I 

116TH CONGRESS 

1ST SESSION H. R. 801 

To amend the Internal Revenue Code of 1986 to allow for a credit against 

tax for employers of reservists. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2019 

Mr. RYAN (for himself and Mr. PALAZZO) 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. 

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 ‘‘Reserve Component 

5 Employer Incentive, Compensation, and Relief Act of 

6 2019’’. 

7 SEC. 2. RESERVIST EMPLOYMENT CREDIT. 

8 (a) ALLOWANCE OF CREDIT.—Subpart D of part IV 

9 of subchapter A of chapter 1 of the Internal Revenue Code 


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1 of 1986 is amended by adding at the end the following 

2 new section: 

3 ‘‘SEC. 45T. RESERVIST EMPLOYMENT CREDIT. 

4 ‘‘(a) ESTABLISHMENT OF CREDIT.—For purposes of 

5 section 38, in the case of an eligible employer, the reservist 

6 employment credit for a taxable year is an amount equal 

7 to the sum of the reservist credit amount for each qualified 

8 reservist employed by such employer at any time during 

9 such taxable year. 

10 ‘‘(b) RESERVIST CREDIT AMOUNT.—For purposes of 

11 this section— 

12 ‘‘(1) IN GENERAL.—The term ‘reservist credit 

13 amount’ means, with respect to a qualified reservist 

14 for a taxable year, an amount equal to the sum of— 

15 ‘‘(A) $1,000, plus 

16 ‘‘(B) in the case of a qualified reservist— 

17 ‘‘(i) with 30 or more days, and fewer 

18 than 90 days, of service in the uniformed 

19 services during such year, $3,000, 

20 ‘‘(ii) with 90 or more days, and fewer 

21 than 180 days, of service in the uniformed 

22 services during such year, $5,000, and 

23 ‘‘(iii) with 180 or more days of service 

24 in the uniformed services during such year, 

25 $10,000. 


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1 ‘‘(2) DAYS OF SERVICE.—For purposes of para2 graph (1), days of service shall only be taken into 

3 account with respect to a qualified reservist em4 ployed by an eligible employer to the extent such 

5 days are during a period of employment of such re6 servist by such employer. 

7 ‘‘(3) QUALIFIED RESERVIST.—The term ‘quali8 fied reservist’ means, with respect to a taxable year, 

9 an individual who is, at any time during such tax10 able year, a member of the National Guard or a re11 serve component of the Armed Forces, as named in 

12 section 10101 of title 10, United States Code (ex13 cept for a member of the Individual Ready Reserve). 

14 ‘‘(4) OTHER DEFINITIONS.—The terms ‘reserve 

15 component’, ‘active service’, ‘full-time National 

16 Guard duty’, ‘active Guard and Reserve duty’, and 

17 ‘inactive-duty training’ have the meanings given 

18 such terms in section 101 of title 10, United States 

19 Code. The term ‘National Guard’ has the meaning 

20 given such term in section 101(3) of title 32, United 

21 States Code. The term ‘service in the uniformed 

22 services’ has the meaning given such term in section 

23 4303 of title 38, United States Code. 

24 ‘‘(c) ELECTION TO HAVE CREDIT NOT APPLY.— 


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1 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

2 have this section not apply for any taxable year. 

3 ‘‘(2) OTHER RULES.—Rules similar to the rules 

4 of paragraphs (2) and (3) of section 51(j) shall 

5 apply for purposes of this subsection.’’. 

6 (b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 

7 Section 38(b) of the Internal Revenue Code of 1986 is 

8 amended by striking ‘‘plus’’ at the end of paragraph (31), 

9 by striking the period at the end of paragraph (32) and 

10 inserting ‘‘, plus’’, and by adding at the end the following 

11 new paragraph: 

12 ‘‘(33) in the case of an eligible employer (as de13 fined in section 45T(c)), the reservist employment 

14 credit determined under section 45T(a).’’. 

15 (c) CREDIT ALLOWED AGAINST AMT.—Subpara16 graph (B) of section 38(c)(4) of the Internal Revenue 

17 Code of 1986 is amended by redesignating clauses (x) 

18 through (xii) as clauses (xi) through (xiii), respectively, 

19 and by inserting after clause (ix) the following new clause: 

20 ‘‘(x) the credit determined under sec21 tion 45T,’’. 

22 (d) CONFORMING AMENDMENTS.— 

23 (1) DENIAL OF DOUBLE BENEFIT.—Section 

24 280C(a) of the Internal Revenue Code of 1986 is 

25 amended by inserting ‘‘45T(a),’’ after ‘‘45S(a),’’. 


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1 (2) ELECTION TO HAVE CREDIT NOT APPLY.— 

2 Section 6501(m) of the Internal Revenue Code of 

3 1986 is amended by inserting ‘‘45T(d),’’ after 

4 ‘‘45S(h),’’. 

5 (3) CLERICAL AMENDMENT.—The table of sec6 tions for subpart D of part IV of subchapter A of 

7 chapter 1 of the Internal Revenue Code of 1986 is 

8 amended by adding at the end the following new 

9 item: 

‘‘Sec. 45T. Reservist employment credit.’’. 

10 (e) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to wages paid in taxable years be12 ginning after December 31, 2019. 

Æ 


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