Internal Revenue Code:Sec. 51. Amount of credit
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Location in Internal Revenue Code
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart F - Rules for Computing Work Opportunity Credit
Statute
Sec. 51. Amount of credit
(a) Determination of amount
For purposes of section 38, the amount of the work opportunity
credit determined under this section for the taxable year shall be
equal to 40 percent of the qualified first-year wages for such
year.
(b) Qualified wages defined
For purposes of this subpart -
(1) In general
The term ''qualified wages'' means the wages paid or incurred
by the employer during the taxable year to individuals who are
members of a targeted group.
(2) Qualified first-year wages
The term ''qualified first-year wages'' means, with respect to
any individual, qualified wages attributable to service rendered
during the 1-year period beginning with the day the individual
begins work for the employer.
(3) Only first $6,000 of wages per year taken into account
The amount of the qualified first-year wages which may be taken
into account with respect to any individual shall not exceed
$6,000 per year.
(c) Wages defined
For purposes of this subpart -
(1) In general
Except as otherwise provided in this subsection and subsection
(h)(2), 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).
(2) On-the-job training and work supplementation payments
(A) Exclusion for employers receiving on-the-job training
payments
The term ''wages'' shall not include any amounts paid or
incurred by an employer for any period to any individual for
whom the employer receives federally funded payments for
on-the-job training of such individual for such period.
(B) Reduction for work supplementation payments to employers
The amount of wages which would (but for this subparagraph)
be qualified wages under this section for an employer with
respect to an individual for a taxable year shall be reduced by
an amount equal to the amount of the payments made to such
employer (however utilized by such employer) with respect to
such individual for such taxable year under a program
established under section 482(e) (FOOTNOTE 1) of the Social
Security Act.
(FOOTNOTE 1) See References in Text note below.
(3) Payments for services during labor disputes
If -
(A) the principal place of employment of an individual with
the employer is at a plant or facility, and
(B) there is a strike or lockout involving employees at such
plant or facility,
the term ''wages'' shall not include any amount paid or incurred
by the employer to such individual for services which are the
same as, or substantially similar to, those services performed by
employees participating in, or affected by, the strike or lockout
during the period of such strike or lockout.
(4) Termination
The term ''wages'' shall not include any amount paid or
incurred to an individual who begins work for the employer -
(A) after December 31, 1994, and before October 1, 1996, or
(B) after December 31, 2007.
(d) Members of targeted groups
For purposes of this subpart -
(1) In general
An individual is a member of a targeted group if such
individual is -
(A) a qualified IV-A recipient,
(B) a qualified veteran,
(C) a qualified ex-felon,
(D) a high-risk youth,
(E) a vocational rehabilitation referral,
(F) a qualified summer youth employee,
(G) a qualified food stamp recipient,
(H) a qualified SSI recipient, or
(I) a long-term family assistance recipient.
(2) Qualified IV-A recipient
(A) In general
The term ''qualified IV-A recipient'' means any individual
who is certified by the designated local agency as being a
member of a family receiving assistance under a IV-A program
for any 9 months during the 18-month period ending on the
hiring date.
(B) IV-A program
For purposes of this paragraph, the term ''IV-A program''
means any program providing assistance under a State program
funded under part A of title IV of the Social Security Act and
any successor of such program.
(3) Qualified veteran
(A) In general
The term ''qualified veteran'' means any veteran who is
certified by the designated local agency as being a member of a
family receiving assistance under a food stamp program under
the Food Stamp Act of 1977 for at least a 3-month period ending
during the 12-month period ending on the hiring date.
(B) Veteran
For purposes of subparagraph (A), the term ''veteran'' means
any individual who is certified by the designated local agency
as -
(i)(I) having served on active duty (other than active duty
for training) in the Armed Forces of the United States for a
period of more than 180 days, or
(II) having been discharged or released from active duty in
the Armed Forces of the United States for a service-connected
disability, and
(ii) not having any day during the 60-day period ending on
the hiring date which was a day of extended active duty in
the Armed Forces of the United States.
For purposes of clause (ii), the term ''extended active duty''
means a period of more than 90 days during which the individual
was on active duty (other than active duty for training).
(4) Qualified ex-felon
The term ''qualified ex-felon'' means any individual who is
certified by the designated local agency -
(A) as having been convicted of a felony under any statute of
the United States or any State, and
(B) as having a hiring date which is not more than 1 year
after the last date on which such individual was so convicted
or was released from prison.
(5) High-risk youth
(A) In general
The term ''high-risk youth'' means any individual who is
certified by the designated local agency -
(i) as having attained age 18 but not age 25 on the hiring
date, and
(ii) as having his principal place of abode within an
empowerment zone, enterprise community, or renewal community.
(B) Youth must continue to reside in zone or community
In the case of a high-risk youth, the term ''qualified
wages'' shall not include wages paid or incurred for services
performed while such youth's principal place of abode is
outside an empowerment zone, enterprise community, or renewal
community.
(6) Vocational rehabilitation referral
The term ''vocational rehabilitation referral'' means any
individual who is certified by the designated local agency as -
(A) having a physical or mental disability which, for such
individual, constitutes or results in a substantial handicap to
employment, and
(B) having been referred to the employer upon completion of
(or while receiving) rehabilitative services pursuant to -
(i) an individualized written plan for employment under a
State plan for vocational rehabilitation services approved
under the Rehabilitation Act of 1973, or
(ii) a program of vocational rehabilitation carried out
under chapter 31 of title 38, United States Code.
(7) Qualified summer youth employee
(A) In general
The term ''qualified summer youth employee'' means any
individual -
(i) who performs services for the employer between May 1
and September 15,
(ii) who is certified by the designated local agency as
having attained age 16 but not 18 on the hiring date (or if
later, on May 1 of the calendar year involved),
(iii) who has not been an employee of the employer during
any period prior to the 90-day period described in
subparagraph (B)(i), and
(iv) who is certified by the designated local agency as
having his principal place of abode within an empowerment
zone, enterprise community, or renewal community.
(B) Special rules for determining amount of credit
For purposes of applying this subpart to wages paid or
incurred to any qualified summer youth employee -
(i) subsection (b)(2) shall be applied by substituting
''any 90-day period between May 1 and September 15'' for
''the 1-year period beginning with the day the individual
begins work for the employer'', and
(ii) subsection (b)(3) shall be applied by substituting
''$3,000'' for ''$6,000''.
The preceding sentence shall not apply to an individual who,
with respect to the same employer, is certified as a member of
another targeted group after such individual has been a
qualified summer youth employee.
(C) Youth must continue to reside in zone or community
Paragraph (5)(B) shall apply for purposes of subparagraph
(A)(iv).
(8) Qualified food stamp recipient
(A) In general
The term ''qualified food stamp recipient'' means any
individual who is certified by the designated local agency -
(i) as having attained age 18 but not age 40 on the hiring
date, and
(ii) as being a member of a family -
(I) receiving assistance under a food stamp program under
the Food Stamp Act of 1977 for the 6-month period ending on
the hiring date, or
(II) receiving such assistance for at least 3 months of
the 5-month period ending on the hiring date, in the case
of a member of a family who ceases to be eligible for such
assistance under section 6(o) of the Food Stamp Act of
1977.
(B) Participation information
Notwithstanding any other provision of law, the Secretary of
the Treasury and the Secretary of Agriculture shall enter into
an agreement to provide information to designated local
agencies with respect to participation in the food stamp
program.
(9) Qualified SSI recipient
The term ''qualified SSI recipient'' means any individual who
is certified by the designated local agency as receiving
supplemental security income benefits under title XVI of the
Social Security Act (including supplemental security income
benefits of the type described in section 1616 of such Act or
section 212 of Public Law 93-66) for any month ending within the
60-day period ending on the hiring date.
(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual who
is certified by the designated local agency--
(A) as being a member of a family receiving
assistance under a IV-A program (as defined in paragraph
(2)(B)) for at least the 18-month period ending on the
hiring date,
(B)(i) as being a member of a family receiving
such assistance for 18 months beginning after August 5,
1997, and
(ii) as having a hiring date which is not more
than 2 years after the end of the earliest such 18-month
period, or
(C)(i) as being a member of a family which ceased
to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the
maximum period such assistance is payable to a family,
and
(ii) as having a hiring date which is not more
than 2 years after the date of such cessation.
(11) Hiring date
The term ''hiring date'' means the day the individual is hired
by the employer.
(12) Designated local agency
The term ''designated local agency'' means a State employment
security agency established in accordance with the Act of June 6,
1933, as amended (29 U.S.C. 49-49n).
(13) Special rules for certifications
(A) In general
An individual shall not be treated as a member of a targeted
group unless -
(i) on or before the day on which such individual begins
work for the employer, the employer has received a
certification from a designated local agency that such
individual is a member of a targeted group, or
(ii)(I) on or before the day the individual is offered
employment with the employer, a pre-screening notice is
completed by the employer with respect to such individual,
and
(II) not later than the 28th day after the individual
begins work for the employer, the employer submits such
notice, signed by the employer and the individual under
penalties of perjury, to the designated local agency as part
of a written request for such a certification from such
agency.
For purposes of this paragraph, the term ''pre-screening
notice'' means a document (in such form as the Secretary shall
prescribe) which contains information provided by the
individual on the basis of which the employer believes that the
individual is a member of a targeted group.
(B) Incorrect certifications
If -
(i) an individual has been certified by a designated local
agency as a member of a targeted group, and
(ii) such certification is incorrect because it was based
on false information provided by such individual,
the certification shall be revoked and wages paid by the
employer after the date on which notice of revocation is
received by the employer shall not be treated as qualified
wages.
(C) Explanation of denial of request
If a designated local agency denies a request for
certification of membership in a targeted group, such agency
shall provide to the person making such request a written
explanation of the reasons for such denial.
(e) Credit for Second-Year Wages for Employment of Long-Term
Family Assistance Recipients.--
(1) In general.--With respect to the employment of a long-
term family assistance recipient--
(A) the amount of the work opportunity credit
determined under this section for the taxable year shall
include 50 percent of the qualified second-year wages
for such year, and
(B) in lieu of applying subsection (b)(3), the
amount of the qualified first-year wages, and the amount
of qualified second-year wages, which may be taken into
account with respect to such a recipient shall not
exceed $10,000 per year.
(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
(A) which are paid to a long-term family
assistance recipient, and
(B) which are attributable to service rendered
during the 1-year period beginning on the day after the
last day of the 1-year period with respect to such
recipient determined under subsection (b)(2).
(3) <<NOTE: Applicability.>> Special rules for
agricultural and railway labor.--If such recipient is an
employee to whom subparagraph (A) or (B) of subsection (h)(1)
applies, rules similar to the rules of such subparagraphs shall
apply except that--
(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.
(f) Remuneration must be for trade or business employment
(1) In general
For purposes of this subpart, remuneration paid by an employer
to an employee during any taxable year shall be taken into
account only if more than one-half of the remuneration so paid is
for services performed in a trade or business of the employer.
(2) Special rule for certain determination
Any determination as to whether paragraph (1), or subparagraph
(A) or (B) of subsection (h)(1), applies with respect to any
employee for any taxable year shall be made without regard to
subsections (a) and (b) of section 52.
(g) United States Employment Service to notify employers of
availability of credit
The United States Employment Service, in consultation with the
Internal Revenue Service, shall take such steps as may be necessary
or appropriate to keep employers apprised of the availability of
the work opportunity credit determined under this subpart.
(h) Special rules for agricultural labor and railway labor
For purposes of this subpart -
(1) Unemployment insurance wages
(A) Agricultural labor
If the services performed by any employee for an employer
during more than one-half of any pay period (within the meaning
of section 3306(d)) taken into account with respect to any year
constitute agricultural labor (within the meaning of section
3306(k)), the term ''unemployment insurance wages'' means, with
respect to the remuneration paid by the employer to such
employee for such year, an amount equal to so much of such
remuneration as constitutes ''wages'' within the meaning of
section 3121(a), except that the contribution and benefit base
for each calendar year shall be deemed to be $6,000.
(B) Railway labor
If more than one-half of remuneration paid by an employer to
an employee during any year is remuneration for service
described in section 3306(c)(9), the term ''unemployment
insurance wages'' means, with respect to such employee for such
year, an amount equal to so much of the remuneration paid to
such employee during such year which would be subject to
contributions under section 8(a) of the Railroad Unemployment
Insurance Act (45 U.S.C. 358(a)) if the maximum amount subject
to such contributions were $500 per month.
(2) Wages
In any case to which subparagraph (A) or (B) of paragraph (1)
applies, the term ''wages'' means unemployment insurance wages
(determined without regard to any dollar limitation).
(i) Certain individuals ineligible
(1) Related individuals
No wages shall be taken into account under subsection (a) with
respect to an individual who -
(A) bears any of the relationships described in subparagraphs
(A) through (G) of section 152(d)(2) to the taxpayer, or, if the
taxpayer is a corporation, to an individual who owns, directly
or indirectly, more than 50 percent in value of the outstanding
stock of the corporation, or, if the taxpayer is an entity
other than a corporation, to any individual who owns, directly
or indirectly, more than 50 percent of the capital and profits
interests in the entity, (FOOTNOTE 2) (determined with the
application of section 267(c)),
(FOOTNOTE 2) So in original. The comma probably should not
appear.
(B) if the taxpayer is an estate or trust, is a grantor,
beneficiary, or fiduciary of the estate or trust, or is an
individual who bears any of the relationships described in
subparagraphs (A) through (G) of section 152(d)(2) to a grantor,
beneficiary, or fiduciary of the estate or trust, or
(C) is a dependent (described in section 152(d)(2)(H)) of the
taxpayer, or, if the taxpayer is a corporation, of an
individual described in subparagraph (A), or, if the taxpayer
is an estate or trust, of a grantor, beneficiary, or fiduciary
of the estate or trust.
(2) Nonqualifying rehires
No wages shall be taken into account under subsection (a) with
respect to any individual if, prior to the hiring date of such
individual, such individual had been employed by the employer at
any time.
(3) Individuals not meeting minimum employment periods
(A) Reduction of credit for individuals performing fewer than
400 hours of service
In the case of an individual who has performed at least 120
hours, but less than 400 hours, of service for the employer,
subsection (a) shall be applied by substituting ''25 percent''
for ''40 percent''.
(B) Denial of credit for individuals performing fewer than 120
hours of service
No wages shall be taken into account under subsection (a)
with respect to any individual unless such individual has
performed at least 120 hours of service for the employer.
(j) Election to have work opportunity credit not apply
(1) In general
A taxpayer may elect to have this section not apply for any
taxable year.
(2) Time for making election
An election under paragraph (1) for any taxable year may be
made (or revoked) at any time before the expiration of the 3-year
period beginning on the last date prescribed by law for filing
the return for such taxable year (determined without regard to
extensions).
(3) Manner of making election
An election under paragraph (1) (or revocation thereof) shall
be made in such manner as the Secretary may by regulations
prescribe.
(k) Treatment of successor employers; treatment of employees
performing services for other persons
(1) Treatment of successor employers
Under regulations prescribed by the Secretary, in the case of a
successor employer referred to in section 3306(b)(1), the
determination of the amount of the credit under this section with
respect to wages paid by such successor employer shall be made in
the same manner as if such wages were paid by the predecessor
employer referred to in such section.
(2) Treatment of employees performing services for other persons
No credit shall be determined under this section with respect
to remuneration paid by an employer to an employee for services
performed by such employee for another person unless the amount
reasonably expected to be received by the employer for such
services from such other person exceeds the remuneration paid by
the employer to such employee for such services.
Sources
(Added Pub. L. 95-30, title II, Sec. 202(b), May 23, 1977, 91 Stat.
141; amended Pub. L. 95-600, title III, Sec. 321(a), Nov. 6, 1978,
92 Stat. 2830; Pub. L. 96-222, title I, Sec. 103(a)(6)(A), (E),
(F), (G)(iii)-(ix), Apr. 1, 1980, 94 Stat. 209, 210; Pub. L. 97-34,
title II, Sec. 261(a)-(b)(2)(A), (B)(ii)-(f)(1), Aug. 13, 1981, 95
Stat. 260-262; Pub. L. 97-248, title II, Sec. 233(a)-(d), (f),
Sept. 3, 1982, 96 Stat. 501, 502; Pub. L. 97-448, title I, Sec.
102(l)(1), (3), (4), Jan. 12, 1983, 96 Stat. 2374; Pub. L. 98-369,
div. A, title IV, Sec. 474(p)(1)-(3), title VII, Sec. 712(n),
title X, Sec. 1041(a), (c)(1)-(4), div. B, title VI, Sec. 2638(b),
2663(j)(5)(A), July 18, 1984, 98 Stat. 837, 955, 1042, 1043, 1144,
1171; Pub. L. 99-514, title XVII, Sec. 1701(a)-(c), title XVIII,
Sec. 1878(f)(1), Oct. 22, 1986, 100 Stat. 2772, 2904; Pub. L.
100-203, title X, Sec. 10601(a), Dec. 22, 1987, 101 Stat. 1330-451;
Pub. L. 100-485, title II, Sec. 202(c)(6), Oct. 13, 1988, 102 Stat.
2378; Pub. L. 100-647, title I, Sec. 1017(a), title IV, Sec.
4010(a), (c)(1), (d)(1), Nov. 10, 1988, 102 Stat. 3575, 3655; Pub.
L. 101-239, title VII, Sec. 7103(a), (c)(1), Dec. 19, 1989, 103
Stat. 2305; Pub. L. 101-508, title XI, Sec. 11405(a), Nov. 5, 1990,
104 Stat. 1388-473; Pub. L. 102-227, title I, Sec. 105(a), Dec. 11,
1991, 105 Stat. 1687; Pub. L. 103-66, title XIII, Sec. 13102(a),
13302(d), Aug. 10, 1993, 107 Stat. 420, 556; Pub. L. 104-188, title
I, Sec. 1201(a)-(e)(1), (5), (f), Aug. 20, 1996, 110 Stat.
1768-1772; Pub. L. 104-193, title I, Sec. 110(l)(1), Aug. 22, 1996,
110 Stat. 2173; Pub. L. 105-33, title V, Sec. 5514(a)(1), Aug. 5,
1997, 111 Stat. 620; Pub. L. 105-34, title VI, Sec. 603(a)-(d),
Aug. 5, 1997, 111 Stat. 862; Pub. L. 105-277, div. J, title I,
Sec. 1002(a), title IV, Sec. 4006(c)(1), Oct. 21, 1998, 112 Stat.
2681-888, 2681-912; Pub. L. 106-170, title V, Sec. 505(a), (b),
Dec. 17, 1999, 113 Stat. 1921; Pub. L. 106-554, Sec. 1(a)(7) (title
I, Sec. 102(a)-(c), title III, Sec. 316(a)), Dec. 21, 2000, 114
Stat. 2763, 2763A-600, 2763A-644.)
References in Text
REFERENCES IN TEXT
The Social Security Act, referred to in subsecs. (c)(2)(B) and
(d)(2)(B), (9), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as
amended. Part A of title IV of the Act is classified generally to
part A (Sec. 601 et seq.) of subchapter IV of chapter 7 of Title
42, The Public Health and Welfare. Title XVI of the Act is
classified generally to subchapter XVI (Sec. 1381 et seq.) of
chapter 7 of Title 42. Section 482 of the Act, which was classified
to section 682 of Title 42, was repealed by Pub. L. 104-193, title
I, Sec. 108(e), Aug. 22, 1996, 110 Stat. 2167. Section 1616 of the
Act is classified to section 1382e of Title 42. For complete
classification of this Act to the Code, see section 1305 of Title
42 and Tables.
The Food Stamp Act of 1977, referred to in subsec. (d)(3)(A),
(8)(A)(ii), is Pub. L. 88-525, Aug. 31, 1964, 78 Stat. 703, as
amended, which is classified generally to chapter 51 (Sec. 2011 et
seq.) of Title 7, Agriculture. Section 6(o) of the Act is
classified to section 2015(o) of Title 7. For complete
classification of this Act to the Code, see Short Title note set
out under section 2011 of Title 7 and Tables.
The Rehabilitation Act of 1973, referred to in subsec.
(d)(6)(B)(i), is Pub. L. 93-112, Sept. 26, 1973, 87 Stat. 355, as
amended, which is classified generally to chapter 16 (Sec. 701 et
seq.) of Title 29, Labor. For complete classification of this Act
to the Code, see Short Title note set out under section 701 of
Title 29 and Tables.
Section 212 of Public Law 93-66, referred to in subsec. (d)(9),
is set out as a note under section 1382 of Title 42, The Public
Health and Welfare.
Act of June 6, 1933, referred to in subsec. (d)(11), is act June
6, 1933, ch. 49, 48 Stat. 113, as amended, popularly known as the
Wagner-Peyser Act, which is classified generally to chapter 4B
(Sec. 49 et seq.) of Title 29, Labor. For complete classification
of this Act to the Code, see Short Title note set out under section
49 of Title 29 and Tables.
Miscellaneous
PRIOR PROVISIONS
A prior section 51, added Pub. L. 90-364, title I, Sec. 102(a),
June 28, 1968, 82 Stat. 252; amended Pub. L. 91-53, Sec. 5(a), Aug.
7, 1969, 83 Stat. 93; Pub. L. 91-172, title III, Sec. 301(b)(5),
title VII, Sec. 701(a), Dec. 30, 1969, 83 Stat. 585, 657, related
to the imposition of a tax surcharge, prior to repeal by Pub. L.
94-455, title XIX, Sec. 1901(a)(7), Oct. 4, 1976, 90 Stat. 1765.
AMENDMENTS
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK CREDIT.
(a) In General.--Sections 51(c)(4)(B) and 51A(f) <<NOTE: 26 USC 51,
51A.>> are each amended by striking ``2005'' and inserting ``2007''.
(b) Eligibility of Ex-Felons Determined Without Regard to Family
Income.--Paragraph (4) of section 51(d) is amended by adding ``and'' at
the end of subparagraph (A), by striking ``, and'' at the end of
subparagraph (B) and inserting a period, and by striking all that
follows subparagraph (B).
(c) Increase in Maximum Age for Eligibility of Food Stamp
Recipients.--Clause (i) of section 51(d)(8)(A) is amended by striking
``25'' and inserting ``40''.
(d) Extension of Paperwork Filing Deadline.--Section
51(d)(12)(A)(ii)(II) is amended by striking ``21st day'' and inserting
``28th day''.
(e) Consolidation of Work Opportunity Credit With Welfare-to-Work
Credit.--
(1) In general.--Paragraph (1) of section 51(d) is amended
by striking ``or'' at the end of subparagraph (G), by striking
the period at the end of subparagraph (H) and inserting ``,
or'', and by adding at the end the following new subparagraph:
``(I) a long-term family assistance recipient.''.
(2) Long-term family assistance recipient.--Subsection (d)
of section 51 is amended by redesignating paragraphs (10)
through (12) as paragraphs (11) through (13), respectively, and
by inserting after paragraph (9) the following new paragraph:
``(10) Long-term family assistance recipient.--The term
`long-term family assistance recipient' means any individual who
is certified by the designated local agency--
``(A) as being a member of a family receiving
assistance under a IV-A program (as defined in paragraph
(2)(B)) for at least the 18-month period ending on the
hiring date,
``(B)(i) as being a member of a family receiving
such assistance for 18 months beginning after August 5,
1997, and
``(ii) as having a hiring date which is not more
than 2 years after the end of the earliest such 18-month
period, or
``(C)(i) as being a member of a family which ceased
to be eligible for such assistance by reason of any
limitation imposed by Federal or State law on the
maximum period such assistance is payable to a family,
and
``(ii) as having a hiring date which is not more
than 2 years after the date of such cessation.''.
(3) Increased credit for employment of long-term family
assistance recipients.--Section 51 is amended by inserting after
subsection (d) the following new subsection:
``(e) Credit for Second-Year Wages for Employment of Long-Term
Family Assistance Recipients.--
``(1) In general.--With respect to the employment of a long-
term family assistance recipient--
``(A) the amount of the work opportunity credit
determined under this section for the taxable year shall
include 50 percent of the qualified second-year wages
for such year, and
``(B) in lieu of applying subsection (b)(3), the
amount of the qualified first-year wages, and the amount
of qualified second-year wages, which may be taken into
account with respect to such a recipient shall not
exceed $10,000 per year.
``(2) Qualified second-year wages.--For purposes of this
subsection, the term `qualified second-year wages' means
qualified wages--
``(A) which are paid to a long-term family
assistance recipient, and
``(B) which are attributable to service rendered
during the 1-year period beginning on the day after the
last day of the 1-year period with respect to such
recipient determined under subsection (b)(2).
``(3) <<NOTE: Applicability.>> Special rules for
agricultural and railway labor.--If such recipient is an
employee to whom subparagraph (A) or (B) of subsection (h)(1)
applies, rules similar to the rules of such subparagraphs shall
apply except that--
``(A) such subparagraph (A) shall be applied by
substituting `$10,000' for `$6,000', and
``(B) such subparagraph (B) shall be applied by
substituting `$833.33' for `$500'.''.
(4) Repeal of separate welfare-to-work credit.--
(A) In general.--Section 51A is hereby repealed.
(B) Clerical amendment.--The table of sections for
subpart F of part IV of subchapter A of chapter 1 is
amended by striking the item relating to section 51A.
2005 - P.L. 109-73
SEC. 201. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA EMPLOYEES.
(a) In General.--For purposes of section 51 of the Internal Revenue
Code of 1986, a Hurricane Katrina employee shall be treated as a member
of a targeted group.
(b) Hurricane Katrina Employee.--For purposes of this section, the
term ``Hurricane Katrina employee'' means--
(1) any individual who on August 28, 2005, had a principal
place of abode in the core disaster area and who is hired
during the 2-year period beginning on such date for a position
the principal place of employment of which is located in the
core disaster area, and
(2) any individual who on such date had a principal place of
abode in the core disaster area, who is displaced from such
abode by reason of Hurricane Katrina, and who is hired during
the period beginning on such date and ending on December 31,
2005.
(c) Reasonable <<NOTE: Applicability.>> Identification Acceptable.--
In lieu of the certification requirement under subparagraph (A) of
section 51(d)(12) of such Code, an individual may provide to the
employer reasonable evidence that the individual is a Hurricane Katrina
employee, and subparagraph (B) of such section shall be applied as if
such evidence were a certification described in such subparagraph.
(d) Special <<NOTE: Applicability.>> Rules for Determining Credit.--
For purposes of applying subpart F of part IV of subchapter A of chapter
1 of such Code to wages paid or incurred to any Hurricane Katrina
employee--
(1) section 51(c)(4) of such Code shall not apply, and
(2) section 51(i)(2) of such Code shall not apply with
respect to the first hire of such employee as a Hurricane
Katrina employee, unless such employee was an employee of the
employer on August 28, 2005.
2004 - Pub.L.108-311 Sec 207(5), amended Sec.51(i)(1).
2004 - Subsec.303(a)(1), Pub.L.108-311, amended Sec.51(c)(4)
by inserting December 31, 2005 and striking December 31, 2003.
Effective Date.--The amendments made by this section shall apply
to individuals who begin work for the employer after
December 31, 2003.
2002 - Subsec. 604(a). Pub. L. 107-147, amended Sec. 51(c)(4)
(B) by substituting 2003 for 2001. This amendment shall apply to
individuals who begin work for the employer after Dec. 31, 2001.
2000 - Subsec. (d)(2)(B). Pub. L. 106-554, Sec. 1(a)(7) (title
III, Sec. 316(a)), substituted ''program funded'' for ''plan
approved'' and struck out ''(relating to assistance for needy
families with minor children)'' after ''Social Security Act''.
Subsec. (d)(5)(A)(ii). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 102(a)), substituted ''empowerment zone, enterprise community,
or renewal community'' for ''empowerment zone or enterprise
community''.
Subsec. (d)(5)(B). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
102(a), (c)), inserted ''or community'' after ''zone'' in heading
and substituted ''empowerment zone, enterprise community, or
renewal community'' for ''empowerment zone or enterprise
community'' in text.
Subsec. (d)(7)(A)(iv). Pub. L. 106-554, Sec. 1(a)(7) (title I,
Sec. 102(b)), substituted ''empowerment zone, enterprise community,
or renewal community'' for ''empowerment zone or enterprise
community''.
Subsec. (d)(7)(C). Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec.
102(c)), inserted ''or community'' after ''zone'' in heading.
1999 - Subsec. (c)(4)(B). Pub. L. 106-170, Sec. 505(a),
substituted ''December 31, 2001'' for ''June 30, 1999''.
Subsec. (i)(2). Pub. L. 106-170, Sec. 505(b), struck out ''during
which he was not a member of a targeted group'' before period at
end.
1998 - Subsec. (c)(4)(B). Pub. L. 105-277, Sec. 1002(a),
substituted ''June 30, 1999'' for ''June 30, 1998''.
Subsec. (d)(6)(B)(i). Pub. L. 105-277, Sec. 4006(c)(1),
substituted ''plan for employment'' for ''rehabilitation plan''.
1997 - Subsec. (a). Pub. L. 105-34, Sec. 603(d)(1), substituted
''40 percent'' for ''35 percent''.
Subsec. (c)(4)(B). Pub. L. 105-34, Sec. 603(a), substituted
''June 30, 1998'' for ''September 30, 1997''.
Subsec. (d)(1)(H). Pub. L. 105-34, Sec. 603(c)(1), added subpar.
(H).
Subsec. (d)(2)(A). Pub. L. 105-34, Sec. 603(b)(1), substituted
''for any 9 months during the 18-month period ending on the hiring
date'' for ''for at least a 9-month period ending during the
9-month period ending on the hiring date''.
Subsec. (d)(3)(A). Pub. L. 105-34, Sec. 603(b)(2), amended
heading and text of subpar. (A) generally. Prior to amendment,
text read as follows: ''The term 'qualified veteran' means any
veteran who is certified by the designated local agency as being -
''(i) a member of a family receiving assistance under a IV-A
program (as defined in paragraph (2)(B)) for at least a 9-month
period ending during the 12-month period ending on the hiring
date, or
''(ii) a member of a family receiving assistance under a food
stamp program under the Food Stamp Act of 1977 for at least a
3-month period ending during the 12-month period ending on the
hiring date.''
Subsec. (d)(9). Pub. L. 105-34, Sec. 603(c)(2), added par. (9).
Former par. (9) redesignated (10).
Pub. L. 105-33 repealed Pub. L. 104-193, Sec. 110(l)(1). See 1996
Amendment note below.
Subsec. (d)(10) to (12). Pub. L. 105-34, Sec. 603(c)(2),
redesignated pars. (9) to (11) as (10) to (12), respectively.
Subsec. (i)(3). Pub. L. 105-34, Sec. 603(d)(2), amended heading
and text of par. (3) generally. Prior to amendment, text read as
follows: ''No wages shall be taken into account under subsection
(a) with respect to any individual unless such individual either -
''(A) is employed by the employer at least 180 days (20 days in
the case of a qualified summer youth employee), or
''(B) has completed at least 400 hours (120 hours in the case
of a qualified summer youth employee) of services performed for
the employer.''
1996 - Subsec. (a). Pub. L. 104-188, Sec. 1201(a), (e)(1),
substituted ''work opportunity credit'' for ''targeted jobs
credit'' and ''35 percent'' for ''40 percent''.
Subsec. (c)(1). Pub. L. 104-188, Sec. 1201(f), struck out '',
subsection (d)(8)(D),'' after ''this subsection''.
Subsec. (c)(4). Pub. L. 104-188, Sec. 1201(d), amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
''Termination. - The term 'wages' shall not include any amount paid
or incurred to an individual who begins work for the employer after
December 31, 1994.''
Subsec. (d). Pub. L. 104-188, Sec. 1201(b), reenacted heading
without change and amended text generally, revising and restating
as pars. (1) to (11) provisions formerly contained in pars. (1) to
(16).
Subsec. (d)(9). Pub. L. 104-193, Sec. 110(l)(1), which directed
amendment of par. (9) by striking all that follows ''agency as''
and inserting ''being eligible for financial assistance under part
A of title IV of the Social Security Act and as having continually
received such financial assistance during the 90-day period which
immediately precedes the date on which such individual is hired by
the employer.'', was repealed by Pub. L. 105-33.
Subsec. (g). Pub. L. 104-188, Sec. 1201(e)(1), substituted ''work
opportunity credit'' for ''targeted jobs credit''.
Subsec. (i)(3). Pub. L. 104-188, Sec. 1201(c), amended par. (3)
generally. Prior to amendment, par. (3) read as follows:
''Individuals not meeting minimum employment period. - No wages
shall be taken into account under subsection (a) with respect to
any individual unless such individual either -
''(A) is employed by the employer at least 90 days (14 days in
the case of an individual described in subsection (d)(12)), or
''(B) has completed at least 120 hours (20 hours in the case of
an individual described in subsection (d)(12)) of services
performed for the employer.''
Subsec. (j). Pub. L. 104-188, Sec. 1201(e)(5), substituted ''Work
opportunity credit'' for ''Targeted jobs credit'' in heading.
1993 - Subsec. (c)(4). Pub. L. 103-66, Sec. 13102(a), substituted
''December 31, 1994'' for ''June 30, 1992''.
Subsec. (i)(1)(A). Pub. L. 103-66, Sec. 13302(d), inserted '',
or, if the taxpayer is an entity other than a corporation, to any
individual who owns, directly or indirectly, more than 50 percent
of the capital and profits interests in the entity,'' after ''of
the corporation''.
1991 - Subsec. (c)(4). Pub. L. 102-227 substituted ''June 30,
1992'' for ''December 31, 1991''.
1990 - Subsec. (c)(4). Pub. L. 101-508 substituted ''December 31,
1991'' for ''September 30, 1990''.
1989 - Subsec. (c)(4). Pub. L. 101-239, Sec. 7103(a), substituted
''September 30, 1990'' for ''December 31, 1989''.
Subsec. (d)(16)(C). Pub. L. 101-239, Sec. 7103(c)(1), added
subpar. (C).
1988 - Subsec. (c)(2)(B). Pub. L. 100-485 substituted ''section
482(e)'' for ''section 414''.
Subsec. (c)(4). Pub. L. 100-647, Sec. 4010(a), substituted
''1989'' for ''1988''.
Subsec. (d)(3)(B). Pub. L. 100-647, Sec. 4010(c)(1), substituted
''age 23'' for ''age 25''.
Subsec. (d)(12)(B). Pub. L. 100-647, Sec. 4010(d)(1),
redesignated former cls. (ii) and (iii) as (i) and (ii),
respectively, and struck out former cl. (i) which provided that
subsection (a) shall be applied by substituting ''85 percent'' for
''40 percent''.
Pub. L. 100-647, Sec. 1017(a), substituted ''subsection (a)'' for
''subsection (a)(1)'' in cl. (i).
1987 - Subsec. (c)(3), (4). Pub. L. 100-203 added par. (3) and
redesignated former par. (3) as (4).
1986 - Subsec. (a). Pub. L. 99-514, Sec. 1701(b)(1), amended
subsec. (a) generally. Prior to amendment, subsec. (a) read as
follows: ''For purposes of section 38, the amount of the targeted
jobs credit determined under this section for the taxable year
shall be the sum of -
''(1) 50 percent of the qualified first-year wages for such
year, and
''(2) 25 percent of the qualified second-year wages for such
year.''
Subsec. (b)(3), (4). Pub. L. 99-514, Sec. 1701(b)(2)(A),
redesignated par. (4) as (3) and struck out '', and the amount of
the qualified second-year wages,'' after ''first-year wages'' and
struck out par. (3) which defined ''qualified second-year wages''.
Subsec. (c)(3). Pub. L. 99-514, Sec. 1701(a), substituted
''December 31, 1988'' for ''December 31, 1985''.
Subsec. (d)(12)(B). Pub. L. 99-514, Sec. 1701(b)(2)(B), in cl.
(i), substituted ''40 percent'' for ''50 percent'', struck out cl.
(ii) which directed that subsecs. (a)(2) and (b)(3) were not to
apply, redesignated cl. (iii) as cl. (ii), redesignated cl. (iv) as
cl. (iii), and in cl. (iii) as so redesignated substituted
''subsection (b)(3)'' for ''subsection (b)(4)''.
Subsec. (i)(3). Pub. L. 99-514, Sec. 1701(c), added par. (3).
Subsec. (k). Pub. L. 99-514, Sec. 1878(f)(1), redesignated
subsec. (j) added by section 1041(c)(1) of Pub. L. 98-369 and
relating to treatment of successor employers, and employees
performing services for other persons, as subsec. (k).
1984 - Subsec. (a). Pub. L. 98-369, Sec. 474(p)(1), substituted
''For purposes of section 38, the amount of the targeted jobs
credit determined under this section'' for ''The amount of the
credit allowable by section 44B'' in introductory provisions.
Subsec. (b)(2). Pub. L. 98-369, Sec. 1041(c)(4), struck out
''(or, in the case of a vocational rehabilitation referral, the day
the individual begins work for the employer on or after the
beginning of such individual's rehabilitation plan)'' after
''begins work for the employer''.
Subsec. (c)(2). Pub. L. 98-369, Sec. 2638(b), designated existing
provisions as subpar. (A), inserted par. (2) heading, and added
subpar. (B).
Subsec. (c)(3). Pub. L. 98-369, Sec. 1041(a), substituted
''December 31, 1985'' for ''December 31, 1984''.
Subsec. (d)(6)(B)(ii). Pub. L. 98-369, Sec. 2663(j)(5)(A),
substituted ''Secretary of Health and Human Services'' for
''Secretary of Health Education and Welfare''.
Subsec. (d)(11). Pub. L. 98-369, Sec. 712(n), made determination
respecting membership of a qualified summer youth employee or youth
participating in a qualified cooperative education program with
respect to an employer applicable for purposes of determining
whether such individual is a member of another targeted group with
respect to such employer.
Subsec. (d)(12)(A)(ii). Pub. L. 98-369, Sec. 1041(c)(3),
substituted ''(or if later, on May 1 of the calendar year
involved)'' for ''(as defined in paragraph (14))''.
Subsec. (d)(16)(A). Pub. L. 98-369, Sec. 1041(c)(2), inserted
''For purposes of the preceding sentence, if on or before the day
on which such individual begins work for the employer, such
individual has received from a designated local agency (or other
agency or organization designated pursuant to a written agreement
with such designated local agency) a written preliminary
determination that such individual is a member of a targeted group,
then 'the fifth day' shall be substituted for 'the day' in such
sentence.''
Subsec. (g). Pub. L. 98-369, Sec. 474(p)(2), substituted ''the
targeted jobs credit determined under this subpart'' for ''the
credit provided by section 44B''.
Subsec. (j). Pub. L. 98-369, Sec. 1041(c)(1), added subsec. (j)
relating to treatment of successor employers, and employees
performing services for other persons.
Pub. L. 98-369, Sec. 474(p)(3), added subsec. (j) relating to
election to have targeted jobs credit not apply.
1983 - Subsec. (d)(8)(D). Pub. L. 97-448, Sec. 102(l)(1),
substituted ''clauses (i), (ii), and (iii) of subparagraph (A)''
for ''subparagraph (A)''.
Subsec. (d)(9)(B). Pub. L. 97-448, Sec. 102(l)(3), substituted
''section 432(b)(1) or 445'' for ''section 432(b)(1)''.
Subsec. (d)(11). Pub. L. 97-448, Sec. 102(l)(4), substituted
''the earlier of the month in which such determination occurs or
the month in which the hiring date occurs'' for ''the month in
which such determination occurs''.
1982 - Subsec. (c)(3). Pub. L. 97-248, Sec. 233(a), substituted
''1984'' for ''1982''.
Subsec. (d)(1)(J). Pub. L. 97-248, Sec. 233(b)(3), added subpar.
(J).
Subsec. (d)(6)(B)(i)(II). Pub. L. 97-248, Sec. 233(d),
substituted ''consists of money payments or voucher or scrip, and''
for ''consists of money payments''.
Subsec. (d)(10). Pub. L. 97-248, Sec. 233(c), inserted provision
respecting nonapplicability of paragraph to individuals who begin
work for the employer after December 31, 1982.
Subsec. (d)(12) to (15). Pub. L. 97-248, Sec. 233(b)(4), (5),
added par. (12) and redesignated former pars. (12) to (15) as (13)
to (16), respectively.
Subsec. (d)(16). Pub. L. 97-248, Sec. 233(b)(4), redesignated
former par. (15) as (16).
Pub. L. 97-248, Sec. 233(f), substituted ''on or before'' for
''before'' in subpar. (A).
1981 - Subsec. (c)(3), (4). Pub. L. 97-34, Sec. 261(b)(2)(B)(ii),
redesignated par. (4) as (3). Former par. (3), which excluded from
term ''wages'' any amount paid or incurred by the employer to an
individual with respect to whom the employer claims credit under
section 40 of this title, was struck out.
Pub. L. 97-34, Sec. 261(a), extended termination date to Dec. 31,
1982, from Dec. 31, 1981, and inserted ''to an individual who
begins work for the employer'' after ''paid or incurred''.
Subsec. (d)(1)(H), (I). Pub. L. 97-34, Sec. 261(b)(1), added
subpars. (H) and (I).
Subsec. (d)(3)(A)(ii). Pub. L. 97-34, Sec. 261(b)(2)(B)(iii),
substituted ''paragraph (11)'' for ''paragraph (9)''.
Subsec. (d)(4). Pub. L. 97-34, Sec. 261(b)(2)(B)(iii), (3), in
subpar. (B) inserted ''and'' after ''States,'' in subpar. (C)
substituted ''paragraph (11)'' for ''paragraph (9)'', and struck
out ''(D) not having attained the age of 35 on the hiring date.''
Subsec. (d)(7)(B). Pub. L. 97-34, Sec. 261(b)(2)(B)(iii),
substituted ''paragraph (11)'' for ''paragraph (9)''.
Subsec. (d)(8)(A)(iv). Pub L. 97-34, Sec. 261(b)(4), added cl.
(iv).
Subsec. (d)(9), (10). Pub. L. 97-34, Sec. 261(b)(2)(A), added
pars. (9) and (10) and redesignated former pars. (9) and (10) as
(11) and (12), respectively.
Subsec. (d)(11). Pub. L. 97-34, Sec. 261(b)(2)(A), (c)(2),
redesignated former par. (9) as (11), substituted ''70 percent or
less'' for ''less than 70 percent'', and provided for validity of
any determination for 45-day period beginning on the date the
determination is made. Former par. (11) redesignated (13).
Subsec. (d)(12), (13). Pub. L. 97-34, Sec. 261(b)(2)(A),
redesignated former pars. (10) and (11) as pars. (12) and (13),
respectively. Former par. (12) redesignated (14).
Subsec. (d)(14). Pub. L. 97-34, Sec. 261(f)(1)(A), substituted as
definition for term '' 'designated local agency' means a State
employment security agency established in accordance with the Act
of June 6, 1933, as amended (29 U.S.C. 49-49n)'' for '' 'designated
local agency' means the agency for any locality designated jointly
by the Secretary and the Secretary of Labor to perform
certification of employees for employers in that locality''.
Pub. L. 97-34, Sec. 261(b)(2)(A), redesignated former par. (12)
as (14).
Subsec. (d)(15). Pub. L. 97-34, Sec. 261(c)(1), added par. (15).
Subsec. (e). Pub. L. 97-34, Sec. 261(e)(1), struck out subsec.
(e) which set forth limitation that qualified first-year wages
could not exceed 30 percent of FUTA wages for all employees.
Subsec. (f). Pub. L. 97-34, Sec. 261(e)(2), substituted ''any
taxable year'' for ''any year'' in pars. (1) and (2) and struck out
par. (3), defining ''year'' which is covered in pars. (1) and (2).
Subsec. (g). Pub. L. 97-34, Sec. 261(f)(1)(B), substituted
''United States Employment Service'' for ''Secretary of Labor'' in
heading and text.
Subsec. (i). Pub. L. 97-34, Sec. 261(d), added subsec. (i).
1980 - Subsec. (c)(1). Pub. L. 96-222, Sec. 103(a)(6)(E)(ii),
substituted '', subsection (d)(8)(D), and subsection (h)(2)'' for
''subsection (h)(2)''.
Subsec. (c)(2). Pub. L. 96-222, Sec. 103(a)(6)(G)(iii), inserted
''or incurred'' after ''amounts paid''.
Subsec. (c)(4). Pub. L. 96-222, Sec. 103(a)(6)(A), substituted
''December 31, 1981'' for ''December 31, 1980''.
Subsec. (d)(1)(E). Pub. L. 96-222, Sec. 103(a)(6)(G)(iv), struck
out ''or'' after ''recipient,''.
Subsec. (d)(4)(A)(i). Pub. L. 96-222, Sec. 103(a)(6)(G)(v),
substituted ''active duty'' for ''active day''.
Subsec. (d)(4)(B). Pub. L. 96-222, Sec. 103(a)(6)(G)(vi),
substituted ''preemployment'' for ''premployment''.
Subsec. (d)(5). Pub. L. 96-222, Sec. 103(a)(6)(G)(vii),
substituted ''preemployment'' for ''pre-employment''.
Subsec. (d)(8)(A). Pub. L. 96-222, Sec. 103(a)(6)(F), substituted
''age 20'' for ''age 19''.
Subsec. (d)(8)(D). Pub. L. 96-222, Sec. 103(a)(6)(E)(i), in
heading substituted ''Wages'' for ''Individual must be currently
pursuing program'' and in text substituted ''In the case of
remuneration'' for ''Wages shall be taken into account with respect
to a qualified cooperative education program only if the wages
are'' and inserted '', wages, and unemployment insurance wages,
shall be determined without regard to section 3306(c)(10)(C)''.
Subsec. (d)(12). Pub. L. 96-222, Sec. 103(a)(6)(G)(viii),
substituted ''employers'' for ''employer''.
Subsec. (e). Pub. L. 96-222, Sec. 103(a)(6)(G)(ix), inserted
''except as provided in subsection (h)(1)'' after ''the preceding
sentence,''.
1978 - Pub. L. 95-600 amended section generally and limited
allowance of credit to the hiring of seven target groups with high
unemployment rates.
EFFECTIVE DATE OF 2006 AMENDMENT
2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432)
SEC. 105. WORK OPPORTUNITY TAX CREDIT AND WELFARE-TO-WORK CREDIT.
(f) <<NOTE: 26 USC 51 note.>> Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to individuals who
begin work for the employer after December 31, 2005.
(2) Consolidation.--The amendments made by subsections (b),
(c), (d), and (e) shall apply to individuals who begin work for
the employer after December 31, 2006.
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(7) (title I, Sec. 102(d)), Dec. 21,
2000, 114 Stat. 2763, 2763A-600, provided that: ''The amendments
made by this section (amending this section) shall apply to
individuals who begin work for the employer after December 31,
2001.''
Pub. L. 106-554, Sec. 1(a)(7) (title III, Sec. 316(e)), Dec. 21,
2000, 114 Stat. 2763, 2763A-645, provided that: ''The amendments
made by this section (amending this section and sections 219, 401
and 1361 of this title) shall take effect as if included in the
provisions of the Small Business Job Protection Act of 1996 (Pub.
L. 104-188) to which they relate.''
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106-170, title V, Sec. 505(c), Dec. 17, 1999, 113 Stat.
1921, provided that: ''The amendments made by this section
(amending this section and section 51A of this title) shall apply
to individuals who begin work for the employer after June 30,
1999.''
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-277, div. J, title I, Sec. 1002(b), Oct. 21, 1998,
112 Stat. 2681-888, provided that: ''The amendment made by this
section (amending this section) shall apply to individuals who
begin work for the employer after June 30, 1998.''
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 603(e) of Pub. L. 105-34 provided that: ''The amendments
made by this section (amending this section) shall apply to
individuals who begin work for the employer after September 30,
1997.''
Section 5518(c) of Pub. L. 105-33 provided that: ''The amendments
made by section 5514(a) of this Act (amending this section and
sections 3304, 6103, 6334, 6402, and 7523 of this title) shall take
effect as if the amendments had been included in section 110 of the
Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (Pub. L. 104-193) at the time such section 110 became law.''
EFFECTIVE DATE OF 1996 AMENDMENTS
Amendment by Pub. L. 104-193 effective July 1, 1997, with
transition rules relating to State options to accelerate such date,
rules relating to claims, actions, and proceedings commenced before
such date, rules relating to closing out of accounts for terminated
or substantially modified programs and continuance in office of
Assistant Secretary for Family Support, and provisions relating to
termination of entitlement under AFDC program, see section 116 of
Pub. L. 104-193, as amended, set out as an Effective Date note
under section 601 of Title 42, The Public Health and Welfare.
Amendment by Pub. L. 104-188 applicable to individuals who begin
work for the employer after Sept. 30, 1996, see section 1201(g) of
Pub. L. 104-188, set out as a note under section 38 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13102(b) of Pub. L. 103-66 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply to
individuals who begin work for the employer after June 30, 1992.''
EFFECTIVE DATE OF 1991 AMENDMENT
Section 105(b) of Pub. L. 102-227 provided that: ''The amendment
made by this section (amending this section) shall apply to
individuals who begin work for the employer after December 31,
1991.''
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11405(c) of Pub. L. 101-508 provided that:
''(1) Credit. - The amendment made by subsection (a) (amending
this section) shall apply to individuals who begin work for the
employer after September 30, 1990.
''(2) Authorization. - The amendment made by subsection (b)
(amending provisions set out below) shall apply to fiscal years
beginning after 1990.''
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7103(c)(2) of Pub. L. 101-239 provided that: ''The
amendment made by paragraph (1) (amending this section) shall apply
to individuals who begin work for the employer after December 31,
1989.''
EFFECTIVE DATE OF 1988 AMENDMENTS
Amendment by section 1017(a) of Pub. L. 100-647 effective, except
as otherwise provided, as if included in the provision of the Tax
Reform Act of 1986, Pub. L. 99-514, to which such amendment
relates, see section 1019(a) of Pub. L. 100-647, set out as a note
under section 1 of this title.
Section 4010(c)(2) of Pub. L. 100-647 provided that: ''The
amendment made by paragraph (1) (amending this section) shall apply
to individuals who begin work for the employer after December 31,
1988.''
Section 4010(d)(2) of Pub. L. 100-647 provided that: ''The
amendment made by paragraph (1) (amending this section) shall apply
to individuals who begin work for the employer after December 31,
1988.''
Amendment by Pub. L. 100-485 effective Oct. 1, 1990, with
provision for earlier effective dates in case of States making
certain changes in their State plans and formally notifying the
Secretary of Health and Human Services of their desire to become
subject to the amendments made by title II of Pub. L. 100-485 on
the earlier effective dates, see section 204 of Pub. L. 100-485,
set out as a note under section 671 of Title 42, The Public Health
and Welfare.
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10601(b) of Pub. L. 100-203 provided that: ''The
amendment made by subsection (a) (amending this section) shall
apply to amounts paid or incurred on or after January 1, 1987, for
services rendered on or after such date.''
EFFECTIVE DATE OF 1986 AMENDMENT
Section 1701(e) of Pub. L. 99-514 provided that: ''The amendments
made by this section (amending this section and provisions set out
below) shall apply with respect to individuals who begin work for
the employer after December 31, 1985.''
Amendment by section 1878(f)(1) of Pub. L. 99-514 effective,
except as otherwise provided, as if included in the provisions of
the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 474(p)(1)-(3) of Pub. L. 98-369 applicable
to taxable years beginning after Dec. 31, 1983, and to carrybacks
from such years, see section 475(a) of Pub. L. 98-369, set out as a
note under section 21 of this title.
Amendment by section 712 of Pub. L. 98-369 effective as if
included in the provision of the Tax Equity and Fiscal
Responsibility Act of 1982, Pub. L. 97-248, to which such amendment
relates, see section 715 of Pub. L. 98-369, set out as a note under
section 31 of this title.
Section 1041(c)(5) of Pub. L. 98-369, as amended by Pub. L.
99-514, Sec. 2, title XVIII, Sec. 1878(f)(2), Oct. 22, 1986, 100
Stat. 2095, 2904, provided that:
''(A) In general. - Except as provided in subparagraph (B), the
amendments made by this section (amending this section) shall apply
to individuals who begin work for the employer after the date of
the enactment of this Act (July 18, 1984).
''(B) Special rule for employees performing services for other
persons. - Paragraph (2) of section 51(k) of the Internal Revenue
Code of 1986 (formerly I.R.C. 1954) (as added by this subsection)
and the amendment made by paragraph (3) of this subsection
(amending this section) shall apply to individuals who begin work
for the employer after December 31, 1984.''
Section 2638(c)(2) of Pub. L. 98-369 provided that: ''The
amendments made by subsection (b) (amending this section) shall
apply with respect to payments made on or after the date of the
enactment of this Act (July 18, 1984).''
Amendment by section 2663 of Pub. L. 98-369 effective July 18,
1984, but not to be construed as changing or affecting any right,
liability, status or interpretation which existed (under the
provisions of law involved) before that date, see section 2664(b)
of Pub. L. 98-369, set out as a note under section 401 of Title 42,
The Public Health and Welfare.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 102(l)(4) of Pub. L. 97-448 provided that the amendment
made by that section is effective with respect to certifications
made after Jan. 12, 1983, with respect to individuals beginning
work for an employer after May 11, 1982.
Amendment by title I of Pub. L. 97-448 effective, except as
otherwise provided, as if it had been included in the provision of
the Economic Recovery Tax Act of 1981, Pub. L. 97-34, to which such
amendment relates, see section 109 of Pub. L. 97-448, set out as a
note under section 1 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 233(f) of Pub. L. 97-248 provided that the amendments
made by that section are effective only with respect to individuals
who begin work for the taxpayer after May 11, 1982.
Section 233(g) of Pub. L. 97-248 provided that:
''(1) Subsection (b). - The amendments made by subsection (b)
(amending this section) shall apply to amounts paid or incurred
after April 30, 1983, to individuals beginning work for the
employer after such date.
''(2) Subsection (d). - The amendments made by subsection (d)
(amending this section) shall apply to amounts paid or incurred
after July 1, 1982, to individuals beginning work for the employer
after such date.''
EFFECTIVE DATE OF 1981 AMENDMENT
Section 261(g) of Pub. L. 97-34, as amended by Pub. L. 97-448,
title I, Sec. 102(l)(2), Jan. 12, 1983, 96 Stat. 2374; Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
''(1) Amendments relating to members of targeted groups. -
''(A) In general. - Except as provided in subparagraphs (B),
(C), and (D), the amendments made by subsections (b), (c)(2), and
(d) (amending this section and section 50B of this title) shall
apply to wages paid or incurred with respect to individuals first
beginning work for an employer after the date of the enactment of
this Act (Aug. 13, 1981) in taxable years ending after such date.
''(B) Eligible work incentive employees. - The amendments made
by subsection (b)(2) (amending this section) to the extent
relating to the designation of eligible work incentive employees
(within the meaning of section 51(d)(9) (now 51(d)(10)) of the
Internal Revenue Code of 1986 (formerly I.R.C. 1954)) as members
of a targeted group and subsection (b)(2)(B)(ii) (amending this
section) shall apply to taxable years beginning after December
31, 1981. In the case of an eligible work incentive employee,
subsections (a) and (b) of section 51 of such Code shall be
applied for taxable years beginning after December 31, 1981, as
if such employees had been members of a targeted group for
taxable years beginning before January 1, 1982.
''(C) Cooperative education program participants. - The
amendments made by subsection (b)(4) (amending this section)
shall apply to wages paid or incurred after December 31, 1981, in
taxable years ending after such date.
''(D) Designated local agency. - The amendments made by
subsection (f)(1) (amending this section) shall take effect on
the date 60 days after the date of the enactment of this act
(Aug. 13, 1981).
''(2) Certifications. -
''(A) In general. - The amendment made by subsection (c)(1)
(amending this section) shall apply to all individuals whether
such individuals began work for their employer before, on, or
after the date of the enactment of this Act (Aug. 13, 1981).
''(B) Special rule for individuals who began work for the
employer before 45th day before date of enactment. - In the case
of any individual (other than an individual described in section
51(d)(8) of the Internal Revenue Code of 1986) who began work for
the employer before the date 45 days before the date of the
enactment of this Act (Aug. 13, 1981), paragraph (15) of section
51(d) of the Internal Revenue Code of 1986 (as added by
subsection (c)(1)) shall be applied by substituting ''July 23,
1981,'' for the day on which such individual begins work for the
employer.
''(C) Individuals who begin work for employer within 45 days
before or after date of enactment. - In the case of any
individual (other than an individual described in section
51(d)(8) of the Internal Revenue Code of 1986) who begins work
for the employer during the 90-day period beginning with the date
45 days before the date of the enactment of this Act (Aug. 13,
1981), and in the case of an individual described in section
51(d)(8) of such Code who begins work before the end of such
90-day period, paragraph (15) of section 51(d) of such Code (as
added by subsection (c)(1)) shall be applied by substituting
''the last day of the 90-day period beginning with the date 45
days before the date of the enactment of this Act'' for the day
on which such individual begins work for the employer.
''(3) Limitation on qualified first-year wages. - The amendment
made by subsection (e) (amending this section) shall apply to
taxable years beginning after December 31, 1981.''
EFFECTIVE DATE OF 1980 AMENDMENT
Section 103(b)(1) of Pub. L. 96-222 provided that: ''The
amendment made by subsection (a)(5)(F) (probably means subsec.
(a)(6)(F), amending this section) shall apply to wages paid or
incurred on or after November 27, 1979, in taxable years ending on
or after such date.''
Amendment by Pub. L. 96-222 effective, except as otherwise
provided, as if it had been included in the provisions of the
Revenue Act of 1978, Pub. L. 95-600, to which such amendment
relates, see section 201 of Pub. L. 96-222, set out as a note under
section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 321(d)(1) of Pub. L. 95-600 provided that: ''Except as
otherwise provided in this subsection, the amendments made by this
section (amending this section and sections 44B, 52, 53, and 6501
of this title) shall apply to amounts paid or incurred after
December 31, 1978, in taxable years ending after such date.''
EFFECTIVE DATE
Section 202(e) of Pub. L. 95-30 provided that: ''The amendments
made by this section (enacting this section and sections 44B, 52,
53, and 280C of this title and amending sections 56, 381, 383,
6096, 6411, 6501, 6511, 6601, and 6611 of this title) shall apply
to taxable years beginning after December 31, 1976, and to credit
carrybacks from such years.''
REFERENCE TO PLAN FOR EMPLOYMENT
Pub. L. 105-277, div. J, title IV, Sec. 4006(c)(1), Oct. 21,
1998, 112 Stat. 2681-912, provided that: ''The reference to 'plan
for employment' in such clause (26 U.S.C. 51(d)(6)(B)(i)) shall be
treated as including a reference to the rehabilitation plan
referred to in such clause as in effect before the amendment made
by the preceding sentence.''
AUTHORIZATION OF APPROPRIATIONS
Section 261(f)(2) of Pub. L. 97-34, as amended by Pub. L. 97-248,
title II, Sec. 233(e), Sept. 3, 1982, 96 Stat. 502; Pub. L. 98-369,
div. A, title X, Sec. 1041(b), July 18, 1984, 98 Stat. 1042; Pub.
L. 99-514, title XVII, Sec. 1701(d), Oct. 22, 1986, 100 Stat. 2772;
Pub. L. 100-647, title IV, Sec. 4010(b), Nov. 10, 1988, 102 Stat.
3655; Pub. L. 101-239, title VII, Sec. 7103(b), Dec. 19, 1989, 103
Stat. 2305; Pub. L. 101-508, title XI, Sec. 11405(b), Nov. 5, 1990,
104 Stat. 1388-473, provided that: ''There is authorized to be
appropriated for each fiscal year such sums as may be necessary, to
carry out the functions described by the amendments made by
paragraph (1) (amending this section), except that, of the amounts
appropriated pursuant to this paragraph -
''(A) $5,000,000 shall be used to test whether individuals
certified as members of targeted groups under section 51 of such
Code are eligible for such certification (including the use of
statistical sampling techniques), and
''(B) the remainder shall be distributed under performance
standards prescribed by the Secretary of Labor.
The Secretary of Labor shall each calendar year beginning with
calendar year 1983 report to the Committee on Ways and Means of the
House of Representatives and to the Committee on Finance of the
Senate with respect to the results of the testing conducted under
subparagraph (A) during the preceding calendar year.''
(For termination, effective May 15, 2000, of reporting provisions
in section 261(f)(2) of Pub. L. 97-34, set out above, see section
3003 of Pub. L. 104-66, as amended, set out as a note under section
1113 of Title 31, Money and Finance, and page 124 of House Document
No. 103-7.)
(Amendment by Pub. L. 101-508 applicable to fiscal years
beginning after 1990, see section 11405(c)(2) of Pub. L. 101-508,
set out as an Effective Date of 1990 Amendment note above.)
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI (Sec. 1101-1147 and 1171-1177) or title
XVIII (Sec. 1800-1899A) of Pub. L. 99-514 require an amendment to
any plan, such plan amendment shall not be required to be made
before the first plan year beginning on or after Jan. 1, 1989, see
section 1140 of Pub. L. 99-514, as amended, set out as a note under
section 401 of this title.
SPECIAL RULES FOR NEWLY TARGETED GROUPS
Section 321(d)(2) of Pub. L. 95-600, as amended by Pub. L.
96-222, title I, Sec. 103(a)(6)(C), (G)(xi), Apr. 1, 1980, 94 Stat.
209, 211; Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,
provided that:
''(A) Individual must be hired after september 26, 1978. - In the
case of a member of a newly targeted group, for purposes of
applying the amendments made by this section -
''(i) such individual shall be taken into account for purposes
of the credit allowable by section 44B of the Internal Revenue
Code of 1986 (formerly I.R.C. 1954) only if such individual is
first hired by the employer after September 26, 1978, and
''(ii) such individual shall be treated for purposes of such
credit as having first begun work for the employer not earlier
than January 1, 1979.
''(B) Member of newly targeted group defined. - For purposes of
subparagraph (A), an individual is a member of a newly targeted
group if -
''(i) such individual meets the requirements of paragraph (1)
of section 51(d) of such Code, and
''(ii) in the case of an individual meeting the requirements of
subparagraph (A) of such paragraph (1), a credit was not claimed
for such individual by the taxpayer for a taxable year beginning
before January 1, 1979.''
CREDIT ALLOWABLE BY SECTION 44B IN CASE OF TAXABLE YEAR BEGINNING
IN 1978 AND ENDING AFTER DECEMBER 31, 1978
Section 321(d)(3) of Pub. L. 95-600, as amended by Pub. L.
96-222, title I, Sec. 103(a)(6)(D), Apr. 1, 1980, 94 Stat. 209;
Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided
that: ''In the case of a taxable year which begins in 1978 and ends
after December 31, 1978, the amount of the credit determined under
section 51 of the Internal Revenue Code of 1986 (formerly I.R.C.
1954) shall be the sum of -
''(A) the amount of the credit which would be so determined
without regard to the amendments made by this section, plus
''(B) the amount of the credit which would be so determined by
reason of the amendments made by this section.''
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 41, 45A, 51A, 52, 196,
280C, 936, 1396, 1397, 6501 of this title; title 42 section 13725.
