Disability Employment Incentive Act
Bill: S.630 | Sponsor: Sen. Casey, Robert P., Jr. (D-PA)
Policy area: Taxation

Summary:
Disability Employment Incentive Act
This bill expands tax credits and deductions that are available for employers who hire and retain employees with disabilities.
The bill expands the work opportunity tax credit to include the hiring of employees who receive Social Security Disability Insurance (SSDI) benefits. For employers who hire vocational rehabilitation referrals, Supplemental Security Income recipients, or SSDI recipients, the bill also (1) increases the amount of wages that may be taken into account for the credit, and (2) allows an additional credit for second-year wages.
With respect to the tax credit for expenditures by eligible small businesses to provide access to disabled individuals, the bill increases the limits that apply to (1) the amount of expenditures that are eligible for the credit, and (2) the gross receipts and full-time employees of eligible small businesses.
The bill also expands the tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. The bill modifies the deduction to (1) increase the limitation on the amount of the deduction, and (2) allow the deduction to be used for certain improvements in the accessibility of internet or telecommunications services to handicapped and elderly individuals.

To amend the Internal Revenue Code of 1986 to include individuals 
receiving Social Security Disability Insurance benefits under the work 
opportunity credit, increase the work opportunity credit for vocational 
rehabilitation referrals, qualified SSI recipients, and qualified SSDI 
    recipients, expand the disabled access credit, and enhance the 
 deduction for expenditures to remove architectural and transportation 
                barriers to the handicapped and elderly.

    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 ``Disability Employment Incentive 
Act''.

SEC. 2. EXPANSION OF WORK OPPORTUNITY CREDIT TO INCLUDE INDIVIDUALS 
              RECEIVING SOCIAL SECURITY DISABILITY INSURANCE BENEFITS.

    (a) In General.--Subsection (d) of section 51 of the Internal 
Revenue Code of 1986 is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (I), by striking ``or'' at the 
                end,
                    (B) in subparagraph (J), by striking the period at 
                the end and inserting ``, or'', and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(K) a qualified SSDI recipient.'', and
            (2) by adding at the end the following new paragraph:
            ``(16) Qualified ssdi recipient.--The term `qualified SSDI 
        recipient' means any individual who is certified by the 
        designated local agency as receiving disability insurance 
        benefits under section 223 of the Social Security Act (42 
        U.S.C. 423) for any month ending within the 60-day period 
        ending on the hiring date.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2021.

SEC. 3. ENHANCEMENT OF WORK OPPORTUNITY CREDIT FOR VOCATIONAL 
              REHABILITATION REFERRALS, QUALIFIED SSI RECIPIENTS, AND 
              QUALIFIED SSDI RECIPIENTS.

    (a) In General.--Section 51 of the Internal Revenue Code of 1986 is 
amended--
            (1) by redesignating subsections (f) through (k) as 
        subsections (g) through (l), respectively, and
            (2) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Credit for Second-Year Wages for Employment of Vocational 
Rehabilitation Referrals, Qualified SSI Recipients, and Qualified SSDI 
Recipients.--
            ``(1) In general.--With respect to employment of a 
        vocational rehabilitation referral, a qualified SSI recipient, 
        or a qualified SSDI recipient--
                    ``(A) the amount of the work opportunity credit 
                determined under this section for the taxable year 
                shall include 20 percent of the qualified second-year 
                wages for such year, and
                    ``(B) in lieu of applying subsection (b)(3), the 
                amount of the qualified first-year wages, and the 
                amount of qualified second-year wages, which may be 
                taken into account with respect to such referral or 
                recipient shall not exceed $12,500 per year.
            ``(2) Qualified second-year wages.--For purposes of this 
        subsection, the term `qualified second-year wages' means 
        qualified wages--
                    ``(A) which are paid to a vocational rehabilitation 
                referral, a qualified SSI recipient, or a qualified 
                SSDI recipient, and
                    ``(B) which are attributable to service rendered 
                during the 1-year period beginning on the day after the 
                last day of the 1-year period with respect to such 
                referral or recipient determined under subsection 
                (b)(2).
            ``(3) Special rules for agricultural and railway labor.--If 
        such referral or recipient is an employee to whom subparagraph 
        (A) or (B) of subsection (i)(1) applies, rules similar to the 
        rules of such subparagraphs shall apply except that--
                    ``(A) such subparagraph (A) shall be applied by 
                substituting `$12,500' for `$6,000', and
                    ``(B) such subparagraph (B) shall be applied by 
                substituting `$1041.67' for `$500'.''.
    (b) Conforming Amendments.--
            (1) Section 51 of the Internal Revenue Code of 1986, as 
        amended by subsection (a), is amended--
                    (A) in subsection (c)(1), by striking ``subsection 
                (h)(2)'' and inserting ``subsection (i)(2)'',
                    (B) in subsection (e)(3), by striking ``subsection 
                (h)(1)'' and inserting ``subsection (i)(1)'', and
                    (C) in subsection (g)(2), by striking ``subsection 
                (h)(1)'' and inserting ``subsection (i)(1)''.
            (2) Section 45A of such Code is amended--
                    (A) in subsection (b)(1)(B), by inserting ``or 
                (f)(1)(A)'' after ``subsection (e)(1)(A)'',
                    (B) in subsection (c)(5)(A), by striking ``section 
                51(i)(1)'' and inserting ``section 51(j)(1)'', and
                    (C) in subsection (e)(3), by striking ``section 
                51(k)'' and inserting ``section 51(l)''.
            (3) Section 45S(h)(2) of such Code is amended by striking 
        ``section 51(j)'' and inserting ``section 51(k)''.
            (4) Section 1396(d)(2)(A) of such Code is amended by 
        striking ``section 51(i)(1)'' and inserting ``section 
        51(j)(1)''.
            (5) Section 1397(c) of such Code is amended by striking 
        ``section 51(k)'' and inserting ``section 51(l)''.
            (6) Section 3111(e)(3)(B) of such Code is amended by 
        striking ``subsection (i)(3)(A)'' and inserting ``subsection 
        (j)(3)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2021.

SEC. 4. EXPANSION OF DISABLED ACCESS CREDIT.

    (a) Eligible Access Expenditures.--Subsection (a) of section 44 of 
the Internal Revenue Code of 1986 is amended by striking ``$10,250'' 
and inserting ``$20,250''.
    (b) Eligible Small Business.--Subsection (b)(1) of section 44 of 
the Internal Revenue Code of 1986 is amended--
            (1) in subparagraph (A), by striking ``$1,000,000'' and 
        inserting ``$3,000,000'', and
            (2) in subparagraph (B), by striking ``30 full-time 
        employees'' and inserting ``60 full-time employees''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 5. EXPANSION OF DEDUCTION FOR EXPENDITURES TO REMOVE ARCHITECTURAL 
              AND TRANSPORTATION BARRIERS TO THE HANDICAPPED AND 
              ELDERLY.

    (a) Inclusion of Improvements in Accessability to Internet and 
Telecommunications Operations.--Subsection (b) of section 190 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
            ``(4) Inclusion of improvements in accessability to 
        internet and telecommunications operations.--The term 
        `architectural and transportation barrier removal expenses' 
        shall include an expenditure for the purpose of improving 
        accessibility for handicapped and elderly individuals to any 
        internet or telecommunications services provided within any 
        facility or public transportation vehicle owned or leased by 
        the taxpayer for use in connection with their trade or 
        business.''.
    (b) Increase in Deduction Limitation Amount.--Subsection (c) of 
section 190 of the Internal Revenue Code of 1986 is amended by striking 
``$15,000'' and inserting ``$30,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.
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