[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4840 Introduced in House (IH)]

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114th CONGRESS
  2d Session
                                H. R. 4840

  To amend the Internal Revenue Code of 1986 to increase the maximum 
wages allowed under the work opportunity tax credit for ex-felons, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 22, 2016

Mrs. Watson Coleman (for herself, Ms. Jackson Lee, Mr. Rangel, and Mr. 
    Payne) 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 increase the maximum 
wages allowed under the work opportunity tax credit for ex-felons, and 
                          for other purposes.

    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 ``Hire For a Second Chance Act of 
2016''.

SEC. 2. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.

    (a) Credit Made Permanent.--Section 51(c) of the Internal Revenue 
Code of 1986 is amended by striking paragraph (4) and redesignating 
paragraph (5) as paragraph (4).
    (b) Increase in Wage Limitation for Ex-Felons.--
            (1) Limitation on wages taken into account.--Section 
        51(b)(3) of such Code is amended--
                    (A) by striking ``subsection (d)(3)(A)(iv), and'' 
                and inserting ``subsection (d)(3)(A)(iv),'', and
                    (B) by striking ``subsection (d)(3)(A)(ii)(II))'' 
                and inserting ``subsection (d)(3)(A)(ii)(II), and 
                $14,000 in the case of any individual who is an ex-
                felon by reason of subsection (d)(4))''.
            (2) Inflation adjustment.--Section 51(b) of such Code is 
        amended by adding at the end the following:
            ``(4) Adjustment for inflation.--In the case of any taxable 
        year beginning after 2016, the $14,000 dollar amount contained 
        in paragraph (3) relating to ex-felons shall be increased by an 
        amount equal to the product of--
                    ``(A) such dollar amount, and
                    ``(B) the cost of living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins determined by substituting 
                `calendar year 2015' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any increase determined under the preceding sentence is not 
        a multiple of $50, such increase shall be rounded to the next 
        lowest multiple of $50.''.
    (c) Qualified Ex-Felon.--Section 51(d)(4)(B) of such Code is 
amended by striking ``1 year'' and inserting ``3 years''.
    (d) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after December 31, 
2015.
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