Hire A Hero Act of 2021
Bill: H.R.1431 | Sponsor: Del. Plaskett, Stacey E. (D-VI)
Policy area: Taxation

Summary:
Hire A Hero Act of 2021
This bill allows small businesses a work opportunity tax credit for hiring a member of the Ready Reserve or the National Guard. The bill also makes permanent the provisions of the credit that apply to the hiring of qualified veterans and members of the Ready Reserve and National Guard.
The bill also provides for payments to U.S. possessions for revenue losses due to the requirements of this bill.

To amend the Internal Revenue Code of 1986 to allow the work 
 opportunity credit to small businesses which hire individuals who are 
members of the Ready Reserve or National Guard, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Hire A Hero Act of 2021''.

SEC. 2. WORK OPPORTUNITY CREDIT TO SMALL BUSINESSES FOR HIRING MEMBERS 
              OF READY RESERVE OR NATIONAL GUARD.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (I), by 
striking the period at the end of subparagraph (J) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
                    ``(K) in the case of an eligible employer (as 
                defined in section 408(p)(2)(C)(i)), an individual who 
                is a member of--
                            ``(i) the Ready Reserve (as described in 
                        section 10142 of title 10, United States Code), 
                        or
                            ``(ii) the National Guard (as defined in 
                        section 101(c)(1) of title 10, United States 
                        Code).''.
    (b) Effective Date.--
            (1) In general.--The amendment made by this section shall 
        apply to wages paid or incurred after the date of the enactment 
        of this Act in taxable years ending after such date.
            (2) Current employees covered by credit.--For purposes of 
        applying section 51 of the Internal Revenue Code of 1986, 
        individuals described in section 51(d)(1)(K) of such Code, as 
        added by this section, who are employed by an eligible employer 
        (as defined in section 408(p)(2)(C)(i) of such Code) on the 
        date of the enactment of this Act shall be treated as beginning 
        work for such employer on such date.

SEC. 3. PERMANENT EXTENSION OF WORK OPPORTUNITY CREDIT FOR EMPLOYERS 
              HIRING QUALIFIED VETERANS AND MEMBERS OF READY RESERVE 
              AND NATIONAL GUARD.

    (a) In General.--Section 51(c)(4) of the Internal Revenue Code of 
1986 is amended by inserting ``(other than any individual described in 
subparagraph (B) or (K) of subsection (d)(1))'' after ``individual''.
    (b) Effective Date.--The amendment made by this section shall apply 
to individuals who begin work for the employer after December 31, 2020.

SEC. 4. TREATMENT OF POSSESSIONS.

    (a) Payments to Possessions.--
            (1) Mirror code possessions.--The Secretary of the Treasury 
        shall pay to each possession of the United States with a mirror 
        code tax system amounts equal to the loss to that possession by 
        reason of the amendments made by this Act. Such amounts shall 
        be determined by the Secretary of the Treasury based on 
        information provided by the government of the respective 
        possession of the United States.
            (2) Other possessions.--The Secretary of the Treasury shall 
        pay to each possession of the United States which does not have 
        a mirror code tax system the amount estimated by the Secretary 
        of the Treasury as being equal to the loss to that possession 
        that would have occurred by reason of the amendments made by 
        this Act if a mirror code tax system had been in effect in such 
        possession. The preceding sentence shall not apply with respect 
        to any possession of the United States unless such possession 
        establishes to the satisfaction of the Secretary that the 
        possession has implemented (or, at the discretion of the 
        Secretary, will implement) an income tax benefit which is 
        substantially equivalent to the income tax credit in effect 
        after the amendments made by this Act.
    (b) Coordination With Credit Allowed Against United States Income 
Taxes.--The credit allowed against United States income taxes for any 
taxable year under the amendments made by this Act to section 51 of the 
Internal Revenue Code of 1986 to any person shall be reduced by the 
amount of any credit (or other tax benefit described in subsection 
(a)(2)) allowed to such person against income taxes imposed by the 
possession of the United States by reason of this section for such 
taxable year.
    (c) Definitions and Special Rules.--
            (1) Possession of the united states.--For purposes of this 
        section, the term ``possession of the United States'' shall 
        include such possessions as are specified in section 937(a)(1) 
        of the Internal Revenue Code of 1986.
            (2) Mirror code tax system.--For purposes of this section, 
        the term ``mirror code tax system'' means, with respect to any 
        possession of the United States, the income tax system of such 
        possession if the income tax liability of the residents of such 
        possession under such system is determined by reference to the 
        income tax laws of the United States as if such possession were 
        the United States.
            (3) Treatment of payments.--For purposes of section 
        1324(b)(2) of title 31, United States Code, the payments under 
        subsection (a) shall be treated in the same manner as a refund 
        due from credit provisions described in such section.
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