I 
110TH CONGRESS 
1ST SESSION 
H. R. 843 
To amend the Internal Revenue Code of 1986 to provide to employers a 
tax credit for compensation paid during the period employees are per-
forming service as members of the Ready Reserve or the National Guard. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 6, 2007 
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 
to employers a tax credit for compensation paid during 
the period employees are performing service as members 
of the Ready Reserve or the National Guard. 
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- 
VerDate Aug 31 2005 
02:03 Feb 09, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H843.IH
H843
mstockstill on PROD1PC66 with BILLS
related credits) is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 45N. 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 50 percent of the actual compensation amount 
for the taxable year. 
‘‘(b) 
DEFINITION
OF
ACTUAL
COMPENSATION 
AMOUNT.—For purposes of this section, the term ‘actual 
compensation amount’ means the amount of compensation 
paid or incurred by an employer with respect to a Ready 
Reserve-National Guard employee on any day during a 
taxable year when the employee was absent from employ-
ment 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 
VerDate Aug 31 2005 
02:03 Feb 09, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H843.IH
H843
mstockstill on PROD1PC66 with BILLS
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 in connection with which 
an employee is entitled to reemployment rights 
and other benefits or to a leave of absence from 
employment under chapter 43 of title 38, 
United States Code, and 
‘‘(B) hospitalization incident to such duty. 
Such term shall not include training duty specified 
in section 10147 of title 10, United States Code (re-
lating to training requirements for the Ready Re-
serve), or section 502(a) of title 32, United States 
Code (relating to required drills and field exercises 
for the National Guard). 
‘‘(2) COMPENSATION.—The term ‘compensa-
tion’ means any remuneration for employment, 
whether in cash or in kind, which is paid or incurred 
by a taxpayer and which is 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 
VerDate Aug 31 2005 
02:03 Feb 09, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H843.IH
H843
mstockstill on PROD1PC66 with BILLS