text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Hire Now Tax Cut Act of 2010''.
  
  SEC. 2. PAYROLL TAX FORGIVENESS FOR HIRING UNEMPLOYED WORKERS.
  
      (a) In General.--Section 3111 of the Internal Revenue Code of 1986 
  is amended by adding at the end the following new subsection:
      ``(d) Special Exemption for Certain Individuals Hired in 2010.--
              ``(1) In general.--Subsection (a) shall not apply to wages 
          paid by a qualified employer with respect to employment during 
          the period beginning on the day after the date of the enactment 
          of this subsection and ending on December 31, 2010, 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, 
          the term `qualified employer' means any employer other than the 
          United States, any State, any local government, or any 
          instrumentality of the foregoing.
              ``(3) Qualified individual.--For purposes of this 
          subsection, the term `qualified individual' means any 
          individual who--
                      ``(A) begins employment with a qualified employer 
                  after February 3, 2010, and before January 1, 2011,
                      ``(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) 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
                      ``(D) is not an individual described in section 
                  51(i)(1) (applied by substituting `qualified employer' 
                  for `taxpayer' each place it appears).
              ``(4) 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 
  the Internal Revenue Code of 1986 is amended by adding at the end the 
  following new paragraph:
              ``(5) Coordination with payroll tax forgiveness.--The term 
          `wages' shall not include any amount paid or incurred to a 
          qualified individual (as defined in section 3111(d)(3)) during 
          the 1-year period beginning on the hiring date of such 
          individual by a qualified employer (as defined in section 
          3111(d)) unless such qualified employer makes an election not 
          to have section 3111(d) 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 which would have occurred to such Trust Fund had such 
  amendments not been enacted.
      (d) Effective Date.--The amendments made by this section shall 
  apply to wages paid after the date of the enactment of this Act.
  
  SEC. 3. BUSINESS CREDIT FOR RETENTION OF CERTAIN NEWLY HIRED 
                INDIVIDUALS IN 2010.
  
      (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 by an amount equal to the product 
  of--
              (1) $1,000, and
              (2) the number of retained workers with respect to which 
          subsection (b)(2) is first satisfied during such taxable year.
      (b) Retained Worker.--For purposes of this section, the term 
  ``retained worker'' means any qualified individual (as defined in 
  section 3111(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 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.
target: Hire Now Tax Cut Act of 2010 - Amends the Internal Revenue Code to: (1) exempt for-profit and nonprofit employers from social security taxes in 2010 for new employees who are hired after February 3, 2010, and before January 1, 2011, and who certify that they have not worked more than 40 hours during the last 60 days; and (2) allow an increase in the general business tax credit for the retention of such employees for at least one year at specified wage levels.
  
  Appropriates to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund under title II of the Social Security Act amounts necessary to cover any reduction in revenues resulting from the tax exemptions provided by this Act.
feat_title: A bill to amend the Internal Revenue Code of 1986 to provide an exemption from employer social security taxes with respect to previously unemployed individuals, and to provide a credit for the retention of such individuals for at least 1 year.