F:\M14\AGUILA\AGUILA_003.

XML

.....................................................................
(Original Signature of Member)

H. R. ll

114TH CONGRESS
1ST SESSION

To amend the Internal Revenue Code of 1986 to allow a credit to small

employers for certain newly hired employees, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

Mr. AGUILAR introduced the following bill; which was referred to the
Committee on llllllllllllll

A BILL
To amend the Internal Revenue Code of 1986 to allow a
credit to small employers for certain newly hired employees, and for other purposes.
1

Be it enacted by the Senate and House of Representa-

2 tives of the United States of America in Congress assembled,

3
4

SECTION 1. SHORT TITLE.

This Act may be cited as the Small Business Jobs

5 Act of 2015.

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

15:47 Jul 20, 2015

Jkt 000000

(596640|6)
PO 00000

Frm 00001

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

2
1

SEC. 2. CREDIT FOR CERTAIN INDIVIDUALS HIRED BY A

SMALL EMPLOYER.

(a) IN GENERAL.Subpart D of part IV of sub-

4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 is amended by adding at the end the following:
6

SEC. 45S. CERTAIN INDIVIDUALS HIRED BY A SMALL EM-

PLOYER.

(a) GENERAL RULE.For purposes of section 38,

9 in the case of an eligible small employer, the small em10 ployer hiring credit determined under this section for any
11 taxable year is the amount determined under subsection
12 (b).
13

(b) SMALL EMPLOYER HIRING CREDIT AMOUNT.

14 The amount determined under this subsection for a tax15 able year with respect to a qualified small employer is the
16 product of
17

(1) the tax rate in effect under section

18

3111(a) for the calendar year in which such taxable

19

year ends, multiplied by

20

(2) the wages paid by the qualified small em-

21

ployer with respect to employment of all covered em-

22

ployees during the taxable year.

23

(c) QUALIFIED EMPLOYER.For purposes of this

24 subsection

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

15:47 Jul 20, 2015

Jkt 000000

(596640|6)
PO 00000

Frm 00002

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

3
1

(1) IN

term qualified small

employer means with respect to any calendar year,

an employer who

(A) has a place of business in a county

with an annual unemployment rate for the pre-

ceding calendar year of at least one percentage

point greater than the national annual unem-

ployment rate for the preceding calendar year,

and

10

(B) who on no business day of the pre-

11

ceding calendar year employed less than 2, or

12

more than 100, employees.

13

(2) EMPLOYERS

NOT IN EXISTENCE IN PRE-

14

CEDING YEAR.In

15

was not in existence throughout the preceding cal-

16

endar year, the determination of whether such em-

17

ployer is a small employer shall be based on the

18

number of employees that it is reasonably expected

19

such employer will employ on business days in the

20

current calendar year.

21
22

RULES.For

purposes of this

subsection
(A) PREDECESSOR

24

AND

SUCCESSOR.

Any reference in this paragraph to an employer

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
15:47 Jul 20, 2015

the case of an employer which

(3) SPECIAL

23

VerDate Nov 24 2008

GENERAL.The

Jkt 000000

(596640|6)
PO 00000

Frm 00003

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

4
1

shall include a reference to any predecessor of,

or successor to, such employer.

(B) AGGREGATION

RULE.All

persons

treated as a single employer under subsection

(b), (c), (m), or (o) of section 414 shall be

treated as one employer.

(C) GOVERNMENTAL

EMPLOYERS NOT IN-

CLUDED.The

clude the United States, any State, or any polit-

10

ical subdivision thereof, or any instrumentality

11

of the foregoing.

12

term employer does not in-

(D) DETERMINATION

OF UNEMPLOYMENT

13

RATE.The

14

rate determined by the Bureau of Labor Statis-

15

tics.

16

(4) CREDIT

unemployment rate shall be the

APPLIES FOR ONLY 1 YEAR.If

17

an election to claim the credit under this section is

18

in effect for any calendar year, paragraph (1) shall

19

not apply to such employer for any year after such

20

calendar year.

21

(d) COVERED EMPLOYEE.For purposes of this

22 subsection
23

(1) IN

term covered em-

24

ployee means, with respect to any week, is an em-

25

ployee who

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

GENERAL.The

15:47 Jul 20, 2015

Jkt 000000

(596640|6)
PO 00000

Frm 00004

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

5
1

(A) first begins work for the employer for

services performed by the employee

(i) in a trade or business of such

qualified small employer, or

(ii) in the case of a qualified small

employer exempt from tax under section

501(a), in furtherance of the activities re-

lated to the purpose or function consti-

tuting the basis of the employers exemp-

10

tion under section 501, and

11

(B) is employed on average at least 30

12

hours of service per week.

13

(2) LIMITATION

em-

14

ployer may not treat more than 5 employees as cov-

15

ered employees.

16

(3) HOURS

OF SERVICE.The

Secretary, in

17

consultation with the Secretary of Labor, shall pre-

18

scribe such regulations, rules, and guidance as may

19

be necessary to determine the hours of service of an

20

employee, including rules for the application of this

21

paragraph to employees who are not compensated on

22

an hourly basis.

23

(e) CREDIT MADE AVAILABLE

24

IGIBLE

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

TO 5 EMPLOYEES.An

15:47 Jul 20, 2015

Jkt 000000

TO

TAX-EXEMPT EL-

SMALL EMPLOYERS.

(596640|6)
PO 00000

Frm 00005

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

6
1

(1) IN

GENERAL.In

the case of a tax-exempt

eligible small employer, there shall be treated as a

credit allowable under subpart C (and not allowable

under this subpart) the amount of the credit deter-

mined under this section with respect to such em-

ployer.

(2)

PLOYER.For

tax-exempt eligible small employer means an eligi-

10

ble small employer which is any organization de-

11

scribed in section 501(c) which is exempt from tax-

12

ation under section 501(a).

13

(f) DENIAL

TAX-EXEMPT

ELIGIBLE

SMALL

EM-

purposes of this section, the term

OF

DOUBLE BENEFIT.No deduction

14 or credit shall be allowed under any other provision of this

15 chapter with respect to the amount of the credit deter16 mined under this section.
17

(g) ELECTION.This section shall apply to any tax-

18 payer for any taxable year only if such taxpayer elects (at
19 such time and in such manner as the Secretary may by
20 regulations prescribe) to have this section apply for such
21 taxable year.
22

(h) TERMINATION.This section shall not apply

23 with respect to wages paid after December 31, 2017..

24

(b) CREDIT

TO

BE PART

OF

GENERAL BUSINESS

25 CREDIT.Section 38(b) of the Internal Revenue Code of

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

15:47 Jul 20, 2015

Jkt 000000

(596640|6)
PO 00000

Frm 00006

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X

F:\M14\AGUILA\AGUILA_003.XML

7
1 1986 (relating to current year business credit) is amended
2 by striking plus at the end of paragraph (35), by strik3 ing the period at the end of paragraph (36) and inserting
4 , plus, and by inserting after paragraph (36) the fol5 lowing:
6

(37) the small employer small employer hiring

credit determined under section 45S..

(c) CLERICAL AMENDMENT.The table of sections

9 for subpart D of part IV of subchapter A of chapter 1

10 of the Internal Revenue Code of 1986 is amended by add11 ing at the end the following:
Sec. 45S. Certain individuals hired by a small employer..

12

(d) EFFECTIVE DATE.The amendments made by

13 this section shall apply to amounts paid or incurred in tax14 able years beginning after December 31, 2015.

f:\VHLC\072015\072015.242.xml
July 20, 2015 (3:47 p.m.)
VerDate Nov 24 2008

15:47 Jul 20, 2015

Jkt 000000

(596640|6)
PO 00000

Frm 00007

Fmt 6652

Sfmt 6201

C:\USERS\EWBALLOU\APPDATA\ROAMING\SOFTQUAD\XMETAL\7.0\GEN\C\AGUILA~1.X