109th CONGRESS
2d Session
S. 3977
To provide a Federal income tax credit for Patriot employers, and
for other purposes.
IN THE SENATE OF THE UNITED STATES
September 28, 2006
Mr. DURBIN (for himself and Mr. OBAMA) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To provide a Federal income tax credit for Patriot employers, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. REDUCED TAXES FOR PATRIOT EMPLOYERS.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by adding at the end the following
new section:
`SEC. 45N. REDUCTION IN TAX OF PATRIOT EMPLOYERS.
`(a) In General- In the case of any taxable year with respect to which a
taxpayer is certified by the Secretary as a Patriot employer, the Patriot
employer credit determined under this section for purposes of section 38
shall be equal to 1 percent of the taxable income of the taxpayer which
is properly allocable to all trades or businesses with respect to which
the taxpayer is certified as a Patriot employer for the taxable year.
`(b) Patriot Employer- For purposes of subsection (a), the term `Patriot
employer' means, with respect to any taxable year, any taxpayer which--
`(1) maintains its headquarters in the United States if the taxpayer has
ever been headquartered in the United States,
`(2) pays at least 60 percent of each employee's health care premiums,
`(3) if such taxpayer employs at least 50 employees on average during
the taxable year--
`(A) maintains or increases the number of full-time workers in the United
States relative to the number of full-time workers outside of the United
States,
`(B) compensates each employee of the taxpayer at an hourly rate (or
equivalent thereof) not less than an amount equal to the Federal poverty
level for a family of three for the calendar year in which the taxable
year begins divided by 2,080,
`(i) a defined contribution plan which for any plan year--
`(I) requires the employer to make nonelective contributions of
at least 5 percent of compensation for each employee who is not
a highly compensated employee, or
`(II) requires the employer to make matching contributions of 100
percent of the elective contributions of each employee who is not
a highly compensated employee to the extent such contributions do
not exceed the percentage specified by the plan (not less than 5
percent) of the employee's compensation, or
`(ii) a defined benefit plan which for any plan year requires the
employer to make contributions on behalf of each employee who is not
a highly compensated employee in an amount which will provide an accrued
benefit under the plan for the plan year which is not less than 5
percent of the employee's compensation, and
`(D) provides full differential salary and insurance benefits for all
National Guard and Reserve employees who are called for active duty,
and
`(4) if such taxpayer employs less than 50 employees on average during
the taxable year, either--
`(A) compensates each employee of the taxpayer at an hourly rate (or
equivalent thereof) not less than an amount equal to the Federal poverty
level for a family of 3 for the calendar year in which the taxable year
begins divided by 2,080, or
`(i) a defined contribution plan which for any plan year--
`(I) requires the employer to make nonelective contributions of
at least 5 percent of compensation for each employee who is not
a highly compensated employee, or
`(II) requires the employer to make matching contributions of 100
percent of the elective contributions of each employee who is not
a highly compensated employee to the extent such contributions do
not exceed the percentage specified by the plan (not less than 5
percent) of the employee's compensation, or
`(ii) a defined benefit plan which for any plan year requires the
employer to make contributions on behalf of each employee who is not
a highly compensated employee in an amount which will provide an accrued
benefit under the plan for the plan year which is not less than 5
percent of the employee's compensation.'.
(b) Allowance as General Business Credit- Section 38(b) of the Internal
Revenue Code or 1986 is amended by striking `and' at the end of paragraph
(25), by striking the period at the end of paragraph (26) and inserting
`, and', and by adding at the end the following:
`(27) the Patriot employer credit determined under section 45N.'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.
END
