I 
115TH CONGRESS 
1ST SESSION H. R. 4470 
To amend the Internal Revenue Code of 1986 to provide a payroll tax 
exemption for hiring long-term unemployed individuals. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 28, 2017 
Ms. NORTON 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 payroll tax exemption for hiring long-term unemployed 
individuals. 
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 ‘‘Reducing Long-Term 
Unemployment Act’’. 
SEC. 2. PAYROLL TAX EXEMPTION FOR HIRING LONG-TERM 
UNEMPLOYED INDIVIDUALS. 
(a) EXTENSION.—Paragraph (1) of section 3111(d) 
of the Internal Revenue Code of 1986 is amended by in-
serting ‘‘or on the day after the date of the enactment 
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of the Reducing Long-Term Unemployment Act and end-
ing on December 31, 2018,’’ after ‘‘December 31, 2010,’’. 
(b) MODIFICATION.— 
(1) UNEMPLOYMENT REQUIREMENT.—Subpara-
graph (B) of section 3111(d)(3) of such Code is 
amended to read as follows: 
‘‘(B) certifies by signed affidavit (under 
penalties of perjury) that such individual, dur-
ing the entire 27-week period ending on the hir-
ing date— 
‘‘(i) was in receipt of unemployment 
compensation under State or Federal law, 
or 
‘‘(ii) was unemployed and would have 
been so in receipt but for having exhausted 
the right to such unemployment compensa-
tion during such period,’’. 
(2) LIMITATION.—Subsection (d) of section 
3111 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(6) LIMITATION.—The aggregate reduction in 
tax imposed under subsection (a) by reason of para-
graph (1) with respect to each qualified individual in 
the employer’s employ shall not exceed $5,000.’’. 
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(c) 
APPLICATION
TO
RAILROAD
RETIREMENT 
TAXES.— 
(1) EXTENSION.—Paragraph (1) of section 
3221(c) of such Code is amended by inserting ‘‘or 
on the day after the date of the enactment of the 
Reducing Long-Term Unemployment Act and ending 
on December 31, 2018,’’ after ‘‘December 31, 
2010,’’. 
(2) MODIFICATION.— 
(A) 
UNEMPLOYMENT
REQUIREMENT.— 
Subparagraph (B) of section 3221(c)(3) of such 
Code is amended to read as follows: 
‘‘(B) certifies by signed affidavit (under 
penalties of perjury) that such individual, dur-
ing the entire 27-week period ending on the hir-
ing date— 
‘‘(i) was in receipt of unemployment 
compensation under State or Federal law, 
or 
‘‘(ii) was unemployed and would have 
been so in receipt but for having exhausted 
the right to such unemployment compensa-
tion during such period,’’. 
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(3) LIMITATION.—Subsection (c) of section 
3221 of such Code is amended by adding at the end 
the following new paragraph: 
‘‘(6) LIMITATION.—The aggregate reduction in 
tax imposed under subsection (a) by reason of para-
graph (1) with respect to each qualified individual in 
the employer’s employ shall not exceed $5,000.’’. 
(d) SPECIAL RULE FOR CERTAIN CALENDAR QUAR-
TERS.—For purposes of section 3111(d) and 3221(c) of 
such Code, if the day after the date of the enactment of 
this Act is not the first day of a calendar quarter, then 
rules similar to the rules of section 3111(d)(5) and 
3221(c)(5) of such Code, respectively, shall apply with re-
spect to the last calendar quarter beginning before such 
day. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this subsection 
shall apply to wages paid after the date of the enact-
ment of this Act. 
(2) 
RAILROAD
RETIREMENT
TAXES.—The 
amendments made by subsection (c) shall apply to 
compensation paid after the date of the enactment 
of this Act. 
Æ 
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