II 

112TH CONGRESS 

1ST SESSION S. 1271 

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

for hiring previously unemployed workers. 

IN THE SENATE OF THE UNITED STATES 

JUNE 23, 2011 

Mr. WHITEHOUSE introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a temporary credit for hiring previously unemployed workers. 

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 ‘‘Job Creation Tax 

5 Credit Act of 2011’’. 

6 SEC. 2. JOB CREATION TAX CREDIT. 

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

9 1986 is amended by inserting after section 51 the fol10 lowing new section: 


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1 ‘‘SEC. 51A. JOB CREATION CREDIT. 

2 ‘‘(a) DETERMINATION OF AMOUNT.—For purposes of 

3 section 38, the amount of the job creation credit deter4 mined under this section for the taxable year shall be 

5 equal to— 

6 ‘‘(1) 15 percent of the qualified 2011 wages for 

7 such year, and 

8 ‘‘(2) 10 percent of the qualified 2012 wages for 

9 such year. 

10 ‘‘(b) QUALIFIED WAGES DEFINED.—For purposes of 

11 this section— 

12 ‘‘(1) QUALIFIED WAGES.—The term ‘qualified 

13 wages’ means the wages paid or incurred by the em14 ployer during the taxable year to qualified individ15 uals. 

16 ‘‘(2) QUALIFIED 2011 WAGES.—The term ‘quali17 fied 2011 wages’ means, with respect to any indi18 vidual, qualified wages attributable to service ren19 dered during calendar year 2011. 

20 ‘‘(3) QUALIFIED 2012 WAGES.—The term ‘quali21 fied 2012 wages’ means, with respect to any indi22 vidual, qualified wages attributable to service ren23 dered during calendar year 2012. 

24 ‘‘(4) LIMITATION ON WAGES TAKEN INTO AC25 COUNT.—The amount of qualified 2011 wages, and 

26 the amount of qualified 2012 wages, which may be 


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•S 1271 IS

1 taken into account with respect to any individual 

2 shall not exceed the contribution and benefit base 

3 (as determined under section 230 of the Social Secu4 rity Act). 

5 ‘‘(5) WAGES.—The term ‘wages’ has the mean6 ing given such term under section 51(c), without re7 gard to paragraph (4) thereof. 

8 ‘‘(c) QUALIFIED INDIVIDUAL.—For purposes of this 

9 section, the term ‘qualified individual’ means any indi10 vidual who— 

11 ‘‘(1) begins employment with an employer after 

12 the date of the enactment of the Job Creation Tax 

13 Credit Act of 2011, and before January 1, 2013, 

14 ‘‘(2) certifies by signed affidavit, under pen15 alties of perjury, that such individual has not been 

16 employed for more than 40 hours during the 60-day 

17 period ending on the date such individual begins 

18 such employment, and 

19 ‘‘(3) is not employed by the employer to replace 

20 another employee of such employer unless such other 

21 employee separated from employment voluntarily or 

22 for cause. 

23 ‘‘(d) CERTAIN RULES TO APPLY.— 

24 ‘‘(1) IN GENERAL.—Rules similar to the rules 

25 of section 52, and subsections (f), (g), (i) (other 


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1 than paragraph (3)(A) thereof), (j), and (k) of sec2 tion 51, shall apply for purposes of this section. 

3 ‘‘(2) CREDIT TO BE PART OF GENERAL BUSI4 NESS CREDIT.—References to section 51 in section 

5 38(b), 280C, 1396(c)(3), and 1400R shall apply for 

6 purposes of this section. 

7 ‘‘(e) COORDINATION WITH WORK OPPORTUNITY

8 CREDIT.—If a credit is allowed under this section to an 

9 employer with respect to an individual for any taxable 

10 year, then for purposes of applying section 51 to such em11 ployer, such individual shall not be treated as a member 

12 of a targeted group for such taxable year.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 for subpart F of part IV of subchapter A of chapter 1 

15 of such Code is amended by inserting after the item relat16 ing to section 51 the following: 

‘‘Sec. 51A. Job creation credit.’’. 

17 (c) EFFECTIVE DATE.—The amendment made by 

18 this section shall apply to individuals hired after the date 

19 of the enactment of this Act. 

Æ 


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