Section 1 Short title
This Act may be cited as the “Disability Employment Incentive Act”.
Disability Employment Incentive Act
A BILL
To amend the Internal Revenue Code of 1986 to include individuals receiving Social Security disability benefits under the work opportunity credit, increase the work opportunity credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients, expand the disabled access credit, and enhance the deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly.
Sec. 2 Expansion of work opportunity credit to include individuals receiving disability benefits under the Social Security Act
in paragraph (1)—
in subparagraph (I), by striking “or” at the end,
in subparagraph (J), by striking the period at the end and inserting “, or”, and
by adding at the end the following new subparagraph:
“(K) a qualified disability insurance beneficiary.”
by adding at the end the following new paragraph:
“(16) Qualified disability insurance beneficiary—The term qualified disability insurance beneficiary means any individual who receives, for any month ending within the 60-day period ending on the hiring date—
“(A) monthly insurance benefits under section 202 of the Social Security Act (42 U.S.C. 402) based on such individual's disability (as defined in section 223(d) of such Act), or
“(B) disability insurance benefits under section 223 of such Act (42 U.S.C. 423).”
Credit made available to qualified tax-Exempt organizations in certain circumstances—
in the heading, by inserting “or qualified disability insurance beneficiaries” after “qualified veterans”,
in paragraph (1)—
by inserting “or a qualified disability insurance beneficiary” after “a qualified veteran”, and
by inserting “or such qualified disability insurance beneficiary” after “such qualified veteran”,
in paragraph (2), by inserting “and qualified disability insurance beneficiaries” after “all qualified veterans”,
in paragraph (3)(C), by inserting “or a qualified disability insurance beneficiary” after “a qualified veteran”,
in paragraph (4)—
by inserting “or any qualified disability insurance beneficiary” after “any qualified veteran”, and
by inserting “or such qualified disability insurance beneficiary” after “such qualified veteran”,
in paragraph (5)—
in subparagraph (A), by striking “and” at the end,
in subparagraph (B), by striking the period at the end and inserting “, and”, and
by adding at the end the following:
“(C) the term qualified disability insurance beneficiary has the same meaning given such term by section 51(d)(16).”
by adding at the end the following:
“(6) 14(c) certificate holders
“(A) In general—In the case of any qualified tax-exempt organization which, for any period, employs any individual under a special certificate, for purposes of determining the amount of any credit allowed under paragraph (1), such determination shall not include any wages paid to any qualified disability insurance beneficiary during such period.
“(B) Special certificate—For purposes of this paragraph, the term special certificate means a special certificate issued under section 14(c) of the Fair Labor Standards Act of 1938 (29 U.S.C. 214(c)).”
Conforming amendment— Section 52(c)(2) of such Code is amended—
in the heading, by inserting “or qualified disability insurance beneficiaries” after “qualified veterans”, and
by inserting “or qualified disability insurance beneficiaries” after “qualified veterans”.
Transfers to Federal Old-Age And Survivors Insurance Trust Fund— 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 amendments made by paragraphs (1) and (2). 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.
Effective date— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023.
Sec. 3 Enhancement of Work Opportunity Credit for vocational rehabilitation referrals, qualified SSI recipients, and qualified SSDI recipients
by redesignating subsections (f) through (k) as subsections (g) through (l), respectively, and
by inserting after subsection (e) the following new subsection:
“(f) Credit for second-Year wages for employment of vocational rehabilitation referrals, qualified SSI recipients, and qualified disability insurance beneficiaries
“(1) In general—With respect to employment of a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary—
“(A) the amount of the work opportunity credit determined under this section for the taxable year shall include 20 percent of the qualified second-year wages for such year, and
“(B) in lieu of applying subsection (b)(3), the amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to such referral or recipient shall not exceed $12,500 per year.
“(2) Qualified second-year wages—For purposes of this subsection, the term qualified second-year wages means qualified wages—
“(A) which are paid to a vocational rehabilitation referral, a qualified SSI recipient, or a qualified disability insurance beneficiary, and
“(B) 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 referral or recipient determined under subsection (b)(2).
“(3) Special rules for agricultural and railway labor—If such referral or recipient is an employee to whom subparagraph (A) or (B) of subsection (i)(1) applies, rules similar to the rules of such subparagraphs shall apply except that—
“(A) such subparagraph (A) shall be applied by substituting “$12,500” for “$6,000”, and
“(B) such subparagraph (B) shall be applied by substituting “$1041.67” for “$500”.”
Conforming amendments—
Section 51 of the Internal Revenue Code of 1986, as amended by subsection (a), is amended—
in subsection (c)(1), by striking “subsection (h)(2)” and inserting “subsection (i)(2)”,
in subsection (e)(3), by striking “subsection (h)(1)” and inserting “subsection (i)(1)”, and
in subsection (g)(2), by striking “subsection (h)(1)” and inserting “subsection (i)(1)”.
Section 45A of such Code is amended—
in subsection (b)(1)(B), by inserting “or (f)(1)(A)” after “subsection (e)(1)(A)”,
in subsection (c)(5)(A), by striking “section 51(i)(1)” and inserting “section 51(j)(1)”, and
in subsection (e)(3), by striking “section 51(k)” and inserting “section 51(l)”.
Section 45S(h)(2) of such Code is amended by striking “section 51(j)” and inserting “section 51(k)”.
Section 1396(d)(2)(A) of such Code is amended by striking “section 51(i)(1)” and inserting “section 51(j)(1)”.
Section 1397(c) of such Code is amended by striking “section 51(k)” and inserting “section 51(l)”.
Section 3111(e)(3)(B) of such Code is amended by striking “subsection (i)(3)(A)” and inserting “subsection (j)(3)(A)”.
Effective date— The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2023.
Sec. 4 Expansion of disabled access credit
Eligible access expenditures— Subsection (a) of section 44 of the Internal Revenue Code of 1986 is amended by striking “$10,250” and inserting “$20,250”.
Eligible small business— Subsection (b)(1) of section 44 of the Internal Revenue Code of 1986 is amended—
in subparagraph (A), by striking “$1,000,000” and inserting “$3,000,000”, and
in subparagraph (B), by striking “30 full-time employees” and inserting “60 full-time employees”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2023.
Sec. 5 Expansion of deduction for expenditures to remove architectural and transportation barriers to the handicapped and elderly
Inclusion of improvements in accessability to internet and telecommunications operations— Subsection (b) of section 190 of the Internal Revenue Code of 1986 is amended by adding at the end the following:
“(4) Inclusion of improvements in accessability to internet and telecommunications operations—The term architectural and transportation barrier removal expenses shall include an expenditure for the purpose of improving accessibility for handicapped and elderly individuals to any internet or telecommunications services provided within any facility or public transportation vehicle owned or leased by the taxpayer for use in connection with their trade or business.”
Increase in deduction limitation amount— Subsection (c) of section 190 of the Internal Revenue Code of 1986 is amended by striking “$15,000” and inserting “$30,000”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2023.