,,ii #aagth ,,congress #ast ,session ,s4 #ecf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #b 7legislative day1 ,march #a71 #bjba ,mr4 ,hawley 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 provide a credit for wages received by individuals that are less than the median wage4 #a4 ,short title ,this ,act may be cited as the ,blue ,collar ,bonus ,act of #bjba4 #b4 ,blue collar bonus tax credit 7a7 ,in general 7#a7 ,allowance of credit ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf;,b the following3 #cf;,c4 ,credit for wages paid at a rate less than the median wage 7a7 ,credit allowed 7#a7 ,in general ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the sum of the amounts determined under paragraph 7#b7 for each individual included on the taxpayer's return of tax for the taxable year4 7#b7 ,amount per individual ,the amount determined under this paragraph with respect to any individual shall be the product of-- 7,a7 the blue collar bonus amount of such individual for the taxable year1 and 7,b7 the number of hours for which the individual performed services for which wages were paid during such taxable year4 7b7 ,blue collar bonus amount ,for purposes of this section-- 7#a7 ,in general ,the term blue collar bonus amount means1 with respect to any individual for any taxable year1 #ej percent of the excess 7if any7 of-- 7,a7 the median wage rate for such taxable year1 over 7,b7 the average hourly wages received by the individual during the taxable year4 7#b7 ,non-hourly wage rate ,for purposes of paragraph 7#a77;,a71 in the case of any individual who is not paid on an hourly wage rate1 the wages of such employee shall be prorated to an hourly wage rate under regulations established by the ,secretary4 7#c7 ,median wage rate 7,a7 ,in general ,the median wage rate is #af4ej per hour4 7,b7 ,adjustment 7i7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjba1 the #af4ej amount under subparagraph 7,a7 shall each be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting in subparagraph 7,a77ii7 thereof calendar year #bjbj for calendar year #bjaf4 7ii7 ,rounding ,if any amount as adjusted under paragraph 7#a7 is not a multiple of #j4aj1 such dollar amount shall be rounded to the next lowest multiple of #j4aj4 7c7 ,number of hours taken into account ,for purposes of subsection 7a77#b77;,b7 and for purposes of determining the average hourly wages of an individual under subsection 7b77#a77;,b71 the number of hours taken into account shall not exceed-- 7#a7 for any week1 #dj1 and 7#b7 for any taxable year1 #bjhj4 7d7 ,other definitions and special rules 7#a7 ,wages ,the term wages has the meaning given such term by subsection 7b7 of section #ccjf 7determined without regard to any dollar limitation contained in such section74 7#b7 ,treatment of dependents ,if a deduction under section #aea with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins1 no credit shall be allowed under subsection 7a7 to such individual for such individual's taxable year4 7#c7 ,nonresident aliens ,this section shall not apply to any taxpayer that is a nonresident alien for the taxable year4 7e7 ,identification requirement ,no credit shall be allowed under this section to a taxpayer with respect to any individual unless the taxpayer includes the social security number of such individual on the return of tax for the taxable year4 ,for purposes of the preceding sentence1 the term social security number means a social security number issued to an individual by the ,social ,security ,administration1 but only if the social security number is issued-- 7#a7 to a citizen of the ,united ,states or pursuant to subclause 7,i7 7or that portion of subclause 7,,iii7 that relates to subclause 7,i77 of section #bje7;c77#b77;,b77i7 of the ,social ,security ,act1 and 7#b7 before the due date for such return4 7f7 ,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 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 fraud or to reckless or intentional disregard of rules and regulations4 7g7 ,reconciliation of credit and advance credit 7#a7 ,in general ,the amount of the credit allowed under this section to any taxpayer for any taxable year shall be reduced 7but not below zero7 by the aggregate amount of payments made under section #gebg;,a to such taxpayer during such taxable year4 ,any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section #fbac7;b77#a74 7#b7 ,excess advance payments 7,a7 ,in general ,if the aggregate amount of payments under section #gebg;,a to the taxpayer during the taxable year exceeds the amount of the credit allowed under this section to such taxpayer for such taxable year 7determined without regard to paragraph 7#a771 the tax imposed by this chapter for such taxable year shall be increased by the amount of such excess4 ,any failure to so increase the tax shall be treated as arising out of a mathematical or clerical error and assessed according to section #fbac7;b77#a74 7,b7 ,safe harbor based on modified adjusted gross income 7i7 ,in general ,subparagraph 7,a7 shall not apply to any taxpayer whose adjusted gross income for the taxable year does not exceed #ej1jjj 7#ajj1jjj1 in the case of a joint return74 7ii7 ,limitation on increase ,in the case of a taxpayer whose adjusted gross income exceeds #ej1jjj 7#ajj1jjj1 in the case of a joint return71 the amount of the increase under subparagraph 7,a7 shall not exceed the excess of-- 7,i7 the adjusted gross income of the taxpayer for the taxable year1 over 7,,ii7 #ej1jjj 7#ajj1jjj1 in the case of a joint return74 7h7 ,regulations ,the ,secretary may prescribe such rules or other guidance as may be necessary to carry out the purposes of this section and section #gebg;,a1 including-- 7#a7 rules or guidance related to the treatment of tipped workers1 7#b7 rules or guidance related to minimizing compliance and record-keeping burdens1 7#c7 rules or guidance related to individuals who receive wages from multiple employers1 and 7#d7 in consultation with the ,secretary of ,labor1 rules or guidance related to the prevention of reduced wages or hours worked on account of the benefit provided under this section4 7i7 ,termination ,this section shall not apply to any taxable year beginning after ,december #ca1 #bjbc4 4 7#b7 ,conforming amendments 7,a7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7,b7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting after the item related to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,credit for wages paid at a rate less than the median wage4 4 7b7 ,advance payment of credit 7#a7 ,in general ,chapter #gg of such ,code is amended by inserting after section #gebg the following new section3 #gebg;,a4 ,advance payment of wage tax credit 7a7 ,in general ,as soon as practical but not later than #ij days after the date of the enactment of this section1 the ,secretary shall establish a program for making periodic payments to taxpayers in an amount equal to the amount of the credit the taxpayer would receive under section #cf;,c if the last day of the taxable year were the last day of the applicable period for which the payment is made4 7b7 ,length of period ,payments under the program established under subsection 7a7 shall be made not less than quarterly4 7c7 ,adjustments ,the ,secretary may adjust the amount of any payment to properly take into account the amount by which any payment made before such date was greater than or less than the amount that such payment would have been on the basis of data for any subsequent period4 7d7 ,information reporting ,the ,secretary shall require the submission of additional information concerning the wages paid by employers for purposes of providing advance payments under this section4 ,such information may be provided as part of existing reporting requirements4 7e7 ,on-,line information portal ,the ,secretary shall establish an on-line portal which allows taxpayers to-- 7#a7 elect not to receive payments under this section1 and 7#b7 provide such information as the ,secretary may require to facilitate an advance payment of the credit to the eligible individual4 7f7 ,notice of payments ,not later than ,january #ca of the calendar year following any calendar year during which the ,secretary makes one or more payments to any taxpayer under this section1 the ,secretary shall provide such taxpayer with a written notice which includes the taxpayer's taxpayer identity 7as defined in section #fajc7;b77#f771 the aggregate amount of such payments made to such taxpayer during such calendar year1 and such other information as the ,secretary determines appropriate4 7g7 ,administrative provisions 7#a7 ,application of direct deposit requirement ,solely for purposes of section #cccb of title #ca1 ,united ,states ,code 7and notwithstanding the last sentence of subsection 7j77#c7 thereof71 the payments made by the ,secretary under subsection 7a7 shall be treated as ,federal payments4 7#b7 ,delivery of payments ,notwithstanding any other provision of law1 the ,secretary may certify and disburse refunds payable under this section electronically to-- 7,a7 any account to which the payee received or authorized1 on or after ,january #a1 #bjai1 a refund of taxes under this title or a ,federal payment 7as defined in section #cccb of title #ca1 ,united ,states ,code71 7,b7 any account belonging to a payee from which that individual1 on or after ,january #a1 #bjai1 made a payment of taxes under this title1 or 7,c7 any ,treasury-sponsored account 7as defined in section #bjh4b of title #ca1 ,code of ,federal ,regulations74 7#c7 ,waiver of certain rules ,notwithstanding section #ccbe of title #ca1 ,united ,states ,code1 or any other provision of law1 with respect to any payment of a refund under this section1 a disbursing official in the executive branch of the ,united ,states ,government may modify payment information received from an officer or employee described in section #ccbe7;a77#a77;,b7 of such title for the purpose of facilitating the accurate and efficient delivery of such payment4 ,except in cases of fraud or reckless neglect1 no liability under section #ccbe1 #cebg1 #cebh1 or #cebi of title #ca1 ,united ,states ,code1 shall be imposed with respect to payments made under this paragraph4 7#d7 ,exception from reduction or offset ,any payment made to any individual under this section shall not be-- 7,a7 subject to reduction or offset pursuant to section #cgaf or #cgbj;,a of title #ca1 ,united ,states ,code1 7,b7 subject to reduction or offset pursuant to subsection 7d71 7e71 or 7f7 of section #fdjb1 or 7,c7 reduced or offset by other assessed ,federal taxes that would otherwise be subject to levy or collection4 4 7#b7 ,conforming amendments 7,a7 ,section #bf7;b77#b7 of such ,code is amended by striking and at the end of subparagraph 7,x71 by striking the period at the end of subparagraph 7,y7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,z7 section #cf;,c7g77#b7 7relating to excess advance payments74 4 7,b7 ,section #fbaa7;b77#d77;,a7 of such ,code1 as amended by the preceding provisions of this subtitle1 is amended-- 7i7 by inserting #cf;,c after #cf;,b1 and 7ii7 by striking and #fdbh;,a and inserting #fdbh;,a1 and #gebg;,a4 7,c7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by striking or #fdca and inserting #fdca1 or #gebg;,a4 7,d7 ,the table of sections for chapter #gg of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #gebg the following new item3 ,sec4 #gebg;,a4 ,advance payment of wage tax credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbj4