1. Short title This Act may be cited as the Small Business Tax Relief and Jobs Act of 2017 . 2. Credit for wages for new hires for certain small businesses (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 45S. Wages for new hires for certain small businesses (a) In general For purposes of section 38, the new hire small business credit determined under this section for the taxable year is an amount equal to 3.825 percent of the qualified wages paid or incurred by an eligible small business for such year. (b) Definitions For purposes of this section— (1) Qualified wages (A) In general The term qualified wages means wages paid or incurred by the taxpayer for services rendered by a qualified employee during a qualified year. (B) Qualified employee The term qualified employee means, with respect to an employer with respect to a qualified year, an employee hired during the hiring year for such qualified year who is not an individual described in section 51(i)(2). (C) Limitations (i) Wages The amount of the qualified first-year wages which may be taken into account with respect to any employee shall not exceed $100,000 per year. (ii) Employees An eligible small business may not take into account qualified wages for more than 3 employees in a year. (2) Wages The term wages has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section). (3) Qualified year The term qualified year means, with respect to an employee and an employer— (A) a year (the hiring year ) in which such employee was first employed by such employer, and (B) each year during the two-year period following such hiring year. (4) Eligible small business The term eligible small business means any person if— (A) the gross receipts of such person for the preceding taxable year did not exceed $1,500,000, and (B) such person employed not more than 20 full-time