,,ii #aadth ,,congress #b;d ,session ,s4 #cbca ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,july #ad1 #bjaf ,ms4 ,baldwin 7for herself and ,mr4 ,booker7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to establish a policy framework that offers and rewards work1 strengthens the incentive to work1 greatly reduces poverty1 and creates new jobs in the ,united ,states1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,stronger ,way ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,transitional jobs program ,sec4 #aja4 ,purposes4 ,sec4 #ajb4 ,definitions4 ,sec4 #ajc4 ,transitional jobs4 ,sec4 #ajd4 ,authorization of appropriations4 ,,title ,,ii--,poverty reduction tax credits ,sec4 #bja4 ,reform of earned income credit4 ,sec4 #bjb4 ,establishment of fully refundable child tax credit4 ,i ,transitional jobs program #aja4 ,purposes ,the purposes of the transitional jobs program under this title are to-- 7#a7 reduce poverty and unemployment2 7#b7 offer unemployed or partially employed individuals1 in any local area in a ,state1 the opportunity to work in a transitional job for the purpose of enabling such individuals to gain1 through wage-paying jobs1 the experience and skills needed to move into regular employment2 and 7#c7 assist employers to create new regular employment4 #ajb4 ,definitions ,in this title3 7#a7 ,employer of record ,the term employer of record means a local government1 nonprofit1 or for-profit entity selected under section #ajc7;c77#c77;,a7 to carry out the responsibilities described in section #ajc7;d74 7#b7 ,host site employer ,the term host site employer means an employer that-- 7,a7 provides an individual who is eligible for a transitional job with the opportunity to work in a specific transitional job for which the individual is qualified1 as determined by such employer1 at a worksite that is under the direct supervision of such employer2 and 7,b7 agrees to be responsible for-- 7i7 selecting1 training1 and supervising the transitional jobs worker1 including providing a written job description1 initial training1 ongoing management1 and periodic performance reviews2 7ii7 certifying to the employer of record1 in the manner prescribed by the ,secretary1 the number of hours that the transitional jobs worker has worked for the host site employer2 and 7iii7 cooperating with the employer of record in facilitating the movement of the transitional jobs worker into regular employment4 7#c7 ,local area ,the term local area means a city1 county1 or other general purpose political subdivision of a ,state4 7#d7 ,regular employment ,the term regular employment means regular1 unsubsidized employment1 as defined by the ,secretary4 7#e7 ,secretary ,the term ,secretary means the ,secretary of ,labor4 7#f7 ,state ,the term ,state means each of the several ,states of the ,united ,states1 the ,district of ,columbia1 and the ,commonwealth of ,puerto ,rico4 7#g7 ,transitional job ,the term transitional job means a job offered to an eligible individual through the program authorized under section #ajc that-- 7,a7 provides the rate of pay described in section #ajc7;d77#f72 and 7,b7 provides the individual with employment of-- 7i7 not less than #af hours per week2 and 7ii7 not more than #dj hours per week1 when combined with any hours per week of work that the individual is employed through any other employer 7if applicable74 #ajc4 ,transitional jobs 7a7 ,program authorized ,from amounts made available under section #ajd1 the ,secretary shall establish a program1 through grant agreements described in subsection 7c7 with ,state and local government agencies1 that provides eligible unemployed or partially employed individuals with opportunities to work in a transitional job for the purpose of enabling such individuals to gain1 through wage-paying jobs1 the experience and skills needed to move into regular employment4 7b7 ,eligibility ,to be eligible for a transitional job1 an individual shall-- 7#a7 be a resident of the ,united ,states1 and a resident of the ,state in which the individual applies for a transitional job2 7#b7 be not less than #ah years of age2 7#c7 not be incarcerated in any ,federal or ,state penal institution1 unless the individual is participating in a work-release program authorized by the ,united ,states or a ,state and the ,united ,states or the ,state authorizes employment under this circumstance in a transitional job2 and 7#d7 be unemployed1 or employed for less than #cj hours per week1 for not less than #d consecutive weeks preceding the individual's application for a transitional job4 7c7 ,transitional jobs program administration 7#a7 ,in general ,the ,secretary shall enter into agreements with ,state and local government agencies under which-- 7,a7 the ,state and local government agencies carry out all activities described in paragraph 7#c72 and 7,b7 the ,secretary provides grants to the ,state and local government agencies to carry out such activities4 7#b7 ,selection criteria ,the ,secretary shall select ,state and local government agencies for the agreements described in paragraph 7#a7 based on-- 7,a7 the agencies' level of experience and commitment to transitional jobs programs2 and 7,b7 such other criteria as the ,secretary determines appropriate1 which may include criteria relating to the implementation by such agencies of transitional jobs program models under this title4 7#c7 ,activities ,the activities described in this paragraph are the following3 7,a7 ,select1 on a competitive basis1 and enter into a contract with one or more local government1 nonprofit1 or for-profit entities to-- 7i7 administer the transitional jobs program in the ,state or local area to be served2 and 7ii7 function as the employer of record described in subsection 7d74 7,b7 ,pay each entity selected to serve as an employer of record1 based upon the terms of the contract and full documentation of performance1 for the entity's performance of its contractually defined services in administering the transitional jobs program1 including reimbursement of the entity for appropriate wages and taxes the entity has paid1 as required under paragraphs 7#f7 and 7#g7 of subsection 7d71 to or on behalf of eligible individuals who worked in transitional jobs in the entity's capacity as an employer of record4 ,a ,state or local governmental agency may require a host employer to pay a portion of the appropriate wages and taxes for the individual4 7,c7 ,cooperate with the ,comptroller ,general of the ,united ,states1 the ,congressional ,budget ,office1 and other ,federal and ,state agencies in the performance of audits and the conduct of fiscal and programmatic oversight4 7,d7 ,annually submit to the ,secretary1 and to the governor or other chief executive officer of the ,state in which the program is located1 and the ,state legislature1 a report on the ,state or local government agency's role and accomplishments in the operation of the transitional jobs program1 in a format specified by the ,secretary4 7,e7 ,conduct1 or enter into arrangements with independent academic or research organizations to conduct1 periodic evaluations of the effectiveness of the program within the ,state or local area served in-- 7i7 reducing poverty and unemployment2 7ii7 enabling unemployed and underemployed individuals to gain the experience and skills needed to move into regular employment2 and 7iii7 assisting employers in creating new regular employment4 7,f7 ,promulgate any rules necessary for the agency's operation of the transitional jobs program4 7#d7 ,scope of program 7,a7 ,in general ,the ,secretary shall1 to the greatest extent practicable and subject to the availability of appropriations1 ensure that the agreements described in paragraph 7#a7 make the transitional jobs program available to eligible individuals in all local areas of all ,states4 7,b7 ,individuals with significant barriers to employment ,notwithstanding subparagraph 7,a71 a ,state or local government agency entering into an agreement under paragraph 7#a7 may1 in carrying out the activities described in paragraph 7#c71 choose to target the assistance to eligible individuals under subsection 7b7 who have significant barriers to employment4 7,c7 ,use of existing systems ,a ,state or local government agency entering into an agreement under paragraph 7#a7 may carry out the activities described in paragraph 7#c7 through1 or in alignment with1 other subsidized employment and job training activities or systems available within the ,state or local area4 7d7 ,responsibilities of an employer of record ,each local government1 nonprofit1 or for-profit entity selected to serve as an employer of record under subsection 7c77#c77;,a7 shall do each of the following3 7#a7 ,determine the eligibility of individuals applying for the transitional jobs program under this title4 7#b7 ,conduct orientation activities for individuals that the employer of record has determined are eligible for the transitional jobs program4 7#c7 ,assess the education1 prior work experience1 and other relevant factors of each eligible individual who requests a transitional job1 for the purpose of assisting the individual to be successful in applying for and performing well in a specific transitional job4 7#d7 ,connect each eligible individual requesting a transitional job to the one-stop delivery system established under section #aba7;e7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #caea7;e771 and to other resources that provide assistance to job seekers4 7#e7 ,offer each eligible individual who desires to work in a transitional job and meets the eligibility requirements under paragraphs 7#a7 through 7#d7 of subsection 7b7 the opportunity to work for a host site employer4 ,the host site employer may be-- 7,a7 the employer of record2 or 7,b7 another organization that has entered into an agreement with the employer of record1 and as part of such agreement1 agrees to function as1 and meet the responsibilities of1 a host site employer1 for a period not to exceed #cj weeks1 subject to the requirements of subsection 7e74 7#f7 ,pay each individual described in paragraph 7#e71 for each hour of work performed for the host site employer1 an amount at a rate of pay that is equal to1 or greater than1 the greater of-- 7,a7 the minimum wage rate applicable in the ,state in which the applicable position is located2 7,b7 the wage rate applicable under section #f of the ,fair ,labor ,standards ,act of #aich 7#bi ,u4,s4,c4 #bjf72 or 7,c7 if the ,state or local governmental agency determines appropriate1 the prevailing wage rate1 as determined by the ,state or local governmental agency1 for the type of work performed by the individual4 7#g7 ,with respect to the employment of each individual described in paragraph 7#e7-- 7,a7 pay any applicable ,federal taxes for employers1 including the employer taxes imposed under sections #caaa1 #cbba1 and #ccja of the ,internal ,revenue ,code of #aihf2 7,b7 pay any other ,state or local government taxes that employers in the relevant ,state or local area are required to pay2 7,c7 withhold from the individual's earnings the taxes imposed under sections #caja and #cbja of the ,internal ,revenue ,code of #aihf1 and any other ,federal1 ,state or local tax required to be withheld for employees2 7,d7 complete and submit to the appropriate government agencies1 all required ,federal1 ,state1 or local tax-related and employment-related forms that an employer would typically submit1 including by ensuring that each individual provides the information necessary for the completion of such forms2 7,e7 provide the individual with a ,form ,w-#b ,wage and ,tax ,statement for the calendar year2 7,f7 provide for workers' compensation coverage for the individual under the applicable ,federal and ,state workers' compensation laws2 7,g7 perform1 either directly or through an agreement described in paragraph 7#e77;,b7 with a host site employer1 all other functions that an employer would typically perform2 7,h7 comply with the requirements for providing health insurance coverage under the ,patient ,protection and ,affordable ,care ,act 7,public ,law #aaa-adh71 including the amendments made by such ,act2 and 7,i7 provide any benefits that are otherwise required of employers in the relevant ,state or local area4 7#h7 ,ensure that no transitional job would result in a violation of any of the worker protections provided in subsection 7f74 7e7 ,duration of transitional job 7#a7 ,in general ,an individual may work in a transitional job for a period not to exceed #cj weeks1 as long as-- 7,a7 the individual continues to meet the eligibility requirements for a transitional job under paragraphs 7#a7 through 7#c7 of subsection 7b72 7,b7 the individual1 during the period of employment in the transitional job1 pursues efforts to replace hours of work in the transitional job with regular employment2 7,c7 the individual has not-- 7i7 obtained regular employment that consistently equals or exceeds #cj hours of work per week2 or 7ii7 turned down any appropriate offer for such regular employment1 as determined by the ,secretary2 and 7,d7 if the individual receives and accepts an appropriate offer for such regular employment1 the individual does not postpone the starting date for such employment beyond the earliest date practicable1 as determined by the ,secretary1 even if such date occurs before the individual has reached the maximum transitional job time period of #cj weeks4 7#b7 ,additional transitional job ,a ,state or local government agency administering a transitional jobs program under this section shall1 subject to the availability of funds1 allow an individual who has completed the maximum number of weeks in a transitional job an opportunity to work in a different transitional job1 under the same terms and conditions established under this section1 if the individual-- 7,a7 is unable1 after the end of #cj weeks of employment in a transitional job1 to find regular employment that consistently equals or exceeds #cj hours per week2 7,b7 engages in an intensive job search1 as defined by the ,secretary1 for not less than #d consecutive weeks following the completion of a transitional job1 and remains unable to find regular employment2 and 7,c7 meets the eligibility requirements under paragraphs 7#a7 through 7#d7 of subsection 7b74 7f7 ,worker protections 7#a7 ,prohibition against violation of contracts ,a transitional job shall not violate an existing contract for services or a collective bargaining agreement1 and a transitional job that would violate a collective bargaining agreement shall not be undertaken without the written concurrence of the labor organization and employer concerned4 7#b7 ,other prohibitions ,an individual described in subsection 7d77#e7 shall not be assigned to a transitional job-- 7,a7 when any other individual is on layoff from the same or any substantially equivalent job2 7,b7 if the employer has terminated the employment of any regular employee or otherwise caused an involuntary reduction in its workforce with the intention of filling the vacancy so created with the individual working in the transitional job2 or 7,c7 if the employer has caused an involuntary reduction to less than full time in hours of any employee in the same or a substantially equivalent job4 7g7 ,evaluations ,the ,secretary may reserve not more than a total of #aj percent of the amounts made available under section #ajd for-- 7#a7 evaluations of transitional jobs program models implemented with grants awarded under this title2 and 7#b7 other evaluations of grants and activities carried out under this title4 #ajd4 ,authorization of appropriations ,there are authorized to be appropriated to carry out this title such sums as may be necessary4 ,,ii ,poverty reduction tax credits #bja4 ,reform of earned income credit 7a7 ,in general ,section #cb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by amending subsection 7b7 to read as follows3 7b7 ,percentages and amounts ,for purposes of subsection 7a73 7#a7 ,percentages ,the credit percentage and the phaseout percentage shall be determined as follows3 ,in the case of an eligible individual with3,the credit percentage is3,the phaseout percentage is3,no qualifying children#bc4aebc4aea qualifying child#gj #bc4heb qualifying children#ge #bd4ejc or more qualifying children#hj #bi4gj4 7#b7 ,amounts 7,a7 ,in general ,subject to subparagraph 7,b71 the earned income amount and the phaseout amount shall be determined as follows3 ,in the case of an eligible individual with3,the earned income amount is3,the phaseout amount is3,no qualifying children#f1fabaf1ifia qualifying child#h1bggae1jjjb qualifying children#i1fgeae1jjjc qualifying children#ab1bbjae1jjj4 7,b7 ,joint returns 7i7 ,in general ,except as provided in clause 7ii71 in the case of a joint return filed by an eligible individual and such individual's spouse1 the phaseout amount determined under subparagraph 7,a7 shall be increased by #e1eej4 7ii7 ,taxpayers with no qualifying children ,in the case of a joint return filed by an eligible individual and such individual's spouse who do not have a qualifying child for the taxable year1 the phaseout amount in the third column of the first row of the table in subparagraph 7,a7 shall be increased by #h1jjj4 1 7#b7 in subclause 7,,ii7 of subsection 7c77#a77;,a77ii71 by striking attained age #be but not attained age #fe and inserting attained age #ba but not attained age #fg1 and 7#c7 by amending subsection 7j7 to read as follows3 7j7 ,inflation adjustments 7#a7 ,in general ,in the case of any taxable year beginning after #bjag1 each of the dollar amounts in subparagraph 7,a7 of subsection 7b77#b7 7after being increased under subparagraph 7,b7 thereof7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,if any dollar amount increased under paragraph 7#a7 is not a multiple of #ej1 such dollar amount shall be rounded to the nearest multiple of #ej4 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #bjb4 ,establishment of fully refundable child tax credit 7a7 ,elimination of existing child tax credit ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by striking section #bd4 7b7 ,establishment of fully refundable child tax credit ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of such ,code is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,child tax credit 7a7 ,allowance of credit ,in the case of a taxpayer with a qualifying child1 there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to #ae percent of the taxpayer's earned income 7within the meaning of section #cb7 which is taken into account in computing taxable income for the taxable year4 7b7 ,limitation 7#a7 ,in general ,except as provided in paragraph 7#b71 the amount of the credit allowable to a taxpayer by subsection 7a7 for the taxable year shall not exceed an amount equal to the product of #a1jjj and the number of qualifying children of the taxpayer4 7#b7 ,reduction based on modified adjusted gross income 7,a7 ,in general ,the amount which would 7but for this paragraph7 be allowable as a credit under this subsection shall be reduced 7but not below zero7 by #ej for each #a1jjj 7or fraction thereof7 by which the taxpayer's modified adjusted gross income exceeds-- 7i7 #aaj1jjj in the case of a joint return1 7ii7 #ge1jjj in the case of an individual who is not married1 and 7iii7 #ee1jjj in the case of a married individual filing a separate return4 7,b7 ,marital status ,for purposes of this paragraph1 marital status shall be determined under section #ggjc4 7c7 ,qualifying child 7#a7 ,in general ,in this section1 the term qualifying child means a qualifying child of the taxpayer 7as defined in section #aeb7;c77 who has not attained age #ag4 7#b7 ,exception for certain non-citizens ,the term qualifying child shall not include any individual who would not be a dependent if subparagraph 7,a7 of section #aeb7;b77#c7 were applied without regard to all that follows resident of the ,united ,states4 7d7 ,modified adjusted gross income ,in this section1 the term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section #iaa1 #ica1 or #icc4 7e7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning after #bjag1 the #a1jjj amount in subsection 7b77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins determined by substituting calendar year #bjaf for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,if any increase determined under paragraph 7#a7 is not a multiple of #ej1 such increase shall be rounded to the nearest multiple of #ej4 7f7 ,identification requirement 7#a7 ,qualifying child identification requirement ,no credit shall be allowed under this section to a taxpayer with respect to any qualifying child unless the taxpayer includes the name and taxpayer identification number of such qualifying child on the return of tax for the taxable year and such taxpayer identification number was issued on or before the due date for filing such return4 7#b7 ,taxpayer identification requirement ,no credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return for the taxable year4 7g7 ,taxable year must be full taxable year ,except in the case of a taxable year closed by reason of the death of the taxpayer1 no credit shall be allowable under this section in the case of a taxable year covering a period of less than #ab months4 7h7 ,restrictions on taxpayers who improperly claimed credit in prior year 7#a7 ,taxpayers making prior fraudulent or reckless claims 7,a7 ,in general ,no credit shall be allowed under this section for any taxable year in the disallowance period4 7,b7 ,disallowance period ,for purposes of subparagraph 7,a71 the disallowance period is-- 7i7 the period of #aj taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this section was due to fraud1 and 7ii7 the period of #b taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of credit under this section was due to reckless or intentional disregard of rules and regulations 7but not due to fraud74 7#b7 ,taxpayers making improper prior claims ,in the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter ,b of chapter #fc1 no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the ,secretary may require to demonstrate eligibility for such credit4 4 7c7 ,conforming amendments 7#a7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by striking the item relating to section #bd4 7#b7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of subtitle ,a of such ,code is amended by inserting after the item relating to section #cf;,b the following3 ,sec4 #cf;,c4 ,child tax credit44 7#c7 ,subparagraph 7,b7 of section #de,r7f77#c7 of such ,code is amended to read as follows3 7,b7 ,special rule ,any amounts paid pursuant to an agreement under section #caba7l7 7relating to agreements entered into by ,american employers with respect to foreign affiliates7 which are equivalent to the taxes referred to in subparagraph 7,a7 shall be treated as taxes referred to in such subparagraph4 4 7#d7 ,section #aeb7;f77#f77;,b77ii7 of such ,code is amended by striking section #bd and inserting section #cf;,c4 7#e7 ,paragraph 7#bf7 of section #eja7;c7 of such ,code is amended in the flush matter at the end by striking section #bd7;c7 and inserting section #cf;,c7c74 7#f7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by inserting #cf;,c1 after #cf;,b14 7#g7 ,section #fbac7;g77#b7 of such ,code is amended-- 7,a7 in subparagraph 7,i71 by striking section #bd7;e7 and inserting section #cf;,c7d71 and 7,b7 in subparagraph 7,l71 by striking #bd1 #cb and inserting #cb1 #cf;,c4 7#h7 ,subchapter ,b of chapter #fe of subtitle ,f of such ,code is amended by striking section #fdbi4 7#i7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4