,i #aafth ,,congress #ast ,session ,h4 ,r4 #hjb ,,in ,,the ,,house ,,of ,,representatives ,january #be1 #bjai,ms4 ,schakowsky 7for herself1 ,mr4 ,brendan ,f4 ,boyle of ,pennsylvania1 and ,mr4 ,veasey7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a tax credit to ,patriot employers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,patriot ,employer ,act of #bjai4 #b4 ,patriot employer tax credit 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 following new section3 #de,t4 ,patriot employer tax credit 7a7 ,determination of amount 7#a7 ,in general ,for purposes of section #ch1 the ,patriot employer credit determined under this section with respect to any taxpayer who is a ,patriot employer for any taxable year shall be equal to #aj percent of the qualified wages paid or incurred by the ,patriot employer4 7#b7 ,limitation ,the amount of qualified wages which may be taken into account under paragraph 7#a7 with respect to any employee for any taxable year shall not exceed #ae1jjj4 7b7 ,patriot employer 7#a7 ,in general ,for purposes of subsection 7a71 the term ,patriot employer means1 with respect to any taxable year1 any taxpayer-- 7,a7 which-- 7i7 maintains its headquarters in the ,united ,states if the taxpayer 7or any predecessor7 has ever been headquartered in the ,united ,states1 and 7ii7 is not 7and no predecessor of which is7 an expatriated entity 7as defined in section #ghgd7;a77#b77 for the taxable year or any preceding taxable year ending after ,march #d1 #bjjc1 7,b7 with respect to which no assessable payment has been imposed under section #dihj;,h with respect to any month occurring during the taxable year1 7,c7 which provides all employees with-- 7i7 paid sick leave1 or 7ii7 paid family and medical leave1 and 7,d7 in the case of-- 7i7 a taxpayer which employs an average of more than #ej employees on business days during the taxable year1 which-- 7,i7 provides compensation for at least #ij percent of its employees for services provided by such employees during the taxable year at an hourly rate 7or equivalent thereof7 not less than an amount equal to #bah percent of the ,federal poverty level for an individual for the calendar year in which the taxable year begins divided by #a1gej1 7,,ii7 meets the retirement plan requirements of subsection 7c7 with respect to at least #ij percent of its employees providing services during the taxable year who are not highly compensated employees1 and 7,,iii7 meets the additional requirements of subparagraphs 7,a7 and 7,b7 of paragraph 7#b71 or 7ii7 any other taxpayer1 which meets the requirements of either subclause 7,i7 or 7,,ii7 of clause 7i7 for the taxable year4 7#b7 ,additional requirements for large employers 7,a7 ,united ,states employment ,the requirements of this subparagraph are met for any taxable year if-- 7i7 in any case in which the taxpayer increases the number of employees performing substantially all of their services for the taxable year outside the ,united ,states1 the taxpayer either-- 7,i7 increases the number of employees performing substantially all of their services inside the ,united ,states by an amount not less than the increase in such number for employees outside the ,united ,states1 or 7,,ii7 has a percentage increase in such employees inside the ,united ,states which is not less than the percentage increase in such employees outside the ,united ,states1 7ii7 in any case in which the taxpayer decreases the number of employees performing substantially all of their services for the taxable year inside the ,united ,states1 the taxpayer either-- 7,i7 decreases the number of employees performing substantially all of their services outside the ,united ,states by an amount not less than the decrease in such number for employees inside the ,united ,states1 or 7,,ii7 has a percentage decrease in employees outside the ,united ,states which is not less than the percentage decrease in such employees inside the ,united ,states1 and 7iii7 there is not a decrease in the number of employees performing substantially all of their services for the taxable year inside the ,united ,states by reason of the taxpayer contracting out such services to persons who are not employees of the taxpayer4 7,b7 ,treatment of individuals in the uniformed services and the disabled ,the requirements of this subparagraph are met for any taxable year if-- 7i7 the taxpayer provides differential wage payments 7as defined in section #cdja7;h77#b77 to each employee described in section #cdja7;h77#b77;,a7 for any period during the taxable year in an amount not less than the difference between the wages which would have been received from the employer during such period and the amount of pay and allowances which the employee receives for service in the uniformed services during such period1 and 7ii7 the taxpayer has in place at all times during the taxable year a written policy for the recruitment of employees who have served in the uniformed services or who are disabled4 7#c7 ,special rules for applying the minimum wage and retirement plan requirements 7,a7 ,minimum wage ,in determining whether the minimum wage requirements of paragraph 7#a77;,d77i77,i7 are met with respect to #ij percent of a taxpayer's employees for any taxable year-- 7i7 a taxpayer may elect to exclude from such determination apprentices or learners that an employer may exclude under the regulations under section #ad7;a7 of the ,fair ,labor ,standards ,act of #aich1 and 7ii7 if a taxpayer meets the requirements of paragraph 7#b77;,b77i7 with respect to providing differential wage payments to any employee for any period 7without regard to whether such requirements apply to the taxpayer71 the hourly rate 7or equivalent thereof7 for such payments shall be determined on the basis of the wages which would have been paid by the employer during such period if the employee had not been providing service in the uniformed services4 7,b7 ,retirement plan ,in determining whether the retirement plan requirements of paragraph 7#a77;,d77i77,,ii7 are met with respect to #ij percent of a taxpayer's employees for any taxable year1 a taxpayer may elect to exclude from such determination-- 7i7 employees not meeting the age or service requirements under section #daj7;a77#a7 7or such lower age or service requirements as the employer provides71 and 7ii7 employees described in section #daj7;b77#c74 7c7 ,retirement plan requirements 7#a7 ,in general ,the requirements of this subsection are met for any taxable year with respect to an employee of the taxpayer who is not a highly compensated employee if the employee is eligible to participate in #a or more applicable eligible retirement plans maintained by the employer for a plan year ending with or within the taxable year4 7#b7 ,applicable eligible retirement plan ,for purposes of this subsection1 the term applicable eligible retirement plan means an eligible retirement plan which1 with respect to the plan year described in paragraph 7#a71 is either-- 7,a7 a defined contribution plan which-- 7i7 requires the employer to make nonelective contributions of at least #e percent of the compensation of the employee1 or 7ii7 both-- 7,i7 includes an eligible automatic contribution arrangement 7as defined in section #dad7w77#c77 under which the uniform percentage described in section #dad7w77#c77;,b7 is at least #e percent1 and 7,,ii7 requires the employer to make matching contributions of #ajj percent of the elective deferrals 7as defined in section #dad7u77#b77;,c77 of the employee to the extent such deferrals do not exceed the percentage specified by the plan 7not less than #e percent7 of the employee's compensation1 or 7,b7 a defined benefit plan-- 7i7 with respect to which the accrued benefit of the employee derived from employer contributions1 when expressed as an annual retirement benefit1 is not less than the product of-- 7,i7 the lesser of #b percent multiplied by the employee's years of service 7determined under the rules of paragraphs 7#d71 7#e71 and 7#f7 of section #daa7;a77 with the employer or #bj percent1 multiplied by 7,,ii7 the employee's final average pay1 or 7ii7 which is an applicable defined benefit plan 7as defined in section #daa7;a77#ac77;,b77-- 7,i7 which meets the interest credit requirements of section #daa7;b77#e77;,b77i7 with respect to the plan year1 and 7,,ii7 under which the employee receives a pay credit for the plan year which is not less than #e percent of compensation4 7#c7 ,definitions and special rules ,for purposes of this subsection-- 7,a7 ,eligible retirement plan ,the term eligible retirement plan has the meaning given such term by section #djb7;c77#h77;,b71 except that in the case of an account or annuity described in clause 7i7 or 7ii7 thereof1 such term shall only include an account or annuity which is a simplified employee pension 7as defined in section #djh7k774 7,b7 ,final average pay ,for purposes of paragraph 7#b77;,b77i77,,ii71 final average pay shall be determined using the period of consecutive years 7not exceeding #e7 during which the employee had the greatest compensation from the taxpayer4 7,c7 ,alternative plan designs ,the ,secretary may prescribe regulations for a taxpayer to meet the requirements of this subsection through a combination of defined contribution plans or defined benefit plans described in paragraph 7#a7 or through a combination of both such types of plans4 7,d7 ,plans must meet requirements without taking into account ,social ,security and similar contributions and benefits ,a rule similar to the rule of section #daf7;e7 shall apply4 7d7 ,qualified wages and compensation ,for purposes of this section-- 7#a7 ,in general ,the term qualified wages means wages 7as defined in section #ea7;c71 determined without regard to paragraph 7#d7 thereof7 paid or incurred by the ,patriot employer during the taxable year to employees-- 7,a7 who perform substantially all of their services for such ,patriot employer inside the ,united ,states1 and 7,b7 with respect to whom-- 7i7 in the case of a ,patriot employer which employs an average of more than #ej employees on business days during the taxable year1 the requirements of subclauses 7,i7 and 7,,ii7 of subsection 7b77#a77;,d77i7 are met1 and 7ii7 in the case of any other ,patriot employer1 the requirements of either subclause 7,i7 or 7,,ii7 of subsection 7b77#a77;,d77i7 are met4 7#b7 ,special rules for agricultural labor and railway labor ,rules similar to the rules of section #ea7;h7 shall apply4 7#c7 ,compensation ,for purposes of subsections 7b77#a77;,d77i77,i7 and 7c71 the term compensation has the same meaning as qualified wages1 except that section #ea7;c77#b7 shall be disregarded in determining the amount of such wages4 7e7 ,aggregation ,rules ,for purposes of this section-- 7#a7 ,in general ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb shall be treated as a single taxpayer4 7#b7 ,special rules for certain requirements ,for purposes of applying paragraphs 7#a77;,a7 and 7#b77;,a7 of subsection 7b7-- 7,a7 the determination under subsections 7a7 and 7b7 of section #eb for purposes of paragraph 7#a7 shall be made without regard to section #aefc7;b77#b77;,c7 7relating to exclusion of foreign corporations71 and 7,b7 if any person treated as a single taxpayer under this subsection 7after application of subparagraph 7,a771 or any predecessor of such person1 was an expatriated entity 7as defined in section #ghgd7;a77#b77 for any taxable year ending after ,march #d1 #bjjc1 then all persons treated as a single taxpayer with such person shall be treated as expatriated entities4 7f7 ,election ,to have credit not apply 7#a7 ,in general ,a taxpayer may elect to have this section not apply for any taxable year4 7#b7 ,time for making election ,an election under paragraph 7#a7 for any taxable year may be made 7or revoked7 at any time before the expiration of the #c-year period beginning on the last date prescribed by law for filing the return for such taxable year 7determined without regard to extensions74 7#c7 ,manner of making election ,an election under paragraph 7#a7 7or revocation thereof7 shall be made in such manner as the ,secretary may by regulations prescribe4 4 7b7 ,allowance as general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following3 7#cc7 in the case of a ,patriot employer 7as defined in section #de,t7b77 for any taxable year1 the ,patriot employer credit determined under section #de,t7a74 4 7c7 ,denial of double benefit ,subsection 7a7 of section #bhj;,c of the ,internal ,revenue ,code of #aihf is amended by inserting #de,t7a71 after #de,s7a714 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4