I 
111TH CONGRESS 
2D SESSION 
H. R. 4437 
To amend the Internal Revenue Code of 1986 to allow employers a refundable 
credit for increasing employment. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 13, 2010 
Mr. ETHERIDGE (for himself, Mr. KAGEN, Mr. ISRAEL, Mr. JACKSON of Illi-
nois, Mr. HINCHEY, Mr. COURTNEY, Mr. SKELTON, Mr. BUTTERFIELD, 
and Mr. PRICE of North Carolina) 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 
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 ‘‘Hiring Incentives to 
Reinvest and Incentivize New Growth Act of 2010’’ or the 
‘‘HIRING Act of 2010’’. 
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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 
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.—There shall be allowed as a cred-
it 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) QUARTERLY ADVANCE PAYMENTS OF CRED-
IT.— 
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‘‘(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 
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 
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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 
with interest from such date determined by using 
the overpayment rate and method under section 
6621. 
‘‘(c) 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— 
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‘‘(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. 
‘‘(d) 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— 
‘‘(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.— 
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‘‘(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. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) ADJUSTMENTS
FOR
CERTAIN
ACQUISI-
TIONS, ETC.— 
‘‘(A) ACQUISITIONS.—If, after December 
31, 2008, an employer acquires the major por-
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 
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‘‘(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. 
‘‘(3) CERTAIN OTHER RULES TO APPLY.—Rules 
similar to the following rules shall apply for pur-
poses of this section: 
‘‘(A) Section 51(f) (relating to remunera-
tion must be for trade or business employment). 
‘‘(B) Section 51(k) (relating to treatment 
of successor employers; treatment of employees 
performing services for other persons). 
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‘‘(C) Section 52 (relating to special rules). 
‘‘(4) SHORT TAXABLE YEARS.—If the employer 
has more than 1 taxable year beginning in 2010 or 
2011, the credit under this section shall be deter-
mined for the employer’s last taxable year beginning 
in 2010 or 2011, as the case may be. 
‘‘(f) TAX-EXEMPT EMPLOYERS TREATED AS TAX-
PAYERS.—Solely for purposes of this section and section 
6402, employers exempt from tax under section 501(a) 
shall be treated as taxpayers.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code is amended by inserting 
‘‘36B(a),’’ before ‘‘45A(a)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘36B,’’ after 
‘‘36A,’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of such Code is 
amended by inserting after the item relating to sec-
tion 36A the following new item: 
‘‘Sec. 36B. Credit for increasing employment.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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(e) NOTICE OF AVAILABILITY OF CREDIT.—The Sec-
retary of the Treasury shall work with the State Employ-
ment Security Agencies to inform businesses of the avail-
ability of section 36B of the Internal Revenue Code of 
1986 (as added by this Act). 
Æ 
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