I 
109TH CONGRESS 
1ST SESSION 
H. R. 838
To ensure that the reserve components are able to maintain adequate reten-
tion and recruitment levels by protecting the financial security of the 
families of activated members of the National Guard and of the Reserve. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 16, 2005
Mr. LANTOS (for himself, Mr. GRAVES, Mr. MCGOVERN, Mr. SHAYS, Mr. 
OLVER, Ms. WATSON, Mr. GEORGE MILLER of California, Ms. KAPTUR, 
Mr. RUPPERSBERGER, Mrs. CAPPS, Mr. STRICKLAND, Mr. GRIJALVA, 
Mr. CUMMINGS, Mr. GENE GREEN of Texas, Ms. DELAURO, Mrs. 
MCCARTHY, Mr. BLUMENAUER, Mr. OWENS, Mr. MCDERMOTT, Mr. 
BROWN
of Ohio, Mr. JEFFERSON, Mr. MOORE
of Kansas, Mr. 
DELAHUNT, Mr. ETHERIDGE, Ms. NORTON, Mr. CHANDLER, Mrs. 
MALONEY, Mr. FALEOMAVAEGA, Mr. CLAY, Mr. COSTELLO, Mr. JONES 
of North Carolina, and Mr. STARK) introduced the following bill; which 
was referred to the Committee on Ways and Means, and in addition to 
the Committee on Government Reform, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To ensure that the reserve components are able to maintain 
adequate retention and recruitment levels by protecting 
the financial security of the families of activated mem-
bers of the National Guard and of the Reserve.
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 ‘‘Help Our Patriotic 
Employers at Helping Our Military Employees Act’’ or the 
‘‘HOPE at HOME Act’’. 
SEC. 2. NONREDUCTION IN PAY WHILE FEDERAL EM-
PLOYEE IS SERVING ON ACTIVE DUTY IN A 
RESERVE COMPONENT OF THE UNIFORMED 
SERVICES. 
(a) IN GENERAL.—Subchapter IV of chapter 55 of 
title 5, United States Code, is amended by adding at the 
end the following new section: 
‘‘§ 5538. Nonreduction in pay while serving on active 
duty in a reserve component 
‘‘(a) An employee who is also a member of a reserve 
component and is absent from a position of employment 
with the Federal Government under a call or order to 
serve on active duty for a period of more than 30 days 
shall be entitled to receive, for each pay period described 
in subsection (b), an amount equal to the difference (if 
any) between—
‘‘(1) the amount of civilian basic pay that would 
otherwise have been payable to the employee for 
such pay period if the employee’s civilian employ-
ment with the Government had not been interrupted 
by the service on active duty; and
‘‘(2) the amount of military compensation that 
is payable to the employee for the service on active 
duty and is allocable to such pay period. 
‘‘(b)(1) Amounts under this section shall be payable 
with respect to each pay period (which would otherwise 
apply if the employee’s civilian employment had not been 
interrupted) that occurs—
‘‘(A) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(B) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(C) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(2) Paragraph (1) shall not apply with respect to 
a pay period for which the employee receives civilian basic 
pay (including by taking any annual, military, or other 
paid leave) to which the employee is entitled by virtue of 
the employee’s civilian employment with the Government. 
‘‘(c) Any amount payable under this section to an em-
ployee shall be paid—
‘‘(1) by the employing agency of the employee;
‘‘(2) from the appropriations or fund that 
would be used to pay the employee if the employee 
were in a pay status; and 
‘‘(3) to the extent practicable, at the same time 
and in the same manner as would civilian basic pay 
if the employee’s civilian employment had not been 
interrupted. 
‘‘(d) In consultation with Secretary of Defense, the 
Office of Personnel Management shall prescribe such reg-
ulations as may be necessary to carry out this section. 
‘‘(e) In consultation with the Office of Personnel 
Management, the head of each employing agency shall pre-
scribe procedures to ensure that the rights under this sec-
tion apply to the employees of such agency. 
‘‘(f) In this section: 
‘‘(1) The terms ‘active duty for a period of 
more than 30 days’, ‘member’, and ‘reserve compo-
nent’ have the meanings given such terms in section 
101 of title 37. 
‘‘(2) The term ‘civilian basic pay’, with respect 
to an employee, includes any amount payable under 
section 5304 of this title or under such other law 
providing for the compensation of the employee by 
the employing agency for work performed.
‘‘(3) The term ‘employing agency’, as used with 
respect to an employee entitled to any payments 
under this section, means the agency with respect to 
which the employee has reemployment rights under 
chapter 43 of title 38. The term ‘agency’ has the 
meaning given such term in subparagraph (C) of 
section 2302(a)(2) of this title, except that the term 
includes Government corporations and agencies ex-
cluded by clause (i) or (ii) of such subparagraph. 
‘‘(4) The term ‘military compensation’ has the 
meaning given the term ‘pay’ in section 101(21) of 
title 37, except that the term includes allowances 
under chapter 7 of such title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 55 of title 5, United States 
Code, is amended by inserting after the item relating to 
section 5537 the following new item:
‘‘5538. Nonreduction in pay while serving on active duty in a reserve compo-
nent.’’.
(c) APPLICATION OF AMENDMENT.—Section 5538 of 
title 5, United States Code, as added by subsection (a), 
shall apply with respect to pay periods (as described in 
subsection (b) of such section) beginning on or after the 
date of the enactment of this Act.
SEC. 3. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS 
CREDIT. 
(a) ADDITION OF CREDIT.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to business-related credits) is amended 
by adding at the end the following new section: 
‘‘SEC. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the Ready Reserve-National Guard employee credit deter-
mined under this section for any taxable year with respect 
to each Ready Reserve-National Guard employee of an em-
ployer is an amount equal to the lesser of—
‘‘(1) 50 percent of the actual compensation 
amount paid with respect to such Ready Reserve-
National Guard employee for such taxable year while 
the employee is absent from employment for a rea-
son described in subsection (b); or 
‘‘(2) $30,000. 
‘‘(b) COVERED PAY PERIODS.—Subsection (a) shall 
apply with respect to a Ready Reserve-National Guard 
employee—
‘‘(1) while the employee serves on active duty 
for a period of more than 30 days;
‘‘(2) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(3) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(c) LIMITATION.—No credit shall be allowed under 
subsection (a) with respect to a Ready Reserve-National 
Guard employee on any day on which the employee was 
not scheduled to work (for a reason other than such serv-
ice on active duty) and ordinarily would not have worked. 
‘‘(d) PORTION OF CREDIT REFUNDABLE.—
‘‘(1) IN GENERAL.—In the case of an employer 
described in paragraph (2), the aggregate credits al-
lowed to a taxpayer under subpart C shall be in-
creased by the lesser of—
‘‘(A) the credit which would be allowed 
under this section without regard to this sub-
section and the limitation under section 38(c), 
or 
‘‘(B) the amount by which the aggregate 
amount of credits allowed by this subpart (de-
termined without regard to this subsection) 
would increase if the limitation imposed by sec-
tion 38(c) for any taxable year were increased 
by the amount of employer payroll taxes im-
posed on the taxpayer during the calendar year 
in which the taxable year begins. 
The amount of the credit allowed under this sub-
section shall not be treated as a credit allowed under 
this subpart and shall reduce the amount of the 
credit otherwise allowable under subsection (a) with-
out regard to section 38(c). 
‘‘(2) EMPLOYER DESCRIBED.—An employer is 
described in this paragraph if the employer is—
‘‘(A) an organization exempt from tax 
under this chapter, 
‘‘(B) any State or political subdivision 
thereof, the District of Columbia, any posses-
sion of the United States, or any agency or in-
strumentality of any of the foregoing, or 
‘‘(C) any Indian tribal government (within 
the meaning of section 7871) or any agency or 
instrumentality thereof. 
‘‘(3) EMPLOYER
PAYROLL
TAXES.—For pur-
poses of this subsection—
‘‘(A) IN
GENERAL.—The term ‘employer 
payroll taxes’ means the taxes imposed by—
‘‘(i) section 3111(b), and