article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Hiring Heroes Tax Incentive Act of 2009''. SEC. 2. CREDIT FOR EMPLOYERS WHO EMPLOY MEMBERS OF THE READY RESERVE AND NATIONAL GUARD AND VETERANS RECENTLY SEPARATED FROM THE ARMED FORCES. (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by inserting after section 45Q the following new section: ``SEC. 45R. CREDIT FOR EMPLOYERS WHO EMPLOY MEMBERS OF THE READY RESERVE AND NATIONAL GUARD AND VETERANS RECENTLY SEPARATED FROM THE ARMED FORCES. ``(a) Allowance of Credit.--For purposes of section 38, the amount of the military employment credit determined under this section with respect to any employer for any taxable year is 15 percent of the qualified wages paid or incurred during the calendar year which ends with or within such taxable year. ``(b) Qualified Wages.-- ``(1) In general.--For purposes of this section, the term `qualified wages' means any wages paid or incurred by an employer for services performed by a qualified employee. ``(2) Only first $10,000 of wages per year taken into account.--With respect to each employee, the amount of qualified wages which may be taken into account for a calendar year shall not exceed $10,000. ``(3) Coordination with other credits.--The $10,000 amount in paragraph (2) shall be reduced for any calendar year by the amount of wages paid or incurred during such year which are taken into account in determining the credit under section 45A(a), 45P(a), 51(a), 1396(a), 1400P(b), or 1400R. ``(c) Qualified Employee.--For purposes of this section-- ``(1) Qualified employee.--The term `qualified employee' means, with respect to any period, any employee of an employer if during such period-- ``(A) substantially all of the services performed by such employee for such employer are performed in a trade or business of the employer, and ``(B) such employee is-- ``(i) a Ready Reserve-National Guard employee, or ``(ii) a recently-separated veteran. ``(2) Certain individuals not eligible.--The term `qualified employee' shall not include any individual described in a subparagraph of section 1396(d)(2) (relating to certain individuals not eligible to be qualified zone employees). ``(3) Ready reserve-national guard employee.--The term `Ready Reserve-National Guard employee' means an employee who is a member of the Ready Reserve (as defined in section 10142 of title 10, United States Code) or the National Guard (as defined in section 101(c)(1) of such title 10). ``(4) Recently-separated veteran.--The term `recently- separated veteran' means an individual who served on active duty (other than active duty for training) in the Armed Forces of the United States and was discharged or released therefrom under honorable conditions within the 5-year period ending on the date of the performance of services. ``(d) Other Definitions and Special Rules.-- ``(1) Wages.--For purposes of this section, the term `wages' has the meaning given to such term by section 1397(a). ``(2) Controlled groups, etc.--Rules similar to the rules of subsections (b) and (c) of section 1397 shall apply for purposes of this section. ``(e) Termination.--The term `wages' shall not include any amount paid or incurred to an individual who begins work for the employer after December 31, 2012.''. (b) Denial of Double Benefit.--Subsection (a) of section 280C of such Code (relating to denial of deduction for certain expenses for which credits are allowable) is amended by inserting ``45R,'' after ``45P(a),''. (c) Credit To Be Part of General Business Credit.--Subsection (b) of section 38 of such Code is amended by striking ``plus'' at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ``, plus'', and by inserting after paragraph (35) the following new paragraph: ``(36) the military employment credit determined under section 45R(a).''. (d) Clerical Amendment.--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: ``Sec. 45R. Credit for employers who employ members of the Ready Reserve and National Guard and veterans recently separated from the Armed Forces.''. (e) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
summary: Hiring Heroes Tax Incentive Act of 2009 - Amends the Internal Revenue Code to allow employers a tax credit for up to 15% of the first $10,000 of wages paid to a Ready Reserve-National Guard employee or a recently-separated veteran (i.e., honorably discharged within the past five years). Terminates such credit after 2012.