Section 1 Short title
This Act may be cited as the “Small Business Tax Relief and Jobs Act of 2017”.
Small Business Tax Relief and Jobs Act of 2017
A BILL
To amend the Internal Revenue Code of 1986 to provide for a credit against tax for certain small businesses hiring new employees.
Sec. 2 Credit for wages for new hires for certain small businesses
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:
“45S. Wages for new hires for certain small businesses
“(a) In general—For purposes of section 38, the new hire small business credit determined under this section for the taxable year is an amount equal to 3.825 percent of the qualified wages paid or incurred by an eligible small business for such year.
“(b) Definitions—For purposes of this section—
“(1) Qualified wages
“(A) In general—The term qualified wages means wages paid or incurred by the taxpayer for services rendered by a qualified employee during a qualified year.
“(B) Qualified employee—The term qualified employee means, with respect to an employer with respect to a qualified year, an employee hired during the hiring year for such qualified year who is not an individual described in section 51(i)(2).
“(C) Limitations
“(i) Wages—The amount of the qualified first-year wages which may be taken into account with respect to any employee shall not exceed $100,000 per year.
“(ii) Employees—An eligible small business may not take into account qualified wages for more than 3 employees in a year.
“(2) Wages—The term wages has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section).
“(3) Qualified year—The term qualified year means, with respect to an employee and an employer—
“(A) a year (the “hiring year”) in which such employee was first employed by such employer, and
“(B) each year during the two-year period following such hiring year.
“(4) Eligible small business—The term eligible small business means any person if—
“(A) the gross receipts of such person for the preceding taxable year did not exceed $1,500,000, and
“(B) such person employed not more than 20 full-time employees during the preceding taxable year.
“(c) Application of certain rules—Rules similar to the rules of subsections (f), (g), (i), (j), and (k) of section 51, and section 52, shall apply for the purposes of this section.
“(d) Sunset—This section shall not apply to amounts paid or incurred after December 31, 2022.”
Denial of double benefits— Subsection (a) of section 280C of such Code is amended by inserting “, 45S(a)” after “46P(a)”.
Conforming amendments—
Section 38(b) of such Code is amended by striking “plus” at the end of paragraph (35), by striking the period at the end of paragraph (36), and inserting “, plus”, and by adding at the end the following new paragraph:
“(37) the new hires small business credit determined under section 45S.”
The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2017.