,,ii #aaeth ,,congress #b;d ,session ,s4 #bfdh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #aa1 #bjah ,mr4 ,nelson introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to encourage employers to hire individuals working in dying industries or occupations made obsolete by technology1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,economic ,modernization ,act4 #b4 ,economic ,transition ,credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf1 as amended by section #acdjc7;a7 of ,public ,law #aae-ig1 is amended by adding at the end the following new section3 #de,t4 ,economic ,transition ,credit 7a7 ,in general ,for purposes of section #ch1 the amount of the economic transition credit determined under this section for the taxable year shall be equal to the sum of any applicable payroll taxes paid by an employer during the taxable year with respect to employment of any qualified employee4 7b7 ,definitions ,for purposes of this section3 7#a7 ,applicable payroll taxes 7,a7 ,in general ,the term applicable payroll taxes means1 with respect to any employer for any taxable year1 the amount of the taxes imposed by-- 7i7 section #caaa on wages paid by an employer with respect to employment of qualified employee during the applicable period1 and 7ii7 section #cbba7;a7 on compensation paid by an employer with respect to services rendered by a qualified employee during the applicable period4 7,b7 ,applicable period ,for purposes of subparagraph 7,a71 the term applicable period means the #c-year period beginning with the day the qualified employee begins work for the employer4 7#b7 ,declining field 7,a7 ,in general ,the term declining field means any occupation or field of work which has been determined by the ,secretary1 in consultation with the ,bureau of ,labor ,statistics of the ,department of ,labor1 to have experienced a decline in the level of average employment in such occupation or field in the ,united ,states of not less than #h percent over the most recent #c-year period for which such information is available4 7,b7 ,determination and publication ,the ,secretary1 in consultation with the ,bureau of ,labor ,statistics of the ,department of ,labor1 shall annually-- 7i7 determine which occupations or fields of work satisfy the requirements described in subparagraph 7,a71 and 7ii7 publish and make available on the website of the ,department of the ,treasury a complete list of such occupations and fields of work4 7#c7 ,qualified employee 7,a7 ,in general ,the term qualified employee means an individual who-- 7i7 is provided wages for employment by the employer 7as such terms are defined in section #caba71 provided that such employment is not in a declining field1 7ii7 is not a covered employee 7as defined in section #afb7m77#c771 and 7iii7 was employed in a declining field for any period during the #ab-month period preceding the applicable period under paragraph 7#a77;,b74 7,b7 ,nonqualifying rehires ,the term qualifying employee shall not include any individual who1 prior to the beginning of the applicable period under paragraph 7#a77;,b71 had been employed by the employer at any time4 4 7b7 ,credit part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf1 as amended by section #acdjc7;b7 of ,public ,law #aae-ig1 is amended by striking plus at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#ch7 the economic transition credit determined under section #de,t7a74 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 following new item3 ,sec4 #de,t4 ,economic ,transition ,credit4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,enhancements to certain education tax benefits for professionals in short supply 7a7 ,in general 7#a7 ,publication ,for each calendar year beginning after the date of the enactment of this ,act1 the ,secretary of the ,treasury1 in consultation with the ,secretary of ,labor1 shall publish and make available on the website of the ,department of the ,treasury a list of any occupation or field of work which qualifies as a short supply field for such calendar year4 7#b7 ,short supply field ,the term short supply field means an occupation or field of work which the ,secretary of the ,treasury1 in consultation with the ,secretary of ,labor1 has determined-- 7,a7 requires-- 7i7 theoretical and practical application of a body of highly specialized knowledge2 and 7ii7 7,i7 attainment of a bachelor's or higher degree in the specific specialty 7or its equivalent72 or 7,,ii7 experience in the specialty equivalent to the completion of such degree2 and 7,b7 has an insufficient number of individuals who are citizens or residents of the ,united ,states and are qualified1 willing1 and able to satisfy the demand for labor in such occupation or field of work4 7b7 ,enhancements to certain education tax benefits 7#a7 ,in general 7,a7 ,educational assistance programs ,paragraph 7#b7 of section #abg7;a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7or1 in the case of an individual employed in an occupation or field of work which has been designated as a short supply field for such calendar year pursuant to section #c7;a7 of the ,economic ,modernization ,act1 the first #ae1jjj of such assistance so furnished7 before the period at the end4 7,b7 ,interest on education loans ,paragraph 7#a7 of section #bba7;b7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7or1 in the case of a individual employed in an occupation or field of work which has been designated1 pursuant to section #c7;a7 of the ,economic ,modernization ,act1 as a short supply field for the calendar year in which such taxable year began1 shall not exceed #h1jjj7 before the period at the end4 7,c7 ,qualified tuition and related expenses ,paragraph 7#a7 of section #bbb7;b7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7or1 in the case of an individual employed in an occupation or field of work which has been designated1 pursuant to section #c7;a7 of the ,economic ,modernization ,act1 as a short supply field for the calendar year in which such taxable year began1 an amount equal to the applicable dollar limit multiplied by #b7 before the period at the end4 7#b7 ,exclusion for certain employer payments of student loans 7,a7 ,in general ,paragraph 7#a7 of section #abg7;c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,a71 by redesignating subparagraph 7,b7 as subparagraph 7,c71 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 in the case of an employee employed in an occupation or field of work which has been designated as a short supply field for a calendar year pursuant to section #c7;a7 of the ,economic ,modernization ,act1 the payment by an employer during such calendar year1 whether paid to the employee or to a lender1 of principal or interest on any qualified education loan 7as defined in section #bba7;d77#a77 incurred by the employee1 and 4 7,b7 ,conforming amendment2 denial of double benefit ,paragraph 7#a7 of section #bba7;e7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the period the following3 1 or for which an exclusion is allowable under section #abg to the taxpayer's employer by reason of the payment by such employer of any indebtedness on a qualified education loan of the taxpayer4 7#c7 ,effective date ,the amendments made by this subsection shall apply to taxable years beginning after the date of the enactment of this ,act4 #d4 ,deduction of qualified enterprise income 7a7 ,in general ,part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #aha the following new section3 #ahb4 ,qualified enterprise income 7a7 ,in general ,in the case of a qualified taxpayer1 there shall be allowed as a deduction an amount equal to any qualified enterprise income of such taxpayer4 7b7 ,limitation ,the amount of the deduction allowed under subsection 7a7 for any taxable year shall not exceed an amount equal to #ej percent of the ,w-#b wages paid by the qualified taxpayer during such taxable year4 7c7 ,definitions ,in this section3 7#a7 ,qualified enterprise income 7,a7 ,in general ,the term qualified enterprise income means the amount equal to the excess 7if any7 of-- 7i7 the gross receipts of the qualified taxpayer for the taxable year which are properly allocable to a qualified facility1 over 7ii7 an amount equal to the sum of-- 7,i7 the cost of goods sold which are allocable to such receipts1 and 7,,ii7 any other expenses1 losses or deductions 7with the exception of the deduction allowed under this section7 which are allocable to such receipts4 7,b7 ,limitation ,the term qualified enterprise income shall apply only to gross receipts described in subparagraph 7,a7 for the #c-taxable-year period beginning after the qualified facility is placed in service4 7,c7 ,method of allocation ,the ,secretary shall prescribe regulations for ensuring proper allocation of amounts under subparagraph 7,a74 7#b7 ,qualified facility 7,a7 ,in general ,the term qualified facility means any nonresidential building 7and its structural components7 which-- 7i7 prior to #bjjj1 was placed in service and used in the active conduct of a trade or business by a person other than the qualified taxpayer1 7ii7 after being acquired by the qualified taxpayer1 has been substantially rehabilitated1 7iii7 during the #b-year period prior to commencement of rehabilitation by the qualified taxpayer1 was not used in the active conduct of a trade or business1 and 7iv7 is located within a ,state4 7,b7 ,substantial rehabilitation ,for purposes of this paragraph1 a building shall be deemed to have been substantially rehabilitated only if-- 7i7 not less than #ej percent of the existing external walls of such building are retained in place as external walls1 7ii7 not less than #ge percent of the existing internal structural framework of such building is retained in place1 and 7iii7 the amount properly chargeable to the capital account for any addition to or improvement of the building is in excess of an amount equal to the greater of-- 7,i7 the adjusted basis of such building 7and its structural components71 or 7,,ii7 #bj1jjj4 7#c7 ,qualified taxpayer ,the term qualified taxpayer means the person that owns the qualified facility and directly incurs not less than #ej percent of the expenses for substantially rehabilitating such facility 7under rules similar to the rules applicable to self-rehabilitated buildings under section #dg7;d77#d774 7#d7 ,state ,the term ,state means any ,state of the ,united ,states or the ,district of ,columbia or any ,territory or possession of the ,united ,states4 7#e7 ,w-#b ,wages 7,a7 ,in general ,the term ,w-#b wages means1 with respect to any person for any taxable year of such person1 the amounts described in paragraphs 7#c7 and 7#h7 of section #fjea7;a7 paid by such person with respect to employment of employees by such person during the calendar year ending during such taxable year4 7,b7 ,limitation to wages attributable to qualified enterprise income ,such term shall not include any amount which is not properly allocable to qualified enterprise income for purposes of subsection 7c77#a74 7,c7 ,return requirement ,such term shall not include any amount which is not properly included in a return filed with the ,social ,security ,administration on or before the #fjth day after the due date 7including extensions7 for such return4 4 7b7 ,clerical amendment ,the table of sections for part ,,vi of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #ahb4 ,qualified ,enterprise ,income4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4