Reservist Pay Equity Act of 2021

Bill: 117-hr-1018
Sponsor: full_name: Rep. Panetta, Jimmy [D-CA-20]
Introduced: 2021-02-11
Policy area: Taxation
Subjects: Income tax credits

Inflation and prices

Military personnel and dependents

Wages and earnings
Latest action: action_date: 2021-02-11
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-02-11
action_desc: Introduced in House
text: <p><b>Reservist Pay Equity Act of 2021</b></p> <p>This bill increases the rate of the differential wage payment tax credit from 20% to 50% and requires that the maximum dollar amount of such credit be adjusted for inflation after 2021. The credit is allowed to employers for their employees who are active duty members of the uniformed services. </p>

tv_txt: I 117th CONGRESS 1st Session H. R. 1018 IN THE HOUSE OF REPRESENTATIVES February 11, 2021 Mr. Panetta (for himself and Mr. Wenstrup ) 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 differential wage payment credit.

1. Short title This Act may be cited as the Reservist Pay Equity Act of 2021 . 2. Expansion of employer wage credit for employees who are active duty members of the uniformed services (a) Increase in differential wage payment credit Section 45P(a) of the Internal Revenue Code of 1986 is amended by striking 20 percent and inserting 50 percent . (b) Adjustment for inflation Section 45P(b) of such Code is amended by adding at the end the following new paragraph: (4) Adjustment for inflation In the case of any taxable year beginning after 2021, the $20,000 amount in paragraph (1) shall be increased by an amount equal to— (A) such dollar amount, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting calendar year 2020 for calendar year 1996 in subparagraph (A)(ii) thereof. If the amount as increased under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100. . (c) Effective date The amendments made by this section shall apply to payments made after December 31, 2020.