Section 1 Short title
This Act may be cited as the “Reservist Pay Equity Act of 2023”.
Reservist Pay Equity Act of 2023
A BILL
To amend the Internal Revenue Code of 1986 to increase the differential wage payment credit.
Sec. 2 Expansion of employer wage credit for employees who are active duty members of the uniformed services
Increase in differential wage payment credit— Section 45P(a) of the Internal Revenue Code of 1986 is amended by striking “20 percent” and inserting “50 percent”.
Adjustment for inflation— Section 45P(b) of such Code is amended by adding at the end the following new paragraph:
“(4) Adjustment for inflation—In the case of any taxable year beginning after 2023, the $20,000 amount in paragraph (1) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting “calendar year 2022” for “calendar year 2016” in subparagraph (A)(ii) thereof.”
Effective date— The amendments made by this section shall apply to payments made after the date of enactment of this Act.