Hiring Our Veterans Act of 2011 - Amends the Internal Revenue Code to: (1) increase the amount of wages eligible for the work opportunity tax credit for veterans who are hired after being unemployed for six months or more during the one-year period ending on the hiring date ($14,000 of first-year wages) or disabled veterans who are either hired within one year after discharge from active duty ($12,000 of first-year wages) or who are hired after being unemployed for six months or more during the one-year period ending on the hiring date ($24,000 of first-year wages), and (2) allow tax-exempt organizations to claim the lesser of the amount of the work opportunity tax credit for hiring veterans or the amount of the payroll taxes paid by such organizations during the calendar year.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3402 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 3402
To amend the Internal Revenue Code of 1986 to provide a credit for
employing returning heroes and wounded warriors.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 10, 2011
Ms. Schwartz (for herself, Mr. Holden, Mr. Brady of Pennsylvania, Ms.
Norton, Ms. Eddie Bernice Johnson of Texas, Mr. Hinchey, Mr. Ackerman,
Ms. Moore, Mr. DeFazio, Mr. Towns, Mr. Holt, Mr. Bishop of New York,
Mrs. Christensen, Ms. Wasserman Schultz, Mr. Al Green of Texas, Mr.
Courtney, Mr. Doyle, Mr. Welch, Mr. Michaud, Ms. Lee of California, Mr.
Fattah, Mr. Higgins, Ms. Schakowsky, Mr. Nadler, Mr. Meeks, Mr.
Fitzpatrick, Ms. Wilson of Florida, Mr. Altmire, Mr. Garamendi, Mr.
Price of North Carolina, and Mr. Clay) 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 for
employing returning heroes and wounded warriors.
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 ``Hiring Our Veterans Act of 2011''.
SEC. 2. RETURNING HEROES AND WOUNDED WARRIORS WORK OPPORTUNITY TAX
CREDITS.
(a) In General.--Paragraph (3) of section 51(b) of the Internal
Revenue Code of 1986 is amended by striking ``($12,000 per year in the
case of any individual who is a qualified veteran by reason of
subsection (d)(3)(A)(ii))'' and inserting ``($12,000 per year in the
case of any individual who is a qualified veteran by reason of
subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any
individual who is a qualified veteran by reason of subsection
(d)(3)(A)(iv), and $24,000 per year in the case of any individual who
is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))''.
(b) Returning Heroes Tax Credits.--Section 51(d)(3)(A) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at the end
of clause (3)(A)(i), and inserting the following new clauses after
clause (ii)--
``(iii) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 4 weeks
(but less than 6 months), or
``(iv) having aggregate periods of
unemployment during the 1-year period ending on
the hiring date which equal or exceed 6
months.''.
(c) Simplified Certification.--Section 51(d) of the Internal
Revenue Code of 1986 is amended by adding a new paragraph (15) as
follows--
``(15) Credit allowed for unemployed veterans.--
``(A) In general.--Any qualified veteran under
paragraphs (3)(A)(ii)(II), (3)(A)(iii), and (3)(A)(iv)
will be treated as certified by the designated local
agency as having aggregate periods of unemployment if--
``(i) in the case of qualified veterans
under paragraphs (3)(A)(ii)(II) and (3)(A)(iv),
the veteran is certified by the designated
local agency as being in receipt of
unemployment compensation under State or
Federal law for not less than 6 months during
the 1-year period ending on the hiring date; or
``(ii) in the case of a qualified veteran
under paragraph (3)(A)(iii), the veteran 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 (but less than 6 months) during the 1-
year period ending on the hiring date.
``(B) Regulatory authority.--The Secretary in his
discretion may provide alternative methods for
certification.''.
(d) Credit Made Available to Tax-Exempt Employers in Certain
Circumstances.--Section 52(c) of the Internal Revenue Code of 1986 is
amended--
(1) by striking the word ``No'' at the beginning of the
section and replacing it with ``Except as provided in this
subsection, no'';
(2) by inserting at the end of section 52(c) the following
new paragraphs--
``(1) In general.--In the case of a tax-exempt employer,
there shall be treated as a credit allowable under subpart C
(and not allowable under subpart D) the lesser of--
``(A) the amount of the work opportunity credit
determined under this subpart with respect to such
employer that is related to the hiring of qualified
veterans described in sections 51(d)(3)(A)(ii)(II),
(iii) or (iv); or
``(B) the amount of the payroll taxes of the
employer during the calendar year in which the taxable
year begins.
``(2) Credit amount.--In calculating for tax-exempt
employers, the work opportunity credit shall be determined by
substituting `26 percent' for `40 percent' in section 51(a) and
by substituting `16.25 percent' for `25 percent' in section
51(i)(3)(A).
``(3) Tax-exempt employer.--For purposes of this subpart,
the term `tax-exempt employer' means an employer that is--
``(A) an organization described in section 501(c)
and exempt from taxation under section 501(a), or
``(B) a public higher education institution (as
defined in section 101 of the Higher Education Act of
1965).
``(4) Payroll taxes.--For purposes of this subsection--
``(A) In general.--The term `payroll taxes' means--
``(i) amounts required to be withheld from
the employees of the tax-exempt employer under
section 3401(a),
``(ii) amounts required to be withheld from
such employees under section 3101(a), and
``(iii) amounts of the taxes imposed on the
tax-exempt employer under section 3111(a).''.
(e) Treatment of Possessions.--
(1) Payments to possessions.--
(A) Mirror code possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States with a mirror code tax system amounts equal to
the loss to that possession by reason of the
application of this section (other than this
subsection). Such amounts shall be determined by the
Secretary of the Treasury based on information provided
by the government of the respective possession of the
United States.
(B) Other possessions.--The Secretary of the
Treasury shall pay to each possession of the United
States, which does not have a mirror code tax system,
amounts estimated by the Secretary of the Treasury as
being equal to the aggregate credits that would have
been provided by the possession by reason of the
application of this section (other than this
subsection) if a mirror code tax system had been in
effect in such possession. The preceding sentence shall
not apply with respect to any possession of the United
States unless such possession has a plan, which has
been approved by the Secretary of the Treasury, under
which such possession will promptly distribute such
payments.
(2) Coordination with credit allowed against united states
income taxes.--No increase in the credit determined under
section 38(b) of the Internal Revenue Code of 1986 that is
attributable to the credit provided by this section (other than
this subsection (e)) shall be taken into account with respect
to any person--
(A) to whom a credit is allowed against taxes
imposed by the possession of the United States by
reason of this section for such taxable year, or
(B) who is eligible for a payment under a plan
described in paragraph (1)(B) with respect to such
taxable year.
(3) Definitions and special rules.--
(A) Possession of the united states.--For purposes
of this subsection (e), the term ``possession of the
United States'' includes American Samoa, the
Commonwealth of the Northern Mariana Islands, the
Commonwealth of Puerto Rico, Guam, and the United
States Virgin Islands.
(B) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means,
with respect to any possession of the United States,
the income tax system of such possession if the income
tax liability of the residents of such possession under
such system is determined by reference to the income
tax laws of the United States as if such possession
were the United States.
(C) Treatment of payments.--For purposes of section
1324(b)(2) of title 31, United States Code, rules
similar to the rules of section 1001(b)(3)(C) of the
American Recovery and Reinvestment Tax Act of 2009
shall apply.
(f) Reporting.--The taxpayer shall provide such information as the
Secretary of the Treasury requires to enable the Secretary to determine
the number of veterans specified by each of the categories in clauses
(i) through (iv) of section 51(d)(3)(A) of the Internal Revenue Code of
1986 (as amended by this section) with respect to whom a credit is
claimed under section 51(a) of such Code pursuant to the amendments
made by this section.
(g) Effective Date.--The amendment made by this section shall apply
to individuals who begin work for the employer after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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