To amend the Internal Revenue Code of 1986 to provide to employers a tax credit for compensation paid during the period employees are performing service as members of the Ready Reserve or the National Guard.

Amends the Internal Revenue Code to allow employers a business tax credit for up to 50 percent of the actual compensation paid to employees who were members of the Ready Reserve or National Guard and who were absent from work to perform active duty. Limits such credit to $2,000 for any one Ready Reserve-National Guard employee.