Hire For a Second Chance Act of 2016

Bill: 114-hr-4840
Sponsor: full_name: Rep. Watson Coleman, Bonnie [D-NJ-12]
Introduced: 2016-03-22
Policy area: Taxation
Subjects: Correctional facilities and imprisonment

Employee hiring

Income tax credits

Wages and earnings
Latest action: action_date: 2016-03-22
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-03-22
action_desc: Introduced in House
text: <p><strong>Hire For a Second Chance Act of 2016</strong> </p> <p>This bill amends the Internal Revenue Code, with respect to the work opportunity tax credit, to: (1) make such credit permanent; (2) increase to $14,000, for ex-felons, the amount of wages that may be taken into account for purposes of computing the credit;&nbsp;and (3) increase from one to three years the period after the conviction or release of an ex-felon during which an employer may hire an ex-felon and claim a work opportunity tax credit for such hiring. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4840 IN THE HOUSE OF REPRESENTATIVES March 22, 2016 Mrs. Watson Coleman (for herself, Ms. Jackson Lee , Mr. Rangel , and Mr. Payne ) 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 increase the maximum wages allowed under the work opportunity tax credit for ex-felons, and for other purposes.

1. Short title This Act may be cited as the Hire For a Second Chance Act of 2016 . 2. Extension and modification of work opportunity tax credit (a) Credit made permanent Section 51(c) of the Internal Revenue Code of 1986 is amended by striking paragraph (4) and redesignating paragraph (5) as paragraph (4). (b) Increase in wage limitation for ex-Felons (1) Limitation on wages taken into account Section 51(b)(3) of such Code is amended— (A) by striking subsection (d)(3)(A)(iv), and and inserting subsection (d)(3)(A)(iv), , and (B) by striking subsection (d)(3)(A)(ii)(II)) and inserting subsection (d)(3)(A)(ii)(II), and $14,000 in the case of any individual who is an ex-felon by reason of subsection (d)(4)) . (2) Inflation adjustment Section 51(b) of such Code is amended by adding at the end the following: (4) Adjustment for inflation In the case of any taxable year beginning after 2016, the $14,000 dollar amount contained in paragraph (3) relating to ex-felons shall be increased by an amount equal to the product of— (A) such dollar amount, and (B) the cost of living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins determined by substituting calendar year 2015 for calendar year 1992 in subparagraph (B) thereof. If any increase determined under the preceding sentence is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (c) Qualified ex-Felon Section 51(d)(4)(B) of such Code is amended by striking 1 year and inserting 3 years . (d) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2015.