Internal Revenue Code:Sec. 51. Amount of credit

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Contents


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) Limitation on 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 ($12,000 per year in the case of 
      any individual who is a qualified veteran by reason of 
      subsection (d)(3)(A)(ii)).
    (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 August 31, 2011
    (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 designated community resident,
          (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--
            (i) 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, or
            (ii) entitled to compensation for a service-
          connected disability, and--
              (I) having a hiring date which is 
            not more that 1 year after having been 
            discharged or released from active duty 
            in the Armed Forces of the United 
            States, or
              (II) having aggregate periods of 
            unemployment during the 1-year period 
            ending on the hiring date which equal or 
            exceed 6 months.
        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).
        (C) Other definitions.--For purposes of 
      subparagraph (A), the terms `compensation' and `service-
      connected' have the meanings given such terms under 
      section 101 of title 38, United States Code.
      (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) Designated community residents.--
          (A) In general.--The term `designated community 
        resident' 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 having his principal place of abode 
          within an empowerment zone, enterprise community, 
          renewal community, or rural renewal county.
          (B) Individual must continue to reside in zone, 
        community, or county.--In the case of a designated 
        community resident, the term `qualified wages' shall not 
        include wages paid or incurred for services performed 
        while the individual's principal place of abode is 
        outside an empowerment zone, enterprise community, 
        renewal community, or rural renewal county.
          (C) Rural renewal county.--For purposes of this 
        paragraph, the term `rural renewal county' means any 
        county which--
            (i) is outside a metropolitan statistical 
          area (defined as such by the Office of Management 
          and Budget), and
            (ii) during the 5-year periods 1990 through 
          1994 and 1995 through 1999 had a net population 
          loss.
      (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, 
            (ii) a program of vocational rehabilitation carried out
          under chapter 31 of title 38, United States Code, or
            (iii) an individual work plan developed and 
          implemented by an employment network pursuant to 
          subsection (g) of section 1148 of the Social 
          Security Act with respect to which the 
          requirements of such subsection are met.
      (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
2007 - PL 110-28
SEC. 8211. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.

    (a) Extension.--Section 51(c)(4)(B) <<NOTE: 26 USC 51.>>  (relating 
to termination) is amended by striking ``December 31, 2007'' and 
inserting ``August 31, 2011''.

    (b) Increase in Maximum Age for Designated Community Residents.--
            (1) In general.--Paragraph (5) of section 51(d) is amended 
        to read as follows:
            ``(5) Designated community residents.--
                    ``(A) In general.--The term `designated community 
                resident' 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 having his principal place of abode 
                      within an empowerment zone, enterprise community, 
                      renewal community, or rural renewal county.
                    ``(B) Individual must continue to reside in zone, 
                community, or county.--In the case of a designated 
                community resident, the term `qualified wages' shall not 
                include wages paid or incurred for services performed 
                while the individual's principal place of abode is 
                outside an empowerment zone, enterprise community, 
                renewal community, or rural renewal county.
                    ``(C) Rural renewal county.--For purposes of this 
                paragraph, the term `rural renewal county' means any 
                county which--
                          ``(i) is outside a metropolitan statistical 
                      area (defined as such by the Office of Management 
                      and Budget), and
                          ``(ii) during the 5-year periods 1990 through 
                      1994 and 1995 through 1999 had a net population 
                      loss.''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        51(d)(1) is amended to read as follows:
                    ``(D) a designated community resident,''.

    (c) Clarification of Treatment of Individuals Under Individual Work 
Plans.--Subparagraph (B) of section 51(d)(6) (relating to vocational 
rehabilitation referral) is amended by striking ``or'' at the end of 
clause (i), by striking the period at the end of clause (ii) and 
inserting ``, or'', and by adding at the end the following new clause:
                          ``(iii) an individual work plan developed and 
                      implemented by an employment network pursuant to 
                      subsection (g) of section 1148 of the Social 
                      Security Act with respect to which the 
                      requirements of such subsection are met.''.

    (d) Treatment of Disabled Veterans Under the Work Opportunity Tax 
Credit.--
            (1) Disabled veterans treated as members of targeted 
        group.--
                    (A) In general.--Subparagraph (A) of section 
                51(d)(3) (relating to qualified veteran) is amended by 
                striking ``agency as being a member of a family'' and 
                all that follows and inserting ``agency as--
                          ``(i) 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, or
                          ``(ii) entitled to compensation for a service-
                      connected disability, and--
                                    ``(I) having a hiring date which is 
                                not more that 1 year after having been 
                                discharged or released from active duty 
                                in the Armed Forces of the United 
                                States, or
                                    ``(II) having aggregate periods of 
                                unemployment during the 1-year period 
                                ending on the hiring date which equal or 
                                exceed 6 months.''.
                    (B) Definitions.--Paragraph (3) of section 51(d) is 
                amended by adding at the end the following new 
                subparagraph:
                    ``(C) Other definitions.--For purposes of 
                subparagraph (A), the terms `compensation' and `service-
                connected' have the meanings given such terms under 
                section 101 of title 38, United States Code.''.
            (2) Increase in amount of wages taken into account for 
        disabled veterans.--Paragraph (3) of section 51(b) is amended--
                    (A) by inserting ``($12,000 per year in the case of 
                any individual who is a qualified veteran by reason of 
                subsection (d)(3)(A)(ii))'' before the period at the 
                end, and
                    (B) by striking ``Only first $6,000 of'' in the 
                heading and inserting ``Limitation on''.

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 2007 AMENDMENT
2007 - PL 110-28
SEC. 8211. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY TAX CREDIT.
    (e) <<NOTE: 26 USC 51 note.>>  Effective Date.--The amendments made 
by this section shall apply to individuals who begin work for the 
employer after the date of the enactment of this Act.

                      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.
 

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