I 

109TH CONGRESS 

2D SESSION H. R. 4868 

To amend the Internal Revenue Code of 1986 to allow certain agricultural 

employers a credit against income tax for a portion of wages paid 

to nonimmigrant H–2A workers. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2006 

Mr. GORDON 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 certain agricultural employers a credit against income tax 

for a portion of wages paid to nonimmigrant H–2A 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. CREDIT FOR EMPLOYMENT OF H–2A WORKERS. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business related credits) is amended by 

7 adding at the end the following new section: 


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1 ‘‘SEC. 45N. CREDIT FOR EMPLOYMENT OF H–2A WORKERS. 

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

3 the H–2A worker credit for any taxable year shall be an 

4 amount equal to 10 percent of the aggregate H–2A worker 

5 amounts with respect to H–2A workers employed by the 

6 taxpayer during such taxable year. 

7 ‘‘(b) H–2A WORKER AMOUNT.—For purposes of this 

8 section, the term ‘H–2A worker amount’ means, with re9 spect to any employee of the taxpayer— 

10 ‘‘(1) the aggregate number of hours of agricul11 tural labor and services (within the meaning of sec12 tion 101(a)(15)(H) of the Immigration and Nation13 ality Act) for which such employee was compensated 

14 by the taxpayer during the taxable year, multiplied 

15 by 

16 ‘‘(2) the excess (if any) of— 

17 ‘‘(A) the hourly wage rate required to com18 ply with the requirement of section 

19 218(a)(1)(B) of the Immigration and Nation20 ality Act with respect to such employee, over 

21 ‘‘(B) the greater of— 

22 ‘‘(i) the hourly Federal minimum 

23 wage rate (applicable under section 6 of 

24 the Fair Labor Standards Act of 1938), 

25 and 


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1 ‘‘(ii) the applicable hourly minimum 

2 wage rate specified under State law for the 

3 State in which the H–2A worker is em4 ployed. 

5 ‘‘(c) H–2A WORKER.—For purposes of this section, 

6 the term ‘H–2A worker’ has the meaning given such term 

7 in section 218(i)(2) of the Immigration and Nationality 

8 Act.’’. 

9 (b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 

10 of section 280C of such Code is amended by inserting 

11 ‘‘45N(a),’’ after ‘‘45A(a),’’. 

12 (c) CREDIT TREATED AS BUSINESS CREDIT.—Sub13 section (b) of section 38 of such Code is amended by strik14 ing ‘‘and’’ at the end of paragraph (29), by striking the 

15 period at the end of paragraph (30) and inserting ‘‘, and’’, 

16 and by adding at the end the following: 

17 ‘‘(31) the H–2A worker credit determined 

18 under section 45N(a).’’. 

19 (d) CLERICAL AMENDMENT.—The table of sections 

20 for subpart D of part IV of subchapter A of chapter 1 

21 of such Code is amended by adding at the end the fol22 lowing: 

‘‘Sec. 45N. Credit for employment of H–2A workers.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2005. 

Æ 


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