[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3608 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3608

   To amend the Internal Revenue Code of 1986 to provide a credit to 
                  employers for hiring new employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 21, 2003

Ms. Hooley of Oregon (for herself, Mr. Frost, Mr. Wu, Mrs. McCarthy of 
New York, Mr. DeFazio, Mr. Evans, Ms. Carson of Indiana, Mr. Paul, Ms. 
  McCollum, and Ms. DeGette) 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 credit to 
                  employers for hiring new employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Expand America's Workforce Act of 
2003''.

SEC. 2. NEW EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following new section:

``SEC. 45G. NEW EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the new employee 
credit determined under this section for a taxable year is an amount 
equal to $5,000 multiplied by the number of new qualified employees for 
the taxable year.
    ``(b) Limitation.--For purposes of subsection (a), the number of 
employees treated as new qualified employees for the taxable year may 
not exceed the excess (if any) of--
            ``(1) the number of full-time employees of the taxpayer on 
        the last day of the taxable year, over
            ``(2) the number of full-time employees of the taxpayer on 
        the first day of the taxable year.
    ``(c) New Qualified Employees.--
            ``(1) In general.--For purposes of this section, the term 
        `new qualified employee' means an individual who--
                    ``(A) as of the last day of the taxable year of the 
                employer, is a full-time employee of the employer, and
                    ``(B) first began full-time employment with the 
                employer during the 12-month period beginning 9 months 
                before the end of the preceding taxable year and ending 
                on the last day of the 3rd month beginning in the 
                taxable year.
            ``(2) Exception.--No individual with respect to whom a 
        credit is determined for the taxable year under section 51 
        shall be treated as a new qualified employee.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Full-time employment.--An employee shall be 
        considered full-time if such employee is employed at least 30 
        hours per week for each week during the 12-month period 
        referred to in subsection (b)(1).
            ``(2) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) of section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person.
    ``(e) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2005.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (14), by striking 
the period at the end of paragraph (15) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(16) the new employee credit determined under section 
        45G(a).''.
    (c) Limitation on Carryback.--Section 39(d) of such Code (relating 
to transitional rules) is amended by adding at the end the following 
new paragraph:
            ``(11)  No carryback of new employee credit before 
        effective date.--No portion of the unused business credit for 
        any taxable year which is attributable to the credit determined 
        under section 45G may be carried back to any taxable year 
        ending on or before the date of the enactment of section 
        45G.''.
    (d) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45F the following new 
item:

``45G. New employee credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
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