Reserve Component Employer Incentive, Compensation, and Relief Act of 2019

To amend the Internal Revenue Code of 1986 to allow for a credit against tax for employers of reservists. 1. Short title This Act may be cited as the Reserve Component Employer Incentive, Compensation, and Relief Act of 2019 2. Reservist employment credit (a) Allowance of credit Subpart D of part IV of subchapter A of chapter 1 45T. Reservist employment credit (a) Establishment of credit For purposes of section 38, in the case of an eligible employer, the reservist employment credit for a taxable year is an amount equal to the sum of the reservist credit amount for each qualified reservist employed by such employer at any time during such taxable year. (b) Reservist credit amount For purposes of this section— (1) In general The term reservist credit amount (A) $1,000, plus (B) in the case of a qualified reservist— (i) with 30 or more days, and fewer than 90 days, of service in the uniformed services during such year, $3,000, (ii) with 90 or more days, and fewer than 180 days, of service in the uniformed services during such year, $5,000, and (iii) with 180 or more days of service in the uniformed services during such year, $10,000. (2) Days of service For purposes of paragraph (1), days of service shall only be taken into account with respect to a qualified reservist employed by an eligible employer to the extent such days are during a period of employment of such reservist by such employer. (3) Qualified reservist The term qualified reservist (4) Other definitions The terms reserve component active service full-time National Guard duty active Guard and Reserve duty inactive-duty training National Guard service in the uniformed services (c) Election To have credit not apply (1) In general A taxpayer may elect to have this section not apply for any taxable year. (2) Other rules Rules similar to the rules of paragraphs (2) and (3) of section 51(j) shall apply for purposes of this subsection. . (b) Credit part of general business credit Section 38(b) plus , plus (33) in the case of an eligible employer (as defined in section 45T(c)), the reservist employment credit determined under section 45T(a). . (c) Credit allowed against AMT Subparagraph (B) of section 38(c)(4) (x) the credit determined under section 45T, . (d) Conforming amendments (1) Denial of double benefit Section 280C(a) 45T(a), 45S(a), (2) Election To have credit not apply Section 6501(m) 45T(d), 45S(h), (3) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 Sec. 45T. Reservist employment credit. . (e) Effective date The amendments made by this section shall apply to wages paid in taxable years beginning after December 31, 2019.

Summary: Reserve Component Employer Incentive, Compensation, and Relief Act of 2019 This bill allows a tax credit for certain employers of reservists (i.e., members of the National Guard or a reserve component of the Armed Forces). The tax credit is equal to $1,000 for each reservist employed during the year, plus an additional amount that ranges from $3,000 to $10,000, depending on the number of days the reservist serves in the uniformed services during the year.