I 
116TH CONGRESS 
2D SESSION 
H. R. 7721 
To amend the Internal Revenue Code of 1986 to allow a refundable credit 
against tax for farmers who hire unemployed workers. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2020 
Mr. CRAWFORD 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 a 
refundable credit against tax for farmers who hire unem-
ployed workers. 
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 ‘‘Farm Labor Expan-
sion Act of 2020’’ or the ‘‘FLEX Act’’. 
SEC. 2. DISPLACED FARM WORKER CREDIT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 is amended by inserting before sec-
tion 37 the following new section: 
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‘‘SEC. 36C. DISPLACED FARM WORKER CREDIT. 
‘‘(a) IN GENERAL.—In the case of a taxpayer en-
gaged in the trade or business of farming, there shall be 
allowed as a credit against the tax imposed by this subtitle 
an amount equal to 40 percent of the qualified first-year 
wages of an eligible replacement worker. 
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) QUALIFIED FIRST-YEAR WAGES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
first-year wages’ means, with respect to an eli-
gible replacement worker, wages attributable to 
service rendered during the 1-year period begin-
ning with the day the individual begins work for 
the employer. 
‘‘(B) WAGES.—The term ‘wages’ has the 
meaning given to such term by section 3306(b) 
(determined without regard to any dollar limita-
tion contained in such section). 
‘‘(C) LIMITATION.—The amount of wages 
taken into account with respect to any employee 
for all taxable years shall not exceed $25,000. 
‘‘(2) ELIGIBLE REPLACEMENT WORKER.—For 
purposes of this section, the term ‘eligible replace-
ment worker’ means any individual who— 
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‘‘(A) began a period of unemployment 
after March 27, 2020, and during which time 
the individual was receiving unemployment com-
pensation under State or Federal law, and 
‘‘(B) performs for the employer substan-
tially the same job functions as an H–2A work-
er taken into account under paragraph (4). 
‘‘(3) H–2A WORKER.—The term ‘H–2A worker’ 
means 
a 
nonimmigrant 
described 
in 
section 
101(a)(15)(H)(ii)(a) of the Immigration and Nation-
ality Act (8 U.S.C. 1101(a)(15)(H)(ii)(a)). 
‘‘(4) LIMITATION
ON
NUMBER
OF
WORKERS 
TAKEN INTO ACCOUNT.—The number of eligible re-
placement workers taken into account under this 
section, shall not exceed the average number of H– 
2A workers employed by the taxpayer during the 
preceding taxable year. 
‘‘(5) CONTROLLED GROUPS AND COMMON CON-
TROL.—All persons which are treated as a single 
employer under subsections (a) and (b) of section 52 
shall be treated as a single taxpayer for purposes of 
this section. 
‘‘(6) APPLICATION
OF
OTHER
RULES.—Rules 
similar to the following rules shall apply for pur-
poses of this section: 
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‘‘(A) Section 51(i) (relating to certain indi-
viduals ineligible). 
‘‘(B) Section 51(k) (relating to treatment 
of successor employers; treatment of employees 
performing services for other persons). 
‘‘(c) TERMINATION.—No credit shall be allowed 
under this section with respect to any wages paid more 
than 2 years after the date of the enactment of this sec-
tion.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 6211(b)(4)(A) is amended by insert-
ing ‘‘36C,’’ after ‘‘36B,’’. 
(2) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36C,’’ after ‘‘36B,’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart C of part IV of subchapter A of chapter 1 
of such Code is amended by inserting before section 37 
the following new item: 
‘‘Sec. 36C. Displaced farm worker credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply wages paid in taxable years ending 
after the date of the enactment of this Act. 
Æ 
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