Veterans Back to Work Act of 2013 - Amends the Internal Revenue Code to: (1) make permanent the work opportunity tax credit for hiring qualified veterans (veterans receiving compensation for a service-connected disability and other federal assistance), and (2) allow employers who hire qualified veterans an exemption from employment and railroad retirement taxes for such veterans' first-year wages. Appropriates amounts to the Social Security Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund to cover any revenue loss to such Funds resulting from this Act.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2133 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2133
To amend the Internal Revenue Code of 1986 to make permanent the work
opportunity tax credit for veterans and to allow an exemption from an
employer's employment taxes in an amount equivalent to the value of
such credit in the case of veterans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 23, 2013
Mr. Poe of Texas (for himself and Mr. Thompson of California)
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 make permanent the work
opportunity tax credit for veterans and to allow an exemption from an
employer's employment taxes in an amount equivalent to the value of
such credit in the case of veterans.
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 ``Veterans Back to Work Act of 2013''.
SEC. 2. EXTENSION AND IMPROVEMENT OF WORK OPPORTUNITY TAX CREDIT FOR
VETERANS.
(a) Credit Made Permanent for Veterans.--Section 51(c)(4) of the
Internal Revenue Code of 1986 is amended by inserting ``(other than a
qualified veteran)'' after ``an individual''.
(b) Election to Claim Credit as Exemption From Employment Taxes.--
(1) In general.--Section 3111 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new
subsection:
``(f) Special Exemption for Certain Veterans.--
``(1) In general.--Subsection (a) shall not apply to first-
year wages paid after the date of the enactment of this
subsection by a qualified employer with respect to employment
of any specified veteran for services performed--
``(A) in a trade or business of such qualified
employer, or
``(B) in the case of a qualified employer exempt
from tax under section 501(a), in furtherance of the
activities related to the purpose or function
constituting the basis of the employer's exemption
under section 501.
``(2) Limitation.--With respect to any specified veteran
employed by a qualified employer, the amount of wages to which
paragraph (1) applies shall not exceed--
``(A) $125,490 in the case of an individual who is
a qualified veteran by reason of section
51(d)(3)(A)(ii)(II),
``(B) $73,203 in the case of an individual who is a
qualified veteran by reason of section 51(d)(3)(A)(iv),
``(C) $62,745 in the case of an individual who is a
qualified veteran by reason of section
51(d)(3)(A)(ii)(I), and
``(D) $31,373 in the case of any other qualified
veteran.
``(3) Qualified employer.--For purposes of this
subsection--
``(A) In general.--The term `qualified employer'
means any employer other than the United States, any
State, or any political subdivision thereof, or any
instrumentality of the foregoing.
``(B) Treatment of employees of post-secondary
educational institutions.--Notwithstanding subparagraph
(A), the term `qualified employer' includes any
employer which is a public institution of higher
education (as defined in section 101(b) of the Higher
Education Act of 1965).
``(4) Specified veteran.--For purposes of this subsection--
``(A) In general.--The term `specified veteran'
means any individual who--
``(i) begins employment with a qualified
employer after the date of the enactment of
this subsection,
``(ii) certifies by signed affidavit, under
penalties of perjury, that such individual is a
qualified veteran and whether such individual
is a qualified veteran described in
subparagraph (A), (B), or (C) of paragraph (2),
``(iii) is not employed by the qualified
employer to replace another employee of such
employer unless such other employee separated
from employment voluntarily or for cause, and
``(iv) is not an individual described in
section 51(i)(1) (applied by substituting
`qualified employer' for `taxpayer' each place
it appears).
``(B) Qualified veteran.--The term `qualified
veteran' has the meaning given such term by section
51(d)(3), but applied without regard to whether such
individual has been certified by the designated local
agency.
``(5) First-year wages.--For purposes of this subsection,
the term `first-year wages' means, with respect to any
individual, wages for services rendered during 1-year period
beginning with the day the individual begins work for the
employer.
``(6) Coordination with credit for employment of qualified
veterans by qualified tax-exempt organizations.--This
subsection shall not apply with respect to the first-year wages
of any individual if such wages are taken into account in
determining the credit allowed under subsection (e).
``(7) Election.--A qualified employer may elect to have
this subsection not apply with respect to the first-year wages
of any individual. Such election shall be made in such manner
as the Secretary may require.''.
(2) Coordination with work opportunity credit.--Section
51(c) of such Code is amended by adding at the end the
following new paragraph:
``(6) Coordination with payroll tax exemption for qualified
veterans.--The credit determined under this section with
respect to any qualified veteran for any taxable year shall be
reduced by an amount equal to 7.65 percent of the qualified
first-year wages paid or incurred by the taxpayer to such
veteran during such taxable year to which section 3111(e) or
3221(d) applied.''.
(3) Coordination with credit for employment of qualified
veterans by qualified tax-exempt organizations.--Section
3111(e) of such Code is amended by adding at the end the
following new paragraph:
``(6) Election.--
``(A) In general.--A qualified tax-exempt
organization may elect to determine the credit allowed
under this section without regard to the qualified
first-year wages of any individual.
``(B) Coordination with exemption for first-year
wages of specified veterans.--For exemption for first-
year wages of specified veterans to which this
subsection does not apply, see subsection (f).''.
(4) Transfers to federal old-age and survivors insurance
trust fund.--There are hereby appropriated to the Federal Old-
Age and Survivors Trust Fund and the Federal Disability
Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the
amendments made by paragraph (1). Amounts appropriated by the
preceding sentence shall be transferred from the general fund
at such times and in such manner as to replicate to the extent
possible the transfers which would have occurred to such Trust
Fund had such amendments not been enacted.
(5) Application to railroad retirement taxes.--
(A) In general.--Section 3221 of the Internal
Revenue Code of 1986 is amended by redesignating
subsection (d) as subsection (e) and by inserting after
subsection (c) the following new subsection:
``(d) Special Exemption for Certain Veterans.--
``(1) In general.--In the case of first-year compensation
paid by a qualified employer after the date of the enactment of
this subsection with respect to having a specified veteran in
the employer's employ for services rendered to such qualified
employer, the applicable percentage under subsection (a) shall
be equal to the rate of tax in effect under section 3111(b) for
the calendar year.
``(2) Limitation.--With respect to any specified veteran
employed by a qualified employer, the amount of compensation to
which paragraph (1) applies shall not exceed--
``(A) $125,490 in the case of an individual who is
a qualified veteran by reason of section
51(d)(3)(A)(ii)(II),
``(B) $73,203 in the case of an individual who is a
qualified veteran by reason of section 51(d)(3)(A)(iv),
``(C) $62,745 in the case of an individual who is a
qualified veteran by reason of section
51(d)(3)(A)(ii)(I), and
``(D) $31,373 in the case of any other qualified
veteran.
``(3) Qualified employer.--The term `qualified employer'
means any employer other than the United States, any State, or
any political subdivision thereof, or any instrumentality of
the foregoing.
``(4) Specified veteran.--For purposes of this subsection--
``(A) In general.--The term `specified veteran'
means any individual who--
``(i) begins employment with a qualified
employer after the date of the enactment of
this subsection,
``(ii) certifies by signed affidavit, under
penalties of perjury, that such individual is a
qualified veteran and whether such individual
is a qualified veteran described in
subparagraph (A), (B), or (C) of paragraph (2),
``(iii) is not employed by the qualified
employer to replace another employee of such
employer unless such other employee separated
from employment voluntarily or for cause, and
``(iv) is not an individual described in
section 51(i)(1) (applied by substituting
`qualified employer' for `taxpayer' each place
it appears).
``(B) Qualified veteran.--The term `qualified
veteran' has the meaning given such term by section
51(d)(3), but applied without regard to whether such
individual has been certified by the designated local
agency.
``(5) First-year compensation.--For purposes of this
subsection, the term `first-year compensation' means, with
respect to any individual, compensation for services rendered
during 1-year period beginning with the day the individual
begins work for the employer.
``(6) Election.--A qualified employer may elect to have
this subsection not apply. Such election shall be made in such
manner as the Secretary may require.''.
(B) Transfers to social security equivalent benefit
account.--There are hereby appropriated to the Social
Security Equivalent Benefit Account established under
section 15A(a) of the Railroad Retirement Act of 1974
(45 U.S.C. 231n-1(a)) amounts equal to the reduction in
revenues to the Treasury by reason of the amendments
made by subparagraph (A). Amounts appropriated by the
preceding sentence shall be transferred from the
general fund at such times and in such manner as to
replicate to the extent possible the transfers which
would have occurred to such Account had such amendments
not been enacted.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to individuals who begin work for the employer
after December 31, 2013.
(2) Exemption from employment taxes.--The amendments made
by subsection (b) shall apply to amounts paid 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.
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