Work share credit

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by adding at the end the following new section:

36B.

Work share credit

(a)

In general

There shall be allowed as a credit against the tax imposed by this subtitle an amount equal the wages paid or incurred by the taxpayer during the taxable year to each qualified work share employee. (b)

Maximum credit per employee

The credit allowed by this section with respect to each qualified work share employee shall not exceed the lesser of— (1)$3,000, or (2)10 percent of the wages paid or incurred to the employee for periods (during the taxable year) during which the employee did not perform services for the employer by reason of a reduction described in subsection (d)(1)(A)(ii)(II). (c)

Qualified work share employee

For purposes of this section— (1)

In general

The term qualified work share employee means any employee of the taxpayer for any period if— (A)substantially all of the services performed during such period by such employee for such employer are performed in the United States in a trade or business of the employer, and (B)such employee is participating in a qualified work share program of the employer. (2)

Exceptions

Such term shall not include any individual who is described in any subparagraph of section 1396(d)(2). (d)

Qualified work share program

For purposes of this section— (1)

In general

The term qualified work share program means any written program of the employer— (A)under which employees who participate in the program— (i)perform the same functions they would have performed were they not participants in the program, and (ii)receive the same wages and benefits that they would have received— (I)were they not participants in the program, and (II)without regard to any reduction in the hours of the employee’s service (including any reduction in the form of increased required paid leave or paid vacation) required by the employer as a condition of participating in the program, (B)which is determined by the Secretary to have adequate recordkeeping and reporting procedures to comply with the requirements under this section, (C)which meets the disclosure requirements of paragraph (2), and (D)which meets rules similar to the rules of paragraphs (2), (3), and (6) of section 127(d).

The application of this paragraph to individuals employed on an hourly basis shall be determined under regulations prescribed by the Secretary.

(2)

Employer compliance disclosure

A program meets the disclosure requirements of the paragraph if— (A)in the case of an employer with a publicly accessible Internet website, the employer posts the hour reductions made for the purpose of qualifying for a credit under this section within 24 hours of such reductions being authorized by the employer, and (B)in the case of any other employer, the employer transfers information, including the amount of hour reductions made for the purpose of qualifying for a credit under this section, to the Secretary within 24 hours of such reductions being authorized by the employer. (e)

Wages

For purposes of this section, the term wages has the meaning given to such term by section 51(c). (f)

Controlled groups

Rules similar to the rules of subsections (b) and (c) of section 1397 shall apply for purposes of this section.

(b)

Denial of double benefit

Subsection (a) of section 280C of such Code is amended by inserting 36B(a), after 45P(a),. (c)

Conforming amendments

(1)Section 1324(b)(2) of title 31, United States Code, is amended by inserting 36B, after 36A,. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36A the following new item:

Sec. 36B. Work share credit..

(d)

Effective date

The amendments made by this section shall apply to qualified work shares initiated after the date of the enactment of this Act in taxable years ending after such date. (e)

Payments to governments and other tax-exempt entities

(1)

In general

In the case of any entity to which this subsection applies, the Secretary of the Treasury shall pay (without interest) to such entity an amount equal to the credit which would be allowed under section 36B of the Internal Revenue Code of 1986 (as added by this section) were such entity subject to the taxes imposed by chapter 1 of such Code. (2)

Entities entitled to payments

This subsection shall apply to— (A)any State, political subdivision of a State, or agency or instrumentality of one or more States or political subdivisions, and (B)any organization exempt from tax under section 501(a) of such Code (other than an organization required to make a return of the tax imposed under subtitle A of such Code for the taxable year). (3)

Time for filing claims; period covered

Not more than one claim may be filed under paragraph (1) by any entity with respect to wages paid or incurred during any calendar year, and no claim shall be allowed under this paragraph with respect to any calendar year unless filed by such entity not later than 3 years after the close of such calendar year. (f)

Use of payroll tax data for employer compliance purposes

No later than 60 days after the enactment of this Act, the Secretary of the Treasury shall establish a system— (1)to verify employer compliance with section 36B of the Internal Revenue Code of 1986 (as added by this section) using payroll tax data, and (2)to allow employers to comply with the requirements in section 36B(d)(2) of such Code (as so added).