Title: Reserve Component Employer Incentive, Compensation, and Relief Act of 2018
Policy area: Taxation

Summary:
Reserve Component Employer Incentive, Compensation, and Relief Act of 2018
This bill amends the Internal Revenue Code to allow a tax credit for certain employers of reservists (i.e., members of the National Guard or a reserve component of the Armed Forces).
The tax credit is equal to $1,000 for each reservist employed during the year, plus an additional amount that ranges from $3,000 to $10,000, depending on the number of days the reservist serves in the uniformed services during the year.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7072 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 7072

   To amend the Internal Revenue Code of 1986 to allow for a credit 
                against tax for employers of reservists.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 16, 2018

 Mr. Walz (for himself, Mr. Ryan of Ohio, and Mr. Palazzo) 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 allow for a credit 
                against tax for employers of reservists.

    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 ``Reserve Component Employer 
Incentive, Compensation, and Relief Act of 2018''.

SEC. 2. RESERVIST EMPLOYMENT CREDIT.

    (a) In General.--
            (1) Allowance of credit.--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. 45T. RESERVIST EMPLOYMENT CREDIT.

    ``(a) Establishment of Credit.--For purposes of section 38, in the 
case of an eligible employer, the reservist employment credit for a 
taxable year is an amount equal to the sum of the reservist credit 
amount for each qualified reservist employed by such employer at any 
time during such taxable year.
    ``(b) Reservist Credit Amount.--For purposes of this section--
            ``(1) In general.--The term `reservist credit amount' 
        means, with respect to a qualified reservist for a taxable 
        year, an amount equal to the sum of--
                    ``(A) $1,000, plus
                    ``(B) in the case of a qualified reservist--
                            ``(i) with 30 or more days, and fewer than 
                        90 days, of service in the uniformed services 
                        during such year, $3,000,
                            ``(ii) with 90 or more days, and fewer than 
                        180 days, of service in the uniformed services 
                        during such year, $5,000, and
                            ``(iii) with 180 or more days of service in 
                        the uniformed services during such year, 
                        $10,000.
            ``(2) Days of service.--For purposes of paragraph (1), days 
        of service shall only be taken into account with respect to a 
        qualified reservist employed by an eligible employer to the 
        extent such days are during a period of employment of such 
        reservist by such employer.
            ``(3) Qualified reservist.--The term `qualified reservist' 
        means, with respect to a taxable year, an individual who is, at 
        any time during such taxable year, a member of the National 
        Guard or a reserve component of the Armed Forces, as named in 
        section 10101 of title 10, United States Code (except for a 
        member of the Individual Ready Reserve).
            ``(4) Other definitions.--The terms `reserve component', 
        `active service', `full-time National Guard duty', `active 
        Guard and Reserve duty', and `inactive-duty training' have the 
        meanings given such terms in section 101 of title 10, United 
        States Code. The term `National Guard' has the meaning given 
        such term in section 101(3) of title 32, United States Code. 
        The term `service in the uniformed services' has the meaning 
        given such term in section 4303 of title 38, United States 
        Code.
    ``(c) Election To Have Credit Not Apply.--
            ``(1) In general.--A taxpayer may elect to have this 
        section not apply for any taxable year.
            ``(2) Other rules.--Rules similar to the rules of 
        paragraphs (2) and (3) of section 51(j) shall apply for 
        purposes of this subsection.''.
    (b) Credit Part of General Business Credit.--Section 38(b) of the 
Internal Revenue Code of 1986 is amended by striking ``plus'' at the 
end of paragraph (36), by striking the period at the end of paragraph 
(37) and inserting ``, plus'', and by adding at the end the following 
new paragraph:
            ``(38) in the case of an eligible employer (as defined in 
        section 45S(c)), the reservist employment credit determined 
        under section 45T(a).''.
    (c) Credit Allowed Against AMT.--Subparagraph (B) of section 
38(c)(4) of the Internal Revenue Code of 1986 is amended by 
redesignating clauses (x) through (xii) as clauses (xi) through (xiii), 
respectively, and by inserting after clause (ix) the following new 
clause:
                            ``(x) the credit determined under section 
                        45T,''.
    (d) Conforming Amendments.--
            (1) Denial of double benefit.--Section 280C(a) of the 
        Internal Revenue Code of 1986 is amended by inserting 
        ``45T(a),'' after ``45S(a),''.
            (2) Election to have credit not apply.--Section 6501(m) of 
        the Internal Revenue Code of 1986 is amended by inserting 
        ``45T(d),'' after ``45S(h),''.
            (3) Clerical amendment.--The table of sections for 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 item:

``Sec. 45T. Reservist employment credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to wages paid in taxable years beginning after December 31, 2018.
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