Sec. 4. Employee retention work opportunity credit

375 words·~2 min read·/bill/116/s/136/is/section-4

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Section 51 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: The amount of the work opportunity credit determined under subsection

(a)for the taxable year shall be increased by an amount equal to 40 percent of the qualified second-year wages for such year with respect to ELEVATE employees. For purposes of this subsection, the term qualified second-year wages means qualified wages (determined as if ELEVATE employees were members of a targeted group)— which are paid to an ELEVATE employee, and which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such employee determined under subsection (b)(2). The amount of the qualified second-year wages which may be taken into account with respect to any individual shall not exceed $6,000 per year. For purposes of this subsection, the term ELEVATE employee means an individual who is hired by the employer through the subsidized employment program under part A of title XIII of the Social Security Act and who has been employed by the same employer for a consecutive 24 months as of the last day of the preceding taxable year. . The Comptroller General of the United States shall conduct a study on the employee retention credit under section 51(l) of the Internal Revenue Code of 1986 and, not later than 6 months after the last day of the second taxable year beginning after the date of the enactment of this Act, shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives— whether such retention credit had a meaningful impact on retention as compared with other currently existing and previous subsidized employment programs; and whether such retention credit was easily understood by employers and had an impact on hiring decisions in addition to any subsidy received under title XIII of the Social Security Act. Paragraph

(4)of section 51(c) of the Internal Revenue Code of 1986 is amended by striking December 31, 2019 and inserting December 31, 2021 . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.