Reservist Pay Equity Act of 2021
This bill increases the rate of the differential wage payment tax credit from 20% to 50% and requires that the maximum dollar amount of such credit be adjusted for inflation after 2021. The credit is allowed to employers for their employees who are active duty members of the uniformed services.
To amend the Internal Revenue Code of 1986 to increase the differential 
                          wage payment credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Reservist Pay Equity Act of 2021''.

SEC. 2. EXPANSION OF EMPLOYER WAGE CREDIT FOR EMPLOYEES WHO ARE ACTIVE 
              DUTY MEMBERS OF THE UNIFORMED SERVICES.

    (a) 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''.
    (b) 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 2021, 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 
                2020' for `calendar year 1996' in subparagraph (A)(ii) 
                thereof.
        If the amount as increased under the preceding sentence is not 
        a multiple of $100, such amount shall be rounded to the nearest 
        multiple of $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 2020.
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Reservist Pay Equity Act of 2021
To amend the Internal Revenue Code of 1986 to increase the differential wage payment credit.
Reservist Pay Equity Act of 2021
Rep. Panetta, Jimmy