ble employer during the taxable year to eligible indi-
viduals. 
‘‘(2) ELIGIBLE INDIVIDUALS.— 
‘‘(A) IN GENERAL.—The term ‘eligible in-
dividual’ means an individual who, at the time 
such wages are paid or incurred— 
‘‘(i) has attained the age of 62, and 
‘‘(ii) is participating in a formal flexi-
ble work program. 
‘‘(B) LIMITATION.—Such term shall not 
include any individual who begins participation 
in a formal flexible work program during any 
period in which more than 20 percent of the 
employees of the eligible employer are already 
participating in a formal flexible work program. 
‘‘(3) WAGES.— 
‘‘(A) IN GENERAL.—The term ‘wages’ has 
the meaning given such term by subsection (b) 
of section 3306 (determined without regard to 
any dollar limitation contained in such section). 
‘‘(B) OTHER RULES.—Rules similar to the 
rules of paragraph (2) and (3) of section 51(c) 
shall apply for purposes of this section. 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS
‘‘(C) TERMINATION.—The term ‘wages’ 
shall not include any amount paid or incurred 
to an individual after December 31, 2012. 
‘‘(4) ONLY FIRST $6,000 OF WAGES PER YEAR 
TAKEN INTO ACCOUNT.—The amount of the quali-
fied wages which may be taken into account with re-
spect to any individual shall not exceed $6,000 per 
year. 
‘‘(d) FORMAL FLEXIBLE WORK PROGRAM.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘formal flexible 
work program’ means a program of an eligible em-
ployer— 
‘‘(A) which consists of core time and flex 
time, 
‘‘(B) under which core time does not ex-
ceed— 
‘‘(i) 20 hours per week, 
‘‘(ii) 3 days per week, or 
‘‘(iii) 1,000 hours per year, and 
‘‘(C) which meets the requirements of sub-
section (e). 
‘‘(2) CORE TIME.—The term ‘core time’ means 
the specific time— 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS
‘‘(A) during which an employee is required 
to perform services related to employment, and 
‘‘(B) which is determined by the employer. 
‘‘(3) FLEX TIME.—The term ‘flex time’ means 
the time other than core time— 
‘‘(A) during which an employee is required 
to perform services related to employment, and 
‘‘(B) which is determined at the election of 
the employee. 
‘‘(e) REQUIREMENTS.—A program shall not be con-
sidered a formal flexible work program under this section 
unless such program meets the following requirements: 
‘‘(1) DURATION
OF
PROGRAM.—The program 
shall allow for participation for a period of at least 
1 year. 
‘‘(2) NO
CHANGE
IN
HEALTH
CARE
BENE-
FITS.—With respect to a participant whose work 
schedule is no less than 20 percent of the work 
schedule of a similarly situated full-time employee— 
‘‘(A) such participant shall be entitled to 
the same health insurance coverage to which a 
similarly situated full-time employee would be 
entitled, 
‘‘(B) the employer shall contribute the 
same percentage of the cost of health insurance 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS
coverage for such participant as the employer 
would contribute for a similarly situated full- 
time employee, and 
‘‘(C) such participant shall be entitled to 
participate in a retiree health benefits plan of 
the employer in the same manner as a similarly 
situated full-time employee, except that service 
credited under the plan for any plan year shall 
be equal to the ratio of the participant’s work 
schedule during such year to the work schedule 
of a similarly situated full-time employee during 
such year. 
‘‘(3) NO REDUCTION IN PENSION BENEFITS.— 
‘‘(A) DEFINED BENEFIT PLANS.— 
‘‘(i) A participant shall be entitled to 
participate in a defined benefit plan (with-
in the meaning of section 414(j)) of the 
employer in the same manner as a simi-
larly situated full-time employee. 
‘‘(ii) Service credited to a participant 
under the plan for any plan year shall be 
equal to the ratio of the participant’s work 
schedule during such year to the work 
schedule of a similarly situated full-time 
employee during such year. 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS
‘‘(iii) If the plan uses final average 
earnings to determine benefits, final aver-
age earnings of the participant shall be no 
less than such earnings were before the 
participant entered the program. 
‘‘(B) DEFINED CONTRIBUTION PLANS.—A 
participant shall be entitled to participate in a 
defined contribution plan (within the meaning 
of section 414(i)) of the employer in the same 
manner as a similarly situated full-time em-
ployee, and the employer shall match the par-
ticipant’s contributions at the same rate that 
the employer would match the contributions of 
a similarly situated full-time employee. 
‘‘(C) NO FORFEITURE OF PENSION BENE-
FITS.—The pension benefits of a participant 
shall not be forfeited under the rules of section 
411(a)(3)(B) or section 203(a)(3)(B) of the 
Employee Retirement Income Security Act of 
1974 with respect to a participant who has at-
tained normal retirement age as of the end of 
the plan year. 
‘‘(4) NONDISCRIMINATION RULE.—Eligibility to 
participate in the program shall not discriminate in 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS
favor of highly compensated employees (within the 
meaning of section 414(q)). 
‘‘(f) CERTAIN INDIVIDUALS INELIGIBLE.—For pur-
poses of this section, rules similar to the rules of section 
51(i)(1) and section 52 shall apply. 
‘‘(g) REGULATIONS.—The Secretary may prescribe 
such regulations as are necessary to carry out the pur-
poses of this section, including simplified rules to satisfy 
the requirements of subsection (e)(3)(C) taking into ac-
count the requirements of section 411 and section 203 of 
the Employee Retirement Income Security Act of 1974.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 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 add-
ing at the end the following new paragraph: 
‘‘(36) the flexible work credit determined under 
section 45R(a).’’. 
(c) NO DOUBLE BENEFIT.—Subsection (a) of section 
280C of the Internal Revenue Code of 1986 is amended 
by inserting ‘‘45R(a),’’ after ‘‘45P(a),’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
VerDate Nov 24 2008 
01:22 Feb 04, 2010
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4591.IH
H4591
jbell on DSKDVH8Z91PROD with BILLS