,,ii  #aafth ,,congress  #ast ,session  
,s4 #aedh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bj1      
#bjai,mr4 ,tester 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 modify the   
rate of tax on corporations             
participating in labor lockouts and to  
prohibit deductions and credits for     
wages and benefits paid to temporary    
workers during labor lockouts4  #a4     
,short title ,this ,act may be cited as 
the ,prohibiting ,incentives for        
,corporations that ,kickout ,employees  
,tax 7,,picket7 ,act4  #b4 ,rate of tax 
for corporations participating in labor 
lockouts  7a7 ,in general ,section #aa  
of the ,internal ,revenue ,code of #aihf
 is amended by redesignating subsections
 7c7 and 7d7 as subsections 7d7 and 7e71
 respectively1 and by inserting after   
subsection 7b7 the following new        
subsection3  7c7 ,exception for         

disqualified corporations  7#a7 ,in     
general ,in the case of any corporation 
participating in a labor lockout during 
the taxable year1 subsection 7b7 shall  
be applied by substituting #ce percent  
for #ba percent4  7#b7 ,labor lockout   
,for purposes of this subsection1 the   
term labor lockout means a labor dispute
 involving a work stoppage1 wherein an  
employer withholds work from its        
employees in order to gain a concession 
from them4  4  7b7 ,conforming          
amendments  7#a7 ,the heading of section
 #aa7;d7 of the ,internal ,revenue ,code
 of #aihf 7as redesignated by subsection
 7a77 is amended by striking ,exceptions
 and inserting ,other exceptions4  7#b7 
,section #bhj;,c7c77#b77;,b77ii77,,ii7  
of such ,code is amended by inserting   
7section #aa7;c71 in the case of a      
corporation described in such section7  
after section #aa7;b74  7c7 ,effective  
date ,the amendments made by this       
section shall apply to taxable years    
beginning after the date of the         

enactment of this ,act4  #c4 ,denial of 
deduction and credits for wages and     
benefits paid to temporary workers      
during a labor lockout  7a7 ,deduction  
7#a7 ,in general ,part ,,ix of          
subchapter ,b of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  #bhj;,i4     
,remuneration paid during labor lockouts
  7a7 ,in general ,no deduction shall be
 allowed for any remuneration paid by   
the taxpayer 7including wages or other  
benefits7 to any temporary replacement  
worker during a labor lockout 7as       
defined in section #aa7;c77#b774  7b7   
,temporary replacement worker ,for      
purposes of subsection 7a71 the term    
temporary replacement worker means any  
individual compensated to perform duties
 normally performed by employees from   
whom work is withheld under the labor   
lockout4  4  7#b7 ,clerical amendment   
,the table of sections for part ,,ix of 
subchapter ,b of chapter #a of such     

,code is amended by adding at the end   
the following new item3  ,sec4 #bhj;,i4 
,remuneration paid during labor         
lockouts4  4  7b7 ,credits  7#a7        
,research credit ,section               
#da7;b77#b77;,d7 of the ,internal       
,revenue ,code of #aihf is amended by   
adding at the end the following new     
clause3  7iv7 ,exclusion for wages paid 
during a labor lockout ,the term wages  
shall not include any amount paid to a  
temporary replacement worker 7as defined
 in section #bhj;,i7 during a labor     
lockout 7as defined in section          
#aa7;c77#b774  4  7#b7 ,work opportunity
 credit ,section #ea7;c7 of such ,code  
is amended by adding at the end the     
following new paragraph3  7#f7          
,exclusion for wages paid during a labor
 lockout ,the term wages shall not      
include any amount paid to a temporary  
replacement worker 7as defined in       
section #bhj;,i7 during a labor lockout 
7as defined in section #aa7;c77#b774  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