I 
115TH CONGRESS 
1ST SESSION H. R. 2313 
To amend the Internal Revenue Code of 1986 to encourage hiring unemployed 
individuals. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2017 
Mr. MCNERNEY (for himself, Mr. EVANS, Mrs. NAPOLITANO, Ms. CLARKE of 
New York, and Mr. RYAN of Ohio) 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 encourage 
hiring 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 ‘‘Small Business Relief 
and Job Creation Act’’. 
SEC. 2. TEMPORARY WORK OPPORTUNITY CREDIT FOR 
SMALL BUSINESSES. 
(a) IN GENERAL.—Section 51 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
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‘‘(l) SMALL BUSINESS CREDIT FOR HIRING CERTAIN 
UNEMPLOYED INDIVIDUALS DURING 2018 AND 2019.— 
‘‘(1) IN GENERAL.—In the case of an eligible 
unemployed individual who begins work for an eligi-
ble small business during 2018 or 2019, the tax-
payer may elect to treat such individual as a mem-
ber of a targeted group for purposes of this subpart, 
subject to the modifications in paragraph (5) and in 
lieu of treating such individual as a member of any 
other targeted group. 
‘‘(2) ELIGIBLE
SMALL
BUSINESS.—For pur-
poses of this subsection, the term ‘eligible small 
business’ means any person if— 
‘‘(A) either— 
‘‘(i) the gross receipts of such person 
for the preceding taxable year did not ex-
ceed $20,000,000, or 
‘‘(ii) in the case of a person to which 
subparagraph (A) does not apply, such 
person employed not more than 100 full- 
time employees during the preceding tax-
able year, and 
‘‘(B) such person elects the application of 
this subsection for the taxable year. 
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For purposes of subparagraph (A)(ii), an employee 
shall be considered full-time if such employee is em-
ployed at least 30 hours per week for 35 or more 
calendar weeks in the taxable year. 
‘‘(3) ELIGIBLE
UNEMPLOYED
INDIVIDUAL.— 
For purposes of this section, the term ‘eligible un-
employed individual’ means any individual— 
‘‘(A) who is certified by the designated 
local agency as being eligible to receive unem-
ployment compensation under State or Federal 
law during the 1-year period ending on the hir-
ing date, or 
‘‘(B) whose employment with the employer 
was terminated before January 1, 2018. 
‘‘(4) EMPLOYEE
MUST
BE
FULL-TIME.—No 
wages shall be taken into account with respect to 
any individual for any taxable year unless such indi-
vidual is employed by the employer an average of at 
least 30 hours per week in the taxable year (in the 
case of the taxable year during which the individual 
begins work, beginning with the day the individual 
begins work). 
‘‘(5) MODIFICATIONS.—For purposes of this 
subsection, the modifications described in this para-
graph are as follows: 
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‘‘(A) 
PERCENTAGE
OF
WAGES.—Sub-
section (a) shall be applied— 
‘‘(i) in the case of wages paid or in-
curred by the employer during 2018, by 
substituting ‘7.5 percent’ for ‘40 percent’, 
and 
‘‘(ii) in the case of wages paid or in-
curred by the employer during 2019, by 
substituting ‘5 percent’ for ‘40 percent’. 
‘‘(B) QUALIFIED WAGES DURING 2018 AND 
2019 TAKEN INTO ACCOUNT.—Subsection (b)(2) 
shall be applied by substituting ‘during 2018 
and 2019’ for ‘during the 1-year period begin-
ning with the day the individual begins work for 
the employer’. 
‘‘(C) $75,000 WAGE
LIMITATION.—Sub-
section (b)(3) shall be applied by substituting 
‘$75,000’ for ‘$6,000’. 
‘‘(D) DOUBLE CREDIT IN COUNTIES WITH 
HIGH UNEMPLOYMENT.— 
‘‘(i) IN GENERAL.—In the case of an 
employer located in a county which is a 
high unemployment county for the month 
during which the employee begins work for 
the employer, clauses (i) and (ii) of sub-
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paragraph (A) shall be applied by sub-
stituting ‘15 percent’ and ‘10 percent’ for 
‘7.5 percent’ and ‘5 percent’, respectively. 
‘‘(ii) HIGH
UNEMPLOYMENT
COUN-
TY.—For purposes of this subparagraph, 
the term ‘high unemployment county’ 
means, with respect to any month, a coun-
ty for which the rate of unemployment ex-
ceeds the national rate of unemployment 
(as determined by the Bureau of Labor 
Statistics of the Department of Labor). 
‘‘(E) CREDIT TO APPLY FOR ALL 2018 AND 
2019.—This subsection shall be applied without 
regard to subsection (c)(4). 
‘‘(F) CERTAIN REHIRES ELIGIBLE.—Sub-
section (i)(2) shall not apply to an individual 
whose employment with the employer was ter-
minated before January 1, 2018.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to employees hired after December 
31, 2017. 
Æ 
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