To amend the Internal Revenue Code of 1986 to temporarily provide the work opportunity tax credit for small businesses hiring unemployed individuals.

Amends the Internal Revenue Code to allow certain small businesses with gross receipts in the preceding taxable year not exceeding $20 million a work opportunity tax credit for hiring individuals who have been receiving state unemployment compensation for not less than 4 weeks in the 1-year period ending on the hiring date. Increases the amount of wages eligible for such credit from $6,000 to $12,000 for the hiring of individuals in a high unemployment zone (a county that has an unemployment rate exceeding the greater of 4% or the national unemployment rate). Terminates such credit after December 31, 2013.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1663 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 1663

 To amend the Internal Revenue Code of 1986 to temporarily provide the 
  work opportunity tax credit for small businesses hiring unemployed 
                              individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 2011

 Mr. West (for himself, Mr. Walsh of Illinois, Ms. Richardson, and Ms. 
Ros-Lehtinen) 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 temporarily provide the 
  work opportunity tax credit for small businesses hiring unemployed 
                              individuals.

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

SECTION 1. WORK OPPORTUNITY TAX CREDIT FOR SMALL BUSINESSES HIRING 
              UNEMPLOYED INDIVIDUALS.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new subsection:
    ``(l) Temporary Credit for Unemployed Individuals Hired by Small 
Businesses.--
            ``(1) In general.--In the case of an employer which is a 
        specified small business--
                    ``(A) any specified unemployed individual shall be 
                treated as a member of a targeted group for purposes of 
                this section, and
                    ``(B) in the case of a high unemployment zone 
                individual, subsection (b)(3) shall be applied by 
                substituting `$12,000' for `$6,000'.
            ``(2) Specified small business.--For purposes of this 
        subsection, the term `specified small business' means, with 
        respect to any taxable year, any employer--
                    ``(A) whose gross receipts for the preceding 
                taxable year did not exceed $20,000,000, or
                    ``(B) who is an eligible employer (as defined in 
                section 408(p)(2)(C)(i)(I)) for such taxable year.
            ``(3) Specified unemployed individual.--For purposes of 
        this subsection, the term `specified unemployed individual' 
        means any individual who is certified by the designated local 
        agency as being in receipt of unemployment compensation under 
        State or Federal law for not less than 4 weeks during the 1-
        year period ending on the hiring date.
            ``(4) High unemployment zone individual.--For purposes of 
        this subsection--
                    ``(A) In general.--The term `high unemployment zone 
                individual' means any specified unemployed individual 
                who is certified by the designated local agency as 
                having his principal place of abode in a high 
                unemployment zone.
                    ``(B) High unemployment zone.--
                            ``(i) In general.--The term `high 
                        unemployment zone' means any county if the 
                        unemployment rate in such county exceeds the 
                        greater of--
                                    ``(I) 4 percent, and
                                    ``(II) the national unemployment 
                                rate.
                            ``(ii) Determination of unemployment 
                        rates.--Determinations under clause (i) shall 
                        be made by the Secretary, after consultation 
                        with the Secretary of Labor, on the basis of 
                        the most recent available data. Such 
                        determinations shall be made with respect to 
                        each calendar year for which this subsection 
                        applies and the Secretary shall make the list 
                        of high unemployment zones with respect to each 
                        such calendar year publicly available not later 
                        than the beginning of the calendar year for 
                        which the list applies.
            ``(5) Termination.--This subsection shall not apply with 
        respect to any individual who begins work for the employer 
        after December 31, 2013.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to individuals who begin work for the employer after 
December 31, 2011.
                                 <all>