Disability Employment Incentive Act

Bill: 118-s-3076
Sponsor: full_name: Sen. Casey, Robert P., Jr. [D-PA]
Introduced: 2023-10-18
Policy area: Taxation
Latest action: action_date: 2023-10-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2023-10-18
action_desc: Introduced in Senate
text: <p><b>Disability Employment Incentive Act </b></p> <p>This bill expands tax credits and deductions that are available for employers who hire and retain employees with disabilities.</p> <p>The bill expands the work opportunity tax credit to include the hiring of employees who receive disability insurance benefits under the Social Security Act. For employers who hire vocational rehabilitation referrals, Supplemental Security Income recipients, or Social Security Disability Insurance (SSDI) recipients, the bill (1) increases the amount of wages that may be taken into account for the credit, and (2) allows an additional credit for second-year wages. </p> <p>With respect to the tax credit for expenditures by eligible small businesses to provide access to disabled individuals, the bill (1) increases the limits that apply to the amount of expenditures that are eligible for the credit, and (2) modifies the gross receipts and full-time employee eligibility criteria for such businesses.</p> <p>The bill also expands the tax deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly. The bill modifies the deduction to (1) increase the limitation on the amount of the deduction, and (2) include expenses for certain improvements in the accessibility of i
nternet or telecommunications services to handicapped and elderly individuals.</p>

tv_txt: II 118th CONGRESS 1st Session S. 3076 IN THE SENATE OF THE UNITED STATES October 18, 2023 Mr. Casey (for himself, Mr. Brown , Ms. Duckworth , Mr. Van Hollen , Mr. Blumenthal , and Mrs. Gillibrand ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to include individuals receiving Social Security disability benefits under the work opportunity credit, increase the work opportunity credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients, expand the disabled access credit, and enhance the deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly.

1. Short title This Act may be cited as the Disability Employment Incentive Act . 2. Expansion of work opportunity credit to include individuals receiving disability benefits under the Social Security Act (a) In general Subsection (d) of section 51 of the Internal Revenue Code of 1986 is amended— (1) in paragraph (1)— (A) in subparagraph (I), by striking or at the end, (B) in subparagraph (J), by striking the period at the end and inserting , or , and (C) by adding at the end the following new subparagraph: (K) a qualified disability insurance beneficiary. , and (2) by adding at the end the following new paragraph: (16) Qualified disability insurance beneficiary The term qualified disability insurance beneficiary means any individual who receives, for any month ending within the 60-day period ending on the hiring date— (A) monthly insurance benefits under section 202 of the Social Security Act ( 42 U.S.C. 402 ) based on such individual's disability (as defined in section 223(d) of such Act), or (B) disability insurance benefits under section 223 of such Act ( 42 U.S.C. 423 ). . (b) Credit made available to qualified tax-Exempt organizations in certain circumstances (1) In general Section 3111(e) of the Internal Revenue Code of 1986 is amended— (A) in the heading, by inserting or qualified disability insurance beneficiaries after qualified veterans , (B) in paragraph (1)— (i) by inserting or a qualified disability insurance beneficiary after a qualified veteran , and (ii) by inserting or such qualified disability insurance beneficiary after such qualified veteran , (C) in paragraph (2), by inserting and qualified disability insurance beneficiaries after all qualified veterans , (D) in paragraph (3)(C), by inserting or a qualified disability insurance beneficiary after a qualified veteran , (E) in paragraph (4)— (i) by inserting or any qualified disability insurance beneficiary after any qualified veteran , and (ii) by inserting or such qualified disability insurance beneficiary after such qualified veteran , (F) in paragraph (5)— (i) in subparagraph (A), by striking and at the end, (ii) in subparagraph (B), by striking the period at the end and inserting , and , and (iii) by adding at the end the following: (C) the term qualified disability insurance beneficiary has the same meaning given such term by section 51(d)(16). , and (G) by adding at the end the following: (6) 14(c) certificate holders (A) In general In the case of any qualified tax-exempt organization which, for any period, employs any individual under a special certificate, for purposes of determining the amount of any credit allowed under paragraph (1), such determination shall not include any wages paid to any qualified disability insurance beneficiary during such period. (B) Special certificate For purposes of this paragraph, the term special certificate means a special certificate issued under section 14(c) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 214(c) ). . (2) Conforming amendment Section 52(c)(2) of such Code is amended— (A) in the heading, by inserting or qualified disability insurance beneficiaries after qualified veterans , and (B) by inserting or qualified disability insurance beneficiaries after qualified veterans . (3) Transfers to Federal Old-Age And Survivors Insurance Trust Fund There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 ) amounts equal to the reduction in revenues to the Treasury by reason of the amendments made by paragraphs (1) and (2). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted. (c) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023. 3. Enhancement of Work Opportunity Credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients (a) In general Section 51 of the Internal Revenue Code of 1986 is amended— (1) by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and (2) by inserting after subsection (e) the following new subsection: (f) Credit for second-Year wages for employment of vocational rehabilitation referrals, qualified SSI recipients, and qualified disability insurance beneficiaries (1) In general With respect to employment of a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary— (A) the amount of the work opportunity credit determined under this section for the taxable year shall include 20 percent of the qualified second-year wages for such year, and (B) in lieu of applying subsection (b)(3), the amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to such referral or recipient shall not exceed $12,500 per year. (2) Qualified second-year wages For purposes of this subsection, the term qualified second-year wages means qualified wages— (A) which are paid to a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary, and (B) which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such referral or recipient determined under subsection (b)(2). (3) Special rules for agricultural and railway labor If such referral or recipient is an employee to whom subparagraph (A) or (B) of subsection (i)(1) applies, rules similar to the rules of such subparagraphs shall apply except that— (A) such subparagraph (A) shall be applied by substituting $12,500 for $6,000 , and (B) such subparagraph (B) shall be applied by substituting $1041.67 for $500 . . (b) Conforming amendments (1) Section 51 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended— (A) in subsection (c)(1), by striking subsection (h)(2) and inserting subsection (i)(2) , (B) in subsection (e)(3), by striking subsection (h)(1) and inserting subsection (i)(1) , and (C) in subsection (g)(2), by striking subsection (h)(1) and inserting subsection (i)(1) . (2) Section 45A of such Code is amended— (A) in subsection (b)(1)(B), by inserting or (f)(1)(A) after subsection (e)(1)(A) , (B) in subsection (c)(5)(A), by striking section 51(i)(1) and inserting section 51(j)(1) , and (C) in subsection (e)(3), by striking section 51(k) and inserting section 51(l) . (3) Section 45S(h)(2) of such Code is amended by striking section 51(j) and inserting section 51(k) . (4) Section 1396(d)(2)(A) of such Code is amended by striking section 51(i)(1) and inserting section 51(j)(1) . (5) Section 1397(c) of such Code is amended by striking section 51(k) and inserting section 51(l) . (6) Section 3111(e)(3)(B) of such Code is amended by striking subsection (i)(3)(A) and inserting subsection (j)(3)(A) . (c) Effective date The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023. 4. Expansion of disabled access credit (a) Eligible access expenditures Subsection (a) of section 44 of the Internal Revenue Code of 1986 is amended by striking $10,250 and inserting $20,250 . (b) Eligible small business Subsection (b)(1) of section 44 of the Internal Revenue Code of 1986 is amended— (1) in subparagraph (A), by striking $1,000,000 and inserting $3,000,000 , and (2) in subparagraph (B), by striking 30 full-time employees and inserting 60 full-time employees . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023. 5. Expansion of deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly (a) Inclusion of improvements in accessability to internet and telecommunications operations Subsection (b) of section 190 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (4) Inclusion of improvements in accessability to internet and telecommunications operations The term architectural and transportation barrier removal expenses shall include an expenditure for the purpose of improving accessibility for handicapped and elderly individuals to any internet or telecommunications services provided within any facility or public transportation vehicle owned or leased by the taxpayer for use in connection with their trade or business. . (b) Increase in deduction limitation amount Subsection (c) of section 190 of the Internal Revenue Code of 1986 is amended by striking $15,000 and inserting $30,000 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2023.