109 HR 119 IH: Expand America's Workforce Act of 2005 U.S. House of Representatives 2005-01-04 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 1st Session H. R. 119 IN THE HOUSE OF REPRESENTATIVES January 4, 2005 Ms. Hooley 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.

1.

Short title

This Act may be cited as the Expand America's Workforce Act of 2005.

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:

45J.

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, 2007.

. (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 (18), by striking the period at the end of paragraph (19) and inserting , plus, and by adding at the end the following new paragraph: (20)the new employee credit determined under section 45J(a).. (c)

Conforming amendment

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: 45J. New employee credit. (d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2005.