SEC. 2. CREDIT FOR EMPLOYERS WHO EMPLOY MEMBERS 
OF THE READY RESERVE OR NATIONAL 
GUARD. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45N the following new section: 
‘‘SEC. 45O. CREDIT FOR EMPLOYERS WHO EMPLOY MEM-
BERS OF THE READY RESERVE OR NATIONAL 
GUARD. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the amount of the Ready Reserve-National Guard 
employment credit determined under this section with re-
spect to any employer for any taxable year is 15 percent 
of the qualified wages paid or incurred during the calendar 
year which ends with or within such taxable year. 
‘‘(b) QUALIFIED WAGES.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified wages’ means any wages 
paid or incurred by an employer for services per-
formed by a Ready Reserve-National Guard em-
ployee. 
‘‘(2) ONLY FIRST $10,000 OF WAGES PER YEAR 
TAKEN INTO ACCOUNT.—With respect to each em-
ployee, the amount of qualified wages which may be 
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taken into account for a calendar year shall not ex-
ceed $10,000. 
‘‘(3) COORDINATION WITH OTHER CREDITS.— 
The $10,000 amount in paragraph (2) shall be re-
duced for any calendar year by the amount of wages 
paid or incurred during such year which are taken 
into account in determining the credit under section 
45A(a), 51(a), 1396(a), 1400P(b), or 1400R. 
‘‘(c) 
READY
RESERVE-NATIONAL
GUARD
EM-
PLOYEE.—For purposes of this section— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘Ready Reserve- 
National Guard employee’ means, with respect to 
any period, any employee of an employer if during 
such period— 
‘‘(A) substantially all of the services per-
formed by such employee for such employer are 
performed in a trade or business of the em-
ployer, and 
‘‘(B) such employee is a member of the 
Ready Reserve (as defined in section 10142 of 
title 10, United States Code) or the National 
Guard (as defined in section 101(c)(1) of such 
title 10). 
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‘‘(2) CERTAIN INDIVIDUALS NOT ELIGIBLE.— 
The term ‘National Guard-Ready Reserve employee’ 
shall not include any individual described in a sub-
paragraph of section 1396(d)(2). 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) WAGES.—For purposes of this section, the 
term ‘wages’ has the meaning given to such term by 
section 1397(a). 
‘‘(2) CONTROLLED GROUPS, ETC.—Rules simi-
lar to the rules of subsections (b) and (c) of section 
1397 shall apply for purposes of this section. 
‘‘(e) TERMINATION.—The term ‘wages’ shall not in-
clude any amount paid or incurred to an individual who 
begins work for the employer after December 31, 2011.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code (relating to denial of deduc-
tion for certain expenses for which credits are allowable) 
is amended by inserting ‘‘45O,’’ after ‘‘45A(a),’’. 
(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (30), 
by striking the period at the end of paragraph (31) and 
inserting ‘‘, plus’’, and by inserting after paragraph (31) 
the following new paragraph: 
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‘‘(32) the Ready Reserve-National Guard em-
ployment credit determined under section 45O(a).’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45O. Credit for employers who employ members of the Ready Reserve or 
National Guard.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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