[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3781 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3781

 To amend the Internal Revenue Code of 1986 to allow small employers a 
credit against income tax for hiring individuals receiving unemployment 
                             compensation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2013

Mr. Lowenthal 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 small employers a 
credit against income tax for hiring individuals receiving unemployment 
                             compensation.

    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 ``American Unemployed Worker 
Investment Act of 2013''.

SEC. 2. CREDIT FOR EMPLOYERS WHO HIRE INDIVIDUALS RECEIVING 
              UNEMPLOYMENT COMPENSATION.

    (a) In General.--Subsection (d) of section 51 of the Internal 
Revenue Code of 1986 (defining members of targeted group) is amended by 
striking ``or'' at the end of subparagraph (H), by striking the period 
at the end of subparagraph (I) and inserting ``, or'', and by adding at 
the end the following new subparagraph:
                    ``(J) in the case of a small business employer, a 
                qualified unemployment compensation recipient.''.
    (b) Qualified Unemployment Compensation Recipient.--Subsection (d) 
of section 51 of the Internal Revenue Code of 1986 is amended by 
redesignating paragraphs (11) through (14) as paragraphs (12) through 
(15), respectively, and by inserting after paragraph (10) the following 
new paragraph:
            ``(11) Qualified unemployment compensation recipient; small 
        business employer.--
                    ``(A) In general.--The term `qualified unemployment 
                compensation recipient' means any individual who is 
                certified by the designated local agency as--
                            ``(i) not being a student for at least 6 
                        months during the 1-year period ending on the 
                        hiring date,
                            ``(ii) being in receipt of unemployment 
                        compensation under State or Federal law on the 
                        hiring date, and
                            ``(iii) having a hiring date during the 2-
                        year period which begins on the date of the 
                        enactment of this paragraph.
                    ``(B) Small business employer.--For purposes of 
                this paragraph, the term `small business employer' 
                means, with respect to any hiring date, any employer 
                which employs more than 10 but fewer than 25 full-time 
                equivalent employees throughout the taxable year.
                    ``(C) Student.--For purposes of this paragraph, a 
                student is an individual enrolled at least half-time in 
                a program that leads to a degree, certificate, or other 
                recognized educational credential for at least 6 months 
                (whether or not consecutive) during the 1-year period 
                ending on the hiring date.''.
    (c) Maximum $4,000 Credit Per Employee.--Paragraph (3) of section 
51(b) of the Internal Revenue Code of 1986 is amended by inserting 
``$10,000 per year in the case of any individual who is a qualified 
unemployment compensation recipient by reason of subsection (d)(11),'' 
after ``$6,000 per year (''.
    (d) Denial of Credit Unless Employment Full Time for 1 Year.--
Paragraph (3) of section 51(i) of the Internal Revenue Code of 1986 
(relating to individuals not meeting minimum employment periods) is 
amended by adding at the end the following new subparagraph:
                    ``(C) Special rules for qualified unemployment 
                compensation recipients.--No wages shall be taken into 
                account under subsection (a) with respect to a 
                qualified unemployment compensation recipient unless--
                            ``(i) such individual is employed by the 
                        employer for not less than 35 hours per week 
                        for not less than 1 year, and
                            ``(ii) the number of full-time equivalent 
                        employees of the employer is increased by 1 for 
                        at least 1 year by reason of such individual's 
                        employment by the employer.''.
    (e) Credit Made Available to Tax-Exempt Employers in Certain 
Circumstances.--
            (1) In general.--Subsection (e) of section 3111 of the 
        Internal Revenue Code of 1986 is amended--
                    (A) by striking ``Qualified Veterans'' in the 
                subsection heading and inserting ``Qualified 
                Individuals'',
                    (B) by striking ``qualified veteran'' each place it 
                appears in the text and inserting ``qualified 
                individual'', and
                    (C) by striking ``qualified veterans'' in paragraph 
                (2) and inserting ``qualified individuals''.
            (2) Qualified individual defined.--Subparagraph (B) of 
        section 3111(e)(5) of such Code is amended to read as follows:
                    ``(B) the term `qualified individual' means--
                            ``(i) any qualified veteran (as defined in 
                        section 51(d)(3)), and
                            ``(ii) any qualified unemployment 
                        compensation recipient (as defined in section 
                        51(d)(11)).''.
            (3) Conforming amendment.--Paragraph (2) of section 52(c) 
        of such Code is amended--
                    (A) by inserting ``and qualified unemployment 
                compensation recipients'' after ``qualified veterans'' 
                in the heading, and
                    (B) by inserting ``and qualified unemployment 
                compensation recipients'' after ``qualified veterans'' 
                in the text.
    (f) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.
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