I 

112TH CONGRESS 

2D SESSION H. R. 4167 

To amend the Internal Revenue Code of 1986 to allow employers a refundable 

credit for increasing employment. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 8, 2012 

Mr. BARROW 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 

employers a refundable credit for increasing employment. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Tax Credits for Jobs 

5 Now Act of 2012’’. 

6 SEC. 2. CREDIT FOR INCREASING EMPLOYMENT. 

7 (a) IN GENERAL.—Subpart C of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 (relating to refundable credits) is amended by insert10 ing after section 36B the following new section: 


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1 ‘‘SEC. 36C. CREDIT FOR INCREASING EMPLOYMENT. 

2 ‘‘(a) IN GENERAL.—There shall be allowed as a cred3 it against the tax imposed by this subtitle— 

4 ‘‘(1) for any taxable year beginning in 2012, an 

5 amount equal to 60 percent of the excess of— 

6 ‘‘(A) the aggregate wages paid during 

7 2012, over 

8 ‘‘(B) the aggregate wages paid during 

9 2011, and 

10 ‘‘(2) for any taxable year beginning in 2013, an 

11 amount equal to 40 percent of the excess of— 

12 ‘‘(A) the aggregate wages paid during 

13 2013, over 

14 ‘‘(B) the aggregate inflation-adjusted 

15 wages paid during 2012. 

16 ‘‘(b) MAXIMUM CREDIT.—The amount of the credit 

17 allowable under this section for any employer with respect 

18 to any calendar year shall not exceed $500,000. 

19 ‘‘(c) MINIMUM PRECEDING YEAR WAGES.—For pur20 poses of subsection (a)— 

21 ‘‘(1) the amount taken into account under para22 graph (1)(B) thereof shall not be less than 50 per23 cent of the amount described in paragraph (1)(A) 

24 thereof, and 

25 ‘‘(2) the amount taken into account under para26 graph (2)(B) thereof shall not be less than 50 perVerDate Mar 15 2010 02:21 Mar 09, 2012 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4167.IH H4167

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1 cent of the amount described in paragraph (2)(A) 

2 thereof. 

3 ‘‘(d) TOTAL WAGES MUST INCREASE.—The amount 

4 of credit allowed under this section for any taxable year 

5 shall not exceed the amount which would be so allowed 

6 for such year (without regard to subsection (c)) if— 

7 ‘‘(1) the aggregate amounts taken into account 

8 as wages were determined without any dollar limita9 tion, and 

10 ‘‘(2) 103 percent of the amount of wages other11 wise required to be taken into account under sub12 section (a)(1)(B) or subsection (a)(2)(B), as the 

13 case may be, were taken into account. 

14 ‘‘(e) WAGES; INFLATION-ADJUSTED WAGES.—For 

15 purposes of this section: 

16 ‘‘(1) IN GENERAL.—Except as provided in para17 graph (2), the term ‘wages’ has the meaning given 

18 to such term by section 3306(b). 

19 ‘‘(2) RAILWAY AND AGRICULTURAL LABOR.— 

20 Rules similar to the rules of section 51(h) shall 

21 apply for purposes of this section. 

22 ‘‘(3) INFLATION-ADJUSTED WAGES.—The term 

23 ‘inflation-adjusted wages’ means the aggregate 

24 wages paid during 2012 increased by an amount 

25 equal to— 


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1 ‘‘(A) such aggregate wages, multiplied by 

2 ‘‘(B) the cost-of-living adjustment deter3 mined under section 1(f)(3) for 2012, deter4 mined by substituting ‘calendar year 2010’ for 

5 ‘calendar year 1992’ in subparagraph (B) 

6 thereof. 

7 Any increase determined under the preceding sen8 tence shall be rounded in such manner as the Sec9 retary shall prescribe. 

10 ‘‘(f) SPECIAL RULES.— 

11 ‘‘(1) ADJUSTMENTS FOR CERTAIN ACQUISI12 TIONS, ETC.— 

13 ‘‘(A) ACQUISITIONS.—If, after December 

14 31, 2010, an employer acquires the major por15 tion of a trade or business of another person 

16 (hereinafter in this subparagraph referred to as 

17 the ‘predecessor’) or the major portion of a sep18 arate unit of a trade or business of a prede19 cessor, then, for purposes of applying this sec20 tion for any calendar year ending after such ac21 quisition, the amount of wages deemed paid by 

22 the employer during periods before such acqui23 sition shall be increased by so much of such 

24 wages paid by the predecessor with respect to 

25 the acquired trade or business as is attributable 


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1 to the portion of such trade or business ac2 quired by the employer. 

3 ‘‘(B) DISPOSITIONS.—If, after December 

4 31, 2010— 

5 ‘‘(i) an employer disposes of the major 

6 portion of any trade or business of the em7 ployer or the major portion of a separate 

8 unit of a trade or business of the employer 

9 in a transaction to which subparagraph 

10 (A) applies, and 

11 ‘‘(ii) the employer furnishes the ac12 quiring person such information as is nec13 essary for the application of subparagraph 

14 (A), 

15 then, for purposes of applying this section for 

16 any calendar year ending after such disposition, 

17 the amount of wages deemed paid by the em18 ployer during periods before such disposition 

19 shall be decreased by so much of such wages as 

20 is attributable to such trade or business or sep21 arate unit. 

22 ‘‘(2) CHANGE IN STATUS FROM SELF-EM23 PLOYED TO EMPLOYEE.—If— 

24 ‘‘(A) during 2011 or 2012 an individual 

25 has net earnings from self-employment (as deVerDate Mar 15 2010 02:21 Mar 09, 2012 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4167.IH H4167

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1 fined in section 1402(a)) which are attributable 

2 to a trade or business, and 

3 ‘‘(B) for any portion of the succeeding cal4 endar year such individual is an employee of 

5 such trade or business, 

6 then, for purposes of determining the credit allow7 able for a taxable year beginning in such succeeding 

8 calendar year, the employer’s aggregate wages for 

9 2011 or 2012, as the case may be, shall be increased 

10 by an amount equal to so much of the net earnings 

11 referred to in subparagraph (A) as does not exceed 

12 the median household income in the United States 

13 for 2011 or 2012, as the case may be. 

14 ‘‘(3) CERTAIN OTHER RULES TO APPLY.—Rules 

15 similar to the following rules shall apply for pur16 poses of this section: 

17 ‘‘(A) Section 51(f) (relating to remunera18 tion must be for trade or business employment). 

19 ‘‘(B) Section 51(i)(1) (relating to related 

20 individuals ineligible). 

21 ‘‘(C) Section 51(k) (relating to treatment 

22 of successor employers; treatment of employees 

23 performing services for other persons). 

24 ‘‘(D) Section 52 (relating to special rules). 


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1 ‘‘(4) SHORT TAXABLE YEARS.—If the employer 

2 has more than 1 taxable year beginning in 2012 or 

3 2013, the credit under this section shall be deter4 mined for the employer’s last taxable year beginning 

5 in 2012 or 2013, as the case may be.’’. 

6 (b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 

7 of section 280C of such Code is amended by inserting 

8 ‘‘36C(a),’’ before ‘‘45A(a)’’. 

9 (c) CONFORMING AMENDMENTS.— 

10 (1) Section 1324(b)(2) of title 31, United 

11 States Code, is amended by inserting ‘‘36C,’’ after 

12 ‘‘36B,’’. 

13 (2) The table of sections for subpart C of part 

14 IV of subchapter A of chapter 1 of such Code is 

15 amended by inserting after the item relating to sec16 tion 36B the following new item: 

‘‘Sec. 36C. Credit for increasing employment.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2011. 

Æ 


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