[Congressional Record Volume 155, Number 57 (Monday, April 20, 2009)]
[Senate]
[Pages S4448-S4449]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself and Mr. Brown):
  S. 829. A bill to provide a Federal income tax credit for Patriot 
employers, and for other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, when companies make headlines today it is 
often for all the wrong reasons: outrageous bonuses, tax avoidance, 
fraud, profiteering, etc. Yet many of the companies that provide jobs 
are conscientious corporate citizens that try to treat workers fairly 
and at the same time create good products that consumers want and 
maximize profits for their shareholders. I believe that we should 
reward such companies for providing good jobs to American workers and 
create incentives to encourage more companies to do the same. The 
Patriot Employers Act does just that.
  This legislation, which I am introducing today along with Senator 
Brown, would provide a tax credit to reward the companies that treat 
American workers best. Companies that provide American jobs, pay decent 
wages, provide good benefits, and support their employees when they are 
called to active duty should enjoy more favorable tax treatment than 
companies that are unwilling to make the same commitment to American 
workers. The Patriot Employers tax credit would put the tax code on the 
side of those deserving companies by acknowledging their commitments.
  The Patriot Employers legislation would provide a tax credit equal to 
1 percent of taxable income to employers that meet the following 
criteria.
  First, invest in American jobs. Maintain or increase the number of 
full-time workers in America relative to the number of full-time 
workers outside of America, maintain corporate headquarters in America 
if the company has ever been headquartered in America, and maintain 
neutrality in union organizing drives.
  Second, pay decent wages. Pay each worker an hourly wage that would 
ensure that a full-time worker would earn enough to keep a family of 
three out of poverty, at least $8.50 per hour.
  Third, prepare workers for retirement. Either provide a defined 
benefit plan or provide a defined contribution plan that fully matches 
at least 5 percent of worker contributions for every employee.
  Fourth, provide health insurance. Pay at least 60 percent of each 
worker's health care premiums.
  Fifth, support our troops. Pay the difference between the regular 
salary and the military salary of all National Guard and Reserve 
employees who are called for active duty, and continue their health 
insurance coverage.
  In recognition of the different business circumstances that small 
employers face, companies with fewer than 50 employees could achieve 
Patriot Employer status by fulfilling a smaller number of these 
criteria.
  There is more to the story of corporate American than the widely-
publicized wrongdoing. Patriot Employers should be publicly recognized 
for doing right by their workers even while they do well for their 
customers and shareholders. I urge my colleagues to join Senator Brown 
and me in supporting this effort. Our best companies, and our American 
workers, deserve nothing less.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 829

       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 ``Patriot Employers Act''.

     SEC. 2. REDUCED TAXES FOR PATRIOT EMPLOYERS.

       (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 new section:

     ``SEC. 45R. REDUCTION IN TAX OF PATRIOT EMPLOYERS.

       ``(a) In General.--In the case of any taxable year with 
     respect to which a taxpayer is certified by the Secretary as 
     a Patriot employer, the Patriot employer credit determined 
     under this section for purposes of section 38 shall be equal 
     to 1 percent of the taxable income of the taxpayer which is 
     properly allocable to all trades or businesses with respect 
     to which the taxpayer is certified as a Patriot employer for 
     the taxable year.
       ``(b) Patriot Employer.--For purposes of subsection (a), 
     the term `Patriot employer' means, with respect to any 
     taxable year, any taxpayer which--
       ``(1) maintains its headquarters in the United States if 
     the taxpayer has ever been headquartered in the United 
     States,
       ``(2) pays at least 60 percent of each employee's health 
     care premiums,
       ``(3) has in effect, and operates in accordance with, a 
     policy requiring neutrality in employee organizing drives,
       ``(4) if such taxpayer employs at least 50 employees on 
     average during the taxable year--
       ``(A) maintains or increases the number of full-time 
     workers in the United States relative to the number of full-
     time workers outside of the United States,
       ``(B) compensates each employee of the taxpayer at an 
     hourly rate (or equivalent thereof) not less than an amount 
     equal to the Federal poverty level for a family of three for 
     the calendar year in which the taxable year begins divided by 
     2,080,
       ``(C) provides either--
       ``(i) a defined contribution plan which for any plan year--

       ``(I) requires the employer to make nonelective 
     contributions of at least 5 percent of compensation for each 
     employee who is not a highly compensated employee, or
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the elective contributions of each employee 
     who is not a highly compensated employee to the extent such 
     contributions do not exceed the percentage specified by the 
     plan (not less than 5 percent) of the employee's 
     compensation, or

       ``(ii) a defined benefit plan which for any plan year 
     requires the employer to make contributions on behalf of each 
     employee who is not a highly compensated employee in an 
     amount which will provide an accrued benefit under the plan 
     for the plan year which is not less than 5 percent of the 
     employee's compensation, and
       ``(D) provides full differential salary and insurance 
     benefits for all National Guard and Reserve employees who are 
     called for active duty, and
       ``(5) if such taxpayer employs less than 50 employees on 
     average during the taxable year, either--
       ``(A) compensates each employee of the taxpayer at an 
     hourly rate (or equivalent thereof) not less than an amount 
     equal to the Federal poverty level for a family of 3 for the 
     calendar year in which the taxable year begins divided by 
     2,080, or
       ``(B) provides either--
       ``(i) a defined contribution plan which for any plan year--

       ``(I) requires the employer to make nonelective 
     contributions of at least 5 percent of compensation for each 
     employee who is not a highly compensated employee, or
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the

[[Page S4449]]

     elective contributions of each employee who is not a highly 
     compensated employee to the extent such contributions do not 
     exceed the percentage specified by the plan (not less than 5 
     percent) of the employee's compensation, or

       ``(ii) a defined benefit plan which for any plan year 
     requires the employer to make contributions on behalf of each 
     employee who is not a highly compensated employee in an 
     amount which will provide an accrued benefit under the plan 
     for the plan year which is not less than 5 percent of the 
     employee's compensation.''.
       (b) Allowance as General Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (34), by striking the period 
     at the end of paragraph (35) and inserting ``, plus'', and by 
     adding at the end the following:
       ``(36) the Patriot employer credit determined under section 
     45R.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______