[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3681 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3681

 To amend the Internal Revenue Code of 1986 to allow a credit to pass-
  thru entities for hiring individuals who are unemployed and receive 
                         unemployment benefits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 15, 2011

 Mr. Webster 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 allow a credit to pass-
  thru entities for hiring individuals who are unemployed and receive 
                         unemployment benefits.

    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 ``One New Employee Act of 2011''.

SEC. 2. BUSINESS CREDIT FOR PASS-THRU ENTITIES HIRING THE UNEMPLOYED.

    (a) In General.--Subpart F of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 51 the following new section:

``SEC. 51A. PASS-THRU ENTITIES HIRING THE UNEMPLOYED.

    ``(a) Determination of Amount.--In the case of an eligible entity, 
for purposes of section 38, the amount of the hiring the unemployed 
credit determined under this section for the taxable year shall be the 
aggregate of the applicable amounts for a qualified individual during 
the taxable year.
    ``(b) Limitation.--The maximum amount allowed as a credit under 
subsection (a) to an eligible entity for a taxable year shall not 
exceed $5,000.
    ``(c) Applicable Amount.--For purposes of this section--
            ``(1) In general.--The applicable amount shall be $1,250 
        for any quarter in the taxable year for which a qualified 
        individual is an employee of the eligible entity, beginning 
        with the first quarter of the taxable year after the quarter in 
        which such individual is hired.
            ``(2) Number of employees.--The applicable amount for any 
        quarter shall be zero if the number of employees who received 
        wages in such quarter does not exceed the number of employees 
        who received wages in the quarter ending before the date the 
        qualified individual was hired.
            ``(3) Number of qualified individuals.--Not more than one 
        qualified individual may be taken into account in a taxable 
        year under subsection (a).
    ``(d) Qualified Individual.--For purposes of this section--
            ``(1) In general.--The term `qualified individual' means an 
        individual who--
                    ``(A) on the day the individual is hired by the 
                employer, was in receipt of unemployment compensation 
                under State or Federal law for not less than 1 week 
                during the 1-year period ending on such day, and
                    ``(B) while employed does not receive any 
                unemployment compensation under State or Federal law 
                for any period after such day.
            ``(2) Continuous employment in succeeding taxable years.--
        The term `qualified individual' includes any individual with 
        respect to whom a credit was allowed under subsection (a) in a 
        preceding taxable year and who has been employed by the 
        employer since such day of hiring without a break in service.
    ``(e) Eligible Entity.--For purposes of this section, the term 
`eligible entity' means any entity engaged in a trade or business as--
            ``(1) an S corporation, partnership, trust, or estate,
            ``(2) an organization to which part I of subchapter T 
        applies, or
            ``(3) a trade or business conducted by an individual as a 
        sole proprietor.
    ``(f) Coordination With Other Credits and Deductions.--The credit 
allowed under this section is in addition to any credit or deduction 
allowable under this chapter with respect to a qualified individual.
    ``(g) Termination.--Subsection (a) shall not apply to any taxable 
year beginning after December 31, 2016.''.
    (b) Credit Allowed as Part of General Business Credit.--Section 
38(b) of such Code (defining current year business credit) is amended 
by striking ``plus'' at the end of paragraph (35), by striking the 
period at the end of paragraph (36) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
            ``(37) the hiring the unemployed credit determined under 
        section 51A.''.
    (c) Clerical Amendment.--The table of sections for subpart F of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 51 the following new item:

``Sec. 51A. Pass-thru entities hiring the unemployed.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer in taxable years 
ending after the date of the enactment of this Act.
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