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Bill offers tax credit for hiring reservists

Freshman Republican Rep. Gus Bilirakis of Florida thinks he has a solution for employers reluctant to hire National Guard and reserve members over concerns that they could be mobilized for lengthy periods.

Bilirakis introduced a bill Tuesday that would provide a tax credit to employers who hire reservists that would equal 10 percent of the employee’s salary, up to a maximum of $2,000 per year in credit.

The bill, HR 844, would apply to drilling reservists and Guard members, and would be considered a payment for the value of work not performed by someone with a military commitment.

In a statement, Bilirakis said he has “always been an ardent supporter of the brave men and women that answer our nation's call to join the armed services.”

“The people that sacrifice so much to support the country they love should not be penalized with regard to employment,” he said. “I understand that for many small businesses, the burden of hiring someone that may be out for extended periods can be tough and strain resources, but I believe this 10 percent credit, up to $2,000, per reservist or National Guardsmen per year, helps offset the added costs and burdens."

Bilirakis is a new member of Congress filling a seat previously held by his father, Rep. Michael Bilirakis, R-Fla., who retired. Trying to use the tax law to support employers of Guard and reserve members is a family tradition, said John Randall, a spokesman for the new congressman.

Bilirakis also is sponsoring a more conventional bill that provides a tax credit for employers who continue to make up any differences in pay for mobilized reservists whose military salaries are less than what they earn as civilians. Several other members of the House and Senate have legislative proposals that would provide an employer tax credits worth 50 percent of the compensation paid to employees when they are mobilized.

Bilirakis’ two bills join a pile of other tax-related legislation pending before the House Ways and Means Committee, which has begun holding hearings on the White House’s fiscal 2008 federal budget plan but is not ready to consider tax proposals from lawmakers.