I

104TH CONGRESS

1ST SESSION H. R. 1531

To amend the Internal Revenue Code of 1986 to provide a tax credit to

any employer who employs a member of the Ready Reserve or of the

National Guard for a portion of the value of the service not performed

for the employer while the employee is performing service as such a

member.

IN THE HOUSE OF REPRESENTATIVES

MAY 2, 1995

Mr. BILIRAKIS 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 provide

a tax credit to any employer who employs a member

of the Ready Reserve or of the National Guard for

a portion of the value of the service not performed for

the employer while the employee is performing service

as such a member.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. READY RESERVE-NATIONAL GUARD EMPLOYEE

2 CREDIT ADDED TO GENERAL BUSINESS

3 CREDIT.

4 (a) READY RESERVE-NATIONAL GUARD CREDIT.—

5 Subpart D of part IV of subchapter A of chapter 1 of

6 the Internal Revenue Code of 1986 (relating to business7 related credits) is amended by adding at the end the fol8 lowing new section:

9 ‘‘SEC. 45C. READY RESERVE-NATIONAL GUARD EMPLOYEE

10 CREDIT.

11 ‘‘(a) GENERAL RULE.—For purposes of section 38,

12 the Ready Reserve-National Guard employee credit deter13 mined under this section for the taxable year is an amount

14 equal to 10 percent of the unpaid compensation amount

15 for the taxable year.

16 ‘‘(b) DEFINITION OF UNPAID COMPENSATION

17 AMOUNT.—For purposes of this section, the term ‘unpaid

18 compensation amount’ means the amount of compensation

19 which ordinarily would have been paid or incurred by an

20 employer with respect to a Ready Reserve-National Guard

21 employee on any day during a taxable year but was not

22 paid because the employee was absent from employment

23 for the purpose of performing qualified active duty.

24 ‘‘(c) LIMITATIONS.—

25 ‘‘(1) MAXIMUM CREDIT.—The maximum credit

26 allowable under subsection (a) shall not exceed
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1 $2,000 in any taxable year with respect to any one

2 Ready Reserve-National Guard employee.

3 ‘‘(2) DAYS OTHER THAN WORK DAYS.—No

4 credit shall be allowed with respect to a Ready Re5 serve-National Guard employee who performs quali6 fied active duty on any day on which the employee

7 was not scheduled to work (for a reason other than

8 to participate in qualified active duty) and ordinarily

9 would not have worked.

10 ‘‘(d) DEFINITIONS.—For purposes of this section—

11 ‘‘(1) QUALIFIED ACTIVE DUTY.—The term

12 ‘qualified active duty’ means—

13 ‘‘(A) active duty, other than the training

14 duty specified in section 10147 of title 10,

15 United States Code (relating to training re16 quirements for the Ready Reserve), or section

17 502(a) of title 32, United States Code (relating

18 to required drills and field exercises for the Na19 tional Guard), in connection with which an em20 ployee is entitled to reemployment rights and

21 other benefits or to a leave of absence from em22 ployment under chapter 43 of title 38, United

23 States Code, and

24 ‘‘(B) hospitalization incident to such duty.
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1 ‘‘(2) COMPENSATION.—The term ‘compensa2 tion’ means any remuneration for employment,

3 whether in cash or in kind, which, if paid by the tax4 payer, would have been deductible from the tax5 payer’s gross income under section 162(a)(1).

6 ‘‘(3) READY RESERVE-NATIONAL GUARD EM7 PLOYEE.—The term ‘Ready Reserve-National Guard

8 employee’ means an employee who is a member of

9 the Ready Reserve or of the National Guard.

10 ‘‘(4) NATIONAL GUARD.—The term ‘National

11 Guard’ has the meaning given such term by section

12 101(c)(1) of title 10, United States Code.

13 ‘‘(5) READY RESERVE.—The term ‘Ready Re14 serve’ has the meaning given such term by section

15 10142 of title 10, United States Code.’’

16 (b) CREDIT TO BE PART OF GENERAL BUSINESS

17 CREDIT.—Subsection (b) of section 38 of such Code (re18 lating to general business credit) is amended by striking

19 ‘‘plus’’ at the end of paragraph (10), by striking the period

20 at the end of paragraph (11) and inserting ‘‘, plus’’, and

21 by adding at the end the following new paragraph:

22 ‘‘(12) the Ready Reserve-National Guard em23 ployee credit determined under section 45C(a).’’
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1 SEC. 2. CONFORMING AMENDMENT.

2 The table of sections for subpart D of part IV of sub3 chapter A of chapter 1 of the Internal Revenue Code of

4 1986 is amended by inserting after the item relating to

5 section 45B the following new item:

‘‘Sec. 45C. Ready Reserve-National Guard employee credit.’’

6 SEC. 3. EFFECTIVE DATE.

7 The amendments made by this Act shall apply to tax8 able years beginning after December 31, 1994.

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