To amend the Internal Revenue Code of 1986 to keep Americans working by creating a refundable work-sharing tax credit that stimulates demand in the private sector labor market and provides employers with an alternative to layoffs.

Summary: Shortening Hours and Retaining Employees Credit Act of 2009 or the SHARE Credit Act of 2009 - Amends the Internal Revenue Code to allow employers a refundable tax credit for wage subsidies paid to employees whose hours are reduced in accordance with a qualified work share program (i.e., a written employer plan under which employees work fewer hours without a reduction in pay). Limits the amount of such credit to the lesser of $3,000 per employee or 10% of the wages for periods in which an employee's hours are reduced under a work share program.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Shortening Hours and Retaining 
Employees Credit Act of 2009'' or the ``SHARE Credit Act of 2009''.

SEC. 2. PURPOSE.

    The purpose of this Act is to keep Americans working by encouraging 
employers to hold wages constant while decreasing employee work hours 
as a means of providing an alternative to layoffs and promoting labor 
demand in the private sector.

SEC. 3. WORK SHARE CREDIT.

    (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 adding at the end the following new section:

``SEC. 36B. WORK SHARE CREDIT.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this subtitle an amount equal the wages paid or incurred 
by the taxpayer during the taxable year to each qualified work share 
employee.
    ``(b) Maximum Credit Per Employee.--The credit allowed by this 
section with respect to each qualified work share employee shall not 
exceed the lesser of--
            ``(1) $3,000, or
            ``(2) 10 percent of the wages paid or incurred to the 
        employee for periods (during the taxable year) during which the 
        employee did not perform services for the employer by reason of 
        a reduction described in subsection (d)(1)(A)(ii)(II).
    ``(c) Qualified Work Share Employee.--For purposes of this 
section--
            ``(1) In general.--The term `qualified work share employee' 
        means any employee of the taxpayer for any period if--
                    ``(A) substantially all of the services performed 
                during such period by such employee for such employer 
                are performed in the United States in a trade or 
                business of the employer, and
                    ``(B) such employee is participating in a qualified 
                work share program of the employer.
            ``(2) Exceptions.--Such term shall not include any 
        individual who is described in any subparagraph of section 
        1396(d)(2).
    ``(d) Qualified Work Share Program.--For purposes of this section--
            ``(1) In general.--The term `qualified work share program' 
        means any written program of the employer--
                    ``(A) under which employees who participate in the 
                program--
                            ``(i) perform the same functions they would 
                        have performed were they not participants in 
                        the program, and
                            ``(ii) receive the same wages and benefits 
                        that they would have received--
                                    ``(I) were they not participants in 
                                the program, and
                                    ``(II) without regard to any 
                                reduction in the hours of the 
                                employee's service (including any 
                                reduction in the form of increased 
                                required paid leave or paid vacation) 
                                required by the employer as a condition 
                                of participating in the program,
                    ``(B) which is determined by the Secretary to have 
                adequate recordkeeping and reporting procedures to 
                comply with the requirements under this section,
                    ``(C) which meets the disclosure requirements of 
                paragraph (2), and
                    ``(D) which meets rules similar to the rules of 
                paragraphs (2), (3), and (6) of section 127(d).
        The application of this paragraph to individuals employed on an 
        hourly basis shall be determined under regulations prescribed 
        by the Secretary.
            ``(2) Employer compliance disclosure.--A program meets the 
        disclosure requirements of the paragraph if--
                    ``(A) in the case of an employer with a publicly 
                accessible Internet website, the employer posts the 
                hour reductions made for the purpose of qualifying for 
                a credit under this section within 24 hours of such 
                reductions being authorized by the employer, and
                    ``(B) in the case of any other employer, the 
                employer transfers information, including the amount of 
                hour reductions made for the purpose of qualifying for 
                a credit under this section, to the Secretary within 24 
                hours of such reductions being authorized by the 
                employer.
    ``(e) Wages.--For purposes of this section, the term `wages' has 
the meaning given to such term by section 51(c).
    ``(f) Controlled Groups.--Rules similar to the rules of subsections 
(b) and (c) of section 1397 shall apply for purposes of this 
section.''.
    (b) Denial of Double Benefit.--Subsection (a) of section 280C of 
such Code is amended by inserting ``36B(a),'' after ``45P(a),''.
    (c) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``36B,'' after ``36A,''.
            (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 36A the following new item:

``Sec. 36B. Work share credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to qualified work shares initiated after the date of the 
enactment of this Act in taxable years ending after such date.
    (e) Payments to Governments and Other Tax-exempt Entities.--
            (1) In general.--In the case of any entity to which this 
        subsection applies, the Secretary of the Treasury shall pay 
        (without interest) to such entity an amount equal to the credit 
        which would be allowed under section 36B of the Internal 
        Revenue Code of 1986 (as added by this section) were such 
        entity subject to the taxes imposed by chapter 1 of such Code.
            (2) Entities entitled to payments.--This subsection shall 
        apply to--
                    (A) any State, political subdivision of a State, or 
                agency or instrumentality of one or more States or 
                political subdivisions, and
                    (B) any organization exempt from tax under section 
                501(a) of such Code (other than an organization 
                required to make a return of the tax imposed under 
                subtitle A of such Code for the taxable year).
            (3) Time for filing claims; period covered.--Not more than 
        one claim may be filed under paragraph (1) by any entity with 
        respect to wages paid or incurred during any calendar year, and 
        no claim shall be allowed under this paragraph with respect to 
        any calendar year unless filed by such entity not later than 3 
        years after the close of such calendar year.
    (f) Use of Payroll Tax Data for Employer Compliance Purposes.--No 
later than 60 days after the enactment of this Act, the Secretary of 
the Treasury shall establish a system--
            (1) to verify employer compliance with section 36B of the 
        Internal Revenue Code of 1986 (as added by this section) using 
        payroll tax data, and
            (2) to allow employers to comply with the requirements in 
        section 36B(d)(2) of such Code (as so added).