I 
112TH CONGRESS 
2D SESSION 
H. R. 4167 
To amend the Internal Revenue Code of 1986 to allow employers a refundable 
credit for increasing employment. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 8, 2012 
Mr. BARROW 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 refundable credit for increasing employment. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Tax Credits for Jobs 
Now Act of 2012’’. 
SEC. 2. CREDIT FOR INCREASING EMPLOYMENT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by insert-
ing after section 36B the following new section: 
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‘‘SEC. 36C. CREDIT FOR INCREASING EMPLOYMENT. 
‘‘(a) IN GENERAL.—There shall be allowed as a cred-
it against the tax imposed by this subtitle— 
‘‘(1) for any taxable year beginning in 2012, an 
amount equal to 60 percent of the excess of— 
‘‘(A) the aggregate wages paid during 
2012, over 
‘‘(B) the aggregate wages paid during 
2011, and 
‘‘(2) for any taxable year beginning in 2013, an 
amount equal to 40 percent of the excess of— 
‘‘(A) the aggregate wages paid during 
2013, over 
‘‘(B) 
the 
aggregate 
inflation-adjusted 
wages paid during 2012. 
‘‘(b) MAXIMUM CREDIT.—The amount of the credit 
allowable under this section for any employer with respect 
to any calendar year shall not exceed $500,000. 
‘‘(c) MINIMUM PRECEDING YEAR WAGES.—For pur-
poses of subsection (a)— 
‘‘(1) the amount taken into account under para-
graph (1)(B) thereof shall not be less than 50 per-
cent of the amount described in paragraph (1)(A) 
thereof, and 
‘‘(2) the amount taken into account under para-
graph (2)(B) thereof shall not be less than 50 per-
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cent of the amount described in paragraph (2)(A) 
thereof. 
‘‘(d) TOTAL WAGES MUST INCREASE.—The amount 
of credit allowed under this section for any taxable year 
shall not exceed the amount which would be so allowed 
for such year (without regard to subsection (c)) if— 
‘‘(1) the aggregate amounts taken into account 
as wages were determined without any dollar limita-
tion, and 
‘‘(2) 103 percent of the amount of wages other-
wise required to be taken into account under sub-
section (a)(1)(B) or subsection (a)(2)(B), as the 
case may be, were taken into account. 
‘‘(e) WAGES; INFLATION-ADJUSTED WAGES.—For 
purposes of this section: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘wages’ has the meaning given 
to such term by section 3306(b). 
‘‘(2) RAILWAY AND AGRICULTURAL LABOR.— 
Rules similar to the rules of section 51(h) shall 
apply for purposes of this section. 
‘‘(3) INFLATION-ADJUSTED WAGES.—The term 
‘inflation-adjusted wages’ means the aggregate 
wages paid during 2012 increased by an amount 
equal to— 
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‘‘(A) such aggregate wages, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for 2012, deter-
mined by substituting ‘calendar year 2010’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
Any increase determined under the preceding sen-
tence shall be rounded in such manner as the Sec-
retary shall prescribe. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) ADJUSTMENTS
FOR
CERTAIN
ACQUISI-
TIONS, ETC.— 
‘‘(A) ACQUISITIONS.—If, after December 
31, 2010, an employer acquires the major por-
tion of a trade or business of another person 
(hereinafter in this subparagraph referred to as 
the ‘predecessor’) or the major portion of a sep-
arate unit of a trade or business of a prede-
cessor, then, for purposes of applying this sec-
tion for any calendar year ending after such ac-
quisition, the amount of wages deemed paid by 
the employer during periods before such acqui-
sition shall be increased by so much of such 
wages paid by the predecessor with respect to 
the acquired trade or business as is attributable 
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to the portion of such trade or business ac-
quired by the employer. 
‘‘(B) DISPOSITIONS.—If, after December 
31, 2010— 
‘‘(i) an employer disposes of the major 
portion of any trade or business of the em-
ployer or the major portion of a separate 
unit of a trade or business of the employer 
in a transaction to which subparagraph 
(A) applies, and 
‘‘(ii) the employer furnishes the ac-
quiring person such information as is nec-
essary for the application of subparagraph 
(A), 
then, for purposes of applying this section for 
any calendar year ending after such disposition, 
the amount of wages deemed paid by the em-
ployer during periods before such disposition 
shall be decreased by so much of such wages as 
is attributable to such trade or business or sep-
arate unit. 
‘‘(2) CHANGE
IN
STATUS
FROM
SELF-EM-
PLOYED TO EMPLOYEE.—If— 
‘‘(A) during 2011 or 2012 an individual 
has net earnings from self-employment (as de-
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fined in section 1402(a)) which are attributable 
to a trade or business, and 
‘‘(B) for any portion of the succeeding cal-
endar year such individual is an employee of 
such trade or business, 
then, for purposes of determining the credit allow-
able for a taxable year beginning in such succeeding 
calendar year, the employer’s aggregate wages for 
2011 or 2012, as the case may be, shall be increased 
by an amount equal to so much of the net earnings 
referred to in subparagraph (A) as does not exceed 
the median household income in the United States 
for 2011 or 2012, as the case may be. 
‘‘(3) CERTAIN OTHER RULES TO APPLY.—Rules 
similar to the following rules shall apply for pur-
poses of this section: 
‘‘(A) Section 51(f) (relating to remunera-
tion must be for trade or business employment). 
‘‘(B) Section 51(i)(1) (relating to related 
individuals ineligible). 
‘‘(C) Section 51(k) (relating to treatment 
of successor employers; treatment of employees 
performing services for other persons). 
‘‘(D) Section 52 (relating to special rules). 
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‘‘(4) SHORT TAXABLE YEARS.—If the employer 
has more than 1 taxable year beginning in 2012 or 
2013, the credit under this section shall be deter-
mined for the employer’s last taxable year beginning 
in 2012 or 2013, as the case may be.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code is amended by inserting 
‘‘36C(a),’’ before ‘‘45A(a)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36C,’’ after 
‘‘36B,’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 36B the following new item: 
‘‘Sec. 36C. Credit for increasing employment.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2011. 
Æ 
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