I 

111TH CONGRESS 

1ST SESSION H. R. 810 

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

employers for the value of the service not performed during the period 

employees are performing service as members of the Ready Reserve 

or the National Guard. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 3, 2009 

Mr. BILIRAKIS 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 tax credit to employers for the value of the service 

not performed during the period employees are performing service as members of the Ready Reserve or 

the National Guard. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. READY RESERVE-NATIONAL GUARD EMPLOYEE 

4 CREDIT. 

5 (a) READY RESERVE-NATIONAL GUARD CREDIT.— 

6 Subpart D of part IV of subchapter A of chapter 1 of 

7 the Internal Revenue Code of 1986 (relating to businessVerDate Nov 24 2008 00:25 Feb 05, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H810.IH H810

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1 related credits) is amended by adding at the end the fol2 lowing new section: 

3 ‘‘SEC. 45R. READY RESERVE-NATIONAL GUARD EMPLOYEE 

4 CREDIT. 

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

6 the Ready Reserve-National Guard employee credit deter7 mined under this section for the taxable year is an amount 

8 equal to 10 percent of the unpaid compensation amount 

9 for the taxable year. 

10 ‘‘(b) DEFINITION OF UNPAID COMPENSATION

11 AMOUNT.—For purposes of this section, the term ‘unpaid 

12 compensation amount’ means the amount of compensation 

13 which ordinarily would have been paid or incurred by an 

14 employer with respect to a Ready Reserve-National Guard 

15 employee on any day during a taxable year but was not 

16 paid because the employee was absent from employment 

17 for the purpose of performing qualified active duty. 

18 ‘‘(c) LIMITATIONS.— 

19 ‘‘(1) MAXIMUM CREDIT.—The maximum credit 

20 allowable under subsection (a) shall not exceed 

21 $2,000 in any taxable year with respect to any one 

22 Ready Reserve-National Guard employee. 

23 ‘‘(2) DAYS OTHER THAN WORK DAYS.—No 

24 credit shall be allowed with respect to a Ready Re25 serve-National Guard employee who performs qualiVerDate Nov 24 2008 00:25 Feb 05, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H810.IH H810

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1 fied active duty on any day on which the employee 

2 was not scheduled to work (for a reason other than 

3 to participate in qualified active duty) and ordinarily 

4 would not have worked. 

5 ‘‘(d) DEFINITIONS.—For purposes of this section— 

6 ‘‘(1) QUALIFIED ACTIVE DUTY.—The term 

7 ‘qualified active duty’ means— 

8 ‘‘(A) active duty in connection with which 

9 an employee is entitled to reemployment rights 

10 and other benefits or to a leave of absence from 

11 employment under chapter 43 of title 38, 

12 United States Code, and 

13 ‘‘(B) hospitalization incident to such duty. 

14 Such term shall not include training duty specified 

15 in section 10147 of title 10, United States Code (re16 lating to training requirements for the Ready Re17 serve), or section 502(a) of title 32, United States 

18 Code (relating to required drills and field exercises 

19 for the National Guard). 

20 ‘‘(2) COMPENSATION.—The term ‘compensa21 tion’ means any remuneration for employment, 

22 whether in cash or in kind, which, if paid by the tax23 payer, would have been deductible from the tax24 payer’s gross income under section 162(a)(1). 


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1 ‘‘(3) READY RESERVE-NATIONAL GUARD EM2 PLOYEE.—The term ‘Ready Reserve-National Guard 

3 employee’ means an employee who is a member of 

4 the Ready Reserve or of the National Guard. 

5 ‘‘(4) NATIONAL GUARD.—The term ‘National 

6 Guard’ has the meaning given such term by section 

7 101(c)(1) of title 10, United States Code. 

8 ‘‘(5) READY RESERVE.—The term ‘Ready Re9 serve’ has the meaning given such term by section 

10 10142 of title 10, United States Code.’’. 

11 (b) CREDIT TO BE PART OF GENERAL BUSINESS

12 CREDIT.—Subsection (b) of section 38 of such Code (re13 lating to general business credit) is amended by striking 

14 ‘‘plus’’ at the end of paragraph (34), by striking the period 

15 at the end of paragraph (35) and inserting ‘‘, and’’, and 

16 by adding at the end the following new paragraph: 

17 ‘‘(36) the Ready Reserve-National Guard em18 ployee credit determined under section 45R(a).’’. 

19 (c) CONFORMING AMENDMENT.—The table of sec20 tions for subpart D of part IV of subchapter A of chapter 

21 1 of such Code is amended by inserting after the item 

22 relating to section 45Q the following new item: 

‘‘Sec. 45R. Ready Reserve-National Guard employee credit.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

Æ 


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