[Congressional Record Volume 143, Number 55 (Thursday, May 1, 1997)]
[Senate]
[Page S3906]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CAMPBELL:
  S. 685. A bill to amend the Internal Revenue Code of 1986 to extend 
the work opportunity tax credit for an additional fiscal year; to the 
Committee on Finance.


         LEGISLATION TO EXTEND THE WORK OPPORTUNITY TAX CREDIT

  Mr. CAMPBELL. Mr. President, today I am introducing legislation which 
would provide for a 1-year extension of the work opportunity tax 
credit, authorizing the credit beyond this fiscal year through the end 
of fiscal year 1998.
  My colleagues know well the history behind the work opportunity tax 
credit. It is the successor to the targeted jobs tax credit which 
expired 2 years ago and which received some criticism that it was an 
ineffective incentive mechanism. However, Congress felt that there 
could be some type of worthwhile incentive which could encourage 
employers to hire individuals from economically disadvantaged groups, 
and as a result, the credit was revised, renamed the work opportunity 
tax credit, and incorporated into the Small Business Job Protection Act 
(P.L. 104-188), which the Congress passed and the President signed into 
law last year.
  The revised tax credit, with tougher standards, such as in the area 
of certification and retention requirements, was authorized for 1 
fiscal year and is set to expire on September 30, 1997. The legislation 
I am introducing today would simply provide for an extension of the 
work opportunity tax credit for 1 additional fiscal year, through 
September 30, 1998.
  There are several reasons for the extension. First, employers now 
have a tax incentive to hire individuals from targeted economically 
disadvantaged groups, providing these individuals with jobs and 
valuable work experience. In the wake of the historic welfare reform 
legislation which was signed into law last year, I believe this 
incentive to put people to work is a vital one, and it should be given 
the opportunity to work.
  Second, Congress authorized this credit for 1 year to allow the 
Department of Labor, the Department of the Treasury, and the Congress 
to study the costs and benefits of the credit. To date, there are no 
statistics available. And while we await a more complete set of 
statistics on how the revised tax credit is performing, I believe the 
Congress should begin consideration of an extension of this credit to 
allow more employers to take part in the program and to provide an 
assurance to employers and potential employees alike that there is an 
incentive which is available to stimulate job opportunities. The sooner 
we are able to provide an extension for the credit, the more secure 
both the employers and the employees who take part in this credit will 
be.
  In addition, authorizing the credit for an additional fiscal year 
will provide this Congress with a set of statistics available from 
multiple fiscal years, not just 1, allowing us to better assess the 
costs and benefits of the WOTC.
  I am hopeful that the revised tax credit will prove more successful 
than its predecessor. I have long been a supporter and advocate for the 
promotion of job opportunities and job training for at-risk youth and 
ex-offenders, in particular. Any incentive to put more Americans to 
work should be given the chance to succeed; 1 year is simply not 
enough.
  With that, I ask this bill be referred to the appropriate committee. 
During the 105th Congress, a number of tax proposals will be under 
consideration, and it is my hope that, by introducing this measure, the 
work opportunity tax credit does not get lost in the shuffle and expire 
prematurely.
  Mr. President, I ask unanimous consent that the bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 685

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

     SECTION 1. ONE-YEAR EXTENSION OF WORK OPPORTUNITY TAX CREDIT.

       Section 51(c)(4)(B) of the Internal Revenue Code of 1986 
     (relating to termination) is amended by striking ``September 
     30, 1997'' and inserting ``September 30, 1998''.
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