Small Business Jobs Act of 2015
This bill amends the Internal Revenue Code to allow a qualified small employer a business-related tax credit for the cost of hiring up to 5 new employees who work for such employer, on average, at least 30 hours per week. The bill defines "qualified small employer" as an employer who: (1) has a place of business in a county with an annual unemployment rate that is at least 1% greater than the national rate for the preceding calendar year; and (2) did not employ fewer than 2, or more than 100, employees in the preceding calendar year. The bill allows an employer who is a tax-exempt organization to claim such credit. The credit is not available for wages paid after December 31, 2017.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3198 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 3198
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
July 23, 2015
Mr. Aguilar 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 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 ``Small Business Jobs Act of 2015''.
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--
``(A) has a place of business in a county with an
annual unemployment rate for the preceding calendar
year of at least one percentage point greater than the
national annual unemployment rate for the preceding
calendar year, and
``(B) who on no business day of the preceding
calendar year employed less than 2, or more than 100,
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.
``(D) Determination of unemployment rate.--The
unemployment rate shall be the rate determined by the
Bureau of Labor Statistics.
``(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, 2017.''.
(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 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, 2015.
<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