I 

111TH CONGRESS 

2D SESSION H. R. 4633 

To amend the Internal Revenue Code of 1986 to provide an exemption 

from employer social security taxes with respect to previously unemployed 

individuals, and to provide a credit for the retention of such individuals 

for at least 1 year. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 22, 2010 

Mr. BRALEY of Iowa 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 

an exemption from employer social security taxes with 

respect to previously unemployed individuals, and to provide a credit for the retention of such individuals for 

at least 1 year. 

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 ‘‘Back to Work Act of 

5 2010’’. 


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1 SEC. 2. PAYROLL TAX FORGIVENESS FOR HIRING UNEM2 PLOYED WORKERS. 

3 (a) IN GENERAL.—Section 3111 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(d) SPECIAL EXEMPTION FOR CERTAIN INDIVID7 UALS HIRED IN 2010.— 

8 ‘‘(1) IN GENERAL.—Subsection (a) shall not 

9 apply to wages paid by a qualified employer with re10 spect to employment during the period beginning on 

11 the day after the date of the enactment of this sub12 section and ending on December 31, 2010, of any 

13 qualified individual for services performed— 

14 ‘‘(A) in a trade or business of such quali15 fied employer, or 

16 ‘‘(B) in the case of a qualified employer ex17 empt from tax under section 501(a), in further18 ance of the activities related to the purpose or 

19 function constituting the basis of the employer’s 

20 exemption under section 501. 

21 ‘‘(2) QUALIFIED EMPLOYER.—For purposes of 

22 this subsection— 

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

24 employer’ means any employer other than the 

25 United States, any State, or any political subVerDate Nov 24 2008 07:04 Feb 23, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4633.IH H4633

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1 division thereof, or any instrumentality of the 

2 foregoing. 

3 ‘‘(B) TREATMENT OF EMPLOYEES OF

4 POST-SECONDARY EDUCATIONAL INSTITU5 TIONS.—Notwithstanding subparagraph (A), 

6 the term ‘qualified employer’ includes any em7 ployer which is a public institution of higher 

8 education (as defined in section 101(b) of the 

9 Higher Education Act of 1965). 

10 ‘‘(3) QUALIFIED INDIVIDUAL.—For purposes of 

11 this subsection, the term ‘qualified individual’ means 

12 any individual who— 

13 ‘‘(A) begins employment with a qualified 

14 employer after February 3, 2010, and before 

15 January 1, 2011, 

16 ‘‘(B) certifies by signed affidavit, under 

17 penalties of perjury, that such individual has 

18 not been employed for more than 40 hours dur19 ing the 60-day period ending on the date such 

20 individual begins such employment, 

21 ‘‘(C) is not employed by the qualified em22 ployer to replace another employee of such em23 ployer unless such other employee separated 

24 from employment voluntarily or for cause, and 


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1 ‘‘(D) is not an individual described in sec2 tion 51(i)(1) (applied by substituting ‘qualified 

3 employer’ for ‘taxpayer’ each place it appears). 

4 ‘‘(4) ELECTION.—A qualified employer may 

5 elect to have this subsection not apply. Such election 

6 shall be made in such manner as the Secretary may 

7 require.’’. 

8 (b) COORDINATION WITH WORK OPPORTUNITY

9 CREDIT.—Section 51(c) of such Code is amended by add10 ing at the end the following new paragraph: 

11 ‘‘(5) COORDINATION WITH PAYROLL TAX FOR12 GIVENESS.—The term ‘wages’ shall not include any 

13 amount paid or incurred to a qualified individual (as 

14 defined in section 3111(d)(3)) during the 1-year pe15 riod beginning on the hiring date of such individual 

16 by a qualified employer (as defined in section 

17 3111(d)) unless such qualified employer makes an 

18 election not to have section 3111(d) apply.’’. 

19 (c) TRANSFERS TO FEDERAL OLD-AGE AND SUR20 VIVORS INSURANCE TRUST FUND.—There are hereby ap21 propriated to the Federal Old-Age and Survivors Trust 

22 Fund and the Federal Disability Insurance Trust Fund 

23 established under section 201 of the Social Security Act 

24 (42 U.S.C. 401) amounts equal to the reduction in reve25 nues to the Treasury by reason of the amendments made 


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1 by subsection (a). Amounts appropriated by the preceding 

2 sentence shall be transferred from the general fund at 

3 such times and in such manner as to replicate to the ex4 tent possible the transfers which would have occurred to 

5 such Trust Fund had such amendments not been enacted. 

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

7 this section shall apply to wages paid after the date of 

8 the enactment of this Act. 

9 SEC. 3. BUSINESS CREDIT FOR RETENTION OF CERTAIN 

10 NEWLY HIRED INDIVIDUALS IN 2010. 

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

12 ending after the date of the enactment of this Act, the 

13 current year business credit determined under section 

14 38(b) of the Internal Revenue Code of 1986 for such tax15 able year shall be increased by an amount equal to the 

16 product of— 

17 (1) $1,000, and 

18 (2) the number of retained workers with respect 

19 to which subsection (b)(2) is first satisfied during 

20 such taxable year. 

21 (b) RETAINED WORKER.—For purposes of this sec22 tion, the term ‘‘retained worker’’ means any qualified indi23 vidual (as defined in section 3111(d)(3) of the Internal 

24 Revenue Code of 1986)— 


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1 (1) who was employed by the taxpayer on any 

2 date during the taxable year, 

3 (2) who was so employed by the taxpayer for a 

4 period of not less than 52 consecutive weeks, and 

5 (3) whose wages for such employment during 

6 the last 26 weeks of such period equaled at least 80 

7 percent of such wages for the first 26 weeks of such 

8 period. 

9 (c) LIMITATION ON CARRYBACKS.—No portion of the 

10 unused business credit under section 38 of the Internal 

11 Revenue Code of 1986 for any taxable year which is attrib12 utable to the increase in the current year business credit 

13 under this section may be carried to a taxable year begin14 ning before the date of the enactment of this section. 

Æ 


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