I

104TH CONGRESS

1ST SESSION H. R. 471

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

employers who employ members of the Ready Reserve or of the National

Guard.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 11, 1995

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 who employ members of the

Ready Reserve or of 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 ADDED TO GENERAL BUSINESS

5 CREDIT.

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

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

8 the Internal Revenue Code of 1986 (relating to business-
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1 related credits) is amended by adding at the end the fol2 lowing new section:

3 ‘‘SEC. 45C. 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 the sum of—

9 ‘‘(1) 50 percent of the actual compensation

10 amount for the taxable year, plus

11 ‘‘(2) 10 percent of the unpaid compensation

12 amount for the taxable year.

13 ‘‘(b) DEFINITION OF ACTUAL COMPENSATION

14 AMOUNT AND UNPAID COMPENSATION AMOUNT.—For

15 purposes of this section—

16 ‘‘(1) ACTUAL COMPENSATION AMOUNT.—The

17 term ‘actual compensation amount’ means the

18 amount of compensation paid or incurred by an em19 ployer with respect to a Ready Reserve-National

20 Guard employee on any day during a taxable year

21 when the employee was absent from employment for

22 the purpose of performing qualified active duty.

23 ‘‘(2) UNPAID COMPENSATION AMOUNT.—The

24 term ‘unpaid compensation amount’ means the

25 amount of compensation which ordinarily would have
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1 been paid or incurred by an employer with respect

2 to a Ready Reserve-National Guard employee on any

3 day during a taxable year but was not paid because

4 the employee was absent from employment for the

5 purpose of performing qualified active duty.

6 ‘‘(c) LIMITATIONS.—

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

8 allowable under subsection (a) shall not exceed

9 $2,000 in any taxable year with respect to any one

10 Ready Reserve-National Guard employee.

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

12 credit shall be allowed with respect to a Ready Re13 serve-National Guard employee who performs quali14 fied active duty on any day on which the employee

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

16 to participate in qualified active duty) and ordinarily

17 would not have worked.

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

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

20 ‘qualified active duty’ means—

21 ‘‘(A) active duty, other than the training

22 duty specified in section 10147 of title 10,

23 United States Code (relating to training re24 quirements for the Ready Reserve), or section

25 502(a) of title 32, United States Code (relating
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1 to required drills and field exercises for the Na2 tional Guard), in connection with which an em3 ployee is entitled to reemployment rights and

4 other benefits or to a leave of absence from em5 ployment under chapter 43 of title 38, United

6 States Code, and

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

8 ‘‘(2) COMPENSATION.—The term ‘compensa9 tion’ means any remuneration for employment,

10 whether in cash or in kind—

11 ‘‘(A) which is paid or incurred by a tax12 payer and which is deductible from the tax13 payer’s gross income under section 162(a)(1),

14 or

15 ‘‘(B) which if paid would have been so de16 ductible.

17 ‘‘(3) READY RESERVE-NATIONAL GUARD EM18 PLOYEE.—The term ‘Ready Reserve-National Guard

19 employee’ means an employee who is a member of

20 the Ready Reserve or of the National Guard.

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

22 Guard’ has the meaning given such term by section

23 101(c)(1) of title 10, United States Code.
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1 ‘‘(5) READY RESERVE.—The term ‘Ready Re2 serve’ has the meaning given such term by section

3 10142 of title 10, United States Code.’’

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

5 CREDIT.—Subsection (b) of section 38 of such Code (re6 lating to general business credit) is amended by striking

7 ‘‘plus’’ at the end of paragraph (10), by striking the period

8 at the end of paragraph (11) and inserting ‘‘, plus’’, and

9 by adding at the end the following new paragraph:

10 ‘‘(12) the Ready Reserve-National Guard em11 ployee credit determined under section 45C(a).’’

12 SEC. 2. CONFORMING AMENDMENT.

13 The table of sections for subpart D of part IV of sub14 chapter A of chapter 1 of the Internal Revenue Code of

15 1986 is amended by inserting after the item relating to

16 section 45B the following new item:

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

17 SEC. 3. EFFECTIVE DATE.

18 The amendments made by this Act shall apply to tax19 able years beginning after December 31, 1994.

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