Title: FLEX Act
Policy area: Taxation

Summary:
Farm Labor Expansion Act of 2020 or the FLEX Act
This bill allows farmers a new tax credit for 40% of the first-year wages paid to eligible replacement workers. The bill defines an eligible replacement worker as any individual who began a period of unemployment after March 27, 2020, and was receiving unemployment compensation during such period, and performs for the employer substantially the same job functions as temporary agricultural workers.
The bill limits the amount of wages taken into account for any employee for purposes of the credit to $25,000 for all taxable years and terminates the credit two years after the enactment of this bill.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7721 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7721

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
          against tax for farmers who hire unemployed workers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2020

 Mr. Crawford 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 a refundable credit 
          against tax for farmers who hire unemployed workers.

    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 ``Farm Labor Expansion Act of 2020'' 
or the ``FLEX Act''.

SEC. 2. DISPLACED FARM WORKER CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
is amended by inserting before section 37 the following new section:

``SEC. 36C. DISPLACED FARM WORKER CREDIT.

    ``(a) In General.--In the case of a taxpayer engaged in the trade 
or business of farming, there shall be allowed as a credit against the 
tax imposed by this subtitle an amount equal to 40 percent of the 
qualified first-year wages of an eligible replacement worker.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified first-year wages.--
                    ``(A) In general.--The term `qualified first-year 
                wages' means, with respect to an eligible replacement 
                worker, wages attributable to service rendered during 
                the 1-year period beginning with the day the individual 
                begins work for the employer.
                    ``(B) Wages.--The term `wages' has the meaning 
                given to such term by section 3306(b) (determined 
                without regard to any dollar limitation contained in 
                such section).
                    ``(C) Limitation.--The amount of wages taken into 
                account with respect to any employee for all taxable 
                years shall not exceed $25,000.
            ``(2) Eligible replacement worker.--For purposes of this 
        section, the term `eligible replacement worker' means any 
        individual who--
                    ``(A) began a period of unemployment after March 
                27, 2020, and during which time the individual was 
                receiving unemployment compensation under State or 
                Federal law, and
                    ``(B) performs for the employer substantially the 
                same job functions as an H-2A worker taken into account 
                under paragraph (4).
            ``(3) H-2A worker.--The term `H-2A worker' means a 
        nonimmigrant described in section 101(a)(15)(H)(ii)(a) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1101(a)(15)(H)(ii)(a)).
            ``(4) Limitation on number of workers taken into account.--
        The number of eligible replacement workers taken into account 
        under this section, shall not exceed the average number of H-2A 
        workers employed by the taxpayer during the preceding taxable 
        year.
            ``(5) Controlled groups and common control.--All persons 
        which are treated as a single employer under subsections (a) 
        and (b) of section 52 shall be treated as a single taxpayer for 
        purposes of this section.
            ``(6) Application of other rules.--Rules similar to the 
        following rules shall apply for purposes of this section:
                    ``(A) Section 51(i) (relating to certain 
                individuals ineligible).
                    ``(B) Section 51(k) (relating to treatment of 
                successor employers; treatment of employees performing 
                services for other persons).
    ``(c) Termination.--No credit shall be allowed under this section 
with respect to any wages paid more than 2 years after the date of the 
enactment of this section.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) is amended by inserting ``36C,'' 
        after ``36B,''.
            (2) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``36C,'' after ``36B,''.
    (c) Clerical Amendment.--The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting before section 37 the following new item:

``Sec. 36C. Displaced farm worker credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply wages paid in taxable years ending after the date of the 
enactment of this Act.
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