[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2527 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 2527
To amend the Internal Revenue Code of 1986 to provide an employer
credit for increasing wages.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 6, 2023
Mr. Ruiz 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 provide an employer
credit for increasing wages.
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 ``Rewarding American Investments to
Support Employees Act of 2023'' or as the ``RAISE Act of 2023''.
SEC. 2. EMPLOYER WAGE CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following:
``SEC. 45AA. EMPLOYER WAGE CREDIT.
``(a) In General.--For purposes of section 38, the employer wage
credit determined under this section with respect to any employer for
any taxable year is an amount equal to 10 percent of the excess (if
any) of--
``(1) the aggregate amount of wages paid or incurred to
specified employees during the calendar year which ends with or
within such taxable year, over
``(2) the aggregate amount of wages paid or incurred to
specified employees during the calendar year immediately
preceding the calendar year described in paragraph (1).
``(b) Limitations.--
``(1) In general.--The amount of the credit determined
under subsection (a) with respect to any employer for any
taxable year shall not exceed $500,000.
``(2) Limitation on increase which may be taken into
account with respect to each employee.--The amount of wages
taken into account under subsection (a)(1) with respect to any
employee shall not exceed the sum of $25,000 plus the amount of
wages taken into account under subsection (a)(2) with respect
to such employee.
``(c) Specified Employees.--For purposes of this section, the term
`specified employee' means any employee who--
``(1) was employed continuously in one or more trades or
businesses of the employer during both calendar years described
in subsection (a), and
``(2) earned wages not in excess of $75,000 during the
calendar year described in subsection (a)(2).
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Wages.--The term `wages' has the meaning given such
term by section 3306(b) (determined without regard to any
dollar limitation contained in such section). Such term shall
not include any amount taken into account in determining any
other credit allowed under this subpart.
``(2) Predecessor and successor.--Any reference in this
paragraph to an employer shall include a reference to any
predecessor of, or successor to, such employer.
``(3) Aggregation rule.--All persons treated as a single
employer under subsection (b), (c), (m), or (o) of section 414
shall be treated as one employer.
``(4) Inflation adjustment.--
``(A) In general.--In the case of a taxable year
beginning after 2024, the $500,000 and $75,000 amounts
in subsections (b) and (c) shall each be increased by
an amount equal--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under subparagraph (B) for the
calendar year in which the taxable year begins.
``(B) Cost-of-living adjustment.--For purposes of
this paragraph, the cost-of-living adjustment for any
calendar year is the percentage (if any) by which--
``(i) the CPI for the preceding calendar
year, exceeds
``(ii) the CPI for calendar year 2023.
``(C) CPI for any calendar year.--For purposes of
this paragraph, the CPI for any calendar year shall be
determined as provided in section 1(f)(4).
``(D) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $1,000, such
amount shall be rounded to the next lowest multiple of
$1,000.
``(5) Election to have credit not apply.--A taxpayer may
elect to have this section not apply for any taxable year.
Rules similar to the rules of paragraphs (2) and (3) of section
51(j) shall apply for purposes of this paragraph.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (37),
by striking the period at the end of paragraph (38) and inserting ``,
plus'', and by inserting after paragraph (38) the following new
paragraph:
``(39) the employer wage credit determined under section
45AA.''.
(c) Denial of Double Benefit With Deductions.--Section 280C(a) of
such Code is amended by inserting ``45AA(a),'' after ``45S(a),''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following the item:
``Sec. 45AA. Employer wage credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
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