I 

113TH CONGRESS 

1ST SESSION H. R. 3781 

To amend the Internal Revenue Code of 1986 to allow small employers 

a credit against income tax for hiring individuals receiving unemployment 

compensation. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2013 

Mr. LOWENTHAL 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 small 

employers a credit against income tax for hiring individuals receiving unemployment compensation. 

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 ‘‘American Unemployed 

5 Worker Investment Act of 2013’’. 


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1 SEC. 2. CREDIT FOR EMPLOYERS WHO HIRE INDIVIDUALS 

2 RECEIVING UNEMPLOYMENT COMPENSA3 TION. 

4 (a) IN GENERAL.—Subsection (d) of section 51 of the 

5 Internal Revenue Code of 1986 (defining members of tar6 geted group) is amended by striking ‘‘or’’ at the end of 

7 subparagraph (H), by striking the period at the end of 

8 subparagraph (I) and inserting ‘‘, or’’, and by adding at 

9 the end the following new subparagraph: 

10 ‘‘(J) in the case of a small business em11 ployer, a qualified unemployment compensation 

12 recipient.’’. 

13 (b) QUALIFIED UNEMPLOYMENT COMPENSATION

14 RECIPIENT.—Subsection (d) of section 51 of the Internal 

15 Revenue Code of 1986 is amended by redesignating para16 graphs (11) through (14) as paragraphs (12) through 

17 (15), respectively, and by inserting after paragraph (10) 

18 the following new paragraph: 

19 ‘‘(11) QUALIFIED UNEMPLOYMENT COMPENSA20 TION RECIPIENT; SMALL BUSINESS EMPLOYER.— 

21 ‘‘(A) IN GENERAL.—The term ‘qualified 

22 unemployment compensation recipient’ means 

23 any individual who is certified by the designated 

24 local agency as— 


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1 ‘‘(i) not being a student for at least 6 

2 months during the 1-year period ending on 

3 the hiring date, 

4 ‘‘(ii) being in receipt of unemployment 

5 compensation under State or Federal law 

6 on the hiring date, and 

7 ‘‘(iii) having a hiring date during the 

8 2-year period which begins on the date of 

9 the enactment of this paragraph. 

10 ‘‘(B) SMALL BUSINESS EMPLOYER.—For 

11 purposes of this paragraph, the term ‘small 

12 business employer’ means, with respect to any 

13 hiring date, any employer which employs more 

14 than 10 but fewer than 25 full-time equivalent 

15 employees throughout the taxable year. 

16 ‘‘(C) STUDENT.—For purposes of this 

17 paragraph, a student is an individual enrolled 

18 at least half-time in a program that leads to a 

19 degree, certificate, or other recognized edu20 cational credential for at least 6 months 

21 (whether or not consecutive) during the 1-year 

22 period ending on the hiring date.’’. 

23 (c) MAXIMUM $4,000 CREDIT PER EMPLOYEE.— 

24 Paragraph (3) of section 51(b) of the Internal Revenue 

25 Code of 1986 is amended by inserting ‘‘$10,000 per year 


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1 in the case of any individual who is a qualified unemploy2 ment compensation recipient by reason of subsection 

3 (d)(11),’’ after ‘‘$6,000 per year (’’. 

4 (d) DENIAL OF CREDIT UNLESS EMPLOYMENT FULL

5 TIME FOR 1 YEAR.—Paragraph (3) of section 51(i) of the 

6 Internal Revenue Code of 1986 (relating to individuals not 

7 meeting minimum employment periods) is amended by 

8 adding at the end the following new subparagraph: 

9 ‘‘(C) SPECIAL RULES FOR QUALIFIED UN10 EMPLOYMENT COMPENSATION RECIPIENTS.— 

11 No wages shall be taken into account under 

12 subsection (a) with respect to a qualified unem13 ployment compensation recipient unless— 

14 ‘‘(i) such individual is employed by 

15 the employer for not less than 35 hours 

16 per week for not less than 1 year, and 

17 ‘‘(ii) the number of full-time equiva18 lent employees of the employer is increased 

19 by 1 for at least 1 year by reason of such 

20 individual’s employment by the employer.’’. 

21 (e) CREDIT MADE AVAILABLE TO TAX-EXEMPT EM22 PLOYERS IN CERTAIN CIRCUMSTANCES.— 

23 (1) IN GENERAL.—Subsection (e) of section 

24 3111 of the Internal Revenue Code of 1986 is 

25 amended— 


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1 (A) by striking ‘‘QUALIFIED VETERANS’’ 

2 in the subsection heading and inserting 

3 ‘‘QUALIFIED INDIVIDUALS’’, 

4 (B) by striking ‘‘qualified veteran’’ each 

5 place it appears in the text and inserting 

6 ‘‘qualified individual’’, and 

7 (C) by striking ‘‘qualified veterans’’ in 

8 paragraph (2) and inserting ‘‘qualified individ9 uals’’. 

10 (2) QUALIFIED INDIVIDUAL DEFINED.—Sub11 paragraph (B) of section 3111(e)(5) of such Code is 

12 amended to read as follows: 

13 ‘‘(B) the term ‘qualified individual’ 

14 means— 

15 ‘‘(i) any qualified veteran (as defined 

16 in section 51(d)(3)), and 

17 ‘‘(ii) any qualified unemployment com18 pensation recipient (as defined in section 

19 51(d)(11)).’’. 

20 (3) CONFORMING AMENDMENT.—Paragraph (2) 

21 of section 52(c) of such Code is amended— 

22 (A) by inserting ‘‘AND QUALIFIED UNEM23 PLOYMENT COMPENSATION RECIPIENTS’’ after 

24 ‘‘QUALIFIED VETERANS’’ in the heading, and 


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1 (B) by inserting ‘‘and qualified unemploy2 ment compensation recipients’’ after ‘‘qualified 

3 veterans’’ in the text. 

4 (f) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to individuals who begin work for 

6 the employer after the date of the enactment of this Act. 

Æ 


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