[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3977 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3977

 To provide a Federal income tax credit for Patriot employers, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 28, 2006

 Mr. Durbin (for himself and Mr. Obama) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide a Federal income tax credit for Patriot employers, and for 
                            other purposes.

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

SECTION 1. REDUCED TAXES FOR PATRIOT EMPLOYERS.

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

``SEC. 45N. REDUCTION IN TAX OF PATRIOT EMPLOYERS.

    ``(a) In General.--In the case of any taxable year with respect to 
which a taxpayer is certified by the Secretary as a Patriot employer, 
the Patriot employer credit determined under this section for purposes 
of section 38 shall be equal to 1 percent of the taxable income of the 
taxpayer which is properly allocable to all trades or businesses with 
respect to which the taxpayer is certified as a Patriot employer for 
the taxable year.
    ``(b) Patriot Employer.--For purposes of subsection (a), the term 
`Patriot employer' means, with respect to any taxable year, any 
taxpayer which--
            ``(1) maintains its headquarters in the United States if 
        the taxpayer has ever been headquartered in the United States,
            ``(2) pays at least 60 percent of each employee's health 
        care premiums,
            ``(3) if such taxpayer employs at least 50 employees on 
        average during the taxable year--
                    ``(A) maintains or increases the number of full-
                time workers in the United States relative to the 
                number of full-time workers outside of the United 
                States,
                    ``(B) compensates each employee of the taxpayer at 
                an hourly rate (or equivalent thereof) not less than an 
                amount equal to the Federal poverty level for a family 
                of three for the calendar year in which the taxable 
                year begins divided by 2,080,
                    ``(C) provides either--
                            ``(i) a defined contribution plan which for 
                        any plan year--
                                    ``(I) requires the employer to make 
                                nonelective contributions of at least 5 
                                percent of compensation for each 
                                employee who is not a highly 
                                compensated employee, or
                                    ``(II) requires the employer to 
                                make matching contributions of 100 
                                percent of the elective contributions 
                                of each employee who is not a highly 
                                compensated employee to the extent such 
                                contributions do not exceed the 
                                percentage specified by the plan (not 
                                less than 5 percent) of the employee's 
                                compensation, or
                            ``(ii) a defined benefit plan which for any 
                        plan year requires the employer to make 
                        contributions on behalf of each employee who is 
                        not a highly compensated employee in an amount 
                        which will provide an accrued benefit under the 
                        plan for the plan year which is not less than 5 
                        percent of the employee's compensation, and
                    ``(D) provides full differential salary and 
                insurance benefits for all National Guard and Reserve 
                employees who are called for active duty, and
            ``(4) if such taxpayer employs less than 50 employees on 
        average during the taxable year, either--
                    ``(A) compensates each employee of the taxpayer at 
                an hourly rate (or equivalent thereof) not less than an 
                amount equal to the Federal poverty level for a family 
                of 3 for the calendar year in which the taxable year 
                begins divided by 2,080, or
                    ``(B) provides either--
                            ``(i) a defined contribution plan which for 
                        any plan year--
                                    ``(I) requires the employer to make 
                                nonelective contributions of at least 5 
                                percent of compensation for each 
                                employee who is not a highly 
                                compensated employee, or
                                    ``(II) requires the employer to 
                                make matching contributions of 100 
                                percent of the elective contributions 
                                of each employee who is not a highly 
                                compensated employee to the extent such 
                                contributions do not exceed the 
                                percentage specified by the plan (not 
                                less than 5 percent) of the employee's 
                                compensation, or
                            ``(ii) a defined benefit plan which for any 
                        plan year requires the employer to make 
                        contributions on behalf of each employee who is 
                        not a highly compensated employee in an amount 
                        which will provide an accrued benefit under the 
                        plan for the plan year which is not less than 5 
                        percent of the employee's compensation.''.
    (b) Allowance as General Business Credit.--Section 38(b) of the 
Internal Revenue Code or 1986 is amended by striking ``and'' at the end 
of paragraph (25), by striking the period at the end of paragraph (26) 
and inserting ``, and'', and by adding at the end the following:
            ``(27) the Patriot employer credit determined under section 
        45N.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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