1.This Act may be cited as the
Small Business Job Creation Act of
2010
.
2.Temporary work
opportunity credit for small businesses
(a)Section 51 of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
subsection:
(l)Small business
credit for hiring certain unemployed individuals during 2010 and 2011
(1)In the case of an eligible unemployed individual who
begins work for an eligible small business during 2010 or 2011, the taxpayer
may elect to treat such individual as a member of a targeted group for purposes
of this subpart, subject to the modifications in paragraph (4) and in lieu of
treating such individual as a member of any other targeted group.
(2)For purposes of this
subsection, the term eligible small business
means any person
if—
(A)either—
(i)the gross receipts
of such person for the preceding taxable year did not exceed $20,000,000, or
(ii)in the case of a
person to which subparagraph (A) does not apply, such person employed not more
than 200 full-time employees during the preceding taxable year, and
(B)such person elects
the application of this section for the taxable year.
For
purposes of subparagraph (B)(ii), an employee shall be considered full-time if
such employee is employed at least 30 hours per week for 35 or more calendar
weeks in the taxable year.(3)Eligible
unemployed individualFor
purposes of this section, the term eligible unemployed
individual
means any individual—
(A)who is certified
by the designated local agency as being eligible to receive unemployment
compensation under State or Federal law during the 1-year period ending on the
hiring date, or
(B)whose employment with the employer was
terminated before January 1, 2010.
(4)Employee must be
full-timeNo wages shall be taken into account with respect to
any individual for any taxable year unless such individual is employed by the
employer an average of at least 30 hours per week in the taxable year (in the
case of the taxable year during which the individual begins work, beginning
with the day the individual begins work).
(5)For
purposes of this subsection, the modifications described in this paragraph are
as follows:
(A)Subsection (a) shall be applied—
(i)in
the case of wages paid or incurred by the employer during 2010, by substituting
7.5 percent
for 40 percent
, and
(ii)in the case of
wages paid or incurred by the employer during 2011, by substituting 5
percent
for 40 percent
.
(B)Qualified wages
during 2010 and 2011 taken into accountSubsection (b)(2) shall
be applied by substituting during 2010 and 2011
for
during the 1-year period beginning with the day the individual begins
work for the employer
.
(C)Subsection (b)(3) shall be applied by substituting
$75,000
for $6,000
.
(D)Double credit in
counties with high unemployment
(i)In the case of an employer located in a county which is a
high unemployment county for the month during which the employee begins work
for the employer, clauses (i) and (ii) of subparagraph (A) shall be applied by
substituting 15 percent
and 10 percent
for
7.5 percent
and 5 percent
, respectively.
(ii)For
purposes of this subparagraph, the term high unemployment county
means, with respect to any month, a county for which the rate of unemployment
exceeds the national rate of unemployment (as determined by the Bureau of Labor
Statistics of the Department of Labor).
(E)Credit to apply
for all 2011This subsection shall be applied without regard to
subsection (c)(4)(B).
(F)Subection (i)(2) shall not apply to an individual whose
employment with the employer was terminated before January 1,
2010.
.
(b)The amendments made by this section shall apply to employees
hired after December 31, 2009.