To make supplemental appropriations to provide additional funds to Americorps for the fiscal year ending September 30, 2012, and to amend the Internal Revenue Code of 1986 to extend and modify payroll tax forgiveness.

Summary: Economic Growth and Reducing Unemployment Act - Appropriates additional amounts in FY2012 for the Corporation for National and Community Service for carrying out the National and Community Service Act of 1990. Requires appropriated funds to be used to increase the number of national service positions under such Act to 500,000.  

Appropriates additional amounts in FY2012 for the Office of Inspector General for carrying out the Inspector General Act of 1978.

Amends the Internal Revenue Code to extend the suspension of employment and railroad retirement taxes through December 31, 2012.  Limits the aggregate reduction in taxes from such suspension to $5,000 per employee.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Economic Growth and Reducing 
Unemployment Act''.

SEC. 2. STATEMENT OF APPROPRIATIONS.

    The following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2012.

             Corporation for National and Community Service

                           operating expenses

    For an additional amount for the Corporation for National and 
Community Service to carry out the National and Community Service Act 
of 1990, and notwithstanding sections 198B(b)(3), 198S(g), 
501(a)(4)(C), 501(a)(4)(E), and 501(a)(5)(F) of such Act, 
$7,892,775,570: Provided, That of such amount up to 1 percent of 
program grant funds may be used to defray the costs of conducting grant 
application reviews, including the use of outside peer reviewers and 
electronic management of the grants cycle: Provided further, That 
$1,878,275,570, to remain available until expended, shall be paid to 
the National Service Trust for expenses authorized under subtitle D of 
title I of such Act: Provided further, That in addition to the amounts 
provided in the previous proviso, the Corporation may transfer funds 
from the amounts allocated to grants under subtitle C of title I of 
such Act, upon determination that such transfer is necessary to support 
the activities of national service participants and after notice is 
transmitted to the Congress: Provided further, That $9,800,000 shall be 
available for expenses to carry out sections 112(e), 179A, and 198O and 
subtitle J of title I of such Act, notwithstanding section 501(a)(6) of 
such Act: Provided further, That $15,000,000 shall be available for 
grants to public or private nonprofit institutions to increase the 
participation of individuals with disabilities in national service and 
for demonstration activities in furtherance of this purpose, 
notwithstanding section 129(k)(1) of such Act: Provided further, That 
$8,000,000 shall be available to provide assistance to State Service 
Commissions, under section 126(a) of such Act and notwithstanding 
section 501(a)(5)(B) of such Act.

                         salaries and expenses

    For an additional amount for necessary expenses of administration 
as provided under section 501(a)(5) of the National and Community 
Service Act of 1990 including payment of salaries, authorized travel, 
hire of passenger motor vehicles, the rental of conference rooms in the 
District of Columbia, and the employment of experts and consultants 
authorized under section 3109 of title 5, United States Code, 
$37,500,000.

                      office of inspector general

    For an additional amount for necessary expenses of the Office of 
Inspector General in carrying out the Inspector General Act of 1978, 
$8,000,000.

SEC. 3. REQUIREMENT.

    The funds appropriated in this section shall be used by the 
Corporation toward the goal of increasing the number of national 
service positions approved under subtitle C of title I of the 1990 Act 
to 500,000. In carrying out this section, the Corporation shall give 
preference to national service programs which propose to use full-time 
national service positions.

SEC. 4. EXTENSION AND MODIFICATION OF PAYROLL TAX FORGIVENESS.

    (a) Extension.--Paragraph (1) of section 3111(d) of the Internal 
Revenue Code of 1986 is amended by inserting ``or on the day after the 
date of the enactment of the Economic Growth and Reducing Unemployment 
Act of 2011 and ending on December 31, 2012,'' after ``December 31, 
2010,''.
    (b) Modification.--
            (1) Unemployment requirement.--Subparagraph (B) of section 
        3111(d)(3) of such Code is amended to read as follows:
                    ``(B) certifies by signed affidavit (under 
                penalties of perjury) that such individual, during the 
                entire 27-week period ending on the hiring date--
                            ``(i) was in receipt of unemployment 
                        compensation under State or Federal law, or
                            ``(ii) was unemployed and would have been 
                        so in receipt but for having exhausted the 
                        right to such unemployment compensation during 
                        such period.''.
            (2) Limitation.--Subsection (d) of section 3111 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Limitation.--The aggregate reduction in tax imposed 
        under subsection (a) by reason of paragraph (1) with respect to 
        each qualified individual in the employer's employ shall not 
        exceed $5,000.''.
    (c) Application to Railroad Retirement Taxes.--
            (1) Extension.--Paragraph (1) of section 3221(c) of such 
        Code is amended by inserting ``or on the day after the date of 
        the enactment of the Economic Growth and Reducing Unemployment 
        Act of 2011 and ending on December 31, 2012,'' after ``December 
        31, 2010,''.
            (2) Modification.--
                    (A) Unemployment requirement.--Subparagraph (B) of 
                section 3221(c)(3) of such Code is amended to read as 
                follows:
                    ``(B) certifies by signed affidavit (under 
                penalties of perjury) that such individual, during the 
                entire 27-week period ending on the hiring date--
                            ``(i) was in receipt of unemployment 
                        compensation under State or Federal law, or
                            ``(ii) was unemployed and would have been 
                        so in receipt but for having exhausted the 
                        right to such unemployment compensation during 
                        such period.''.
            (3) Limitation.--Subsection (c) of section 3221 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Limitation.--The aggregate reduction in tax imposed 
        under subsection (a) by reason of paragraph (1) with respect to 
        each qualified individual in the employer's employ shall not 
        exceed $5,000.''.
    (d) Special Rule for Certain Calendar Quarters.--For purposes of 
section 3111(d) and 3221(c) of such Code, if the day after the date of 
the enactment of this Act is not the first day of a calendar quarter, 
then rules similar to the rules of section 3111(d)(5) and 3221(c)(5) of 
such Code, respectively, shall apply with respect to the last calendar 
quarter beginning before such day.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this subsection shall apply to wages paid 
        after the date of the enactment of this Act.
            (2) Railroad retirement taxes.--The amendments made by 
        subsection (d) shall apply to compensation paid after the date 
        of the enactment of this Act.