Sec. 132. Reduced payroll taxes for individuals and businesses in rural renewal communities
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In the case of employment during 2017, 2018, and 2019, the rate of tax under 3101(a) of the Internal Revenue Code of 1986 (including for purposes of determining the applicable percentage under sections 3201(a) and 3211(a)(1) of such Code) shall be 4.2 percent for any remuneration received during any period in which the individual's principal residence (within the meaning of section 121 of such Code) is located in a rural renewal community. In the case of employment during 2017, 2018, and 2019, the rate of tax under section 3111(a) of the Internal Revenue Code of 1986 (including for purposes of determining the applicable percentage under sections 3221(a) of such Code) for any rural renewal community business entity shall be 4.2 percent with respect to remuneration paid for qualified services.
For purposes of this section, the term qualified services means services performed— in a trade or business of a rural renewal community business entity, or in the case of a rural renewal community business entity exempt from tax under section 501(a) of the Internal Revenue Code of 1986, in furtherance of the activities related to the purpose or function constituting the basis of the employer's exemption under section 501 of such Code. In the case of self-employment income for taxable years beginning in 2017, 2018, or 2019 which is attributable to a rural renewal community proprietorship, the rate of tax under section 1401(a) shall be 8.40 percent.
For purposes of this section— The term rural renewal community has the meaning given such term under section 45D(f)(4)(C) of the Internal Revenue Code of 1986. The term rural renewal community business entity has the meaning given such term under section 179F(c)(2) of the Internal Revenue Code of 1986. The term rural renewal community proprietorship has the meaning given such term under section 179F(c)(3) of the Internal Revenue Code of 1986. There are hereby appropriated to the Federal Old-Age and Survivors Trust Fund and the Federal Disability Insurance Trust Fund established under section 201 of the Social Security Act ( 42 U.S.C. 401 ) amounts equal to the reduction in revenues to the Treasury by reason of the application of subsection (a).
Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Fund had such amendments not been enacted. There are hereby appropriated to the Social Security Equivalent Benefit Account established under section 15A(a) of the Railroad Retirement Act of 1974 ( 45 U.S.C. 231n–1(a) ) amounts equal to the reduction in revenues to the Treasury by reason of the application of paragraphs
(1)and
(2)of subsection (a). Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Account had such amendments not been enacted. For purposes of applying any provision of Federal law other than the provisions of the Internal Revenue Code of 1986, the rate of tax in effect under section 3101(a) shall be determined without regard to the reduction in such rate under this section.
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- 45 USC 231n–1(a)
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Sec. 132
Reduced payroll taxes for individuals and businesses in rural renewal communities
Cite45 USC 231n–1(a)
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