I 
111TH CONGRESS 
1ST SESSION H. R. 3620 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for employing members of the Ready Reserve and 
National Guard and veterans recently separated from the Armed Forces. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 22, 2009 
Mr. ALEXANDER 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 em-
ployers a credit against income tax for employing mem-
bers of the Ready Reserve and National Guard and vet-
erans recently separated from the Armed Forces. 
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 Heroes Tax 
Incentive Act of 2009’’. 
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SEC. 2. CREDIT FOR EMPLOYERS WHO EMPLOY MEMBERS 
OF THE READY RESERVE AND NATIONAL 
GUARD AND VETERANS RECENTLY SEPA-
RATED FROM THE ARMED FORCES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
inserting after section 45Q the following new section: 
‘‘SEC. 45R. CREDIT FOR EMPLOYERS WHO EMPLOY MEM-
BERS OF THE READY RESERVE AND NA-
TIONAL GUARD AND VETERANS RECENTLY 
SEPARATED FROM THE ARMED FORCES. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the amount of the military employment credit de-
termined under this section with respect to any employer 
for any taxable year is 15 percent of the qualified wages 
paid or incurred during the calendar year which ends with 
or within such taxable year. 
‘‘(b) QUALIFIED WAGES.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified wages’ means any wages 
paid or incurred by an employer for services per-
formed by a qualified employee. 
‘‘(2) ONLY FIRST $10,000 OF WAGES PER YEAR 
TAKEN INTO ACCOUNT.—With respect to each em-
ployee, the amount of qualified wages which may be 
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taken into account for a calendar year shall not ex-
ceed $10,000. 
‘‘(3) COORDINATION WITH OTHER CREDITS.— 
The $10,000 amount in paragraph (2) shall be re-
duced for any calendar year by the amount of wages 
paid or incurred during such year which are taken 
into account in determining the credit under section 
45A(a), 45P(a), 51(a), 1396(a), 1400P(b), or 
1400R. 
‘‘(c) QUALIFIED EMPLOYEE.—For purposes of this 
section— 
‘‘(1) QUALIFIED EMPLOYEE.—The term ‘quali-
fied employee’ means, with respect to any period, 
any employee of an employer if during such period— 
‘‘(A) substantially all of the services per-
formed by such employee for such employer are 
performed in a trade or business of the em-
ployer, and 
‘‘(B) such employee is— 
‘‘(i) a Ready Reserve-National Guard 
employee, or 
‘‘(ii) a recently-separated veteran. 
‘‘(2) CERTAIN INDIVIDUALS NOT ELIGIBLE.— 
The term ‘qualified employee’ shall not include any 
individual described in a subparagraph of section 
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1396(d)(2) (relating to certain individuals not eligi-
ble to be qualified zone employees). 
‘‘(3) READY
RESERVE-NATIONAL
GUARD
EM-
PLOYEE.—The term ‘Ready Reserve-National Guard 
employee’ means an employee who is a member of 
the Ready Reserve (as defined in section 10142 of 
title 10, United States Code) or the National Guard 
(as defined in section 101(c)(1) of such title 10). 
‘‘(4) RECENTLY-SEPARATED
VETERAN.—The 
term ‘recently-separated veteran’ means an indi-
vidual who served on active duty (other than active 
duty for training) in the Armed Forces of the 
United States and was discharged or released there-
from under honorable conditions within the 5-year 
period ending on the date of the performance of 
services. 
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) WAGES.—For purposes of this section, the 
term ‘wages’ has the meaning given to such term by 
section 1397(a). 
‘‘(2) CONTROLLED GROUPS, ETC.—Rules simi-
lar to the rules of subsections (b) and (c) of section 
1397 shall apply for purposes of this section. 
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‘‘(e) TERMINATION.—The term ‘wages’ shall not in-
clude any amount paid or incurred to an individual who 
begins work for the employer after December 31, 2012.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code (relating to denial of deduc-
tion for certain expenses for which credits are allowable) 
is amended by inserting ‘‘45R,’’ after ‘‘45P(a),’’. 
(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (34), 
by striking the period at the end of paragraph (35) and 
inserting ‘‘, plus’’, and by inserting after paragraph (35) 
the following new paragraph: 
‘‘(36) the military employment credit deter-
mined under section 45R(a).’’. 
(d) CLERICAL AMENDMENT.—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 fol-
lowing new item: 
‘‘Sec. 45R. Credit for employers who employ members of the Ready Reserve 
and National Guard and veterans recently separated from the 
Armed Forces.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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