scribe procedures to ensure that the rights under this sec-
tion apply to the employees of such agency. 
‘‘(f) In this section: 
‘‘(1) The terms ‘active duty for a period of 
more than 30 days’, ‘member’, and ‘reserve compo-
nent’ have the meanings given such terms in section 
101 of title 37. 
‘‘(2) The term ‘civilian basic pay’, with respect 
to an employee, includes any amount payable under 
section 5304 of this title or under such other law 
providing for the compensation of the employee by 
the employing agency for work performed. 
‘‘(3) The term ‘employing agency’, as used with 
respect to an employee entitled to any payments 
under this section, means the agency with respect to 
which the employee has reemployment rights under 
chapter 43 of title 38. The term ‘agency’ has the 
meaning given such term in subparagraph (C) of 
section 2302(a)(2) of this title, except that the term 
includes Government corporations and agencies ex-
cluded by clause (i) or (ii) of such subparagraph. 
‘‘(4) The term ‘military compensation’ has the 
meaning given the term ‘pay’ in section 101(21) of 
title 37, except that the term includes allowances 
under chapter 7 of such title.’’.
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 55 of title 5, is amended by 
inserting after the item relating to section 5537 the fol-
lowing new item: 
‘‘5538. Nonreduction in pay while serving on active duty in a reserve compo-
nent.’’. 
(c) APPLICATION OF AMENDMENT.—Section 5538 of 
title 5, United States Code, as added by subsection (a), 
shall apply with respect to pay periods (as described in 
subsection (b) of such section) beginning on or after the 
date of the enactment of this Act. 
SEC. 622. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS 
CREDIT. 
(a) ADDITION OF 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 the following new section: 
‘‘SEC. 45J. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the Ready Reserve-National Guard employee credit deter-
mined under this section for any taxable year with respect 
to each Ready Reserve-National Guard employee of an em-
ployer is an amount equal to the lesser of—
‘‘(1) 50 percent of the actual compensation 
amount paid with respect to such Ready Reserve- 
National Guard employee for such taxable year while 
the employee is absent from employment for a rea-
son described in subsection (b); or 
‘‘(2) $30,000. 
‘‘(b) COVERED PAY PERIODS.—Subsection (a) shall 
apply with respect to a Ready Reserve-National Guard 
employee— 
‘‘(1) while the employee serves on active duty 
for a period of more than 30 days; 
‘‘(2) while the employee is hospitalized for, or 
convalescing from, an illness or injury incurred in, 
or aggravated during, the performance of such active 
duty; or 
‘‘(3) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in subparagraph (B). 
‘‘(c) LIMITATION.—No credit shall be allowed under 
subsection (a) with respect to a Ready Reserve-National 
Guard employee on any day on which the employee was 
not scheduled to work (for a reason other than such serv-
ice on active duty) and ordinarily would not have worked. 
‘‘(d) PORTION OF CREDIT REFUNDABLE.—