To amend the Internal Revenue Code of 1986 to allow employers a refundable credit for increasing employment.

Summary: 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.

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.