Disability Employment Incentive Act

To amend the Internal Revenue Code of 1986 to include individuals receiving Social Security disability benefits under the work opportunity credit, increase the work opportunity credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients, expand the disabled access credit, and enhance the deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. 1. Short title This Act may be cited as the Disability Employment Incentive Act 2. Expansion of work opportunity credit to include individuals receiving disability benefits under the Social Security Act (a) In general Subsection (d) of section 51 (1) in paragraph (1)— (A) in subparagraph (I), by striking or (B) in subparagraph (J), by striking the period at the end and inserting , or (C) by adding at the end the following new subparagraph: (K) a qualified disability insurance beneficiary. , and (2) by adding at the end the following new paragraph: (16) Qualified disability insurance beneficiary The term qualified disability insurance beneficiary (A) monthly insurance benefits under section 202 of the Social Security Act ( 42 U.S.C. 402 (B) disability insurance benefits under section 223 of such Act ( 42 U.S.C. 423 . (b) Credit made available to qualified tax-Exempt organizations in certain circumstances (1) In general Section 3111(e) (A) in the heading, by inserting or qualified disability insurance beneficiaries qualified veterans (B) in paragraph (1)— (i) by inserting or a qualified disability insurance beneficiary a qualified veteran (ii) by inserting or such qualified disability insurance beneficiary such qualified veteran (C) in paragraph (2), by inserting and qualified disability insurance beneficiaries all qualified veterans (D) in paragraph (3)(C), by inserting or a qualified disability insurance beneficiary a qualified veteran (E) in paragraph (4)— (i) by inserting or any qualified disability insurance beneficiary any qualified veteran (ii) by inserting or such qualified disability insurance beneficiary such qualified veteran (F) in paragraph (5)— (i) in subparagraph (A), by striking and (ii) in subparagraph (B), by striking the period at the end and inserting , and (iii) by adding at the end the following: (C) the term qualified disability insurance beneficiary , and (G) by adding at the end the following: (6) 14(c) certificate holders (A) In general In the case of any qualified tax-exempt organization which, for any period, employs any individual under a special certificate, for purposes of determining the amount of any credit allowed under paragraph (1), such determination shall not include any wages paid to any qualified disability insurance beneficiary during such period. (B) Special certificate For purposes of this paragraph, the term special certificate 29 U.S.C. 214(c) . (2) Conforming amendment Section 52(c)(2) of such Code is amended— (A) in the heading, by inserting or qualified disability insurance beneficiaries qualified veterans (B) by inserting or qualified disability insurance beneficiaries qualified veterans (3) Transfers to Federal Old-Age And Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 (c) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023. 3. Enhancement of Work Opportunity Credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients (a) In general Section 51 (1) by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and (2) by inserting after subsection (e) the following new subsection: (f) Credit for second-Year wages for employment of vocational rehabilitation referrals, qualified SSI recipients, and qualified disability insurance beneficiaries (1) In general With respect to employment of a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary— (A) the amount of the work opportunity credit determined under this section for the taxable year shall include 20 percent of the qualified second-year wages for such year, and (B) in lieu of applying subsection (b)(3), the amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to such referral or recipient shall not exceed $12,500 per year. (2) Qualified second-year wages For purposes of this subsection, the term qualified second-year wages (A) which are paid to a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary, and (B) which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such referral or recipient determined under subsection (b)(2). (3) Special rules for agricultural and railway labor If such referral or recipient is an employee to whom subparagraph (A) or (B) of subsection (i)(1) applies, rules similar to the rules of such subparagraphs shall apply except that— (A) such subparagraph (A) shall be applied by substituting $12,500 $6,000 (B) such subparagraph (B) shall be applied by substituting $1041.67 $500 . (b) Conforming amendments (1) Section 51 (A) in subsection (c)(1), by striking subsection (h)(2) subsection (i)(2) (B) in subsection (e)(3), by striking subsection (h)(1) subsection (i)(1) (C) in subsection (g)(2), by striking subsection (h)(1) subsection (i)(1) (2) Section 45A of such Code is amended— (A) in subsection (b)(1)(B), by inserting or (f)(1)(A) subsection (e)(1)(A) (B) in subsection (c)(5)(A), by striking section 51(i)(1) section 51(j)(1) (C) in subsection (e)(3), by striking section 51(k) section 51(l) (3) Section 45S(h)(2) of such Code is amended by striking section 51(j) section 51(k) (4) Section 1396(d)(2)(A) of such Code is amended by striking section 51(i)(1) section 51(j)(1) (5) Section 1397(c) of such Code is amended by striking section 51(k) section 51(l) (6) Section 3111(e)(3)(B) of such Code is amended by striking subsection (i)(3)(A) subsection (j)(3)(A) (c) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023. 4. Expansion of disabled access credit (a) Eligible access expenditures Subsection (a) of section 44 $10,250 $20,250 (b) Eligible small business Subsection (b)(1) of section 44 (1) in subparagraph (A), by striking $1,000,000 $3,000,000 (2) in subparagraph (B), by striking 30 full-time employees 60 full-time employees (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023. 5. Expansion of deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly (a) Inclusion of improvements in accessability to internet and telecommunications operations Subsection (b) of section 190 (4) Inclusion of improvements in accessability to internet and telecommunications operations The term architectural and transportation barrier removal expenses . (b) Increase in deduction limitation amount Subsection (c) of section 190 $15,000 $30,000 (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023.

Summary: Disability Employment Incentive Act This bill expands tax credits and deductions that are available for employers who hire and retain employees with disabilities. The bill expands the work opportunity tax credit to include the hiring of employees who receive disability insurance benefits under the Social Security Act. For employers who hire vocational rehabilitation referrals, Supplemental Security Income recipients, or Social Security Disability Insurance (SSDI) recipients, the bill (1) increases the amount of wages that may be taken into account for the credit, and (2) allows an additional credit for second-year wages. With respect to the tax credit for expenditures by eligible small businesses to provide access to disabled individuals, the bill (1) increases the limits that apply to the amount of expenditures that are eligible for the credit, and (2) modifies the gross receipts and full-time employee eligibility criteria for such businesses. The bill also expands the tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. The bill modifies the deduction to (1) increase the limitation on the amount of the deduction, and (2) include expenses for certain improvements in the accessibility of internet or telecommunications services to handicapped and elderly individuals.