Title: Small Business Tax Relief and Jobs Act of 2017
Policy area: Taxation

Summary:
Small Business Tax Relief and Jobs Act of 2017
This bill amends the Internal Revenue Code to allow eligible small businesses an annual tax credit equal to 3.825% of the wages paid to up to three newly hired employees. The wages taken into account with respect to any employee may not exceed $100,000 per year.
An "eligible small business" must have under $1.5 million in gross receipts and no more than 20 full-time employees during the preceding taxable year.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2680 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2680

  To amend the Internal Revenue Code of 1986 to provide for a credit 
     against tax for certain small businesses hiring new employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2017

Mr. Crist (for himself and Mr. Thomas J. Rooney of Florida) 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 for a credit 
     against tax for certain small businesses hiring new employees.

    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 ``Small Business Tax Relief and Jobs 
Act of 2017''.

SEC. 2. CREDIT FOR WAGES FOR NEW HIRES FOR CERTAIN SMALL BUSINESSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45S. WAGES FOR NEW HIRES FOR CERTAIN SMALL BUSINESSES.

    ``(a) In General.--For purposes of section 38, the new hire small 
business credit determined under this section for the taxable year is 
an amount equal to 3.825 percent of the qualified wages paid or 
incurred by an eligible small business for such year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Qualified wages.--
                    ``(A) In general.--The term `qualified wages' means 
                wages paid or incurred by the taxpayer for services 
                rendered by a qualified employee during a qualified 
                year.
                    ``(B) Qualified employee.--The term `qualified 
                employee' means, with respect to an employer with 
                respect to a qualified year, an employee hired during 
                the hiring year for such qualified year who is not an 
                individual described in section 51(i)(2).
                    ``(C) Limitations.--
                            ``(i) Wages.--The amount of the qualified 
                        first-year wages which may be taken into 
                        account with respect to any employee shall not 
                        exceed $100,000 per year.
                            ``(ii) Employees.--An eligible small 
                        business may not take into account qualified 
                        wages for more than 3 employees in a year.
            ``(2) Wages.--The term `wages' has the meaning given to 
        such term by subsection (b) of section 3306 (determined without 
        regard to any dollar limitation contained in such section).
            ``(3) Qualified year.--The term `qualified year' means, 
        with respect to an employee and an employer--
                    ``(A) a year (the `hiring year') in which such 
                employee was first employed by such employer, and
                    ``(B) each year during the two-year period 
                following such hiring year.
            ``(4) Eligible small business.--The term `eligible small 
        business' means any person if--
                    ``(A) the gross receipts of such person for the 
                preceding taxable year did not exceed $1,500,000, and
                    ``(B) such person employed not more than 20 full-
                time employees during the preceding taxable year.
    ``(c) Application of Certain Rules.--Rules similar to the rules of 
subsections (f), (g), (i), (j), and (k) of section 51, and section 52, 
shall apply for the purposes of this section.
    ``(d) Sunset.--This section shall not apply to amounts paid or 
incurred after December 31, 2022.''.
    (b) Denial of Double Benefits.--Subsection (a) of section 280C of 
such Code is amended by inserting ``, 45S(a)'' after ``46P(a)''.
    (c) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36), and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the new hires small business credit determined under 
        section 45S.''.
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 45S. Wages for new hires for small businesses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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