Small Business Relief and Job Creation Act

To amend the Internal Revenue Code of 1986 to encourage hiring unemployed individuals. 1. Short title This Act may be cited as the Small Business Relief and Job Creation Act 2. Temporary work opportunity credit for small businesses (a) In general Section 51 (l) Small business credit for hiring certain unemployed individuals during 2018 and 2019 (1) In general In the case of an eligible unemployed individual who begins work for an eligible small business during 2018 or 2019, the taxpayer may elect to treat such individual as a member of a targeted group for purposes of this subpart, subject to the modifications in paragraph (5) and in lieu of treating such individual as a member of any other targeted group. (2) Eligible small business For purposes of this subsection, the term eligible small business (A) either— (i) the gross receipts of such person for the preceding taxable year did not exceed $20,000,000, or (ii) in the case of a person to which subparagraph (A) does not apply, such person employed not more than 100 full-time employees during the preceding taxable year, and (B) such person elects the application of this subsection for the taxable year. For purposes of subparagraph (A)(ii), an employee shall be considered full-time if such employee is employed at least 30 hours per week for 35 or more calendar weeks in the taxable year. (3) Eligible unemployed individual For purposes of this section, the term eligible unemployed individual (A) who is certified by the designated local agency as being eligible to receive unemployment compensation under State or Federal law during the 1-year period ending on the hiring date, or (B) whose employment with the employer was terminated before January 1, 2018. (4) Employee must be full-time No wages shall be taken into account with respect to any individual for any taxable year unless such individual is employed by the employer an average of at least 30 hours per week in the taxable year (in the case of the taxable year during which the individual begins work, beginning with the day the individual begins work). (5) Modifications For purposes of this subsection, the modifications described in this paragraph are as follows: (A) Percentage of wages Subsection (a) shall be applied— (i) in the case of wages paid or incurred by the employer during 2018, by substituting 7.5 percent 40 percent (ii) in the case of wages paid or incurred by the employer during 2019, by substituting 5 percent 40 percent (B) Qualified wages during 2018 and 2019 taken into account Subsection (b)(2) shall be applied by substituting during 2018 and 2019 during the 1-year period beginning with the day the individual begins work for the employer (C) $75,000 wage limitation Subsection (b)(3) shall be applied by substituting $75,000 $6,000 (D) Double credit in counties with high unemployment (i) In general In the case of an employer located in a county which is a high unemployment county for the month during which the employee begins work for the employer, clauses (i) and (ii) of subparagraph (A) shall be applied by substituting 15 percent 10 percent 7.5 percent 5 percent (ii) High unemployment county For purposes of this subparagraph, the term high unemployment county (E) Credit to apply for all 2018 and 2019 This subsection shall be applied without regard to subsection (c)(4). (F) Certain rehires eligible Subsection (i)(2) shall not apply to an individual whose employment with the employer was terminated before January 1, 2018. . (b) Effective date The amendments made by this section shall apply to employees hired after December 31, 2017.

Summary: Small Business Relief and Job Creation Act This bill amends the Internal Revenue Code to allow small business employers whose gross receipts in the preceding taxable year did not exceed $20 million or who did not employ more than 100 full-time employees during the preceding taxable year a work opportunity tax credit for hiring unemployed individuals as full-time employees (at least 30 hours per week for 35 or more calendar weeks in the taxable year) during 2018 or 2019. The bill doubles the rate of such credit for employers located in counties with unemployment rates that exceed the national rate of unemployment.