Reservists' Employment Act of 2004

Reservists' Employment Act of 2004 - Amends the Internal Revenue Code to allow employers a business tax credit for employing a military reservist as a full time employee for a three-year period. Sets the amount of such credit at $1,000 and allows the credit to be taken in the taxable year in which the military reservist's three-year employment period ends. Allows an inflation adjustment to the credit amount after 2005.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5079 Introduced in House (IH)]







108th CONGRESS
  2d Session
                                H. R. 5079

To amend the Internal Revenue Code of 1986 to allow employers a $1,000 
credit against income tax for every 3 years that they employ a military 
                               reservist.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 15, 2004

Mr. Saxton (for himself, Mr. Wolf, Mr. Miller of Florida, Mr. Sherwood, 
   Mrs. Christensen, Mr. LoBiondo, Mr. Wilson of South Carolina, Ms. 
Bordallo, Mr. Tancredo, Mr. Sandlin, Mr. Gibbons, Mr. Bass, Mr. Towns, 
 and Mr. Tiahrt) 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 employers a $1,000 
credit against income tax for every 3 years that they employ a military 
                               reservist.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reservists' Employment Act of 
2004''.

SEC. 2. $1,000 INCOME TAX CREDIT EVERY 3 YEARS FOR EMPLOYING A MILITARY 
              RESERVIST.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by inserting after section 45F the following new 
section:

``SEC. 45G. EMPLOYER CREDIT FOR EVERY 3 YEARS OF FULL-TIME EMPLOYMENT 
              OF MILITARY RESERVIST.

    ``(a) In General.--For purposes of section 38, the military 
reservist employment credit determined under this section for the 
taxable year is $1,000 for each military reservist whose has a 3-year 
employment period ending during the taxable year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Military reservist.--The term `military reservist' 
        means any individual who is a member of a reserve component (as 
        defined in section 101 of title 37, United States Code).
            ``(2) 3-year employment period.--A military reservist's 3-
        year employment period is each 3-year period throughout which 
        the individual is--
                    ``(A) a military reservist, and
                    ``(B) a full-time employee of the taxpayer (or a 
                predecessor) in a trade or business.
        A day of employment shall be taken into account under the 
        preceding sentence with respect to any employment period only 
        if not taken into account with respect to any prior period.
    ``(c) Special Rules.--
            ``(1) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2005, the dollar amount 
        contained in subsection (a) shall be increased by an amount 
        equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2004' for `calendar year 1992' in 
                subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $50.
            ``(2) Other rules.--Rules similar to the rules of section 
        52 shall apply for purposes of this section.''
    (b) Credit Made Part of General Business Credit.--
            (1) In general.--Subsection (b) of section 38 of such Code 
        (relating to current year business credit) is amended by 
        striking ``plus'' at the end of paragraph (14), by striking the 
        period at the end of paragraph (15) and inserting ``, plus'', 
        and by adding at the end thereof the following new paragraph:
            ``(16) the military reservist employment credit determined 
        under section 45G(a).''.
            (2) Limitation on carryback.--Subsection (d) of section 39 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(11) No carryback of military reservist employment credit 
        before effective date.--No portion of the unused business 
        credit for any taxable year which is attributable to the credit 
        determined under section 45G may be carried back to any taxable 
        year beginning on or before the date of the enactment of this 
        paragraph.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45F the following new 
item:

                              ``Sec. 45G. Employer credit for every 3 
                                        years of full-time employment 
                                        of military reservist.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act; except that such amendments shall take into account periods 
of employment on or before such date.
                                 <all>