Investing in Older Americans Act of 2016

Bill: 114-hr-4973
Sponsor: full_name: Rep. Watson Coleman, Bonnie [D-NJ-12]
Introduced: 2016-04-15
Policy area: Taxation
Subjects: Employee hiring

Income tax credits

Unemployment

Wages and earnings
Latest action: action_date: 2016-04-15
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-04-15
action_desc: Introduced in House
text: <p><b>Investing in Older Americans Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to make the Work Opportunity Tax Credit (WOTC) permanent and expand it to include the hiring of older long-term unemployment recipients. </p> <p>(The WOTC permits employers that hire individuals with certain personal characteristics to claim a tax credit equal to a portion of the wages paid to those individuals.)</p> <p>A qualified older long-term unemployment recipient is an individual who is certified by the designated local agency as:</p> <ul> <li>being at least 55 years of age on the hiring date, and </li> <li>qualified as a long-term unemployment recipient under current law by being unemployed for at least 27 consecutive weeks and receiving state or federal unemployment compensation during that period.</li> </ul> <p>The bill limits to $14,000 the amount of the qualified first-year wages which may be taken into account under the WOTC for a qualified older long-term unemployment recipient. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4973 IN THE HOUSE OF REPRESENTATIVES April 15, 2016 Mrs. Watson Coleman 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 work opportunity tax credit for the older long-term unemployed recipient, and for other purposes.

1. Short title This Act may be cited as the Investing in Older Americans 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) Credit for hiring older long-Term unemployment recipients (1) In general Section 51(d)(1) of such Code is amended by striking or at the end of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting , or , and by adding at the end the following new subparagraph: (J) a qualified older long-term unemployment recipient. . (2) Qualified older long-term unemployment recipient Section 51(d) of such Code is amended by adding at the end the following new paragraph: (15) Qualified older long-term unemployment recipient The term qualified older long-term unemployment recipient means any individual who is certified by the designated local agency— (A) as having attained age 55 on the hiring date, and (B) as being a qualified long-term unemployment recipient. . (3) 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 a qualified older long-term unemployment recipient by reason of subsection (d)(15)) . (4) 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 qualified older long-term unemployment recipients 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) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2015.