[Congressional Record Volume 155, Number 165 (Friday, November 6, 2009)]
[Senate]
[Page S11255]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY (for himself, Mrs. Lincoln, and Ms. Landrieu):
  S. 2748. A bill to amend the Internal Revenue Code of 1986 to extend 
for one year the employer wage credit for employees who are active duty 
members of the uniformed services; to the Committee on Finance.
  Mr. KERRY. Mr. President, today I am introducing the Small Business 
and Military Families Assistance Act which provides an extension of a 
provision included in the Heroes Earnings Assistance and Relief Tax, 
HEART, Act of 2008 which passed last Congress. Senator Lincoln is a 
cosponsor. The HEART Act has been referred to as the ``thank you bill'' 
and that is very appropriate. The purpose of the HEART Act was to 
provide military families with well deserved tax relief. As we approach 
Veterans Day, I believe that it is appropriate to extend the tax credit 
for small employers of reservists called to active duty.
  The best definition of patriotism is keeping faith with those who 
serve our country. That means giving our troops the resources they need 
to keep them safe while they are protecting us. It means supporting our 
troops at home as well as abroad.
  Currently, there are over 120,000 military personnel serving in Iraq. 
There are approximately 68,000 U.S. service members in Afghanistan. 
Many of these men and women are reservists and have been called to 
active duty, frequently for multiple tours.
  Most large businesses have the resources to provide supplemental 
income to reservist employees called up. I applaud the businesses that 
have been able to pay supplemental income to their reservists, but it 
is not easy for small businesses to do the same.
  In January 2007, the Committee on Small Business and Entrepreneurship 
held a hearing on veterans' small business issues. A majority of our 
veterans returning from Iraq and Afghanistan are Reserve and National 
Guard members--35 percent of whom are either self-employed or own or 
are employed by a small business.
  We heard some disturbing statistics about the impact and unintended 
consequences the call up of reservists is having on small businesses. 
According to a January 2007 survey conducted by Workforce Management, 
54 percent of the businesses surveyed responded that they would not 
hire a citizen soldier if they knew that they could be called up for an 
indeterminate amount of time. I am concerned that long call ups and 
redeployments have made it hard for small businesses to be supportive 
of civilian soldiers.
  The HEART Act provides a tax credit to small businesses to assist 
with the cost of paying the salary of their reservist employees when 
they are called to active duty. This tax credit provides an incentive 
for small employers to eliminate any pay gap between civilian and 
military pay. The provision provides small businesses with less than 50 
employees with a tax credit of 20 percent of the differential pay. The 
maximum credit is $4,000. The credit is for amounts paid for before 
January 1, 2010. My legislation would extend this provision for an 
additional year.
  While our reservists are continuing to serve, we should continue to 
provide assistance. Now is not the time to end this credit which helps 
small business do the right thing. During these difficult economic 
times, it is a struggle for small business to pay their employees who 
are a called up a wage differential.
  Our service men and women need to know that we are honoring their 
service. An extension of the small business credit will help our 
military families with some of their financial burdens. It cannot repay 
the sacrifices they have made for us, but it is a small way we can 
support our troops and their families.

                          ____________________