[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1729 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1729

  To amend the Internal Revenue Code of 1986 to extend and modify the 
                        work opportunity credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 22, 1997

  Mr. Houghton (for himself, Mr. Rangel, Mr. Weller, Mr. Ensign, Mr. 
   English of Pennsylvania, Mr. McDermott, Mr. Coyne, Mr. Levin, Mr. 
 Matsui, Mr. McNulty, Mr. Neal of Massachusetts, Mr. Christensen, Mr. 
Lewis of Georgia, and Mr. Watkins) introduced the following bill; which 
            was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to extend and modify the 
                        work opportunity credit.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXTENSION AND MODIFICATION OF WORK OPPORTUNITY CREDIT.

    (a) Extension.--Subparagraph (B) of section 51(c)(4) of the 
Internal Revenue Code of 1986 (relating to termination) is amended by 
striking ``1997'' and inserting ``2000''.
    (b) Percentage of Wages Allowed as Credit.--
            (1) In general.--Subsection (a) of section 51 of such Code 
        (relating to determination of amount) is amended by striking 
        ``35 percent'' and inserting ``40 percent''.
            (2) Application of credit for individuals performing fewer 
        than 400 hours of services.--Paragraph (3) of section 51(i) of 
        such Code is amended to read as follows:
            ``(3) Individuals not meeting minimum employment periods.--
                    ``(A) Reduction of credit for individuals 
                performing fewer than 400 hours of services.--In the 
                case of an individual who has completed at least 120 
                hours, but less than 400 hours, of services performed 
                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 services.--No wages shall be 
                taken into account under subsection (a) with respect to 
                any individual unless such individual has completed at 
                least 120 hours of services performed for the 
                employer.''
    (c) Modification of Eligibility Requirement Based on Period on 
Welfare.--Subparagraph (A) of section 51(d)(2) of such Code (defining 
qualified IV-A recipient) is amended by striking all that follows ``a 
IV-A program'' and inserting ``for any 9 months during the 18-month 
period ending on the hiring date.''
    (d) 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.
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