I 

108TH CONGRESS 

2D SESSION H. R. 5079 

To amend the Internal Revenue Code of 1986 to allow employers a $1,000 

credit against income tax for every 3 years that they employ a military 

reservist. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 15, 2004 

Mr. SAXTON (for himself, Mr. WOLF, Mr. MILLER of Florida, Mr. SHERWOOD, Mrs. CHRISTENSEN, Mr. LOBIONDO, Mr. WILSON of South Carolina, Ms. BORDALLO, Mr. TANCREDO, Mr. SANDLIN, Mr. GIBBONS, Mr. 

BASS, Mr. TOWNS, and Mr. TIAHRT) 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 employers a $1,000 credit against income tax for every 

3 years that they employ a military reservist. 

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 ‘‘Reservists’ Employ5 ment Act of 2004’’. 
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1 SEC. 2. $1,000 INCOME TAX CREDIT EVERY 3 YEARS FOR EM2 PLOYING A MILITARY RESERVIST. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to business related credits) is amended by 

6 inserting after section 45F the following new section: 

7 ‘‘SEC. 45G. EMPLOYER CREDIT FOR EVERY 3 YEARS OF 

8 FULL-TIME EMPLOYMENT OF MILITARY RE9 SERVIST. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

11 military reservist employment credit determined under 

12 this section for the taxable year is $1,000 for each military 

13 reservist whose has a 3-year employment period ending 

14 during the taxable year. 

15 ‘‘(b) DEFINITIONS.—For purposes of this section— 

16 ‘‘(1) MILITARY RESERVIST.—The term ‘military 

17 reservist’ means any individual who is a member of 

18 a reserve component (as defined in section 101 of 

19 title 37, United States Code). 

20 ‘‘(2) 3-YEAR EMPLOYMENT PERIOD.—A military 

21 reservist’s 3-year employment period is each 3-year 

22 period throughout which the individual is— 

23 ‘‘(A) a military reservist, and 

24 ‘‘(B) a full-time employee of the taxpayer 

25 (or a predecessor) in a trade or business. 
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1 A day of employment shall be taken into account 

2 under the preceding sentence with respect to any 

3 employment period only if not taken into account 

4 with respect to any prior period. 

5 ‘‘(c) SPECIAL RULES.— 

6 ‘‘(1) INFLATION ADJUSTMENT.—In the case of 

7 any taxable year beginning in a calendar year after 

8 2005, the dollar amount contained in subsection (a) 

9 shall be increased by an amount equal to— 

10 ‘‘(A) such dollar amount, multiplied by 

11 ‘‘(B) the cost-of-living adjustment deter12 mined under section 1(f)(3) for the calendar 

13 year in which the taxable year begins, deter14 mined by substituting ‘calendar year 2004’ for 

15 ‘calendar year 1992’ in subparagraph (B) 

16 thereof. 

17 Any increase determined under the preceding sen18 tence shall be rounded to the nearest multiple of 

19 $50. 

20 ‘‘(2) OTHER RULES.—Rules similar to the rules 

21 of section 52 shall apply for purposes of this sec22 tion.’’ 

23 (b) CREDIT MADE PART OF GENERAL BUSINESS

24 CREDIT.— 
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1 (1) IN GENERAL.—Subsection (b) of section 38 

2 of such Code (relating to current year business cred3 it) is amended by striking ‘‘plus’’ at the end of para4 graph (14), by striking the period at the end of 

5 paragraph (15) and inserting ‘‘, plus’’, and by add6 ing at the end thereof the following new paragraph: 

7 ‘‘(16) the military reservist employment credit 

8 determined under section 45G(a).’’. 

9 (2) LIMITATION ON CARRYBACK.—Subsection 

10 (d) of section 39 of such Code is amended by adding 

11 at the end the following new paragraph: 

12 ‘‘(11) NO CARRYBACK OF MILITARY RESERVIST

13 EMPLOYMENT CREDIT BEFORE EFFECTIVE DATE.— 

14 No portion of the unused business credit for any 

15 taxable year which is attributable to the credit deter16 mined under section 45G may be carried back to any 

17 taxable year beginning on or before the date of the 

18 enactment of this paragraph.’’. 

19 (c) CLERICAL AMENDMENT.—The table of sections 

20 for subpart D of part IV of subchapter A of chapter 1 

21 of such Code is amended by inserting after the item relat22 ing to section 45F the following new item: 

‘‘Sec. 45G. Employer credit for every 3 years of full-time employment of military reservist.’’. 

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

24 this section shall apply to taxable years beginning after 
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1 the date of the enactment of this Act; except that such 

2 amendments shall take into account periods of employ3 ment on or before such date. 

Æ