text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Hire, Train, Retain Act of 2011''.
  
  SEC. 2. FINDINGS.
  
      The Congress finds the following:
              (1) As of June 2011 9.2 percent of all Americans eligible 
          to work were unemployed, or 14.1 million people.
              (2) There are millions of workers who were displaced during 
          the recent ``Great Recession'' who need to be re-trained so 
          that they can re-integrate into the workforce. According to the 
          bi-annual Displaced Workers Survey, the unemployment rate was 
          4.5 percent in 2007 before spiking to nearly 10 percent in 
          2010.
              (3) Often overlooked are the 982,000 discouraged workers, 
          people who are not looking for work because they do not believe 
          that they are qualified for any available jobs.
              (4) Paradoxically, there are enough jobs available to 
          employ just over 20 percent of these persons--there were 3.0 
          million job openings on the last business day of May 2011 
          according to the Bureau of Labor Statistics.
              (5) The disconnect is that many people searching for work 
          lack the job-specific skills that they need to be competitive 
          for many of these vacancies. Specifically, technology is 
          outpacing the country's current approach to job-related 
          education and training. The difference between white collar and 
          blue collar jobs is fading because traditionally ``blue collar 
          jobs'' are more specialized than ever before.
  
  SEC. 3. PAYROLL TAX FORGIVENESS FOR HIRING AND TRAINING WORKERS.
  
      (a) In General.--Section 3111 of the Internal Revenue Code of 1986 
  is amended by adding at the end the following new subsection:
      ``(e) Special Exemption for Certain Individuals Hired in Between 
  2011 and 2015.--
              ``(1) In general.--During the period beginning on the day 
          after the date of the enactment of this subsection and ending 
          on December 31, 2015, subsection (a) shall not apply to wages 
          paid by a qualified employer with respect to employment of any 
          qualified individual for services performed--
                      ``(A) in a trade or business of such qualified 
                  employer, or
                      ``(B) in the case of a qualified employer exempt 
                  from tax under section 501(a), in furtherance of the 
                  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 that provides a 
                  qualified job training program for or on behalf its 
                  employees.
                      ``(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) Qualified individual.--For purposes of this 
          subsection, the term `qualified individual' means any 
          individual who--
                      ``(A) begins employment with a qualified employer 
                  after the date of the enactment of this subsection and 
                  before January 1, 2016,
                      ``(B) certifies by signed affidavit, under 
                  penalties of perjury, that such individual has not been 
                  employed for more than 40 hours during the 60-day 
                  period ending on the date such individual begins such 
                  employment,
                      ``(C) certifies by signed affidavit, under 
                  penalties of perjury, that such individual has 
                  satisfactorily completed a qualified job training 
                  program,
                      ``(D) is not employed by the qualified employer to 
                  replace another employee of such employer unless such 
                  other employee separated from employment voluntarily or 
                  for cause, and
                      ``(E) is not an individual described in section 
                  51(i)(1) (applied by substituting `qualified employer' 
                  for `taxpayer' each place it appears).
              ``(4) Qualified job training program.--For purposes of this 
          subsection, the term `qualified job training program' means--
                      ``(A) a program provided by a qualified employer 
                  that is in-house and is specific training for available 
                  jobs at such employer, or
                      ``(B) a program under which a qualified employer 
                  partners with a public institution of higher education 
                  (as defined in section 101(b) of the Higher Education 
                  Act of 1965) to provide specific training for available 
                  jobs at such employer.
              ``(5) Election.--A qualified employer may elect to have 
          this subsection not apply. Such election shall be made in such 
          manner as the Secretary may require.''.
      (b) Coordination With Work Opportunity Credit.--Section 51(c) of 
  such Code is amended by adding at the end the following new paragraph:
              ``(6) Coordination with payroll tax forgiveness for hiring 
          and training workers.--The term `wages' shall not include any 
          amount paid or incurred to a qualified individual (as defined 
          in section 3111(e)(3)) during the 1-year period beginning on 
          the hiring date of such individual by a qualified employer (as 
          defined in section 3111(e)) unless such qualified employer 
          makes an election not to have section 3111(e) apply.''.
      (c) 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 subsection (a). 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 that would have occurred to such Trust Fund had such 
  amendments not been enacted.
      (d) Application to Railroad Retirement Taxes.--
              (1) In general.--Section 3221 of the Internal Revenue Code 
          of 1986 is amended by redesignating subsection (d) as 
          subsection (e) and by inserting after subsection (c) the 
          following new subsection:
      ``(d) Special Rate for Certain Individuals Hired in Between 2011 
  and 2015.--
              ``(1) In general.--In the case of compensation paid by a 
          qualified employer during the period beginning on the day after 
          the date of the enactment of this subsection and ending on 
          December 31, 2015, with respect to having a qualified 
          individual in the employer's employ for services rendered to 
          such qualified employer, the applicable percentage under 
          subsection (a) shall be equal to the rate of tax in effect 
          under section 3111(b) for the calendar year.
              ``(2) Qualified employer.--For purposes of this subsection, 
          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 that provides a 
          qualified job training program for or on behalf its employees.
              ``(3) Qualified individual.--For purposes of this 
          subsection, the term `qualified individual' means any 
          individual who--
                      ``(A) begins employment with a qualified employer 
                  after the date of the enactment of this subsection and 
                  before January 1, 2016,
                      ``(B) certifies by signed affidavit, under 
                  penalties of perjury, that such individual has not been 
                  employed for more than 40 hours during the 60-day 
                  period ending on the date such individual begins such 
                  employment,
                      ``(C) certifies by signed affidavit, under 
                  penalties of perjury, that such individual has 
                  satisfactorily completed a qualified job training 
                  program,
                      ``(D) is not employed by the qualified employer to 
                  replace another employee of such employer unless such 
                  other employee separated from employment voluntarily or 
                  for cause, and
                      ``(E) is not an individual described in section 
                  51(i)(1) (applied by substituting `qualified employer' 
                  for `taxpayer' each place it appears).
              ``(4) Qualified job training program.--For purposes of this 
          subsection, the term `qualified job training program' means--
                      ``(A) a program provided by a qualified employer 
                  that is in-house and is specific training for available 
                  jobs at such employer, or
                      ``(B) a program under which a qualified employer 
                  partners with a public institution of higher education 
                  (as defined in section 101(b) of the Higher Education 
                  Act of 1965) to provide specific training for available 
                  jobs at such employer.
              ``(5) Election.--A qualified employer may elect to have 
          this subsection not apply. Such election shall be made in such 
          manner as the Secretary may require.''.
              (2) Transfers to social security equivalent benefit 
          account.--There are hereby appropriated to the Social Security 
          Equivalent Benefit Account established under section 15A(a) of 
          the Railroad Retirement Act of 1974 (45 U.S.C. 231n-1(a)) 
          amounts equal to the reduction in revenues to the Treasury by 
          reason of the amendments made by paragraph (1). 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 Account had such amendments not been enacted.
      (e) Effective Dates.--
              (1) In general.--Except as provided in paragraph (2), the 
          amendments made by this subsection shall apply to wages paid 
          after the date of the enactment of this Act.
              (2) Railroad retirement taxes.--The amendments made by 
          subsection (d) shall apply to compensation paid after the date 
          of the enactment of this Act.
  
  SEC. 4. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY HIRED 
                INDIVIDUALS IN 2011.
  
      (a) In General.--In the case of any taxable year ending after the 
  date of the enactment of this Act, the current year business credit 
  determined under section 38(b) of the Internal Revenue Code of 1986 for 
  such taxable year shall be increased, with respect to each retained 
  worker with respect to which subsection (b)(2) is first satisfied 
  during such taxable year, by the lesser of--
              (1) $1,000, or
              (2) 6.2 percent of the wages (as defined in section 3401(a) 
          of such Code) paid by the taxpayer to such retained worker 
          during the 52 consecutive week period referred to in subsection 
          (b)(2).
      (b) Retained Worker.--For purposes of this section, the term 
  ``retained worker'' means any qualified individual (as defined in 
  section 3111(e)(3) or section 3221(d)(3) of the Internal Revenue Code 
  of 1986)--
              (1) who was employed by the taxpayer on any date during the 
          taxable year,
              (2) who was so employed by the taxpayer for a period of not 
          less than 52 consecutive weeks, and
              (3) whose wages (as defined in section 3401(a)) for such 
          employment during the last 26 weeks of such period equaled at 
          least 80 percent of such wages for the first 26 weeks of such 
          period.
      (c) Employer Staffing and Payroll Must Increase.--No amount shall 
  be allowed as a credit under this section to an employer for a taxable 
  year unless the employer has a net increase for the taxable year in 
  those who work at least 20 hours per week for the employer during the 
  taxable year and the amount of its payroll during the taxable year.
      (d) Limitation on Carrybacks.--No portion of the unused business 
  credit under section 38 of the Internal Revenue Code of 1986 for any 
  taxable year which is attributable to the increase in the current year 
  business credit under this section may be carried to a taxable year 
  beginning before the date of the enactment of this section.
      (e) Treatment of Possessions.--
              (1) Payments to possessions.--
                      (A) Mirror code possessions.--The Secretary of the 
                  Treasury shall pay to each possession of the United 
                  States with a mirror code tax system amounts equal to 
                  the loss to that possession by reason of the 
                  application of this section (other than this 
                  subsection). Such amounts shall be determined by the 
                  Secretary of the Treasury based on information provided 
                  by the government of the respective possession.
                      (B) Other possessions.--The Secretary of the 
                  Treasury shall pay to each possession of the United 
                  States which does not have a mirror code tax system 
                  amounts estimated by the Secretary of the Treasury as 
                  being equal to the aggregate benefits that would have 
                  been provided to residents of such possession by reason 
                  of the application of this section (other than this 
                  subsection) if a mirror code tax system had been in 
                  effect in such possession. The preceding sentence shall 
                  not apply with respect to any possession of the United 
                  States unless such possession has a plan, which has 
                  been approved by the Secretary of the Treasury, under 
                  which such possession will promptly distribute such 
                  payments to the residents of such possession.
              (2) Coordination with credit allowed against united states 
          income taxes.--No increase in the credit determined under 
          section 38(b) of the Internal Revenue Code of 1986 against 
          United States income taxes for any taxable year determined 
          under subsection (a) shall be taken into account with respect 
          to any person--
                      (A) to whom a credit is allowed against taxes 
                  imposed by the possession by reason of this section for 
                  such taxable year, or
                      (B) who is eligible for a payment under a plan 
                  described in paragraph (1)(B) with respect to such 
                  taxable year.
              (3) Definitions and special rules.--
                      (A) Possession of the united states.--For purposes 
                  of this subsection, the term ``possession of the United 
                  States'' includes the Commonwealth of Puerto Rico and 
                  the Commonwealth of the Northern Mariana Islands.
                      (B) Mirror code tax system.--For purposes of this 
                  subsection, the term ``mirror code tax system'' means, 
                  with respect to any possession of the United States, 
                  the income tax system of such possession if the income 
                  tax liability of the residents of such possession under 
                  such system is determined by reference to the income 
                  tax laws of the United States as if such possession 
                  were the United States.
                      (C) Treatment of payments.--For purposes of section 
                  1324(b)(2) of title 31, United States Code, rules 
                  similar to the rules of section 1001(b)(3)(C) of the 
                  American Recovery and Reinvestment Tax Act of 2009 
                  shall apply.
target: Hire, Train, Retain Act of 2011 - Amends the Internal Revenue Code to: (1) allow non-governmental employers an exemption from, or reduction in, employment taxes during the period beginning on the enactment of this Act and ending on December 31, 2015, for hiring certain unemployed individuals who are trained by such employers in a qualified job training program (an in-house program providing specific training for available jobs offered by such employers), and (2) allow an employer an increase in the business-related tax credit for each worker retained by such employer who was employed on any date during the taxable year for a period of not less than 52 consecutive weeks.
feat_title: To amend the Internal Revenue Code of 1986 to provide tax incentives to employers for providing training programs for jobs specific to the needs of the employers.