[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 248 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 248

 To amend the Internal Revenue Code of 1986 to permanently extend and 
      modify the work opportunity credit, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 10, 2007

 Mr. Baucus (for himself and Ms. Snowe) 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 permanently extend and 
      modify the work opportunity credit, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Encouraging Work Act of 2007''.

SEC. 2. PERMANENT EXTENSION AND MODIFICATION OF WORK OPPORTUNITY 
              CREDIT.

    (a) Credit Made Permanent.--Subsection (c) of section 51 of the 
Internal Revenue Code of 1986 is amended by striking paragraph (4) 
(relating to termination).
    (b) Increase in Maximum Age for Designated Community Residents.--
            (1) In general.--Paragraph (5) of section 51(d) of the 
        Internal Revenue Code of 1986 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, or renewal community.
                    ``(B) Individual must continue to reside in zone or 
                community.--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, or renewal 
                community.''.
            (2) Conforming amendment.--Subparagraph (D) of section 
        51(d)(1) of such Code 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) of the Internal Revenue 
Code of 1986 (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) of the Internal Revenue Code of 1986 (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 incurred after 
                        September 10, 2001.''.
                    (B) Definitions.--Paragraph (3) of section 51(d) of 
                such Code 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) of such Code 
        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''.
    (e) 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, in taxable years ending after such date.
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