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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10147 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10147

   To amend the Internal Revenue Code of 1986 to allow for a credit 
                against tax for employers of reservists.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 15, 2024

 Ms. Plaskett 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 for a credit 
                against tax for employers of reservists.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reserve Employers Comprehensive 
Relief and Uniform Incentives on Taxes Act of 2024'' or as the 
``RECRUIT Act of 2024''.

SEC. 2. RESERVIST EMPLOYMENT CREDIT.

    (a) Allowance of Credit.--Subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new section:

``SEC. 45BB. RESERVIST EMPLOYMENT CREDIT.

    ``(a) Establishment of Credit.--For purposes of section 38, in the 
case of an eligible employer, the reservist employment credit for any 
taxable year is an amount equal to 40 percent of the wages paid or 
incurred to qualified reservists by such employer during such taxable 
year.
    ``(b) Limitation.--
            ``(1) In general.--The reservist employment credit 
        determined under subsection (a), with respect to any qualified 
        reservist for any taxable year, shall not exceed the reservist 
        credit amount.
            ``(2) Reservist credit amount.--For purposes of this 
        section, the term `reservist credit amount' means, with respect 
        to a qualified reservist for a taxable year, an amount equal to 
        the sum of--
                    ``(A) $1,000, plus
                    ``(B) in the case of a qualified reservist--
                            ``(i) with 30 or more days, and fewer than 
                        90 days, of service in the uniformed services 
                        during such year, $3,000,
                            ``(ii) with 90 or more days, and fewer than 
                        180 days, of service in the uniformed services 
                        during such year, $5,000, and
                            ``(iii) with 180 or more days of service in 
                        the uniformed services during such year, 
                        $10,000.
            ``(3) Days of service.--For purposes of paragraph (2), any 
        day of service--
                    ``(A) shall not be taken into account if such day 
                constitutes inactive-duty training, or active duty or 
                full-time National Guard duty for a period of 30 days 
                or less, and
                    ``(B) shall only be taken into account with respect 
                to a qualified reservist employed by an eligible 
                employer to the extent such days are during a period of 
                employment of such reservist by such employer.
            ``(4) Qualified reservist.--The term `qualified reservist' 
        means, with respect to a taxable year, an individual who is, at 
        any time during such taxable year, a member of the National 
        Guard or a reserve component of the Armed Forces, as named in 
        section 10101 of title 10, United States Code, in active 
        status.
            ``(5) Reserve component.--The term `reserve component' 
        means any of the reserve components of the Armed Forces named 
        in section 10101 of title 10, United States Code.
            ``(6) National guard.--The term `National Guard' has the 
        meaning given such term in section 101(3) of title 32, United 
        States Code.
            ``(7) Service in the uniformed services.--The term `service 
        in the uniformed services' means active duty or full-time 
        National Guard duty for a period of more than 30 days, but does 
        not include active Guard and Reserve duty.
            ``(8) Active status.--The term `active status' has the 
        meaning given such term in section 101 of title 10, United 
        States Code.
            ``(9) Inactive-duty training.--The term `inactive-duty 
        training' has the meaning given such term in section 101 of 
        title 10, United States Code.
    ``(c) Eligible Employer.--For purposes of this section, the term 
`eligible employer' means any employer which--
            ``(1) has an average of less than 500 employees employed on 
        business days during the taxable year,
            ``(2) meets the gross receipts test of section 448(c) for 
        the taxable year, and
            ``(3) is not a tax shelter prohibited from using the cash 
        receipts and disbursements method of accounting under section 
        448(a)(3).
In the case of any taxpayer which is not a corporation or partnership, 
the gross receipts test of section 448(c) shall, for purposes of 
paragraph (2) of this subsection, be applied in the same manner as if 
such taxpayer were a corporation or partnership.
    ``(d) Aggregation Rule.--All persons treated as a single employer 
under subsection (b), (c), (m), or (o) of section 414 shall be treated 
as 1 employer for purposes of this section.
    ``(e) Election To Have Credit Not Apply.--
            ``(1) In general.--A taxpayer may elect to have this 
        section not apply for any taxable year.
            ``(2) Other rules.--Rules similar to the rules of 
        paragraphs (2) and (3) of section 51(j) shall apply for 
        purposes of this subsection.''.
    (b) Credit Part of General Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph (40), by striking the period at the end of paragraph 
(41) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(42) in the case of an eligible employer (as defined in 
        section 45BB(c)), the reservist employment credit determined 
        under section 45BB(a).''.
    (c) Credit Allowed Against AMT.--Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is amended by 
redesignating clauses (x) through (xii) as clauses (xi) through (xiii), 
respectively, and by inserting after clause (ix) the following new 
clause:
                            ``(x) the credit determined under section 
                        45BB,''.
    (d) Conforming Amendments.--
            (1) Denial of double benefit.--Section 280C(a) of the 
        Internal Revenue Code of 1986 is amended by inserting 
        ``45BB(a),'' after ``45S(a),''.
            (2) Election to have credit not apply.--Section 6501(m) of 
        the Internal Revenue Code of 1986 is amended by inserting 
        ``45BB(d),'' after ``45H(g),''.
            (3) Clerical amendment.--The table of sections for subpart 
        D of part IV of subchapter A of chapter 1 of the Internal 
        Revenue Code of 1986 is amended by adding at the end the 
        following new item:

``Sec. 45BB. Reservist employment credit.''.
    (e) Treatment of Possessions.--
            (1) Payments to possessions.--
                    (A) Mirror code possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States with a mirror code tax system amounts equal to 
                the loss to that possession by reason of the amendments 
                made by this section. Such amounts shall be determined 
                by the Secretary of the Treasury based on information 
                provided by the government of the respective possession 
                of the United States.
                    (B) Other possessions.--The Secretary of the 
                Treasury shall pay to each possession of the United 
                States which does not have a mirror code tax system the 
                amount estimated by the Secretary of the Treasury as 
                being equal to the loss to that possession that would 
                have occurred by reason of the amendments made by this 
                section if a mirror code tax system had been in effect 
                in such possession. The preceding sentence shall not 
                apply with respect to any possession of the United 
                States unless such possession establishes to the 
                satisfaction of the Secretary that the possession has 
                implemented (or, at the discretion of the Secretary, 
                will implement) an income tax benefit which is 
                substantially equivalent to the income tax credit in 
                effect after the amendments made by this section.
            (2) Coordination with credit allowed against united states 
        income taxes.--The credit allowed under section 45BB of the 
        Internal Revenue Code of 1986 (as added by this section) to any 
        eligible employer with respect to any qualified reservist shall 
        be reduced by the amount of any credit (or other tax benefit 
        described in paragraph (1)(B)) against income taxes imposed by 
        a possession of the United States allowed to such employer with 
        respect to such reservist by reason of this section for the 
        taxable year.
            (3) Definitions and special rules.--
                    (A) Possession of the united states.--For purposes 
                of this subsection, the term ``possession of the United 
                States'' shall include such possessions as are 
                specified in section 937(a)(1) of the Internal Revenue 
                Code of 1986.
                    (B) Mirror code tax system.--For purposes of this 
                subsection, the term ``mirror code tax system'' means, 
                with respect to any possession of the United States, 
                the income tax system of such possession if the income 
                tax liability of the residents of such possession under 
                such system is determined by reference to the income 
                tax laws of the United States as if such possession 
                were the United States.
                    (C) Treatment of payments.--For purposes of section 
                1324(b)(2) of title 31, United States Code, the 
                payments under this subsection shall be treated in the 
                same manner as a refund due from credit provisions 
                described in such section.
    (f) Effective Date.--The amendments made by this section shall 
apply to wages paid in taxable years beginning after December 31, 2023.
                                 <all>
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