Cutting Red Tape, Green-Lighting Small Businesses Act of 2013 - Amends the Internal Revenue Code to allow an employer with not less than 2 or more than 150 employees in a calendar year a business-related tax credit for the cost of up to 5 newly-hired employees who are employed, on average, at least 30 hours per week. Makes such credit available to tax-exempt eligible small employers. Terminates such credit for wages paid after December 31, 2015.
Amends the Small Business Act to direct the Administrator of the Small Business Administration (SBA) to: (1) determine, for a new small business concern, what SBA applications, submissions, or other paperwork are not essential to file during the first year of operation of such small business concern; and (2) make rules for the waiver of such filings.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3127 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3127
To amend the Internal Revenue Code of 1986 to allow a credit to small
employers for certain newly hired employees, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2013
Mr. Maffei introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on Small
Business, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit to small
employers for certain newly hired employees, and for other purposes.
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 ``Cutting Red Tape, Green-Lighting
Small Businesses Act of 2013''.
SEC. 2. CREDIT FOR CERTAIN INDIVIDUALS HIRED BY A SMALL EMPLOYER.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following:
``SEC. 45S. CERTAIN INDIVIDUALS HIRED BY A SMALL EMPLOYER.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible small employer, the small employer hiring credit determined
under this section for any taxable year is the amount determined under
subsection (b).
``(b) Small Employer Hiring Credit Amount.--The amount determined
under this subsection for a taxable year with respect to a qualified
small employer is the product of--
``(1) the tax rate in effect under section 3111(a) for the
calendar year in which such taxable year ends, multiplied by
``(2) the wages paid by the qualified small employer with
respect to employment of all covered employees during the
taxable year.
``(c) Qualified Employer.--For purposes of this subsection--
``(1) In general.--The term `qualified small employer'
means with respect to any calendar year, an employer who on no
business day of the preceding calendar year employed less than
2, or more than 150, employees.
``(2) Employers not in existence in preceding year.--In the
case of an employer which was not in existence throughout the
preceding calendar year, the determination of whether such
employer is a small employer shall be based on the number of
employees that it is reasonably expected such employer will
employ on business days in the current calendar year.
``(3) Special rules.--For purposes of this subsection--
``(A) Predecessor and successor.--Any reference in
this paragraph to an employer shall include a reference
to any predecessor of, or successor to, such employer.
``(B) Aggregation rule.--All persons treated as a
single employer under subsection (b), (c), (m), or (o)
of section 414 shall be treated as one employer.
``(C) Governmental employers not included.--The
term `employer' does not include the United States, any
State, or any political subdivision thereof, or any
instrumentality of the foregoing.
``(4) Credit applies for only 1 year.--If an election to
claim the credit under this section is in effect for any
calendar year, paragraph (1) shall not apply to such employer
for any year after such calendar year.
``(d) Covered Employee.--For purposes of this subsection--
``(1) In general.--The term `covered employee' means, with
respect to any week, is an employee who--
``(A) first begins work for the employer for
services performed by the employee--
``(i) in a trade or business of such
qualified small employer, or
``(ii) in the case of a qualified small
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, and
``(B) is employed on average at least 30 hours of
service per week.
``(2) Limitation to 5 employees.--An employer may not treat
more than 5 employees as covered employees.
``(3) Hours of service.--The Secretary, in consultation
with the Secretary of Labor, shall prescribe such regulations,
rules, and guidance as may be necessary to determine the hours
of service of an employee, including rules for the application
of this paragraph to employees who are not compensated on an
hourly basis.
``(e) Credit Made Available to Tax-Exempt Eligible Small
Employers.--
``(1) In general.--In the case of a tax-exempt eligible
small employer, there shall be treated as a credit allowable
under subpart C (and not allowable under this subpart) the
amount of the credit determined under this section with respect
to such employer.
``(2) Tax-exempt eligible small employer.--For purposes of
this section, the term `tax-exempt eligible small employer'
means an eligible small employer which is any organization
described in section 501(c) which is exempt from taxation under
section 501(a).
``(f) Denial of Double Benefit.--No deduction or credit shall be
allowed under any other provision of this chapter with respect to the
amount of the credit determined under this section.
``(g) Election.--This section shall apply to any taxpayer for any
taxable year only if such taxpayer elects (at such time and in such
manner as the Secretary may by regulations prescribe) to have this
section apply for such taxable year.
``(h) Termination.--This section shall not apply with respect to
wages paid after December 31, 2015.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 (relating to current year business
credit) is amended by striking ``plus'' at the end of paragraph (35),
by striking the period at the end of paragraph (36) and inserting ``,
plus'', and by inserting after paragraph (36) the following:
``(37) the small employer hiring credit determined under
section 45S.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following:
``Sec. 45S. Certain individuals hired by a small employer.''.
(d) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2013.
SEC. 3. PAPERWORK REDUCTION.
The Small Business Act (15 U.S.C. 631 et seq.) is amended by adding
at the end the following:
``SEC. 48. PAPERWORK REDUCTION.
``Not later than 60 days after the date of the enactment of this
Act, the Administrator of the Small Business Administration shall
determine, for a new small business concern, what applications,
submissions, or other paperwork for purposes of programs administered
by the Administrator, are not essential to file during the first year
of operation, and shall make rules that waive the need for such
paperwork.''.
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Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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