I
104TH CONGRESS
1ST SESSION
H. R. 1531
To amend the Internal Revenue Code of 1986 to provide a tax credit to
any employer who employs a member of the Ready Reserve or of the
National Guard for a portion of the value of the service not performed
for the employer while the employee is performing service as such a
member.
IN THE HOUSE OF REPRESENTATIVES
MAY 2, 1995
Mr. BILIRAKIS 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 provide
a tax credit to any employer who employs a member
of the Ready Reserve or of the National Guard for
a portion of the value of the service not performed for
the employer while the employee is performing service
as such a member.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. READY RESERVE-NATIONAL GUARD EMPLOYEE
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS
CREDIT.
(a) READY RESERVE-NATIONAL GUARD CREDIT.—
Subpart D of part IV of subchapter A of chapter 1 of
the Internal Revenue Code of 1986 (relating to business-
related credits) is amended by adding at the end the fol-
lowing new section:
‘‘SEC. 45C. READY RESERVE-NATIONAL GUARD EMPLOYEE
CREDIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the Ready Reserve-National Guard employee credit deter-
mined under this section for the taxable year is an amount
equal to 10 percent of the unpaid compensation amount
for the taxable year.
‘‘(b) 
DEFINITION
OF
UNPAID
COMPENSATION
AMOUNT.—For purposes of this section, the term ‘unpaid
compensation amount’ means the amount of compensation
which ordinarily would have been paid or incurred by an
employer with respect to a Ready Reserve-National Guard
employee on any day during a taxable year but was not
paid because the employee was absent from employment
for the purpose of performing qualified active duty.
‘‘(c) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The maximum credit
allowable under subsection (a) shall not exceed
$2,000 in any taxable year with respect to any one
Ready Reserve-National Guard employee.
‘‘(2) DAYS
OTHER
THAN
WORK
DAYS.—No
credit shall be allowed with respect to a Ready Re-
serve-National Guard employee who performs quali-
fied active duty on any day on which the employee
was not scheduled to work (for a reason other than
to participate in qualified active duty) and ordinarily
would not have worked.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
ACTIVE
DUTY.—The term
‘qualified active duty’ means—
‘‘(A) active duty, other than the training
duty specified in section 10147 of title 10,
United States Code (relating to training re-
quirements for the Ready Reserve), or section
502(a) of title 32, United States Code (relating
to required drills and field exercises for the Na-
tional Guard), in connection with which an em-
ployee is entitled to reemployment rights and
other benefits or to a leave of absence from em-
ployment under chapter 43 of title 38, United
States Code, and
‘‘(B) hospitalization incident to such duty.
‘‘(2) COMPENSATION.—The term ‘compensa-
tion’ means any remuneration for employment,
whether in cash or in kind, which, if paid by the tax-
payer, would have been deductible from the tax-
payer’s gross income under section 162(a)(1).
‘‘(3) READY
RESERVE-NATIONAL
GUARD
EM-
PLOYEE.—The term ‘Ready Reserve-National Guard
employee’ means an employee who is a member of
the Ready Reserve or of the National Guard.
‘‘(4) NATIONAL
GUARD.—The term ‘National
Guard’ has the meaning given such term by section
101(c)(1) of title 10, United States Code.
‘‘(5) READY RESERVE.—The term ‘Ready Re-
serve’ has the meaning given such term by section
10142 of title 10, United States Code.’’
(b) CREDIT TO BE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking
‘‘plus’’ at the end of paragraph (10), by striking the period
at the end of paragraph (11) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
‘‘(12) the Ready Reserve-National Guard em-
ployee credit determined under section 45C(a).’’
SEC. 2. CONFORMING AMENDMENT.
The table of sections for subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 45B the following new item:
‘‘Sec. 45C. Ready Reserve-National Guard employee credit.’’
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall apply to tax-
able years beginning after December 31, 1994.
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