SEC. 351. LONG TERM UNEMPLOYEED WORKERS WORK OPPORTUNITY TAX CREDITS.
(a) IN GENERAL.—Paragraph (3) of section 51(b) of the Internal Revenue Code is amended by inserting “$10,000 per year in the case of any individual who is a qualified long term unemployed individual by reason of subsection (d)(11), and” before “$12,000 per year”.
Cited law:
This is an incentive for employers that hire veterans. It increases the tax credit. The act goes on to define exactly what a 'long term unemployed' is. The states are going to certify individuals for this program. Not a bad idea. It provides continuity for recipients.
(i) the individual is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 6 months during the 1-year period ending on the hiring date.
More definitions.
(d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EMPLOYERS IN CERTAIN CIRCUMSTANCES.—Section 52(c) of the Internal Revenue Code is amended—
(2) CREDIT AMOUNT.—In calculating tax-exempt employers, the work opportunity credit shall be determined by substituting “26 percent” for “40 percent” in section 51(a) and by substituting “16.25 percent” for “25 percent” in section 51(i)(3)(A).
(3) TAX-EXEMPT EMPLOYER.—For purposes of this subtitle, the term “tax-exempt employer” means an employer that is —
(A) an organization described in section 501(c) and exempt from taxation under section 501(a), or
(B) a public higher education institution (as defined in section 101 of the Higher Education Act of 1965).
The next provision deals with US possession and their tax credits to employers from the federal government.
(e) Treatment of Possessions.—
(1) Payments to possessions.—
(A) Mirror code possessions.—
(B) Other possessions.—
(3) Definitions and special rules.—
(A) Possession of the United States.--For purposes of this subsection (e), the term ``possession of the United States'' includes American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this subsection, the term ``mirror code tax system'' means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
(C) Treatment of payments.-- For purposes of section 1324(b)(2) of title 31, United States Code, rules similar to the rules of section 1001(b)(3)(C) of the American Recovery and Reinvestment Tax Act of 2009 shall apply.
(f) EFFECTIVE DATE.—The amendments made by this section shall apply
(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.
Of course the act hasn't been enacted yet, so the likelihood of any employer receiving a credit for employing a veteran in 2011 doesn't exist! So, much for a 'user friendly' Congress.
Subtitle C begins here and it is a bit lengthy, so I'll read that tomorrow beginning on page 116.
SUBTITLE C – PATHWAYS BACK TO WORK
SEC. 361. SHORT TITLE.
This subtitle may be cited as the “Pathways Back to Work Act of 2011”.
SEC. 362. ESTABLISHMENT OF PATHWAYS BACK TO WORK FUND.
end.
(a) IN GENERAL.—Paragraph (3) of section 51(b) of the Internal Revenue Code is amended by inserting “$10,000 per year in the case of any individual who is a qualified long term unemployed individual by reason of subsection (d)(11), and” before “$12,000 per year”.
Cited law:
The amount of the qualified first-year wages which may be taken into account with respect to any individual shall not exceed $6,000 per year ($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)).
This is an incentive for employers that hire veterans. It increases the tax credit. The act goes on to define exactly what a 'long term unemployed' is. The states are going to certify individuals for this program. Not a bad idea. It provides continuity for recipients.
(i) the individual is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 6 months during the 1-year period ending on the hiring date.
More definitions.
(d) CREDIT MADE AVAILABLE TO TAX-EXEMPT EMPLOYERS IN CERTAIN CIRCUMSTANCES.—Section 52(c) of the Internal Revenue Code is amended—
(2) CREDIT AMOUNT.—In calculating tax-exempt employers, the work opportunity credit shall be determined by substituting “26 percent” for “40 percent” in section 51(a) and by substituting “16.25 percent” for “25 percent” in section 51(i)(3)(A).
(3) TAX-EXEMPT EMPLOYER.—For purposes of this subtitle, the term “tax-exempt employer” means an employer that is —
(A) an organization described in section 501(c) and exempt from taxation under section 501(a), or
(B) a public higher education institution (as defined in section 101 of the Higher Education Act of 1965).
The next provision deals with US possession and their tax credits to employers from the federal government.
(e) Treatment of Possessions.—
(1) Payments to possessions.—
(A) Mirror code possessions.—
(B) Other possessions.—
(3) Definitions and special rules.—
(A) Possession of the United States.--For purposes of this subsection (e), the term ``possession of the United States'' includes American Samoa, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, Guam, and the United States Virgin Islands.
(B) Mirror code tax system.--For purposes of this subsection, the term ``mirror code tax system'' means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
(C) Treatment of payments.-- For purposes of section 1324(b)(2) of title 31, United States Code, rules similar to the rules of section 1001(b)(3)(C) of the American Recovery and Reinvestment Tax Act of 2009 shall apply.
(f) EFFECTIVE DATE.—The amendments made by this section shall apply
(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.
Of course the act hasn't been enacted yet, so the likelihood of any employer receiving a credit for employing a veteran in 2011 doesn't exist! So, much for a 'user friendly' Congress.
Subtitle C begins here and it is a bit lengthy, so I'll read that tomorrow beginning on page 116.
SUBTITLE C – PATHWAYS BACK TO WORK
SEC. 361. SHORT TITLE.
This subtitle may be cited as the “Pathways Back to Work Act of 2011”.
SEC. 362. ESTABLISHMENT OF PATHWAYS BACK TO WORK FUND.
end.
