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 establish for employers a Ready Reserve-National Guard employee tax credit equal to 50 percent of the actual compensation amount for a taxable year. Defines "actual compensation amount" as the amount of compensation paid or incurred by an employer with respect to a Ready Reserve-National Guard employee on any day during a taxable year when the employee was absent from employment for the purpose of performing qualified active duty.