,i #aacth ,,congress #ast ,session ,h4 ,r4 #cabg ,,in ,,the ,,house ,,of ,,representatives ,september #ah1 #bjac,mr4 ,maffei introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,small ,business1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a credit to small employers for certain newly hired employees1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,cutting ,red ,tape1 ,green-,lighting ,small ,businesses ,act of #bjac4 #b4 ,credit for certain individuals hired by a small employer 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 #de,s4 ,certain individuals hired by a small employer 7a7 ,general ,rule ,for purposes of section #ch1 in the case of an eligible small employer1 the small employer hiring credit determined under this section for any taxable year is the amount determined under subsection 7b74 7b7 ,small employer hiring credit amount ,the amount determined under this subsection for a taxable year with respect to a qualified small employer is the product of-- 7#a7 the tax rate in effect under section #caaa7;a7 for the calendar year in which such taxable year ends1 multiplied by 7#b7 the wages paid by the qualified small employer with respect to employment of all covered employees during the taxable year4 7c7 ,qualified employer ,for purposes of this subsection-- 7#a7 ,in general ,the term qualified small employer means with respect to any calendar year1 an employer who on no business day of the preceding calendar year employed less than #b1 or more than #aej1 employees4 7#b7 ,employers not in existence in preceding year ,in the case of an employer which was not in existence throughout the preceding calendar year1 the determination of whether such employer is a small employer shall be based on the number of employees that it is reasonably expected such employer will employ on business days in the current calendar year4 7#c7 ,special rules ,for purposes of this subsection-- 7,a7 ,predecessor and successor ,any reference in this paragraph to an employer shall include a reference to any predecessor of1 or successor to1 such employer4 7,b7 ,aggregation rule ,all persons treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as one employer4 7,c7 ,governmental employers not included ,the term employer does not include the ,united ,states1 any ,state1 or any political subdivision thereof1 or any instrumentality of the foregoing4 7#d7 ,credit applies for only #a year ,if an election to claim the credit under this section is in effect for any calendar year1 paragraph 7#a7 shall not apply to such employer for any year after such calendar year4 7d7 ,covered employee ,for purposes of this subsection-- 7#a7 ,in general ,the term covered employee means1 with respect to any week1 is an employee who-- 7,a7 first begins work for the employer for services performed by the employee-- 7i7 in a trade or business of such qualified small employer1 or 7ii7 in the case of a qualified small employer exempt from tax under section #eja7;a71 in furtherance of the activities related to the purpose or function constituting the basis of the employer's exemption under section #eja1 and 7,b7 is employed on average at least #cj hours of service per week4 7#b7 ,limitation to #e employees ,an employer may not treat more than #e employees as covered employees4 7#c7 ,hours of service ,the ,secretary1 in consultation with the ,secretary of ,labor1 shall prescribe such regulations1 rules1 and guidance as may be necessary to determine the hours of service of an employee1 including rules for the application of this paragraph to employees who are not compensated on an hourly basis4 7e7 ,credit made available to tax-,exempt eligible small employers 7#a7 ,in general ,in the case of a tax-exempt eligible small employer1 there shall be treated as a credit allowable under subpart ,c 7and not allowable under this subpart7 the amount of the credit determined under this section with respect to such employer4 7#b7 ,tax-exempt eligible small employer ,for purposes of this section1 the term tax-exempt eligible small employer means an eligible small employer which is any organization described in section #eja7;c7 which is exempt from taxation under section #eja7;a74 7f7 ,denial of double benefit ,no deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section4 7g7 ,election ,this section shall apply to any taxpayer for any taxable year only if such taxpayer elects 7at such time and in such manner as the ,secretary may by regulations prescribe7 to have this section apply for such taxable year4 7h7 ,termination ,this section shall not apply with respect to wages paid after ,december #ca1 #bjae4 4 7b7 ,credit ,to ,be ,part of ,general ,business ,credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf 7relating to current year business credit7 is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by inserting after paragraph 7#cf7 the following3 7#cg7 the small employer hiring credit determined under section #de,s4 4 7c7 ,clerical ,amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,sec4 #de,s4 ,certain individuals hired by a small employer4 4 7d7 ,effective date ,the amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after ,december #ca1 #bjac4 #c4 ,paperwork reduction ,the ,small ,business ,act 7#ae ,u4,s4,c4 #fca et seq47 is amended by adding at the end the following3 #dh4 ,paperwork reduction ,not later than #fj days after the date of the enactment of this ,act1 the ,administrator of the ,small ,business ,administration shall determine1 for a new small business concern1 what applications1 submissions1 or other paperwork for purposes of programs administered by the ,administrator1 are not essential to file during the first year of operation1 and shall make rules that waive the need for such paperwork4 4