Tax Credits for Jobs Now Act of 2012 - Amends the Internal Revenue Code to allow employers a refundable tax credit for: (1) 60% of the excess of the aggregate wages paid to employees during 2012 over the aggregate wages paid during 2011, and (2) 40% of the excess of such wages paid during 2013 over the aggregate inflation-adjusted wages paid during 2012. Limits the maximum amount of such credit to $500,000 in any calendar year.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4167 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4167
To amend the Internal Revenue Code of 1986 to allow employers a
refundable credit for increasing employment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 8, 2012
Mr. Barrow 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
refundable credit for increasing employment.
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 ``Tax Credits for Jobs Now Act of
2012''.
SEC. 2. CREDIT FOR INCREASING EMPLOYMENT.
(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by inserting after section 36B the following new section:
``SEC. 36C. CREDIT FOR INCREASING EMPLOYMENT.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this subtitle--
``(1) for any taxable year beginning in 2012, an amount
equal to 60 percent of the excess of--
``(A) the aggregate wages paid during 2012, over
``(B) the aggregate wages paid during 2011, and
``(2) for any taxable year beginning in 2013, an amount
equal to 40 percent of the excess of--
``(A) the aggregate wages paid during 2013, over
``(B) the aggregate inflation-adjusted wages paid
during 2012.
``(b) Maximum Credit.--The amount of the credit allowable under
this section for any employer with respect to any calendar year shall
not exceed $500,000.
``(c) Minimum Preceding Year Wages.--For purposes of subsection
(a)--
``(1) the amount taken into account under paragraph (1)(B)
thereof shall not be less than 50 percent of the amount
described in paragraph (1)(A) thereof, and
``(2) the amount taken into account under paragraph (2)(B)
thereof shall not be less than 50 percent of the amount
described in paragraph (2)(A) thereof.
``(d) Total Wages Must Increase.--The amount of credit allowed
under this section for any taxable year shall not exceed the amount
which would be so allowed for such year (without regard to subsection
(c)) if--
``(1) the aggregate amounts taken into account as wages
were determined without any dollar limitation, and
``(2) 103 percent of the amount of wages otherwise required
to be taken into account under subsection (a)(1)(B) or
subsection (a)(2)(B), as the case may be, were taken into
account.
``(e) Wages; Inflation-Adjusted Wages.--For purposes of this
section:
``(1) In general.--Except as provided in paragraph (2), the
term `wages' has the meaning given to such term by section
3306(b).
``(2) Railway and agricultural labor.--Rules similar to the
rules of section 51(h) shall apply for purposes of this
section.
``(3) Inflation-adjusted wages.--The term `inflation-
adjusted wages' means the aggregate wages paid during 2012
increased by an amount equal to--
``(A) such aggregate wages, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for 2012, determined by
substituting `calendar year 2010' for `calendar year
1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded in such manner as the Secretary shall prescribe.
``(f) Special Rules.--
``(1) Adjustments for certain acquisitions, etc.--
``(A) Acquisitions.--If, after December 31, 2010,
an employer acquires the major portion of a trade or
business of another person (hereinafter in this
subparagraph referred to as the `predecessor') or the
major portion of a separate unit of a trade or business
of a predecessor, then, for purposes of applying this
section for any calendar year ending after such
acquisition, the amount of wages deemed paid by the
employer during periods before such acquisition shall
be increased by so much of such wages paid by the
predecessor with respect to the acquired trade or
business as is attributable to the portion of such
trade or business acquired by the employer.
``(B) Dispositions.--If, after December 31, 2010--
``(i) an employer disposes of the major
portion of any trade or business of the
employer or the major portion of a separate
unit of a trade or business of the employer in
a transaction to which subparagraph (A)
applies, and
``(ii) the employer furnishes the acquiring
person such information as is necessary for the
application of subparagraph (A),
then, for purposes of applying this section for any
calendar year ending after such disposition, the amount
of wages deemed paid by the employer during periods
before such disposition shall be decreased by so much
of such wages as is attributable to such trade or
business or separate unit.
``(2) Change in status from self-employed to employee.--
If--
``(A) during 2011 or 2012 an individual has net
earnings from self-employment (as defined in section
1402(a)) which are attributable to a trade or business,
and
``(B) for any portion of the succeeding calendar
year such individual is an employee of such trade or
business,
then, for purposes of determining the credit allowable for a
taxable year beginning in such succeeding calendar year, the
employer's aggregate wages for 2011 or 2012, as the case may
be, shall be increased by an amount equal to so much of the net
earnings referred to in subparagraph (A) as does not exceed the
median household income in the United States for 2011 or 2012,
as the case may be.
``(3) Certain other rules to apply.--Rules similar to the
following rules shall apply for purposes of this section:
``(A) Section 51(f) (relating to remuneration must
be for trade or business employment).
``(B) Section 51(i)(1) (relating to related
individuals ineligible).
``(C) Section 51(k) (relating to treatment of
successor employers; treatment of employees performing
services for other persons).
``(D) Section 52 (relating to special rules).
``(4) Short taxable years.--If the employer has more than 1
taxable year beginning in 2012 or 2013, the credit under this
section shall be determined for the employer's last taxable
year beginning in 2012 or 2013, as the case may be.''.
(b) Denial of Double Benefit.--Subsection (a) of section 280C of
such Code is amended by inserting ``36C(a),'' before ``45A(a)''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36C,'' after ``36B,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36B the following new item:
``Sec. 36C. Credit for increasing employment.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2011.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line