To amend the Internal Revenue Code of 1986 to allow employers a tax credit for hiring displaced homemakers.

January 6, 2005

Mr. BILIRAKIS introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow employers a tax credit for hiring displaced homemakers.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. DISPLACED HOMEMAKERS ESTABLISHED AS A TARGETED GROUP FOR PURPOSES OF COMPUTING THE CREDIT FOR EMPLOYMENT OF CERTAIN NEW EMPLOYEES.

(a) General Rule- Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 (relating to members of targeted groups) is amended by striking `or' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting `, or', and by adding at the end the following new subparagraph:

`(I) a displaced homemaker.'.

(b) Displaced Homemaker Defined- Section 51(d) of such Code (relating to members of targeted groups) is amended by redesignating paragraphs (10), (11), and (12) as paragraphs (11), (12), and (13), respectively, and by inserting after paragraph (9) the following new paragraph:

`(10) DISPLACED HOMEMAKER- The term `displaced homemaker' means an individual who--

`(A) has not worked in the labor force for the 5-year period ending on the hiring date but has, during such period, worked in the home providing unpaid services for family members, and

`(B)(i) has been dependent on public assistance or on the income of another family member but is no longer supported by that income, or

`(ii) is receiving public assistance on account of dependent children in the home.'.

(c) Termination not to Apply- Paragraph (4) of section 51(c) of such Code (relating to termination) is amended by adding at the end thereof the following flush sentence:

`The preceding sentence shall not apply in the case of any displaced homemaker.'.

(d) Effective Date- The amendments made by this section shall apply to amounts paid or incurred after the date of enactment of this Act to individuals who begin work for the employer after such date.

END