[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 545 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 545

     To amend the Internal Revenue Code of 1986 to extend the work 
  opportunity credit to small business employees working or living in 
                           areas of poverty.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 15, 2001

   Mr. Frist introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to extend the work 
  opportunity credit to small business employees working or living in 
                           areas of poverty.

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

SECTION 1. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) 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:
                    ``(I) a qualified small business employee.''
    (b) Qualified Small Business Employee.--Section 51(d) of the 
Internal Revenue Code of 1986 is amended by redesignating paragraphs 
(10) through (12) as paragraphs (11) through (13), respectively, and by 
inserting after paragraph (9) the following:
            ``(10) Qualified small business employee.--
                    ``(A) In general.--The term `qualified small 
                business employee' means any individual--
                            ``(i) hired by a qualified small business 
                        located in a population census tract with a 
                        poverty rate not less than 20 percent, or
                            ``(ii) hired by a qualified small business 
                        and who is certified by the designated local 
                        agency as residing in such a population census 
                        tract.
                    ``(B) Qualified small business.--The term 
                `qualified small business' has the meaning given the 
                term `small employer' by section 4980D(d)(2).
                    ``(C) Use of census data.--The poverty rate for any 
                population census tract shall be determined by the most 
                recent decennial census data available.''.
    (c) Report.--The Secretary of the Treasury shall report to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate on the date which is 18 months after 
the date of enactment of this Act on the effect of the expansion of the 
work opportunity credit under section 51 of the Internal Revenue Code 
of 1986, as amended by this section.
    (d) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
enactment of this Act.
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