Small Business Tax Relief and Jobs Act of 2017

Bill: 115-hr-2680
Sponsor: full_name: Rep. Crist, Charlie [D-FL-13]
Introduced: 2017-05-25
Policy area: Taxation
Subjects: Employee hiring

Income tax credits

Small business

Wages and earnings
Latest action: action_date: 2017-05-25
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-05-25
action_desc: Introduced in House
text: <p><b>Small Business Tax Relief and Jobs Act of 2017 </b></p> <p>This bill amends the Internal Revenue Code to allow eligible small businesses an annual tax credit equal to 3.825% of the wages paid to up to three newly hired employees. The wages taken into account with respect to any employee may not exceed $100,000 per year. </p> <p>An &quot;eligible small business&quot; must have under $1.5 million in gross receipts and no more than 20 full-time employees during the preceding taxable year. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 2680 IN THE HOUSE OF REPRESENTATIVES May 25, 2017 Mr. Crist (for himself and Mr. Thomas J. Rooney of Florida ) 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 for a credit against tax for certain small businesses hiring new employees.

1. Short title This Act may be cited as the Small Business Tax Relief and Jobs Act of 2017 . 2. Credit for wages for new hires for certain small businesses (a) In general 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: 45S. Wages for new hires for certain small businesses (a) In general For purposes of section 38, the new hire small business credit determined under this section for the taxable year is an amount equal to 3.825 percent of the qualified wages paid or incurred by an eligible small business for such year. (b) Definitions For purposes of this section— (1) Qualified wages (A) In general The term qualified wages means wages paid or incurred by the taxpayer for services rendered by a qualified employee during a qualified year. (B) Qualified employee The term qualified employee means, with respect to an employer with respect to a qualified year, an employee hired during the hiring year for such qualified year who is not an individual described in section 51(i)(2). (C) Limitations (i) Wages The amount of the qualified first-year wages which may be taken into account with respect to any employee shall not exceed $100,000 per year. (ii) Employees An eligible small business may not take into account qualified wages for more than 3 employees in a year. (2) Wages The term wages has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). (3) Qualified year The term qualified year means, with respect to an employee and an employer— (A) a year (the hiring year ) in which such employee was first employed by such employer, and (B) each year during the two-year period following such hiring year. (4) Eligible small business The term eligible small business means any person if— (A) the gross receipts of such person for the preceding taxable year did not exceed $1,500,000, and (B) such person employed not more than 20 full-time employees during the preceding taxable year. (c) Application of certain rules Rules similar to the rules of subsections (f), (g), (i), (j), and (k) of section 51, and section 52, shall apply for the purposes of this section. (d) Sunset This section shall not apply to amounts paid or incurred after December 31, 2022. . (b) Denial of double benefits Subsection (a) of section 280C of such Code is amended by inserting , 45S(a) after 46P(a) . (c) Conforming amendments (1) Section 38(b) of such Code is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph (36), and inserting , plus , and by adding at the end the following new paragraph: (37) the new hires small business credit determined under section 45S. . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Wages for new hires for small businesses. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017.