Internal Revenue Code:Sec. 51A. Temporary incentives for employing long-term family assistance recipients

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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. 51A. Temporary incentives for employing long-term family
        assistance recipients

Section 51A repealed by section 105(e)(4) of the Tax Relief and Health Care Act of 2006 (P.L. 109-432).
 
    (a) Determination of amount
      For purposes of section 38, the amount of the welfare-to-work
    credit determined under this section for the taxable year shall be
    equal to -
        (1) 35 percent of the qualified first-year wages for such year,
      and
        (2) 50 percent of the qualified second-year wages for such
      year.
    (b) Qualified wages defined
      For purposes of this section -
      (1) In general
        The term ''qualified wages'' means the wages paid or incurred
      by the employer during the taxable year to individuals who are
      long-term family assistance recipients.
      (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) Qualified second-year wages
        The term ''qualified second-year wages'' means, with respect to
      any individual, qualified wages 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 individual determined
      under paragraph (2).
      (4) Only first $10,000 of wages per year taken into account
        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 any individual shall not exceed $10,000 per year.
      (5) Wages
        (A) In general
          The term ''wages'' has the meaning given such term by section
        51(c), without regard to paragraph (4) thereof.
        (B) Certain amounts treated as wages
          The term ''wages'' includes amounts paid or incurred by the
        employer which are excludable from such recipient's gross
        income under -
            (i) section 105 (relating to amounts received under
          accident and health plans),
            (ii) section 106 (relating to contributions by employer to
          accident and health plans),
            (iii) section 127 (relating to educational assistance
          programs), but only to the extent paid or incurred to a
          person not related to the employer, or
            (iv) section 129 (relating to dependent care assistance
          programs).
        The amount treated as wages by clause (i) or (ii) for any
        period shall be based on the reasonable cost of coverage for
        the period, but shall not exceed the applicable premium for the
        period under section 4980B(f)(4).
        (C) Special rules for agricultural and railway labor
          If such recipient is an employee to whom subparagraph (A) or
        (B) of section 51(h)(1) applies, rules similar to the rules of
        such subparagraphs shall apply except that -
            (i) such subparagraph (A) shall be applied by substituting
          ''$10,000'' for ''$6,000'', and
            (ii) such subparagraph (B) shall be applied by substituting
          ''$833.33'' for ''$500''.
    (c) Long-term family assistance recipients
      For purposes of this section -
      (1) In general
        The term ''long-term family assistance recipient'' means any
      individual who is certified by the designated local agency (as
      defined in section 51(d)(11) (FOOTNOTE 1) ) -
       (FOOTNOTE 1) So in original.  Probably should be section
    ''51(d)(11)''.
          (A) as being a member of a family receiving assistance under
        a IV-A program (as defined in section 51(d)(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 the date of the
        enactment of this section, 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 after the date of the enactment of this section 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.
      (2) Hiring date
        The term ''hiring date'' has the meaning given such term by
      section 51(d).
    (d) Certain rules to apply
      (1) In general
        Rules similar to the rules of section 52, and subsections
      (d)(11), (f), (g), (i) (as in effect on the day before the date
      of the enactment of the Taxpayer Relief Act of 1997), (j), and
      (k) of section 51, shall apply for purposes of this section.
      (2) Credit to be part of general business credit, etc.
        References to section 51 in section 38(b), 280C(a), and
      1396(c)(3) shall be treated as including references to this
      section.
    (e) Coordination with work opportunity credit
      If a credit is allowed under this section to an employer with
    respect to an individual for any taxable year, then for purposes of
    applying section 51 to such employer, such individual shall not be
    treated as a member of a targeted group for such taxable year.
    (f) Termination
      This section shall not apply to individuals who begin work for
    the employer after December 31, 2007.
 

Sources

    (Added Pub. L. 105-34, title VIII, Sec. 801(a), Aug. 5, 1997, 111
    Stat. 869; amended Pub. L. 105-277, div.  J, title I, Sec. 1003,
    Oct. 21, 1998, 112 Stat. 2681-888; Pub. L. 106-170, title V, Sec.
    505(a), Dec. 17, 1999, 113 Stat. 1921; Pub. L. 107-16, title IV,
    Sec. 411(c), June 7, 2001, 115 Stat. 63.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
 

References in Text

                             REFERENCES IN TEXT
      The date of the enactment of this section, referred to in subsec.
    (c)(1)(B)(i), (C)(i), is the date of enactment of Pub. L. 105-34,
    which was approved Aug. 5, 1997.
      The date of the enactment of the Taxpayer Relief Act of 1997,
    referred to in subsec. (d)(1), is the date of enactment of Pub. L.
    105-34, which was approved Aug. 5, 1997.
 

Miscellaneous

                                 AMENDMENTS

2006 - Tax Relief and Health Care Act of 2006 (P.L. 109-432).
Section 105(e)(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.

      2004 - Subsec.303(a), Pub.L.108-311, amended Sec.51(A)(f)
    by striking "December 31, 2003" and inserting "December 31,
    2005".
      2002 - Subsec. 605(a), Pub. L. 107-147, amended Sec.51A(f) by
    substituting 2003 for 2001.  This amendment shall apply to
    individuals who begin work for the employer after     
    Dec. 31, 2001.
      2001 - Subsec. (b)(5)(B)(iii). Pub. L. 107-16, Sec. 411(c), 901,
    temporarily struck out ''or would be so excludable but for section
    127(d)'' before '', but only''.  See Effective and Termination
    Dates of 2001 Amendment note below.
      1999 - Subsec. (f). Pub. L. 106-170 substituted ''December 31,
    2001'' for ''June 30, 1999''.
      1998 - Subsec. (f). Pub. L. 105-277 substituted ''June 30, 1999''
    for ''April 30, 1999''.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Pub. L. 107-16, title IV, Sec. 411(d), June 7, 2001, 115 Stat.
    63, provided that: ''The amendments made by this section (amending
    this section and section 127 of this title) shall apply with
    respect to expenses relating to courses beginning after December
    31, 2001.''
      Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
    limitation years beginning after Dec. 31, 2010, and the Internal
    Revenue Code of 1986 to be applied and administered to such years
    as if such amendment had never been enacted, see section 901 of
    Pub. L. 107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1999 AMENDMENT
      Amendment by Pub. L. 106-170 applicable to individuals who begin
    work for the employer after June 30, 1999, see section 505(c) of
    Pub. L. 106-170, set out as a note under section 51 of this title.
                               EFFECTIVE DATE
      Section 801(c) of Pub. L. 105-34 provided that: ''The amendments
    made by this section (enacting this section) shall apply to
    individuals who begin work for the employer after December 31,
    1997.''