I 
112TH CONGRESS 
2D SESSION 
H. R. 6030 
To provide a temporary tax credit for increased payroll, to eliminate certain 
tax benefits for major integrated oil companies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2012 
Mr. LEVIN (for himself, Mr. RANGEL, Mr. STARK, Mr. MCDERMOTT, Mr. 
LEWIS of Georgia, Mr. NEAL, Mr. BECERRA, Mr. THOMPSON of Cali-
fornia, Mr. LARSON of Connecticut, Mr. BLUMENAUER, Mr. KIND, Mr. 
PASCRELL, Ms. BERKLEY, and Mr. CROWLEY) introduced the following 
bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide a temporary tax credit for increased payroll, 
to eliminate certain tax benefits for major integrated 
oil companies, and for other purposes. 
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 ‘‘Hire Now Act of 
2012’’. 
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SEC. 2. TEMPORARY TAX CREDIT FOR INCREASED PAY-
ROLL. 
(a) IN GENERAL.—In the case of a qualified employer 
who elects the application of this section, there shall be 
allowed as a credit against the tax imposed by chapter 
1 of the Internal Revenue Code of 1986 for the taxable 
year which includes December 31, 2012, an amount equal 
to 10 percent of the excess (if any) of— 
(1) the sum of the wages and compensation 
paid by such qualified employer for qualified services 
during calendar year 2012, over 
(2) the sum of such wages and compensation 
paid during calendar year 2011. 
(b) LIMITATION.—The amount of the excess taken 
into account under subsection (a) with respect to any 
qualified employer shall not exceed $5,000,000. 
(c) WAGES AND COMPENSATION.—For purposes of 
this section— 
(1) WAGES.—The term ‘‘wages’’ has the mean-
ing given such term under section 3121 of the Inter-
nal Revenue Code of 1986 for purposes of the tax 
imposed by section 3111(a) of such Code. 
(2) COMPENSATION.—The term ‘‘compensa-
tion’’ has the meaning given such term under section 
3231 of such Code for purposes of the portion of the 
tax imposed by section 3221(a) of such Code that 
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corresponds to the tax imposed by section 3111(a) 
of such Code. 
(3) APPLICATION OF CONTRIBUTION AND BEN-
EFIT BASE TO CALENDAR YEAR 2011.—For purposes 
of determining wages and compensation under sub-
section (a)(2), the contribution and benefit base as 
determined under section 230 of the Social Security 
Act shall be such amount as in effect for calendar 
year 2012. 
(4) SPECIAL RULE WHEN NO WAGES OR COM-
PENSATION IN 2011.—In any case in which the sum 
of the wages and compensation paid by a qualified 
employer for qualified services during calendar year 
2011 is zero, then the amount taken into account 
under subsection (a)(2) shall be 80 percent of the 
amount taken into account under subsection (a)(1). 
(5) COORDINATION WITH OTHER EMPLOYMENT 
CREDITS.—The amount of the excess taken into ac-
count under subsection (a) shall be reduced by the 
sum of all other Federal tax credits determined with 
respect to wages or compensation paid in calendar 
year 2012. 
(d) OTHER DEFINITIONS.— 
(1) QUALIFIED
EMPLOYER.—For purposes of 
this section— 
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(A) IN
GENERAL.—The term ‘‘qualified 
employer’’ has the meaning given such term 
under section 3111(d)(2) of the Internal Rev-
enue Code of 1986, determined by substituting 
‘‘section 101 of the Higher Education Act of 
1965’’ for ‘‘section 101(b) of the Higher Edu-
cation Act of 1965’’ in subparagraph (B) there-
of. 
(B) AGGREGATION RULES.—Rules similar 
to the rules of sections 414(b), 414(c), 414(m), 
and 414(o) of such Code shall apply to deter-
mine when multiple entities shall be treated as 
a single employer, and rules with respect to 
predecessor and successor employers may be 
applied, in such manner as may be prescribed 
by the Secretary of the Treasury or the Sec-
retary’s designee (in this section referred to as 
the ‘‘Secretary’’). 
(2) QUALIFIED SERVICES.—The term ‘‘qualified 
services’’ means services performed by an individual 
who is not described in section 51(i)(1) of such Code 
(applied by substituting ‘‘qualified employer’’ for 
‘‘taxpayer’’ each place it appears)— 
(A) in a trade or business of the qualified 
employer, or 
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(B) in the case of a qualified employer ex-
empt from tax under section 501(a) of such 
Code, in furtherance of the activities related to 
the purpose or function constituting the basis of 
the employer’s exemption under section 501 of 
such Code. 
(e) APPLICATION OF CERTAIN RULES.—Rules simi-
lar to the rules of sections 280C(a) and 6501(m) of the 
Internal Revenue Code of 1986 shall apply with respect 
to the credit determined under this section. 
(f) TREATMENT OF CREDIT.—For purposes of the 
Internal Revenue Code of 1986— 
(1) TAXABLE EMPLOYERS.— 
(A) IN
GENERAL.—The credit allowed 
under subsection (a) with respect to qualified 
services described in subsection (d)(2)(A) for 
any taxable year shall be added to the current 
year business credit under section 38(b) of such 
Code for such taxable year and shall be treated 
as a credit allowed under subpart D of part IV 
of subchapter A of chapter 1 of such Code. 
(B) LIMITATION
ON
CARRYBACKS.—No 
portion of the unused business credit under sec-
tion 38 of such Code for any taxable year which 
is attributable to an increase in the current 
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year business credit by reason of subparagraph 
(A) may be carried to a taxable year beginning 
before the date of the enactment of this section. 
(2) TAX-EXEMPT EMPLOYERS.— 
(A) IN
GENERAL.—The credit allowed 
under subsection (a) with respect to qualified 
services described in subsection (d)(2)(B) for 
any taxable year— 
(i) shall be treated as a credit allowed 
under subpart C of part IV of subchapter 
A of chapter 1 of such Code, and 
(ii) shall be added to the credits de-
scribed in subparagraph (A) of section 
6211(b)(4) of such Code. 
(B) CONFORMING
AMENDMENT.—Section 
1324(b)(2) of title 31, United States Code, is 
amended by inserting ‘‘or due under section 2 
of the Hire Now Act of 2012’’ after ‘‘the Hous-
ing Assistance Tax Act of 2008’’. 
(g) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary shall pay to each possession of the 
United States with a mirror code tax system 
amounts equal to the loss to that possession by 
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reason of the application of subsections (a) 
through (f). Such amounts shall be determined 
by the Secretary based on information provided 
by the government of the respective possession 
of the United States. 
(B) OTHER POSSESSIONS.—The Secretary 
shall pay to each possession of the United 
States which does not have a mirror code tax 
system the amount estimated by the Secretary 
as being equal to the loss to that possession 
that would have occurred by reason of the ap-
plication of subsections (a) through (f) if a mir-
ror code tax system had been in effect in such 
possession. The preceding sentence shall not 
apply with respect to any possession of the 
United States unless such possession establishes 
to the satisfaction of the Secretary that the pos-
session has implemented (or, at the discretion 
of the Secretary, will implement) an income tax 
benefit which is substantially equivalent to the 
income tax credit allowed under such sub-
sections. 
(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No in-
crease in the credit determined under section 38(b) 
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of the Internal Revenue Code of 1986 against 
United States income taxes for any taxable year de-
termined by reason of subsection (f)(1)(A) shall be 
taken into account with respect to any person— 
(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
this section for such taxable year, or 
(B) who is eligible for a payment under a 
plan described in paragraph (1)(B) with respect 
to such taxable year. 
(3) DEFINITIONS AND SPECIAL RULES.— 
(A) 
POSSESSION
OF
THE
UNITED 
STATES.—For purposes of this subsection, the 
term ‘‘possession of the United States’’ includes 
American Samoa, Guam, the Commonwealth of 
the Northern Mariana Islands, the Common-
wealth of Puerto Rico, and the United States 
Virgin Islands. 
(B) MIRROR CODE TAX SYSTEM.—For pur-
poses of this subsection, the term ‘‘mirror code 
tax system’’ means, with respect to any posses-
sion of the United States, the income tax sys-
tem of such possession if the income tax liabil-
ity of the residents of such possession under 
such system is determined by reference to the 
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income tax laws of the United States as if such 
possession were the United States. 
(C) TREATMENT OF PAYMENTS.—For pur-
poses of section 1324(b)(2) of title 31, United 
States Code, the payments under this sub-
section shall be treated in the same manner as 
a refund due from credit provisions described in 
such section. 
(h) REGULATIONS.—The Secretary shall prescribe 
such regulations or guidance as are necessary to carry out 
the provisions of this section. 
SEC. 3. PROHIBITION ON USING LAST-IN, FIRST-OUT AC-
COUNTING FOR MAJOR INTEGRATED OIL 
COMPANIES. 
(a) IN GENERAL.—Section 472 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(h) MAJOR INTEGRATED OIL COMPANIES.—Not-
withstanding any other provision of this section, a major 
integrated 
oil 
company 
(as 
defined 
in 
section 
167(h)(5)(B)) may not use the method provided in sub-
section (b) in inventorying of any goods.’’. 
(b) EFFECTIVE DATE AND SPECIAL RULE.— 
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(1) IN
GENERAL.—The amendment made by 
subsection (a) shall apply to taxable years ending 
after the date of the enactment of this Act. 
(2) CHANGE IN METHOD OF ACCOUNTING.—In 
the case of any taxpayer required by the amendment 
made by this section to change its method of ac-
counting for its first taxable year ending after the 
date of the enactment of this Act— 
(A) such change shall be treated as initi-
ated by the taxpayer, 
(B) such change shall be treated as made 
with the consent of the Secretary of the Treas-
ury, and 
(C) the net amount of the adjustments re-
quired to be taken into account by the taxpayer 
under section 481 of the Internal Revenue Code 
of 1986 shall be taken into account ratably over 
a period (not greater than 8 taxable years) be-
ginning with such first taxable year. 
SEC. 4. LIMITATION ON DEDUCTION FOR INTANGIBLE 
DRILLING AND DEVELOPMENT COSTS OF 
MAJOR INTEGRATED OIL COMPANIES. 
(a) IN GENERAL.—Section 263(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new sentence: ‘‘This subsection shall not 
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apply to amounts paid or incurred by a taxpayer in any 
taxable year in which such taxpayer is a major integrated 
oil company (as defined in section 167(h)(5)(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to amounts paid or incurred in tax-
able years ending after the date of the enactment of this 
Act. 
Æ 
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