I 

114TH CONGRESS 

1ST SESSION H. R. 3574 

To amend the Internal Revenue Code of 1986 to encourage hiring unemployed 

individuals. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 18, 2015 

Mr. MCNERNEY 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 encourage 

hiring 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 ‘‘Small Business Relief 

5 and Job Creation Act’’. 

6 SEC. 2. TEMPORARY WORK OPPORTUNITY CREDIT FOR 

7 SMALL BUSINESSES. 

8 (a) IN GENERAL.—Section 51 of the Internal Rev9 enue Code of 1986 is amended by adding at the end the 

10 following new subsection: 


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1 ‘‘(l) SMALL BUSINESS CREDIT FOR HIRING CERTAIN

2 UNEMPLOYED INDIVIDUALS DURING 2016 AND 2017.— 

3 ‘‘(1) IN GENERAL.—In the case of an eligible 

4 unemployed individual who begins work for an eligi5 ble small business during 2016 or 2017, the tax6 payer may elect to treat such individual as a mem7 ber of a targeted group for purposes of this subpart, 

8 subject to the modifications in paragraph (5) and in 

9 lieu of treating such individual as a member of any 

10 other targeted group. 

11 ‘‘(2) ELIGIBLE SMALL BUSINESS.—For pur12 poses of this subsection, the term ‘eligible small 

13 business’ means any person if— 

14 ‘‘(A) either— 

15 ‘‘(i) the gross receipts of such person 

16 for the preceding taxable year did not ex17 ceed $20,000,000, or 

18 ‘‘(ii) in the case of a person to which 

19 subparagraph (A) does not apply, such 

20 person employed not more than 100 full21 time employees during the preceding tax22 able year, and 

23 ‘‘(B) such person elects the application of 

24 this subsection for the taxable year. 


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1 For purposes of subparagraph (A)(ii), an employee 

2 shall be considered full-time if such employee is em3 ployed at least 30 hours per week for 35 or more 

4 calendar weeks in the taxable year. 

5 ‘‘(3) ELIGIBLE UNEMPLOYED INDIVIDUAL.— 

6 For purposes of this section, the term ‘eligible un7 employed individual’ means any individual— 

8 ‘‘(A) who is certified by the designated 

9 local agency as being eligible to receive unem10 ployment compensation under State or Federal 

11 law during the 1-year period ending on the hir12 ing date, or 

13 ‘‘(B) whose employment with the employer 

14 was terminated before January 1, 2016. 

15 ‘‘(4) EMPLOYEE MUST BE FULL-TIME.—No 

16 wages shall be taken into account with respect to 

17 any individual for any taxable year unless such indi18 vidual is employed by the employer an average of at 

19 least 30 hours per week in the taxable year (in the 

20 case of the taxable year during which the individual 

21 begins work, beginning with the day the individual 

22 begins work). 

23 ‘‘(5) MODIFICATIONS.—For purposes of this 

24 subsection, the modifications described in this para25 graph are as follows: 


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1 ‘‘(A) PERCENTAGE OF WAGES.—Sub2 section (a) shall be applied— 

3 ‘‘(i) in the case of wages paid or in4 curred by the employer during 2016, by 

5 substituting ‘7.5 percent’ for ‘40 percent’, 

6 and 

7 ‘‘(ii) in the case of wages paid or in8 curred by the employer during 2017, by 

9 substituting ‘5 percent’ for ‘40 percent’. 

10 ‘‘(B) QUALIFIED WAGES DURING 2016 AND

11 2017 TAKEN INTO ACCOUNT.—Subsection (b)(2) 

12 shall be applied by substituting ‘during 2016 

13 and 2017’ for ‘during the 1-year period begin14 ning with the day the individual begins work for 

15 the employer’. 

16 ‘‘(C) $75,000 WAGE LIMITATION.—Sub17 section (b)(3) shall be applied by substituting 

18 ‘$75,000’ for ‘$6,000’. 

19 ‘‘(D) DOUBLE CREDIT IN COUNTIES WITH

20 HIGH UNEMPLOYMENT.— 

21 ‘‘(i) IN GENERAL.—In the case of an 

22 employer located in a county which is a 

23 high unemployment county for the month 

24 during which the employee begins work for 

25 the employer, clauses (i) and (ii) of subVerDate Sep 11 2014 02:01 Sep 24, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3574.IH H3574

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1 paragraph (A) shall be applied by sub2 stituting ‘15 percent’ and ‘10 percent’ for 

3 ‘7.5 percent’ and ‘5 percent’, respectively. 

4 ‘‘(ii) HIGH UNEMPLOYMENT COUN5 TY.—For purposes of this subparagraph, 

6 the term ‘high unemployment county’ 

7 means, with respect to any month, a coun8 ty for which the rate of unemployment ex9 ceeds the national rate of unemployment 

10 (as determined by the Bureau of Labor 

11 Statistics of the Department of Labor). 

12 ‘‘(E) CREDIT TO APPLY FOR ALL 2016 AND

13 2017.—This subsection shall be applied without 

14 regard to subsection (c)(4). 

15 ‘‘(F) CERTAIN REHIRES ELIGIBLE.—Sub16 section (i)(2) shall not apply to an individual 

17 whose employment with the employer was ter18 minated before January 1, 2016.’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to employees hired after December 

21 31, 2015. 

Æ 


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