I 

115TH CONGRESS 

1ST SESSION H. R. 4470 

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

exemption for hiring long-term unemployed individuals. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 28, 2017 

Ms. NORTON 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 payroll tax exemption for hiring long-term unemployed 

individuals. 

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 ‘‘Reducing Long-Term 

5 Unemployment Act’’. 

6 SEC. 2. PAYROLL TAX EXEMPTION FOR HIRING LONG-TERM 

7 UNEMPLOYED INDIVIDUALS. 

8 (a) EXTENSION.—Paragraph (1) of section 3111(d) 

9 of the Internal Revenue Code of 1986 is amended by in10 serting ‘‘or on the day after the date of the enactment 


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1 of the Reducing Long-Term Unemployment Act and end2 ing on December 31, 2018,’’ after ‘‘December 31, 2010,’’. 

3 (b) MODIFICATION.— 

4 (1) UNEMPLOYMENT REQUIREMENT.—Subpara5 graph (B) of section 3111(d)(3) of such Code is 

6 amended to read as follows: 

7 ‘‘(B) certifies by signed affidavit (under 

8 penalties of perjury) that such individual, dur9 ing the entire 27-week period ending on the hir10 ing date— 

11 ‘‘(i) was in receipt of unemployment 

12 compensation under State or Federal law, 

13 or 

14 ‘‘(ii) was unemployed and would have 

15 been so in receipt but for having exhausted 

16 the right to such unemployment compensa17 tion during such period,’’. 

18 (2) LIMITATION.—Subsection (d) of section 

19 3111 of such Code is amended by adding at the end 

20 the following new paragraph: 

21 ‘‘(6) LIMITATION.—The aggregate reduction in 

22 tax imposed under subsection (a) by reason of para23 graph (1) with respect to each qualified individual in 

24 the employer’s employ shall not exceed $5,000.’’. 


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1 (c) APPLICATION TO RAILROAD RETIREMENT

2 TAXES.— 

3 (1) EXTENSION.—Paragraph (1) of section 

4 3221(c) of such Code is amended by inserting ‘‘or 

5 on the day after the date of the enactment of the 

6 Reducing Long-Term Unemployment Act and ending 

7 on December 31, 2018,’’ after ‘‘December 31, 

8 2010,’’. 

9 (2) MODIFICATION.— 

10 (A) UNEMPLOYMENT REQUIREMENT.— 

11 Subparagraph (B) of section 3221(c)(3) of such 

12 Code is amended to read as follows: 

13 ‘‘(B) certifies by signed affidavit (under 

14 penalties of perjury) that such individual, dur15 ing the entire 27-week period ending on the hir16 ing date— 

17 ‘‘(i) was in receipt of unemployment 

18 compensation under State or Federal law, 

19 or 

20 ‘‘(ii) was unemployed and would have 

21 been so in receipt but for having exhausted 

22 the right to such unemployment compensa23 tion during such period,’’. 


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1 (3) LIMITATION.—Subsection (c) of section 

2 3221 of such Code is amended by adding at the end 

3 the following new paragraph: 

4 ‘‘(6) LIMITATION.—The aggregate reduction in 

5 tax imposed under subsection (a) by reason of para6 graph (1) with respect to each qualified individual in 

7 the employer’s employ shall not exceed $5,000.’’. 

8 (d) SPECIAL RULE FOR CERTAIN CALENDAR QUAR9 TERS.—For purposes of section 3111(d) and 3221(c) of 

10 such Code, if the day after the date of the enactment of 

11 this Act is not the first day of a calendar quarter, then 

12 rules similar to the rules of section 3111(d)(5) and 

13 3221(c)(5) of such Code, respectively, shall apply with re14 spect to the last calendar quarter beginning before such 

15 day. 

16 (e) EFFECTIVE DATES.— 

17 (1) IN GENERAL.—Except as provided in para18 graph (2), the amendments made by this subsection 

19 shall apply to wages paid after the date of the enact20 ment of this Act. 

21 (2) RAILROAD RETIREMENT TAXES.—The 

22 amendments made by subsection (c) shall apply to 

23 compensation paid after the date of the enactment 

24 of this Act. 

Æ 


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