Title II — Employer payroll tax holiday for long-term unemployed

“(d) Special rule for long-Term unemployed individuals

“(1) In general—Subsection (a) shall not apply to wages paid by a qualified employer with respect to employment during the applicable period of any long-term unemployed individual for services performed—

“(A) in a trade or business of such employer, or

“(B) in the case of an employer exempt from taxation under section 501(a), in furtherance of activities related to the purpose or function constituting the basis of the employer's exemption under section 501.

“(2) Qualified employer—For purposes of this subsection—

“(A) In general—The term qualified employer means any employer other than the United States, any State, or any political subdivision thereof, or any instrumentality of the foregoing.

“(B) Treatment of employees of post-secondary educational institutions—Notwithstanding subparagraph (A), the term “qualified employer” includes any employer which is a public institution of higher education (as defined in section 101(b) of the Higher Education Act of 1965).

“(3) Long-term unemployed individual—For purposes of this subsection, the term long-term unemployed individual means, with respect to any employer, an individual who—

“(A) begins employment with such employer after the date of the enactment of the Solutions to Long-Term Unemployment Act, and

“(B) has been unemployed for 27 weeks or longer, as determined by the Secretary of Labor, immediately before the date such employment begins.

“(4) Applicable period—The term applicable period means the period beginning on the date of the enactment of the Solutions to Long-Term Unemployment Act, and ending on the earlier of—

“(A) the date that is 2 years after such date of enactment, or

“(B) the first day of the first month after the date on which the Secretary of Labor certifies that the total number of individuals in the United States who have been unemployed for 27 weeks or longer is less than 2,000,000.

“(5) Election—An employer may elect to have this subsection not apply. Such election shall be made in such manner as the Secretary may require.”

“(5) Coordination with payroll tax forgiveness—The term “wages” shall not include any amount paid or incurred to a long-term unemployed individual (as defined in section 3111(d)(3)) during the 1-year period beginning on the hiring date of such individual by a qualified employer (as defined in section 3111(d)) unless such qualified employer makes an election not to have section 3111(d) apply.”