I 
111TH CONGRESS 
2D SESSION 
H. R. 4565 
To amend the Internal Revenue Code of 1986 to allow employers a refundable 
credit for increasing employment. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2010 
Mr. OWENS (for himself, Mr. TEAGUE, Mr. ARCURI, and Mr. MINNICK) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow 
employers a refundable credit for increasing employment. 
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 ‘‘Rural Jobs Tax Credit 
Act of 2010’’. 
SEC. 2. REFUNDABLE CREDIT FOR INCREASING EMPLOY-
MENT. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
1986 (relating to refundable credits) is amended by insert-
ing after section 36A the following new section: 
‘‘SEC. 36B. CREDIT FOR INCREASING EMPLOYMENT. 
‘‘(a) IN GENERAL.—In the case of an eligible em-
ployer, there shall be allowed as a credit against the tax 
imposed by this subtitle— 
‘‘(1) for any taxable year beginning in 2010, an 
amount equal to 15 percent of the excess (if any) 
of— 
‘‘(A) the aggregate wages paid during 
2010, over 
‘‘(B) the inflation-adjusted wages paid dur-
ing 2009, and 
‘‘(2) for any taxable year beginning in 2011, an 
amount equal to 10 percent of the excess (if any) 
of— 
‘‘(A) the aggregate wages paid during 
2011, over 
‘‘(B) the inflation-adjusted wages paid dur-
ing 2010. 
‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ means any employer 
which conducts an active trade or business in an area 
other than— 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(1) a city or town with a population of more 
than 50,000 inhabitants (based on the most recent 
available census data), or 
‘‘(2) any urbanized area contiguous and adja-
cent to such a city or town. 
‘‘(c) QUARTERLY ADVANCE PAYMENTS OF CRED-
IT.— 
‘‘(1) IN
GENERAL.—The Secretary shall pay 
(without interest) to each employer for each calendar 
quarter an amount equal to the credit percentage of 
the excess (if any) of— 
‘‘(A) the aggregate wages paid by the em-
ployer during such quarter, over 
‘‘(B) the inflation-adjusted wages paid by 
the employer during the comparable quarter of 
the preceding calendar year. 
‘‘(2) CREDIT PERCENTAGE.—For purposes of 
paragraph (1), the credit percentage is— 
‘‘(A) 15 percent in the case of the calendar 
quarters of 2010, and 
‘‘(B) 10 percent in the case of the calendar 
quarters of 2011. 
‘‘(3) RECONCILIATION.— 
‘‘(A) IN GENERAL.—If there is a payment 
under paragraph (1) for 1 or more calendar 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
quarters ending with or within a taxable year, 
then the tax imposed by this chapter for such 
taxable year shall be increased by the aggregate 
amount of such payments. 
‘‘(B) RECONCILIATION.—Any increase in 
tax under subparagraph (A) shall not be treat-
ed as tax imposed by this chapter for purposes 
of determining the amount of any credit (other 
than the credit under subsection (a)) allowable 
under this part. 
‘‘(4) TIME FOR FILING CLAIM.—No claim shall 
be allowed under this subsection with respect to any 
calendar quarter unless filed on or before the earlier 
of— 
‘‘(A) the last day of the succeeding quar-
ter, or 
‘‘(B) the time prescribed by law for filing 
the return of tax imposed by this chapter for 
the taxable year in which or with which such 
quarter ends. 
‘‘(5) INTEREST.—Notwithstanding paragraph 
(1), if the Secretary has not paid pursuant to a 
claim filed under this subsection within 45 days of 
the date of the filing of such claim (20 days in the 
case of an electronic claim), the claim shall be paid 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
with interest from such date determined by using 
the overpayment rate and method under section 
6621. 
‘‘(d) TOTAL WAGES MUST INCREASE.—The amount 
of credit allowed under this section for any taxable year 
shall not exceed the amount which would be so allowed 
for such year if— 
‘‘(1) the aggregate amounts taken into account 
as wages were determined without any dollar limita-
tion, and 
‘‘(2) 103 percent of the amount of wages other-
wise required to be taken into account under sub-
section (a)(1)(B) or subsection (a)(2)(B), as the 
case may be, were taken into account. 
‘‘(e) INFLATION-ADJUSTED WAGES; WAGES.—For 
purposes of this section— 
‘‘(1) INFLATION-ADJUSTED WAGES.— 
‘‘(A) IN GENERAL.—The term ‘inflation- 
adjusted wages’ means, for any period— 
‘‘(i) the aggregate wages paid by the 
employer during such period, increased by 
‘‘(ii) an amount equal to the inflation 
percentage of such wages. 
‘‘(B) INFLATION PERCENTAGE.—The infla-
tion percentage is— 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
‘‘(i) 3 percent for purposes of deter-
mining inflation-adjusted wages for periods 
during 2009, and 
‘‘(ii) 5 percent for purposes of deter-
mining inflation-adjusted wages for periods 
during 2010. 
‘‘(2) WAGES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘wages’ means, 
with respect to any calendar year, so much of 
wages (as defined in section 3121(a)) as does 
not exceed the median household income in the 
United States for the preceding calendar year. 
‘‘(B) RAILWAY LABOR.—In the case of re-
muneration subject to the tax imposed by 
3201(a), the term ‘wages’ means, with respect 
to any calendar year, so much of compensation 
(as defined in section 3231(e)) as does not ex-
ceed the median household income in the 
United States for the preceding calendar year. 
‘‘(f) SPECIAL RULES.— 
‘‘(1) ADJUSTMENTS
FOR
CERTAIN
ACQUISI-
TIONS, ETC.— 
‘‘(A) ACQUISITIONS.—If, after December 
31, 2008, an employer acquires the major por-
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
tion of a trade or business of another person 
(hereinafter in this subparagraph referred to as 
the ‘predecessor’) or the major portion of a sep-
arate unit of a trade or business of a prede-
cessor, then, for purposes of applying this sec-
tion for any calendar year ending after such ac-
quisition, the amount of wages deemed paid by 
the employer during periods before such acqui-
sition shall be increased by so much of such 
wages paid by the predecessor with respect to 
the acquired trade or business as is attributable 
to the portion of such trade or business ac-
quired by the employer. 
‘‘(B) DISPOSITIONS.—If, after December 
31, 2008— 
‘‘(i) an employer disposes of the major 
portion of any trade or business of the em-
ployer or the major portion of a separate 
unit of a trade or business of the employer 
in a transaction to which subparagraph 
(A) applies, and 
‘‘(ii) the employer furnishes the ac-
quiring person such information as is nec-
essary for the application of subparagraph 
(A), 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS
then, for purposes of applying this section for 
any calendar year ending after such disposition, 
the amount of wages deemed paid by the em-
ployer during periods before such disposition 
shall be decreased by so much of such wages as 
is attributable to such trade or business or sep-
arate unit. 
‘‘(2) CHANGE
IN
STATUS
FROM
SELF-EM-
PLOYED TO EMPLOYEE.—If— 
‘‘(A) during 2009 or 2010 an individual 
has net earnings from self-employment (as de-
fined in section 1402(a)) which are attributable 
a trade or business, and 
‘‘(B) for any portion of the succeeding cal-
endar year such individual is an employee of 
such trade or business, 
then, for purposes of determining the credit allow-
able for a taxable year beginning in such succeeding 
calendar year, the employer’s aggregate wages for 
2009 or 2010, as the case may be, shall be increased 
by an amount equal to so much of the net earnings 
referred to in subparagraph (A) as does not exceed 
the median household income in the United States 
for 2009 or 2010, as the case may be. 
VerDate Nov 24 2008 
20:22 Feb 03, 2010
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4565.IH
H4565
mstockstill on DSKH9S0YB1PROD with BILLS