Expand America's Workforce Act of 2005

Expand America's Workforce Act of 2005 - Amends the Internal Revenue Code to allow, until December 31, 2007, a general business tax credit for hiring certain new employees.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 119 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 119

   To amend the Internal Revenue Code of 1986 to provide a credit to 
                  employers for hiring new employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

  Ms. Hooley 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 provide a credit to 
                  employers for hiring new employees.

    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 ``Expand America's Workforce Act of 
2005''.

SEC. 2. NEW EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT.

    (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 adding at the end the following new section:

``SEC. 45J. NEW EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the new employee 
credit determined under this section for a taxable year is an amount 
equal to $5,000 multiplied by the number of new qualified employees for 
the taxable year.
    ``(b) Limitation.--For purposes of subsection (a), the number of 
employees treated as new qualified employees for the taxable year may 
not exceed the excess (if any) of--
            ``(1) the number of full-time employees of the taxpayer on 
        the last day of the taxable year, over
            ``(2) the number of full-time employees of the taxpayer on 
        the first day of the taxable year.
    ``(c) New Qualified Employees.--
            ``(1) In general.--For purposes of this section, the term 
        `new qualified employee' means an individual who--
                    ``(A) as of the last day of the taxable year of the 
                employer, is a full-time employee of the employer, and
                    ``(B) first began full-time employment with the 
                employer during the 12-month period beginning 9 months 
                before the end of the preceding taxable year and ending 
                on the last day of the 3rd month beginning in the 
                taxable year.
            ``(2) Exception.--No individual with respect to whom a 
        credit is determined for the taxable year under section 51 
        shall be treated as a new qualified employee.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Full-time employment.--An employee shall be 
        considered full-time if such employee is employed at least 30 
        hours per week for each week during the 12-month period 
        referred to in subsection (b)(1).
            ``(2) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2007.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (18), by striking 
the period at the end of paragraph (19) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(20) the new employee credit determined under section 
        45J(a).''.
    (c) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``45J. New employee credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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