I 
115TH CONGRESS 
1ST SESSION H. R. 2680 
To amend the Internal Revenue Code of 1986 to provide for a credit against 
tax for certain small businesses hiring new employees. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2017 
Mr. CRIST (for himself and Mr. THOMAS J. ROONEY of Florida) 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 provide 
for a credit against tax for certain small businesses hir-
ing new employees. 
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 ‘‘Small Business Tax 
Relief and Jobs Act of 2017’’. 
SEC. 2. CREDIT FOR WAGES FOR NEW HIRES FOR CERTAIN 
SMALL BUSINESSES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45S. WAGES FOR NEW HIRES FOR CERTAIN SMALL 
BUSINESSES. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
new hire small business credit determined under this sec-
tion for the taxable year is an amount equal to 3.825 per-
cent of the qualified wages paid or incurred by an eligible 
small business for such year. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED WAGES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
wages’ means wages paid or incurred by the 
taxpayer for services rendered by a qualified 
employee during a qualified year. 
‘‘(B) QUALIFIED
EMPLOYEE.—The term 
‘qualified employee’ means, with respect to an 
employer with respect to a qualified year, an 
employee hired during the hiring year for such 
qualified year who is not an individual described 
in section 51(i)(2). 
‘‘(C) LIMITATIONS.— 
‘‘(i) WAGES.—The amount of the 
qualified first-year wages which may be 
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taken into account with respect to any em-
ployee shall not exceed $100,000 per year. 
‘‘(ii) EMPLOYEES.—An eligible small 
business may not take into account quali-
fied wages for more than 3 employees in a 
year. 
‘‘(2) WAGES.—The term ‘wages’ has the mean-
ing given to such term by subsection (b) of section 
3306 (determined without regard to any dollar limi-
tation contained in such section). 
‘‘(3) QUALIFIED
YEAR.—The term ‘qualified 
year’ means, with respect to an employee and an 
employer— 
‘‘(A) a year (the ‘hiring year’) in which 
such employee was first employed by such em-
ployer, and 
‘‘(B) each year during the two-year period 
following such hiring year. 
‘‘(4) ELIGIBLE
SMALL
BUSINESS.—The term 
‘eligible small business’ means any person if— 
‘‘(A) the gross receipts of such person for 
the preceding taxable year did not exceed 
$1,500,000, and 
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‘‘(B) such person employed not more than 
20 full-time employees during the preceding 
taxable year. 
‘‘(c) APPLICATION OF CERTAIN RULES.—Rules simi-
lar to the rules of subsections (f), (g), (i), (j), and (k) 
of section 51, and section 52, shall apply for the purposes 
of this section. 
‘‘(d) SUNSET.—This section shall not apply to 
amounts paid or incurred after December 31, 2022.’’. 
(b) DENIAL OF DOUBLE BENEFITS.—Subsection (a) 
of section 280C of such Code is amended by inserting ‘‘, 
45S(a)’’ after ‘‘46P(a)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 38(b) of such Code is amended by 
striking ‘‘plus’’ at the end of paragraph (35), by 
striking the period at the end of paragraph (36), 
and inserting ‘‘, plus’’, and by adding at the end the 
following new paragraph: 
‘‘(37) the new hires small business credit deter-
mined under section 45S.’’. 
(2) The table of sections for subpart D of part 
IV of subchapter A of chapter 1 of such Code is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45S. Wages for new hires for small businesses.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
Æ 
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