I 
118TH CONGRESS 
2D SESSION H. R. 10147 
To amend the Internal Revenue Code of 1986 to allow for a credit against 
tax for employers of reservists. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 15, 2024 
Ms. PLASKETT 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 allow for 
a credit against tax for employers of reservists. 
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 ‘‘Reserve Employers 
Comprehensive Relief and Uniform Incentives on Taxes 
Act of 2024’’ or as the ‘‘RECRUIT Act of 2024’’. 
SEC. 2. RESERVIST EMPLOYMENT CREDIT. 
(a) ALLOWANCE OF CREDIT.—Subpart D of part IV 
of subchapter A of chapter 1 of the Internal Revenue Code 
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of 1986 is amended by adding at the end the following 
new section: 
‘‘SEC. 45BB. RESERVIST EMPLOYMENT CREDIT. 
‘‘(a) ESTABLISHMENT OF CREDIT.—For purposes of 
section 38, in the case of an eligible employer, the reservist 
employment credit for any taxable year is an amount equal 
to 40 percent of the wages paid or incurred to qualified 
reservists by such employer during such taxable year. 
‘‘(b) LIMITATION.— 
‘‘(1) IN GENERAL.—The reservist employment 
credit determined under subsection (a), with respect 
to any qualified reservist for any taxable year, shall 
not exceed the reservist credit amount. 
‘‘(2) RESERVIST
CREDIT
AMOUNT.—For pur-
poses of this section, the term ‘reservist credit 
amount’ means, with respect to a qualified reservist 
for a taxable year, an amount equal to the sum of— 
‘‘(A) $1,000, plus 
‘‘(B) in the case of a qualified reservist— 
‘‘(i) with 30 or more days, and fewer 
than 90 days, of service in the uniformed 
services during such year, $3,000, 
‘‘(ii) with 90 or more days, and fewer 
than 180 days, of service in the uniformed 
services during such year, $5,000, and 
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‘‘(iii) with 180 or more days of service 
in the uniformed services during such year, 
$10,000. 
‘‘(3) DAYS OF SERVICE.—For purposes of para-
graph (2), any day of service— 
‘‘(A) shall not be taken into account if 
such day constitutes inactive-duty training, or 
active duty or full-time National Guard duty for 
a period of 30 days or less, and 
‘‘(B) shall only be taken into account with 
respect to a qualified reservist employed by an 
eligible employer to the extent such days are 
during a period of employment of such reservist 
by such employer. 
‘‘(4) QUALIFIED RESERVIST.—The term ‘quali-
fied reservist’ means, with respect to a taxable year, 
an individual who is, at any time during such tax-
able year, a member of the National Guard or a re-
serve component of the Armed Forces, as named in 
section 10101 of title 10, United States Code, in ac-
tive status. 
‘‘(5) RESERVE COMPONENT.—The term ‘reserve 
component’ means any of the reserve components of 
the Armed Forces named in section 10101 of title 
10, United States Code. 
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‘‘(6) NATIONAL
GUARD.—The term ‘National 
Guard’ has the meaning given such term in section 
101(3) of title 32, United States Code. 
‘‘(7) SERVICE IN THE UNIFORMED SERVICES.— 
The term ‘service in the uniformed services’ means 
active duty or full-time National Guard duty for a 
period of more than 30 days, but does not include 
active Guard and Reserve duty. 
‘‘(8) ACTIVE STATUS.—The term ‘active status’ 
has the meaning given such term in section 101 of 
title 10, United States Code. 
‘‘(9) INACTIVE-DUTY TRAINING.—The term ‘in-
active-duty training’ has the meaning given such 
term in section 101 of title 10, United States Code. 
‘‘(c) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ means any employer 
which— 
‘‘(1) has an average of less than 500 employees 
employed on business days during the taxable year, 
‘‘(2) meets the gross receipts test of section 
448(c) for the taxable year, and 
‘‘(3) is not a tax shelter prohibited from using 
the cash receipts and disbursements method of ac-
counting under section 448(a)(3). 
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In the case of any taxpayer which is not a corporation 
or partnership, the gross receipts test of section 448(c) 
shall, for purposes of paragraph (2) of this subsection, be 
applied in the same manner as if such taxpayer were a 
corporation or partnership. 
‘‘(d) AGGREGATION RULE.—All persons treated as a 
single employer under subsection (b), (c), (m), or (o) of 
section 414 shall be treated as 1 employer for purposes 
of this section. 
‘‘(e) ELECTION TO HAVE CREDIT NOT APPLY.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
have this section not apply for any taxable year. 
‘‘(2) OTHER RULES.—Rules similar to the rules 
of paragraphs (2) and (3) of section 51(j) shall 
apply for purposes of this subsection.’’. 
(b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘plus’’ at the end of paragraph (40), 
by striking the period at the end of paragraph (41) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(42) in the case of an eligible employer (as de-
fined in section 45BB(c)), the reservist employment 
credit determined under section 45BB(a).’’. 
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(c) CREDIT ALLOWED AGAINST AMT.—Subpara-
graph (B) of section 38(c)(4) of the Internal Revenue 
Code of 1986 is amended by redesignating clauses (x) 
through (xii) as clauses (xi) through (xiii), respectively, 
and by inserting after clause (ix) the following new clause: 
‘‘(x) the credit determined under sec-
tion 45BB,’’. 
(d) CONFORMING AMENDMENTS.— 
(1) DENIAL
OF
DOUBLE
BENEFIT.—Section 
280C(a) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘45BB(a),’’ after ‘‘45S(a),’’. 
(2) ELECTION TO HAVE CREDIT NOT APPLY.— 
Section 6501(m) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘45BB(d),’’ after 
‘‘45H(g),’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45BB. Reservist employment credit.’’. 
(e) TREATMENT OF POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS.— 
(A) MIRROR
CODE
POSSESSIONS.—The 
Secretary of the Treasury shall pay to each pos-
session of the United States with a mirror code 
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tax system amounts equal to the loss to that 
possession by reason of the amendments made 
by this section. Such amounts shall be deter-
mined by the Secretary of the Treasury based 
on information provided by the government of 
the respective possession of the United States. 
(B) OTHER POSSESSIONS.—The Secretary 
of the Treasury shall pay to each possession of 
the United States which does not have a mirror 
code tax system the amount estimated by the 
Secretary of the Treasury as being equal to the 
loss to that possession that would have occurred 
by reason of the amendments made by this sec-
tion if a mirror code tax system had been in ef-
fect in such possession. The preceding sentence 
shall not apply with respect to any possession 
of the United States unless such possession es-
tablishes to the satisfaction of the Secretary 
that the possession has implemented (or, at the 
discretion of the Secretary, will implement) an 
income tax benefit which is substantially equiv-
alent to the income tax credit in effect after the 
amendments made by this section. 
(2) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST
UNITED
STATES
INCOME
TAXES.—The 
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credit allowed under section 45BB of the Internal 
Revenue Code of 1986 (as added by this section) to 
any eligible employer with respect to any qualified 
reservist shall be reduced by the amount of any 
credit (or other tax benefit described in paragraph 
(1)(B)) against income taxes imposed by a posses-
sion of the United States allowed to such employer 
with respect to such reservist by reason of this sec-
tion for the 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’’ shall in-
clude such possessions as are specified in sec-
tion 937(a)(1) of the Internal Revenue Code of 
1986. 
(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 
income tax laws of the United States as if such 
possession were the United States. 
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