I
103D CONGRESS
1ST SESSION
H. R. 71
To amend the Internal Revenue Code of 1986 to provide a tax credit to
employers who employ members of the Ready Reserve or of the National
Guard.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 5, 1993
Mr. BILIRAKIS 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
a tax credit to employers who employ members of the
Ready Reserve or of the National Guard.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. READY RESERVE-NATIONAL GUARD EMPLOYEE
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS
CREDIT.
(a) READY RESERVE-NATIONAL GUARD 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 thereof
the following new section:
‘‘SEC. 45A. READY RESERVE-NATIONAL GUARD EMPLOYEE
CREDIT.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the Ready Reserve-National Guard employee credit deter-
mined under this section for the taxable year is an amount
equal to the sum of—
‘‘(1) 50 percent of the actual compensation
amount for the taxable year, plus
‘‘(2) 10 percent of the unpaid compensation
amount for the taxable year.
‘‘(b) 
DEFINITION
OF
ACTUAL
COMPENSATION
AMOUNT
AND UNPAID COMPENSATION AMOUNT.—For
purposes of this section—
‘‘(1) ACTUAL
COMPENSATION
AMOUNT.—The
term ‘actual compensation amount’ means the
amount of compensation paid or incurred by an em-
ployer with respect to a Ready Reserve-National
Guard employee on any day during a taxable year
when the employee was absent from employment for
the purpose of performing qualified active duty.
‘‘(2) UNPAID
COMPENSATION
AMOUNT.—The
term ‘unpaid compensation amount’ means the
amount of compensation which ordinarily would have
been paid or incurred by an employer with respect
to a Ready Reserve-National Guard employee on any
day during a taxable year but was not paid because
the employee was absent from employment for the
purpose of performing qualified active duty.
‘‘(c) LIMITATIONS.—
‘‘(1) MAXIMUM CREDIT.—The maximum credit
allowable under subsection (a) shall not exceed
$2,000 in any taxable year with respect to any one
Ready Reserve-National Guard employee.
‘‘(2) DAYS
OTHER
THAN
WORK
DAYS.—No
credit shall be allowed with respect to a Ready Re-
serve-National Guard employee who performs quali-
fied active duty on any day on which the employee
was not scheduled to work (for a reason other than
to participate in qualified active duty) and ordinarily
would not have worked.
‘‘(d) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
ACTIVE
DUTY.—The term
‘qualified active duty’ means—
‘‘(A) active duty, other than the training
duty specified in section 270(a) of title 10,
United States Code (relating to training re-
quirements for the Ready Reserve), or section
502(a) of title 32, United States Code (relating
to required drills and field exercises for the Na-
tional Guard), in connection with which an em-
ployee is entitled to reemployment rights and
other benefits or to a leave of absence from em-
ployment under section 2024 of title 38, United
States Code, and
‘‘(B) hospitalization incident to such duty.
‘‘(2) COMPENSATION.—The term ‘compensa-
tion’ means any remuneration for employment,
whether in cash or in kind—
‘‘(A) which is paid or incurred by a tax-
payer and which is deductible from the tax-
payer’s gross income under section 162(a)(1),
or
‘‘(B) which if paid would have been so de-
ductible.
‘‘(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 or of the National Guard.
‘‘(4) NATIONAL
GUARD.—The term ‘National
Guard’ has the meaning given such term by section
101(9) of title 10, United States Code.
‘‘(5) READY RESERVE.—The term ‘Ready Re-
serve’ has the meaning given such term by section
268 of title 10, United States Code.’’
(b) GENERAL BUSINESS CREDIT.—
(1) IN GENERAL.—Subsection (b) of section 38
of such Code (relating to general business credit) is
amended by adding at the end thereof the following
new paragraph:
‘‘(9) the Ready Reserve-National Guard em-
ployee credit determined under section 45A(a).’’
(2) CLERICAL AMENDMENTS.—Such subsection
is further amended—
(A) by striking ‘‘plus’’ in paragraph (7),
and
(B) by striking the period at the end of
paragraph (8) and inserting ‘‘, plus’’.
SEC. 2. CONFORMING AMENDMENT.
The table of sections for subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to
section 45 the following new item:
‘‘Sec. 45A. Ready Reserve-National Guard employee credit.’’
SEC. 3. EFFECTIVE DATE.
The amendments made by this Act shall apply to tax-
able years beginning after December 31, 1992.
Æ