,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #hjb  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #be1 #bjai,ms4
 ,s*ak[sky 7= h]self1 ,mr4 ,br5dan ,f4  
,boyle ( ,p5nsylvania1 & ,mr4 ,veasey7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide a tax cr$it to 
,patriot employ]s1 & = o!r purposes4    
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,patriot ,employ] ,act ( #bjai4  #b4  
,patriot employ] tax cr$it  7a7 ,9 g5]al
 ,subp>t ,d ( "p ,,iv ( sub*apt] ,a (   
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #de,t4 ,patriot employ]  
tax cr$it  7a7 ,det]m9ation ( am\nt     
7#a7 ,9 g5]al ,= purposes ( section #ch1
 ! ,patriot employ] cr$it det]m9$ "u ?is
 section ) respect to any taxpay] :o is 
a ,patriot employ] = any taxable ye>    
%all be equal to #aj p]c5t ( ! qualifi$ 
wages paid or incurr$ by ! ,patriot     
employ]4  7#b7 ,limitation ,! am\nt (   

qualifi$ wages :i* may be tak5 into     
acc\nt "u p>agraph 7#a7 ) respect to any
 employee = any taxable ye> %all n exce$
 #ae1jjj4  7b7 ,patriot employ]  7#a7 ,9
 g5]al ,= purposes ( subsection 7a71 !  
t]m ,patriot employ] means1 ) respect to
 any taxable ye>1 any taxpay]-- 7,a7    
:i*--  7i7 ma9ta9s its headqu>t]s 9 !   
,unit$ ,/ates if ! taxpay] 7or any      
pr$ecessor7 has ev] be5 headqu>t]$ 9 !  
,unit$ ,/ates1 &  7ii7 is n 7& no       
pr$ecessor ( :i* is7 an expatriat$      
entity 7z def9$ 9 section #ghgd7;a77#b77
 = ! taxable ye> or any prec$+ taxable  
ye> end+ aft] ,m>* #d1 #bjjc1  7,b7 )   
respect to :i* no assessable paym5t has 
be5 impos$ "u section #dihj;,h ) respect
 to any mon? occurr+ dur+ ! taxable ye>1
  7,c7 :i* provides all employees )--   
7i7 paid sick leave1 or  7ii7 paid      
family & m$ical leave1 &  7,d7 9 ! case 
(--  7i7 a taxpay] :i* employs an av]age
 ( m ?an #ej employees on bus9ess days  
dur+ ! taxable ye>1 :i*--  7,i7 provides
 comp5sation = at lea/ #ij p]c5t ( its  

employees = s]vices provid$ by su*      
employees dur+ ! taxable ye> at an h\rly
 rate 7or equival5t !re(7 n less ?an an 
am\nt equal to #bah p]c5t ( ! ,f$]al    
pov]ty level = an individual = ! cal5d> 
ye> 9 :i* ! taxable ye> beg9s divid$ by 
#a1gej1  7,,ii7 meets ! retirem5t plan  
requirem5ts ( subsection 7c7 ) respect  
to at lea/ #ij p]c5t ( its employees    
provid+ s]vices dur+ ! taxable ye> :o   
are n highly comp5sat$ employees1 &     
7,,iii7 meets ! additional requirem5ts (
 subp>agraphs 7,a7 & 7,b7 ( p>agraph    
7#b71 or  7ii7 any o!r taxpay]1 :i*     
meets ! requirem5ts ( ei!r subclause    
7,i7 or 7,,ii7 ( clause 7i7 = ! taxable 
ye>4  7#b7 ,additional requirem5ts =    
l>ge employ]s  7,a7 ,unit$ ,/ates       
employm5t ,! requirem5ts ( ?is          
subp>agraph are met = any taxable ye>   
if-- 7i7 9 any case 9 :i* ! taxpay]     
increases ! numb] ( employees p]=m+     
sub/antially all ( _! s]vices = !       
taxable ye> outside ! ,unit$ ,/ates1 !  
taxpay] ei!r--  7,i7 increases ! numb] (

 employees p]=m+ sub/antially all ( _!  
s]vices inside ! ,unit$ ,/ates by an    
am\nt n less ?an ! increase 9 su* numb] 
= employees outside ! ,unit$ ,/ates1 or 
7,,ii7 has a p]c5tage increase 9 su*    
employees inside ! ,unit$ ,/ates :i* is 
n less ?an ! p]c5tage increase 9 su*    
employees outside ! ,unit$ ,/ates1  7ii7
 9 any case 9 :i* ! taxpay] decreases ! 
numb] ( employees p]=m+ sub/antially all
 ( _! s]vices = ! taxable ye> inside !  
,unit$ ,/ates1 ! taxpay] ei!r--  7,i7   
decreases ! numb] ( employees p]=m+     
sub/antially all ( _! s]vices outside ! 
,unit$ ,/ates by an am\nt n less ?an !  
decrease 9 su* numb] = employees inside 
! ,unit$ ,/ates1 or  7,,ii7 has a       
p]c5tage decrease 9 employees outside ! 
,unit$ ,/ates :i* is n less ?an !       
p]c5tage decrease 9 su* employees inside
 ! ,unit$ ,/ates1 &  7iii7 !re is n a   
decrease 9 ! numb] ( employees p]=m+    
sub/antially all ( _! s]vices = !       
taxable ye> inside ! ,unit$ ,/ates by   
reason ( ! taxpay] contract+ out su*    

s]vices to p]sons :o are n employees ( !
 taxpay]4  7,b7 ,treatm5t ( individuals 
9 ! uni=m$ s]vices & ! disabl$ ,!       
requirem5ts ( ?is subp>agraph are met = 
any taxable ye> if-- 7i7 ! taxpay]      
provides diff]5tial wage paym5ts 7z     
def9$ 9 section #cdja7;h77#b77 to ea*   
employee describ$ 9 section             
#cdja7;h77#b77;,a7 = any p]iod dur+ !   
taxable ye> 9 an am\nt n less ?an !     
diff]5ce betwe5 ! wages :i* w\ld h be5  
receiv$ f ! employ] dur+ su* p]iod & !  
am\nt ( pay & all[ances :i* ! employee  
receives = s]vice 9 ! uni=m$ s]vices    
dur+ su* p]iod1 &  7ii7 ! taxpay] has 9 
place at all times dur+ ! taxable ye> a 
writt5 policy = ! recruitm5t ( employees
 :o h s]v$ 9 ! uni=m$ s]vices or :o are 
disabl$4  7#c7 ,special rules = apply+ !
 m9imum wage & retirem5t plan           
requirem5ts  7,a7 ,m9imum wage ,9       
det]m9+ :e!r ! m9imum wage requirem5ts (
 p>agraph 7#a77;,d77i77,i7 are met )    
respect to #ij p]c5t ( a taxpay]'s      
employees = any taxable ye>--  7i7 a    

taxpay] may elect to exclude f su*      
det]m9ation appr5tices or le>n]s t an   
employ] may exclude "u ! regulations "u 
section #ad7;a7 ( ! ,fair ,labor ,/&>ds 
,act ( #aich1 &  7ii7 if a taxpay] meets
 ! requirem5ts ( p>agraph 7#b77;,b77i7 )
 respect to provid+ diff]5tial wage     
paym5ts to any employee = any p]iod 7)\t
 reg>d to :e!r su* requirem5ts apply to 
! taxpay]71 ! h\rly rate 7or equival5t  
!re(7 = su* paym5ts %all be det]m9$ on !
 basis ( ! wages :i* w\ld h be5 paid by 
! employ] dur+ su* p]iod if ! employee  
_h n be5 provid+ s]vice 9 ! uni=m$      
s]vices4  7,b7 ,retirem5t plan ,9       
det]m9+ :e!r ! retirem5t plan           
requirem5ts ( p>agraph                  
7#a77;,d77i77,,ii7 are met ) respect to 
#ij p]c5t ( a taxpay]'s employees = any 
taxable ye>1 a taxpay] may elect to     
exclude f su* det]m9ation--  7i7        
employees n meet+ ! age or s]vice       
requirem5ts "u section #daj7;a77#a7 7or 
su* l[] age or s]vice requirem5ts z !   
employ] provides71 &  7ii7 employees    

describ$ 9 section #daj7;b77#c74  7c7   
,retirem5t plan requirem5ts  7#a7 ,9    
g5]al ,! requirem5ts ( ?is subsection   
are met = any taxable ye> ) respect to  
an employee ( ! taxpay] :o is n a highly
 comp5sat$ employee if ! employee is    
eligible to p>ticipate 9 #a or m        
applicable eligible retirem5t plans     
ma9ta9$ by ! employ] = a plan ye> end+ )
 or )9 ! taxable ye>4  7#b7 ,applicable 
eligible retirem5t plan ,= purposes (   
?is subsection1 ! t]m applicable        
eligible retirem5t plan means an        
eligible retirem5t plan :i*1 ) respect  
to ! plan ye> describ$ 9 p>agraph 7#a71 
is ei!r--  7,a7 a def9$ contribution    
plan :i*-- 7i7 requires ! employ] to    
make nonelective contributions ( at lea/
 #e p]c5t ( ! comp5sation ( ! employee1 
or  7ii7 bo?-- 7,i7 includes an eligible
 automatic contribution arrangem5t 7z   
def9$ 9 section #dad7w77#c77 "u :i* !   
uni=m p]c5tage describ$ 9 section       
#dad7w77#c77;,b7 is at lea/ #e p]c5t1 & 
7,,ii7 requires ! employ] to make mat*+ 

contributions ( #ajj p]c5t ( ! elective 
def]rals 7z def9$ 9 section             
#dad7u77#b77;,c77 ( ! employee to !     
ext5t su* def]rals d n exce$ ! p]c5tage 
specifi$ by ! plan 7n less ?an #e p]c5t7
 ( ! employee's comp5sation1 or  7,b7 a 
def9$ b5efit plan-- 7i7 ) respect to :i*
 ! accru$ b5efit ( ! employee d]iv$ f   
employ] contributions1 :5 express$ z an 
annual retirem5t b5efit1 is n less ?an !
 product (--  7,i7 ! less] ( #b p]c5t   
multipli$ by ! employee's ye>s ( s]vice 
7det]m9$ "u ! rules ( p>agraphs 7#d71   
7#e71 & 7#f7 ( section #daa7;a77 ) !    
employ] or #bj p]c5t1 multipli$ by      
7,,ii7 ! employee's f9al av]age pay1 or 
7ii7 :i* is an applicable def9$ b5efit  
plan 7z def9$ 9 section                 
#daa7;a77#ac77;,b77--  7,i7 :i* meets ! 
int]e/ cr$it requirem5ts ( section      
#daa7;b77#e77;,b77i7 ) respect to ! plan
 ye>1 &  7,,ii7 "u :i* ! employee       
receives a pay cr$it = ! plan ye> :i* is
 n less ?an #e p]c5t ( comp5sation4     
7#c7 ,def9itions & special rules ,=     

purposes ( ?is subsection-- 7,a7        
,eligible retirem5t plan ,! t]m eligible
 retirem5t plan has ! mean+ giv5 su* t]m
 by section #djb7;c77#h77;,b71 except t 
9 ! case ( an acc\nt or annuity describ$
 9 clause 7i7 or 7ii7 !re(1 su* t]m %all
 only include an acc\nt or annuity :i*  
is a simplifi$ employee p5sion 7z def9$ 
9 section #djh7k774  7,b7 ,f9al av]age  
pay ,= purposes ( p>agraph              
7#b77;,b77i77,,ii71 f9al av]age pay %all
 be det]m9$ us+ ! p]iod ( consecutive   
ye>s 7n exce$+ #e7 dur+ :i* ! employee  
_h ! greate/ comp5sation f ! taxpay]4   
7,c7 ,alt]native plan designs ,!        
,secret>y may prescribe regulations = a 
taxpay] to meet ! requirem5ts ( ?is     
subsection ?r\gh a comb9ation ( def9$   
contribution plans or def9$ b5efit plans
 describ$ 9 p>agraph 7#a7 or ?r\gh a    
comb9ation ( bo? su* types ( plans4     
7,d7 ,plans mu/ meet requirem5ts )\t    
tak+ into acc\nt ,social ,security &    
simil> contributions & b5efits ,a rule  
simil> to ! rule ( section #daf7;e7 %all

 apply4  7d7 ,qualifi$ wages &          
comp5sation ,= purposes ( ?is section-- 
7#a7 ,9 g5]al ,! t]m qualifi$ wages     
means wages 7z def9$ 9 section #ea7;c71 
det]m9$ )\t reg>d to p>agraph 7#d7 !re(7
 paid or incurr$ by ! ,patriot employ]  
dur+ ! taxable ye> to employees--  7,a7 
:o p]=m sub/antially all ( _! s]vices = 
su* ,patriot employ] inside ! ,unit$    
,/ates1 &  7,b7 ) respect to :om-- 7i7 9
 ! case ( a ,patriot employ] :i* employs
 an av]age ( m ?an #ej employees on     
bus9ess days dur+ ! taxable ye>1 !      
requirem5ts ( subclauses 7,i7 & 7,,ii7 (
 subsection 7b77#a77;,d77i7 are met1 &  
7ii7 9 ! case ( any o!r ,patriot        
employ]1 ! requirem5ts ( ei!r subclause 
7,i7 or 7,,ii7 ( subsection             
7b77#a77;,d77i7 are met4  7#b7 ,special 
rules = agricultural labor & railway    
labor ,rules simil> to ! rules ( section
 #ea7;h7 %all apply4  7#c7 ,comp5sation 
,= purposes ( subsections               
7b77#a77;,d77i77,i7 & 7c71 ! t]m        
comp5sation has ! same mean+ z qualifi$ 

wages1 except t section #ea7;c77#b7 %all
 be disreg>d$ 9 det]m9+ ! am\nt ( su*   
wages4  7e7 ,aggregation ,rules ,=      
purposes ( ?is section-- 7#a7 ,9 g5]al  
,all p]sons treat$ z a s+le employ] "u  
subsection 7a7 or 7b7 ( section #eb %all
 be treat$ z a s+le taxpay]4  7#b7      
,special rules = c]ta9 requirem5ts ,=   
purposes ( apply+ p>agraphs 7#a77;,a7 & 
7#b77;,a7 ( subsection 7b7-- 7,a7 !     
det]m9ation "u subsections 7a7 & 7b7 (  
section #eb = purposes ( p>agraph 7#a7  
%all be made )\t reg>d to section       
#aefc7;b77#b77;,c7 7relat+ to exclusion 
( =eign corporations71 &  7,b7 if any   
p]son treat$ z a s+le taxpay] "u ?is    
subsection 7aft] application (          
subp>agraph 7,a771 or any pr$ecessor (  
su* p]son1 0 an expatriat$ entity 7z    
def9$ 9 section #ghgd7;a77#b77 = any    
taxable ye> end+ aft] ,m>* #d1 #bjjc1 !n
 all p]sons treat$ z a s+le taxpay] )   
su* p]son %all be treat$ z expatriat$   
entities4  7f7 ,election ,to h cr$it n  
apply  7#a7 ,9 g5]al ,a taxpay] may     

elect to h ?is section n apply = any    
taxable ye>4  7#b7 ,"t = mak+ election  
,an election "u p>agraph 7#a7 = any     
taxable ye> may be made 7or revok$7 at  
any "t be=e ! expiration ( ! #c-ye>     
p]iod beg9n+ on ! la/ date prescrib$ by 
law = fil+ ! return = su* taxable ye>   
7det]m9$ )\t reg>d to ext5sions74  7#c7 
,mann] ( mak+ election ,an election "u  
p>agraph 7#a7 7or revocation !re(7 %all 
be made 9 su* mann] z ! ,secret>y may by
 regulations prescribe4  4  7b7         
,all[ance z g5]al bus9ess cr$it ,section
 #ch7;b7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ plus at ! end ( 
p>agraph 7#ca71 by /rik+ ! p]iod at !   
end ( p>agraph 7#cb7 & ins]t+ 1 plus1 & 
by add+ at ! end ! foll[+3  7#cc7 9 !   
case ( a ,patriot employ] 7z def9$ 9    
section #de,t7b77 = any taxable ye>1 !  
,patriot employ] cr$it det]m9$ "u       
section #de,t7a74  4  7c7 ,d5ial ( d\ble
 b5efit ,subsection 7a7 ( section       
#bhj;,c ( ! ,int]nal ,rev5ue ,code (    
#aihf is am5d$ by ins]t+ #de,t7a71 aft] 

#de,s7a714  7d7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjai4