II 

111TH CONGRESS 

2D SESSION S. 2983 

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 SENATE OF THE UNITED STATES 

FEBRUARY 4, 2010 

Mr. SCHUMER (for himself and Mr. HATCH) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

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 ‘‘Hire Now Tax Cut 

5 Act of 2010’’. 


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•S 2983 IS

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, the term ‘qualified employer’ means 

23 any employer other than the United States, any 

24 State, any local government, or any instrumentality 

25 of the foregoing. 


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•S 2983 IS

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

2 this subsection, the term ‘qualified individual’ means 

3 any individual who— 

4 ‘‘(A) begins employment with a qualified 

5 employer after February 3, 2010, and before 

6 January 1, 2011, 

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

8 penalties of perjury, that such individual has 

9 not been employed for more than 40 hours dur10 ing the 60-day period ending on the date such 

11 individual begins such employment, 

12 ‘‘(C) is not employed by the qualified em13 ployer to replace another employee of such em14 ployer unless such other employee separated 

15 from employment voluntarily or for cause, and 

16 ‘‘(D) is not an individual described in sec17 tion 51(i)(1) (applied by substituting ‘qualified 

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

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

20 elect to have this subsection not apply. Such election 

21 shall be made in such manner as the Secretary may 

22 require.’’. 

23 (b) COORDINATION WITH WORK OPPORTUNITY

24 CREDIT.—Section 51(c) of the Internal Revenue Code of 


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•S 2983 IS

1 1986 is amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) COORDINATION WITH PAYROLL TAX FOR4 GIVENESS.—The term ‘wages’ shall not include any 

5 amount paid or incurred to a qualified individual (as 

6 defined in section 3111(d)(3)) during the 1-year pe7 riod beginning on the hiring date of such individual 

8 by a qualified employer (as defined in section 

9 3111(d)) unless such qualified employer makes an 

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

11 (c) TRANSFERS TO FEDERAL OLD-AGE AND SUR12 VIVORS INSURANCE TRUST FUND.—There are hereby ap13 propriated to the Federal Old-Age and Survivors Trust 

14 Fund and the Federal Disability Insurance Trust Fund 

15 established under section 201 of the Social Security Act 

16 (42 U.S.C. 401) amounts equal to the reduction in reve17 nues to the Treasury by reason of the amendments made 

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

19 sentence shall be transferred from the general fund at 

20 such times and in such manner as to replicate to the ex21 tent possible the transfers which would have occurred to 

22 such Trust Fund had such amendments not been enacted. 

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

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

25 the enactment of this Act. 


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•S 2983 IS

1 SEC. 3. BUSINESS CREDIT FOR RETENTION OF CERTAIN 

2 NEWLY HIRED INDIVIDUALS IN 2010. 

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

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

5 current year business credit determined under section 

6 38(b) of the Internal Revenue Code of 1986 for such tax7 able year shall be increased by an amount equal to the 

8 product of— 

9 (1) $1,000, and 

10 (2) the number of retained workers with respect 

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

12 such taxable year. 

13 (b) RETAINED WORKER.—For purposes of this sec14 tion, the term ‘‘retained worker’’ means any qualified indi15 vidual (as defined in section 3111(d)(3) of the Internal 

16 Revenue Code of 1986)— 

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

18 date during the taxable year, 

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

20 period of not less than 52 consecutive weeks, and 

21 (3) whose wages for such employment during 

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

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

24 period. 

Æ 


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