I 

111TH CONGRESS 

1ST SESSION H. R. 989 

To provide a Federal income tax credit for Eagle employers, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 11, 2009 

Mr. GERLACH (for himself and Mr. ALEXANDER) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 

To provide a Federal income tax credit for Eagle employers, 

and for other purposes. 

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 ‘‘Eagle Employers Act’’. 

5 SEC. 2. REDUCED TAXES FOR EAGLE EMPLOYERS. 

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by adding at the end the following new 

9 section: 


wwoods2 on PRODPC68 with BILLS
2 

•HR 989 IH

1 ‘‘SEC. 45R. REDUCTION IN TAX OF EAGLE EMPLOYERS. 

2 ‘‘(a) IN GENERAL.—In the case of any taxable year 

3 with respect to which a taxpayer is certified by the Sec4 retary as an Eagle employer, the Eagle employer credit 

5 determined under this section for purposes of section 38 

6 shall be equal to 1 percent of the taxable income of the 

7 taxpayer which is properly allocable to all trades or busi8 nesses with respect to which the taxpayer is certified as 

9 an Eagle employer for the taxable year. 

10 ‘‘(b) EAGLE EMPLOYER.—For purposes of subsection 

11 (a), the term ‘Eagle employer’ means, with respect to any 

12 taxable year, any taxpayer which— 

13 ‘‘(1) maintains its headquarters in the United 

14 States if the taxpayer has ever been headquartered 

15 in the United States, 

16 ‘‘(2) pays at least 60 percent of each employee’s 

17 health care premiums, 

18 ‘‘(3) if such taxpayer employs at least 50 em19 ployees on average during the taxable year— 

20 ‘‘(A) maintains or increases the number of 

21 full-time workers in the United States relative 

22 to the number of full-time workers outside of 

23 the United States, 

24 ‘‘(B) compensates each employee of the 

25 taxpayer at an hourly rate (or equivalent there26 of) not less than an amount equal to the FedVerDate Nov 24 2008 00:29 Feb 13, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H989.IH H989

wwoods2 on PRODPC68 with BILLS
3 

•HR 989 IH

1 eral poverty level for a family of three for the 

2 calendar year in which the taxable year begins 

3 divided by 2,080, 

4 ‘‘(C) provides either— 

5 ‘‘(i) a defined contribution plan which 

6 for any plan year— 

7 ‘‘(I) requires the employer to 

8 make nonelective contributions of at 

9 least 5 percent of compensation for 

10 each employee who is not a highly 

11 compensated employee, or 

12 ‘‘(II) requires the employer to 

13 make matching contributions of 100 

14 percent of the elective contributions of 

15 each employee who is not a highly 

16 compensated employee to the extent 

17 such contributions do not exceed the 

18 percentage specified by the plan (not 

19 less than 5 percent) of the employee’s 

20 compensation, or 

21 ‘‘(ii) a defined benefit plan which for 

22 any plan year requires the employer to 

23 make contributions on behalf of each em24 ployee who is not a highly compensated 

25 employee in an amount which will provide 


wwoods2 on PRODPC68 with BILLS
4 

•HR 989 IH

1 an accrued benefit under the plan for the 

2 plan year which is not less than 5 percent 

3 of the employee’s compensation, and 

4 ‘‘(D) provides full differential salary and 

5 insurance benefits for all National Guard and 

6 Reserve employees who are called for active 

7 duty, and 

8 ‘‘(4) if such taxpayer employs less than 50 em9 ployees on average during the taxable year, either— 

10 ‘‘(A) compensates each employee of the 

11 taxpayer at an hourly rate (or equivalent there12 of) not less than an amount equal to the Fed13 eral poverty level for a family of 3 for the cal14 endar year in which the taxable year begins di15 vided by 2,080, or 

16 ‘‘(B) provides either— 

17 ‘‘(i) a defined contribution plan which 

18 for any plan year— 

19 ‘‘(I) requires the employer to 

20 make nonelective contributions of at 

21 least 5 percent of compensation for 

22 each employee who is not a highly 

23 compensated employee, or 

24 ‘‘(II) requires the employer to 

25 make matching contributions of 100 


wwoods2 on PRODPC68 with BILLS
5 

•HR 989 IH

1 percent of the elective contributions of 

2 each employee who is not a highly 

3 compensated employee to the extent 

4 such contributions do not exceed the 

5 percentage specified by the plan (not 

6 less than 5 percent) of the employee’s 

7 compensation, or 

8 ‘‘(ii) a defined benefit plan which for 

9 any plan year requires the employer to 

10 make contributions on behalf of each em11 ployee who is not a highly compensated 

12 employee in an amount which will provide 

13 an accrued benefit under the plan for the 

14 plan year which is not less than 5 percent 

15 of the employee’s compensation.’’. 

16 (b) ALLOWANCE AS GENERAL BUSINESS CREDIT.— 

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

18 amended by striking ‘‘plus’’ at the end of paragraph (34), 

19 by striking the period at the end of paragraph (35) and 

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

21 ‘‘(36) the Eagle employer credit determined 

22 under section 45R.’’. 


wwoods2 on PRODPC68 with BILLS
6 

•HR 989 IH

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

2 this section shall apply to taxable years beginning after 

3 December 31, 2008. 

Æ 


wwoods2 on PRODPC68 with BILLS