1.This Act may be cited as the
Veterans Back to Work Act of
2012
.
2.Extension and
improvement of work opportunity tax credit for veterans
(a)Extension of
credit for veteransClause
(i) of section 51(c)(4)(B) of the Internal Revenue Code of 1986 is amended by
striking December 31, 2012
and inserting December 31,
2013
.
(b)Election To
claim credit as exemption from employment taxes
(1)Section 3111 of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subsection:
(e)Special
exemption for certain veterans
(1)Subsection (a) shall not apply to wages paid by a
qualified employer with respect to employment during the period beginning on
the day after the date of the enactment of this subsection and ending on
December 31, 2013, of any specified veteran for services performed—
(A)in a trade or
business of such qualified employer, or
(B)in the case of a
qualified employer exempt from tax under section 501(a), in furtherance of the
activities related to the purpose or function constituting the basis of the
employer’s exemption under section 501.
(2)With
respect to any specified veteran employed by a qualified employer, the amount
of wages to which paragraph (1) applies shall not exceed—
(A)$125,490 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(ii)(II),
(B)$73,203 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(iv),
(C)$62,745 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(ii)(I), and
(D)$31,373 in the
case of any other qualified veteran.
(3)For purposes of this subsection—
(A)The term qualified employer means any
employer other than the United States, any State, or any political subdivision
thereof, or any instrumentality of the foregoing.
(B)Treatment of
employees of post-secondary educational
institutionsNotwithstanding subparagraph (A), the term
qualified employer includes any employer which is a public
institution of higher education (as defined in section 101(b) of the Higher
Education Act of 1965).
(4)For purposes of this subsection—
(A)The term specified veteran means any
individual who—
(i)begins employment
with a qualified employer after the date of the enactment of this subsection,
and before January 1, 2014,
(ii)certifies by
signed affidavit, under penalties of perjury, that such individual is a
qualified veteran and whether such individual is a qualified veteran described
in subparagraph (A), (B), or (C) of paragraph (2),
(iii)is not employed
by the qualified employer to replace another employee of such employer unless
such other employee separated from employment voluntarily or for cause,
and
(iv)is not an
individual described in section 51(i)(1) (applied by substituting
qualified employer
for taxpayer
each place it
appears).
(B)The term qualified veteran
has the meaning
given such term by section 51(d)(3), but applied without regard to whether such
individual has been certified by the designated local agency.
(5)A
qualified employer may elect to have this subsection not apply. Such election
shall be made in such manner as the Secretary may
require.
.
(2)Coordination
with work opportunity creditSection 51(c) of such Code is amended
by adding at the end the following new paragraph:
(6)Coordination
with payroll tax exemption for qualified veteransThe credit
determined under this section with respect to any qualified veteran for any
taxable year shall be reduced by an amount equal to 7.65 percent of the
qualified first-year wages paid or incurred by the taxpayer to such veteran
during such taxable year to which section 3111(e)
applied.
.
(3)Transfers to
Federal Old-Age and Survivors Insurance Trust FundThere are
hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the
Federal Disability Insurance Trust Fund established under section 201 of the
Social Security Act (42 U.S.C. 401) amounts equal to the
reduction in revenues to the Treasury by reason of the amendments made by
paragraph (1). Amounts appropriated by the preceding sentence shall be
transferred from the general fund at such times and in such manner as to
replicate to the extent possible the transfers which would have occurred to
such Trust Fund had such amendments not been enacted.
(4)Application to
Railroad Retirement Taxes
(A)Section 3221 of the
Internal Revenue Code of 1986 is amended by redesignating subsection (d) as
subsection (e) and by inserting after subsection (c) the following new
subsection:
(d)Special
exemption for certain veterans
(1)In the case of
compensation paid by a qualified employer during the period beginning on the
day after the date of the enactment of this subsection and ending on December
31, 2013, with respect to having a specified veteran in the employer’s employ
for services rendered to such qualified employer, the applicable percentage
under subsection (a) shall be equal to the rate of tax in effect under section
3111(b) for the calendar year.
(2)With
respect to any specified veteran employed by a qualified employer, the amount
of compensation to which paragraph (1) applies shall not exceed—
(A)$125,490 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(ii)(II),
(B)$73,203 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(iv),
(C)$62,745 in the
case of an individual who is a qualified veteran by reason of section
51(d)(3)(A)(ii)(I), and
(D)$31,373 in the
case of any other qualified veteran.
(3)The term ‘qualified
employer’ means any employer other than the United States, any State, or any
political subdivision thereof, or any instrumentality of the foregoing.
(4)For purposes of this subsection—
(A)The term specified veteran means any
individual who—
(i)begins employment
with a qualified employer after the date of the enactment of this subsection,
and before January 1, 2014,
(ii)certifies by
signed affidavit, under penalties of perjury, that such individual is a
qualified veteran and whether such individual is a qualified veteran described
in subparagraph (A), (B), or (C) of paragraph (2),
(iii)is not employed
by the qualified employer to replace another employee of such employer unless
such other employee separated from employment voluntarily or for cause,
and
(iv)is not an
individual described in section 51(i)(1) (applied by substituting
qualified employer
for taxpayer
each place it
appears).
(B)The term qualified veteran
has the meaning
given such term by section 51(d)(3), but applied without regard to whether such
individual has been certified by the designated local agency.
(5)A qualified employer may elect to have this
subsection not apply. Such election shall be made in such manner as the
Secretary may
require.
.
(B)Transfers to
social security equivalent benefit accountThere are hereby appropriated to the Social
Security Equivalent Benefit Account established under section 15A(a) of the
Railroad Retirement Act of 1974 (45 U.S.C. 231n–1(a)) amounts
equal to the reduction in revenues to the Treasury by reason of the amendments
made by subparagraph (A). Amounts appropriated by the preceding sentence shall
be transferred from the general fund at such times and in such manner as to
replicate to the extent possible the transfers which would have occurred to
such Account had such amendments not been enacted.
(c)The amendments made by
this section shall apply to amounts paid after the date of the enactment of
this Act.