10 the Internal Revenue Code of 1986 is amended by adding 11 at the end the following: 12 ‘‘(4) INCLUSION OF IMPROVEMENTS IN 13 ACCESSABILITY TO INTERNET AND TELECOMMUNI- 14 CATIONS OPERATIONS.—The term ‘architectural and 15 transportation barrier removal expenses’ shall in- 16 clude an expenditure for the purpose of improving 17 accessibility for handicapped and elderly individuals 18 to any internet or telecommunications services pro- 19 vided within any facility or public transportation ve- 20 hicle owned or leased by the taxpayer for use in con- 21 nection with their trade or business.’’. 22 (b) INCREASE IN DEDUCTION LIMITATION 23 AMOUNT.—Subsection (c) of section 190 of the Internal 24 VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 3992 IH Revenue Code of 1986 is amended by striking ‘‘$15,000’’ 1 and inserting ‘‘$30,000’’. 2 (c) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to taxable years beginning after 4 December 31, 2019. 5 Æ VerDate Sep 11 2014 02:48 Aug 13, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6301 E:\BILLS\H3992.IH H3992 pamtmann on DSKBFK8HB2PROD with BILLS