To reduce the employer portion of payroll taxes in the case of employers who expand payroll in 2010 and 2011.

Summary: Jobs Momentum Act of 2010 - Allows a reduction in 2010 and 2011 of an employer's payroll taxes by a specified percentage of the amount by which such employer increases aggregate payroll over the preceding calendar year.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs Momentum Act of 2010''.

SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL TAX FOR CERTAIN 
              EMPLOYERS INCREASING PAYROLL.

    (a) In General.--In the case of any calendar quarter beginning in 
2010 or 2011, the aggregate amount of employer payroll tax deposits of 
an employer shall be reduced (but not below zero) by an amount equal to 
the applicable percentage of the payroll increase of such employer for 
such calendar quarter.
    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Employer payroll tax deposits.--The term ``employer 
        payroll tax deposits'' means deposits an employer is required 
        to make under section 6302 of the Internal Revenue Code of 1986 
        of taxes imposed on such employer under section 3111 of such 
        Code with respect to individuals in his employ.
            (2) Applicable percentage.--The applicable percentage shall 
        be--
                    (A) in the case of any calendar quarter beginning 
                in 2010, 10 percent, and
                    (B) in the case of any calendar quarter beginning 
                in 2011, 5 percent.
            (3) Payroll increase.--
                    (A) In general.--The term ``payroll increase'' 
                means, with respect to an employer for a calendar 
                quarter, the excess (if any) of--
                            (i) the aggregate amount of qualified wages 
                        (as defined in section 3121(a) of such Code) 
                        paid by such employer to all employees for such 
                        calendar quarter, over
                            (ii) aggregate amount of inflation adjusted 
                        qualified wages paid by such employer to all 
                        employees for the same calendar quarter in the 
                        preceding calendar year.
                    (B) Qualified wages.--The term ``qualified wages'' 
                means, with respect to an employee, so much of such 
                employee's wages (as defined in section 3121(a)) of 
                such Code) as does not exceed $32,000.
                    (C) Inflation adjusted qualified wages.--The term 
                ``inflation adjusted qualified wages'' means an amount 
                equal to--
                            (i) qualified wages with respect to an 
                        employee, multiplied by
                            (ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year for which the reduction in 
                        deposits under this section is being determined 
                        occurs, determined by substituting `calendar 
                        year 2009' for `calendar year 1992' in 
                        subparagraph (B) thereof.
            (4) Denial of double benefit.--The amount of any deduction 
        allowable to the employer under chapter 1 of such Code for 
        taxes paid under section 3111 of such Code with respect to 
        employment during any calendar quarter shall be reduced by the 
        amount by which the employer payroll tax deposits of such 
        employer are reduced under subsection (a) for such quarter.
            (5) Wages must be for trade or business.--A rule similar to 
        the rule of section 51(f) of such Code shall apply.
            (6) Adjustments for certain acquisitions, etc.--Under 
        regulations prescribed by the Secretary--
                    (A) Acquisitions.--If, after December 31, 2009, an 
                employer acquires the major portion of a trade or 
                business of another person (hereafter in this paragraph 
                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 quarter ending after such 
                acquisition, the amount of wages or compensation deemed 
                paid by the employer during periods before such 
                acquisition shall be increased by so much of such wages 
                or compensation 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, 2009--
                            (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 paragraph (1) 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 quarter ending after such disposition, the 
                amount of wages or compensation deemed paid by the 
                employer during periods before such disposition shall 
                be reduced by so much of such wages as is attributable 
                to such trade or business or separate unit.
            (7) Employers not on quarterly system.--The Secretary of 
        the Treasury shall prescribe rules for the application of this 
        section in the case of an eligible employer whose required 
        income tax deposits are not made on a quarterly basis.