Title: Reducing Long-Term Unemployment Act
Policy area: Taxation

Summary:
Reducing Long-Term Unemployment Act
This bill amends the Internal Revenue Code to extend until December 31, 2018, the suspension of employment and railroad retirement taxes for employers who hire unemployed individuals.  The aggregate reduction in taxes from such suspension is limited to $5,000 per employee.
The bill modifies the unemployment requirement to require a signed affidavit from the unemployed individual that, during the entire 27-week period ending on the hiring date, such individual: (1) was receiving federal or state unemployment compensation, or (2) was unemployed and would have received unemployment compensation except for having exhausted the right to receive such compensation during such period.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4470 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4470

  To amend the Internal Revenue Code of 1986 to provide a payroll tax 
         exemption for hiring long-term unemployed individuals.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 28, 2017

  Ms. Norton 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 payroll tax 
         exemption for hiring long-term unemployed individuals.

    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 ``Reducing Long-Term Unemployment 
Act''.

SEC. 2. PAYROLL TAX EXEMPTION FOR HIRING LONG-TERM UNEMPLOYED 
              INDIVIDUALS.

    (a) Extension.--Paragraph (1) of section 3111(d) of the Internal 
Revenue Code of 1986 is amended by inserting ``or on the day after the 
date of the enactment of the Reducing Long-Term Unemployment Act and 
ending on December 31, 2018,'' after ``December 31, 2010,''.
    (b) Modification.--
            (1) Unemployment requirement.--Subparagraph (B) of section 
        3111(d)(3) of such Code is amended to read as follows:
                    ``(B) certifies by signed affidavit (under 
                penalties of perjury) that such individual, during the 
                entire 27-week period ending on the hiring date--
                            ``(i) was in receipt of unemployment 
                        compensation under State or Federal law, or
                            ``(ii) was unemployed and would have been 
                        so in receipt but for having exhausted the 
                        right to such unemployment compensation during 
                        such period,''.
            (2) Limitation.--Subsection (d) of section 3111 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Limitation.--The aggregate reduction in tax imposed 
        under subsection (a) by reason of paragraph (1) with respect to 
        each qualified individual in the employer's employ shall not 
        exceed $5,000.''.
    (c) Application to Railroad Retirement Taxes.--
            (1) Extension.--Paragraph (1) of section 3221(c) of such 
        Code is amended by inserting ``or on the day after the date of 
        the enactment of the Reducing Long-Term Unemployment Act and 
        ending on December 31, 2018,'' after ``December 31, 2010,''.
            (2) Modification.--
                    (A) Unemployment requirement.--Subparagraph (B) of 
                section 3221(c)(3) of such Code is amended to read as 
                follows:
                    ``(B) certifies by signed affidavit (under 
                penalties of perjury) that such individual, during the 
                entire 27-week period ending on the hiring date--
                            ``(i) was in receipt of unemployment 
                        compensation under State or Federal law, or
                            ``(ii) was unemployed and would have been 
                        so in receipt but for having exhausted the 
                        right to such unemployment compensation during 
                        such period,''.
            (3) Limitation.--Subsection (c) of section 3221 of such 
        Code is amended by adding at the end the following new 
        paragraph:
            ``(6) Limitation.--The aggregate reduction in tax imposed 
        under subsection (a) by reason of paragraph (1) with respect to 
        each qualified individual in the employer's employ shall not 
        exceed $5,000.''.
    (d) Special Rule for Certain Calendar Quarters.--For purposes of 
section 3111(d) and 3221(c) of such Code, if the day after the date of 
the enactment of this Act is not the first day of a calendar quarter, 
then rules similar to the rules of section 3111(d)(5) and 3221(c)(5) of 
such Code, respectively, shall apply with respect to the last calendar 
quarter beginning before such day.
    (e) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this subsection shall apply to wages paid 
        after the date of the enactment of this Act.
            (2) Railroad retirement taxes.--The amendments made by 
        subsection (c) shall apply to compensation paid after the date 
        of the enactment of this Act.
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