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Internal Revenue Code, § 51. Amount Of Credit

I.R.C. § 51(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.
I.R.C. § 51(b) Qualified Wages Defined
For purposes of this subpart—
I.R.C. § 51(b)(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.
I.R.C. § 51(b)(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.
I.R.C. § 51(b)(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)(I), $14,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and $24,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II)).
I.R.C. § 51(c) Wages Defined
For purposes of this subpart—
I.R.C. § 51(c)(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).
I.R.C. § 51(c)(2) On-The-Job Training And Work Supplementation Payments
I.R.C. § 51(c)(2)(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.
I.R.C. § 51(c)(2)(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) of the Social Security Act.
I.R.C. § 51(c)(3) Payments For Services During Labor Disputes
If—
I.R.C. § 51(c)(3)(A)
the principal place of employment of an individual with the employer is at a plant or facility, and
I.R.C. § 51(c)(3)(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.
I.R.C. § 51(c)(4) Termination
The term “wages” shall not include any amount paid or incurred to an individual who begins work for the employer after December 31, 2020.
I.R.C. § 51(c)(5) Coordination With Payroll Tax Forgiveness
The term “wages” shall not include any amount paid or incurred to a qualified individual (as defined in section 3111(d)(3)) during the 1-year period beginning on the hiring date of such individual by a qualified employer (as defined in section 3111(d)) unless such qualified employer makes an election not to have section 3111(d) apply.
I.R.C. § 51(d) Members Of Targeted Groups
For purposes of this subpart—
I.R.C. § 51(d)(1) In General
An individual is a member of a targeted group if such individual is—
I.R.C. § 51(d)(1)(A)
a qualified IV-A recipient,
I.R.C. § 51(d)(1)(B)
a qualified veteran,
I.R.C. § 51(d)(1)(C)
a qualified ex-felon,
I.R.C. § 51(d)(1)(D)
a designated community resident,
I.R.C. § 51(d)(1)(E)
a vocational rehabilitation referral,
I.R.C. § 51(d)(1)(F)
a qualified summer youth employee,
I.R.C. § 51(d)(1)(G)
a qualified supplemental nutrition assistance program benefits recipient,
I.R.C. § 51(d)(1)(H)
a qualified SSI recipient,
I.R.C. § 51(d)(1)(I)
a long-term family assistance recipient, or
I.R.C. § 51(d)(1)(J)
a qualified long-term unemployment recipient.
I.R.C. § 51(d)(2) Qualified IV-A Recipient
I.R.C. § 51(d)(2)(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.
I.R.C. § 51(d)(2)(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.
I.R.C. § 51(d)(3) Qualified Veteran
I.R.C. § 51(d)(3)(A) In General
The term “qualified veteran” means any veteran who is certified by the designated local agency as—
I.R.C. § 51(d)(3)(A)(i)
being a member of a family receiving assistance under a supplemental nutrition assistance program under the Food and Nutrition Act of 2008 for at least a 3-month period ending during the 12-month period ending on the hiring date,
I.R.C. § 51(d)(3)(A)(ii)
entitled to compensation for a service-connected disability, and—
I.R.C. § 51(d)(3)(A)(ii)(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
I.R.C. § 51(d)(3)(A)(ii)(II)
having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months,
I.R.C. § 51(d)(3)(A)(iii)
having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 4 weeks (but less than 6 months), or
I.R.C. § 51(d)(3)(A)(iv)
having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.
I.R.C. § 51(d)(3)(B) Veteran
For purposes of subparagraph (A), the term “veteran” means any individual who is certified by the designated local agency as—
I.R.C. § 51(d)(3)(B)(i)
I.R.C. § 51(d)(3)(B)(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
I.R.C. § 51(d)(3)(B)(i)(II)
having been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability, and
I.R.C. § 51(d)(3)(B)(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).
I.R.C. § 51(d)(3)(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.
I.R.C. § 51(d)(4) Qualified Ex-Felon
The term “qualified ex-felon” means any individual who is certified by the designated local agency—
I.R.C. § 51(d)(4)(A)
as having been convicted of a felony under any statute of the United States or any State, and
I.R.C. § 51(d)(4)(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.
I.R.C. § 51(d)(5) Designated Community Residents
I.R.C. § 51(d)(5)(A) In General
The term “designated community resident” means any individual who is certified by the designated local agency—
I.R.C. § 51(d)(5)(A)(i)
as having attained age 18 but not age 40 on the hiring date, and
I.R.C. § 51(d)(5)(A)(ii)
as having his principal place of abode within an empowerment zone, enterprise community, renewal community, or rural renewal county.
I.R.C. § 51(d)(5)(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.
I.R.C. § 51(d)(5)(C) Rural Renewal County
For purposes of this paragraph, the term “rural renewal county” means any county which—
I.R.C. § 51(d)(5)(C)(i)
is outside a metropolitan statistical area (defined as such by the Office of Management and Budget), and
I.R.C. § 51(d)(5)(C)(ii)
during the 5-year periods 1990 through 1994 and 1995 through 1999 had a net population loss.
I.R.C. § 51(d)(6) Vocational Rehabilitation Referral
The term “vocational rehabilitation referral” means any individual who is certified by the designated local agency as—
I.R.C. § 51(d)(6)(A)
having a physical or mental disability which, for such individual, constitutes or results in a substantial handicap to employment, and
I.R.C. § 51(d)(6)(B)
having been referred to the employer upon completion of (or while receiving) rehabilitative services pursuant to—
I.R.C. § 51(d)(6)(B)(i)
an individualized written plan for employment under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973,
I.R.C. § 51(d)(6)(B)(ii)
a program of vocational rehabilitation carried out under chapter 31 of title 38, United States Code, or
I.R.C. § 51(d)(6)(B)(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.
I.R.C. § 51(d)(7) Qualified Summer Youth Employee
I.R.C. § 51(d)(7)(A) In General
The term “qualified summer youth employee” means any individual—
I.R.C. § 51(d)(7)(A)(i)
who performs services for the employer between May 1 and September 15,
I.R.C. § 51(d)(7)(A)(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),
I.R.C. § 51(d)(7)(A)(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
I.R.C. § 51(d)(7)(A)(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.
I.R.C. § 51(d)(7)(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.R.C. § 51(d)(7)(B)(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
I.R.C. § 51(d)(7)(B)(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.
I.R.C. § 51(d)(7)(C) Youth Must Continue To Reside In Zone Or Community
Paragraph (5)(B) shall apply for purposes of subparagraph (A)(iv).
I.R.C. § 51(d)(8) Qualified Supplemental Nutrition Assistance Program Benefits Recipient
I.R.C. § 51(d)(8)(A) In General
The term “qualified supplemental nutrition assistance program benefits recipient” means any individual who is certified by the designated local agency—
I.R.C. § 51(d)(8)(A)(i)
as having attained age 18 but not age 40 on the hiring date, and
I.R.C. § 51(d)(8)(A)(ii)
as being a member of a family—
I.R.C. § 51(d)(8)(A)(ii)(I)
receiving assistance under a supplemental nutrition assistance program under the Food and Nutrition Act of 2008 for the 6-month period ending on the hiring date, or
I.R.C. § 51(d)(8)(A)(ii)(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 and Nutrition Act of 2008.
I.R.C. § 51(d)(8)(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 supplemental nutrition assistance program.
I.R.C. § 51(d)(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.
I.R.C. § 51(d)(10) Long-Term Family Assistance Recipient
The term “long-term family assistance recipient” means any individual who is certified by the designated local agency—
I.R.C. § 51(d)(10)(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,
I.R.C. § 51(d)(10)(B)
I.R.C. § 51(d)(10)(B)(i)
as being a member of a family receiving such assistance for 18 months beginning after August 5, 1997, and
I.R.C. § 51(d)(10)(B)(ii)
as having a hiring date which is not more than 2 years after the end of the earliest such 18-month period, or
I.R.C. § 51(d)(10)(C)
I.R.C. § 51(d)(10)(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
I.R.C. § 51(d)(10)(C)(ii)
as having a hiring date which is not more than 2 years after the date of such cessation.
I.R.C. § 51(d)(11) Hiring Date
The term “hiring date” means the day the individual is hired by the employer.
I.R.C. § 51(d)(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).
I.R.C. § 51(d)(13) Special Rules For Certifications
I.R.C. § 51(d)(13)(A) In General
An individual shall not be treated as a member of a targeted group unless—
I.R.C. § 51(d)(13)(A)(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
I.R.C. § 51(d)(13)(A)(ii)
I.R.C. § 51(d)(13)(A)(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
I.R.C. § 51(d)(13)(A)(ii)(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.
I.R.C. § 51(d)(13)(B) Incorrect Certifications
If—
I.R.C. § 51(d)(13)(B)(i)
an individual has been certified by a designated local agency as a member of a targeted group, and
I.R.C. § 51(d)(13)(B)(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.
I.R.C. § 51(d)(13)(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.
I.R.C. § 51(d)(13)(D) Credit For Unemployed Veterans
I.R.C. § 51(d)(13)(D)(i) In General
Notwithstanding subparagraph (A), for purposes of paragraph (3)(A)
I.R.C. § 51(d)(13)(D)(i)(I)
a veteran will be treated as certified by the designated local agency as having aggregate periods of unemployment meeting the requirements of clause (ii)(II) or (iv) of such paragraph (whichever is applicable) if such veteran is certified by such agency as being in receipt of unemployment compensation under State or Federal law for not less than 6 months during the 1-year period ending on the hiring date, and
I.R.C. § 51(d)(13)(D)(i)(II)
a veteran will be treated as certified by the designated local agency as having aggregate periods of unemployment meeting the requirements of clause (iii) of such paragraph if such veteran is certified by such agency as being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks (but less than 6 months) during the 1-year period ending on the hiring date.
I.R.C. § 51(d)(13)(D)(ii) Regulatory Authority
The Secretary may provide alternative methods for certification of a veteran as a qualified veteran described in clause (ii)(II), (iii), or (iv) of paragraph (3)(A), at the Secretary's discretion.
I.R.C. § 51(d)(14) Credit Allowed For Unemployed Veterans And Disconnected Youth Hired In 2009 Or 2010
I.R.C. § 51(d)(14)(A) In General
Any unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010 shall be treated as a member of a targeted group for purposes of this subpart.
I.R.C. § 51(d)(14)(B) Definitions
For purposes of this paragraph—
I.R.C. § 51(d)(14)(B)(i) Unemployed Veteran
The term “unemployed veteran” means any veteran (as defined in paragraph (3)(B), determined without regard to clause (ii) thereof) who is certified by the designated local agency as—
I.R.C. § 51(d)(14)(B)(i)(I)
having been discharged or released from active duty in the Armed Forces at any time during the 5-year period ending on the hiring date, and
I.R.C. § 51(d)(14)(B)(i)(II)
being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date.
I.R.C. § 51(d)(14)(B)(ii) Disconnected Youth
The term “disconnected youth” means any individual who is certified by the designated local agency—
I.R.C. § 51(d)(14)(B)(ii)(I)
as having attained age 16 but not age 25 on the hiring date,
I.R.C. § 51(d)(14)(B)(ii)(II)
as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date,
I.R.C. § 51(d)(14)(B)(ii)(III)
as not regularly employed during such 6-month period, and
I.R.C. § 51(d)(14)(B)(ii)(IV)
as not readily employable by reason of lacking a sufficient number of basic skills.
I.R.C. § 51(d)(15) Qualified Long-Term Unemployment Recipient
The term “qualified long-term unemployment recipient” means any individual who is certified by the designated local agency as being in a period of unemployment which—
I.R.C. § 51(d)(15)(A)
is not less than 27 consecutive weeks, and
I.R.C. § 51(d)(15)(B)
includes a period in which the individual was receiving unemployment compensation under State or Federal law.
I.R.C. § 51(e) Credit For Second-Year Wages For Employment Of Long-Term Family Assistance Recipients
I.R.C. § 51(e)(1) In General
With respect to the employment of a long-term family assistance recipient—
I.R.C. § 51(e)(1)(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
I.R.C. § 51(e)(1)(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.
I.R.C. § 51(e)(2) Qualified Second-Year Wages
For purposes of this subsection, the term “qualified second-year wages” means qualified wages—
I.R.C. § 51(e)(2)(A)
which are paid to a long-term family assistance recipient, and
I.R.C. § 51(e)(2)(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).
I.R.C. § 51(e)(3) 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—
I.R.C. § 51(e)(3)(A)
such subparagraph (A) shall be applied by substituting “$10,000” for “$6,000”, and
I.R.C. § 51(e)(3)(B)
such subparagraph (B) shall be applied by substituting “$833.33” for “$500”.
I.R.C. § 51(f) Remuneration Must Be For Trade Or Business Employment
I.R.C. § 51(f)(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.
I.R.C. § 51(f)(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.
I.R.C. § 51(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.
I.R.C. § 51(h) Special Rules For Agricultural Labor And Railway Labor
For purposes of this subpart—
I.R.C. § 51(h)(1) Unemployment Insurance Wages
I.R.C. § 51(h)(1)(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.
I.R.C. § 51(h)(1)(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.
I.R.C. § 51(h)(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.R.C. § 51(i) Certain Individuals Ineligible
I.R.C. § 51(i)(1) Related Individuals
No wages shall be taken into account under subsection (a) with respect to an individual who—
I.R.C. § 51(i)(1)(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 (determined with the application of section 267(c)),
I.R.C. § 51(i)(1)(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
I.R.C. § 51(i)(1)(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.
I.R.C. § 51(i)(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.
I.R.C. § 51(i)(3) Individuals Not Meeting Minimum Employment Periods
I.R.C. § 51(i)(3)(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”.
I.R.C. § 51(i)(3)(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.
I.R.C. § 51(j) Election To Have Work Opportunity Credit Not Apply
I.R.C. § 51(j)(1) In General
A taxpayer may elect to have this section not apply for any taxable year.
I.R.C. § 51(j)(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).
I.R.C. § 51(j)(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.
I.R.C. § 51(k) Treatment Of Successor Employers; Treatment Of Employees Performing Services For Other Persons
I.R.C. § 51(k)(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.
I.R.C. § 51(k)(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.
(Added by Pub. L. 95-30, title II, Sec. 202(b), May 23, 1977, 91 Stat. 141, and amended Pub. L. 95-600, title III, Sec. 321(a), (d), Nov. 6, 1978, 92 Stat. 2830, 2835; Pub. L. 96-222, title I, Sec. 103(a)(6)(A), (E), (F), (G)(iii)-(ix),(xi), (xii), Apr. 1, 1980, 94 Stat. 209, 210; 211; 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, Dec. 11, 1991, 105 Stat. 1686; Pub. L. 103-66, title XIII, Sec. 13102(a), 13302(d), Aug. 10, 1993, 107 Stat. 312; Pub. L. 104-188, title XII, Sec. 1201(a), (e)(1), (5), Aug. 20, 1996, 110 Stat 1768, 1772; Pub. L. 104-188, title I, 1205, Aug. 20, 1996, 110 Stat. 1755; Pub. L. 104-193, title I, Sec. 110(l)(1), Aug. 22, 1996, 110 Stat. 2105; Pub. L. 105-34, title VI, Sec. 603, Aug. 5, 1997, 111 Stat 788; Pub. L. 105-277, titles I and IV, Sec. 1002(a) and 4006(c)(1), Oct. 21, 1998, 112 Stat 2681; Pub. L. 106-170, title V, Sec. 505, Dec. 17, 1999, 113 Stat 1860; Pub. L. 106-554, Sec. 102, Dec. 21, 2000, 114 Stat. 2763; Pub. L. 107-147, title VI, Sec. 604(a), Mar. 9, 2002, 116 Stat. 21; Pub. L. 108-311, title II, III, Sec. 207(5), 303(a)(1), Oct. 4, 2004, 118 Stat. 1166; Pub. L. 109-432, div. A, title I, Sec. 105, Dec. 20, 2006, 120 Stat. 2922; Pub. L. 110-28, title VIII, Sec. 8211, May 25, 2007, 121 Stat. 112; Pub. L. 111-5, div. B, title I, Sec. 1221(a), Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-147, Sec. 101(b), Mar. 18, 2010, 124 Stat. 71; Pub. L. 111-312, Sec. 757, Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-56, title II, Sec. 261, Nov. 21, 2011, 112 Stat. 711; Pub. L. 112-240, title III, Sec. 309(a), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title I, Sec. 119(a), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-113, Div. Q, title I, Sec. 142, Dec. 18, 2015; Pub. L. 115-141, Div. U, title IV, Sec. 401(a)(26)-(29), Mar. 23, 2018.); Pub. L. 116-94, Div. Q, title I, Sec. 143(a), Dec. 20, 2019
BACKGROUND NOTES
Amendments to Subpart
1984--Pub. L. 98-369, div. A, title IV, 474(n)(1), (2), (p)(9), July 18, 1984, 98 Stat. 833, 838, substituted “F” for “D” as subpart designation, substituted “Rules for Computing Targeted Jobs Credit” for “Rules for Computing Credit for Employment of Certain New Employees” in heading, and struck out item 53 “Limitation based on amount of tax”.
AMENDMENTS
2019-- Subsec. (c)(4). Pub. L. 116-94, Div. Q, Sec. 143(a), amended by substituting “December 31, 2020” for “December 31, 2019”.
2018--Subsec. (c)(4). Pub. L. 115-141, Div. U, Sec. 401(a)(26), amended par. (4) by adding a period at the end.
Subsec. (d)(3)(A)(ii)(II). Pub. L. 115-141, Div. U, Sec. 401(a)(27), amended subclause (II) by adding a comma at the end.
Subsec. (d)(8). Pub. L. 115-141, Div. U, Sec. 401(a)(28), amended par. (8) by substituting ‘‘SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM BENEFITS RECIPIENT’’ for ‘‘FOOD STAMP RECIPIENT’’.
Subsec. (i)(1)(A). Pub. L. 115-141, Div. U, Sec. 401(a)(29), amended subpar. (A) by substituting “entity” for “entity,”.
2015 - Subsec. (c)(4). Pub. L. 114-113, Div. Q, Sec. 142(a), amended par. (4) by substituting “December 31, 2019” for “December 31, 2014”.
Subsec. (d)(1)(H)-(J). Pub. L. 114-113, Div. Q, Sec. 142(b)(1), amended par. (1) by striking “or” at the end of subpar. (H), by substituting “, or” for the period at the end of subpar. (I), and by adding subpar. (J).
Subsec. (d)(15). Pub. L. 114-113, Div. Q, Sec. 142(b)(2), amended subsec. (d) by adding par. (15).
2014 - Subsec. (c)(4). Pub. L. 113-295, Div. A, Sec. 119(a), amended par. (4) by substituting “for the employer after December 31, 2014” for “for the employer—(A) after December 31, 1994, and (B) before October 1, 1996, or after December 31, 2013”.
2013 - Subsec. (c)(4)(B). Pub. L. 112-240, Sec. 309(a), amended subpar. (B) by substituting “after December 31, 2013” for “ after —(i) December 31, 2012, in the case of a qualified veteran, and (ii) December 31, 2011, in the case of any other individual”.
2011 - Subsec. (b)(3). Pub. L. 112-56, Sec. 261(a), amended par. (3) by substituting “($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I), $14,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv), and $24,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II))” for “($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii))”.
Subsec. (c)(4)(B). Pub. L. 112-56, Sec. 261(d), amended subpar. (B). Before amendment, it read as follows:
“(B) after December 31, 2011.”
Subsec. (d)(3)(A). Pub. L. 112-56, Sec. 261(b), amended subpar. (A) by striking “or” at the end of clause (i), by striking the period at the end of clause (ii)(II), and by adding clauses (iii) and (iv).
Subsec. (d)(13)(D). Pub. L. 112-56, Sec. 261(c), amended par. (13) by adding subpar. (D).
2010 - Subsec. (c)(4)(B). Pub. L. 111-312, Sec. 757(a), amended subpar. (B) by substituting “December 31, 2011” for “August 31, 2011”.
Subsec. (c)(5). Pub. L. 111-147, Sec. 101(b), amended subsec. (c) by adding par. (5).
2009 - Subsec. (d)(14). Pub. L. 111-5, Div. B, Sec. 1221(a), amended subsec. (d) by adding par. (14).
2007 - Subsec. (b)(3). Pub. L. 110-28, Sec. 8211(d)(2)(B), amended the heading for par. (3) by substituting “Limitation On” for “Only First $6,000 Of”.
Subsec. (b)(3). Pub. L. 110-28, Sec. 8211(d)(2)(A), amended par. (3) 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.
Subsec. (c)(4)(B). Pub. L. 110-28, Sec. 8211(a), amended subpar. (B) by substituting “August 31, 2011” for “December 31, 2007”.
Subsec. (d)(1)(D). Pub. L. 110-28, Sec. 8211(b)(2), amended subpar. (D) by substituting “a designated community resident” for “a high-risk youth”.
Subsec. (d)(3)(A). Pub. L. 110-28, Sec. 8211(d)(1)(A), amended subpar. (A) by striking “agency as 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.” 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.”
Subsec. (d)(3)(C). Pub. L. 110-28, Sec. 8211(d)(1)(B), added subpar. (C).
Subsec. (d)(5). Pub. L. 110-28, Sec. 8211(b)(1), amended par. (5). Before amendment, it read as follows:
“(5) High-risk youth.—
“(A) In general.--The term ‘high-risk youth’ means any individual who is certified by the designated local agency—
“(i) as having attained age 18 but not age 25 on the hiring date, and
“(ii) as having his principal place of abode within an empowerment zone, enterprise community, or renewal community.
“(B) Youth must continue to reside in zone or community.—
“In the case of a high-risk youth, the term ‘qualified wages’ shall not include wages paid or incurred for services performed while such youth's principal place of abode is outside an empowerment zone, enterprise community, or renewal community.”
Subsec. (d)(6)(B). Pub. L. 110-28, Sec. 8211(c), amended subpar. (B) by striking “or” at the end of clause (i); by substituting “, or” for the period at the end of clause (ii); and by adding clause (iii).
2006 - Subsec. (c)(4)(B). Pub. L. 109-432, Sec. 105(a), amended subpar. (B) by substituting “2007” for “2005”.
Subsec. (d)(1)(G)-(I). Pub. L. 109-432, Sec. 105(e)(1), amended par. (1) by striking “and” at the end of subpar. (G); by substituting “, and” for the period at the end of subpar. (H); and by adding new subpar. (I).
Subsec. (d)(4). Pub. L. 109-432, Sec. 105(b), amended par. (4) by adding “and” at the end of subpar. (A); by substituting a period for “, and" at the end of subpar. (B), and by striking the material following subpar. (B). Before being struck, it read as follows:
“(C) as being a member of a family which had an income during the 6 months immediately preceding the earlier of the month in which such income determination occurs or the month in which the hiring date occurs, which, on an annual basis, would be 70 percent or less of the Bureau of Labor Statistics lower living standard.
“Any determination under subparagraph (C) shall be valid for the 45-day period beginning on the date such determination is made.”
Subsec. (d)(8)(A)(i). Pub. L. 109-432, Sec. 105(c), amended clause (i) by substituting “40” for “25”.
Subsec. (d)(10)-(12). Pub. L. 109-432, Sec. 105(e)(2), amended subsec. (d) by redesignating par. (10)-(12) as par. (11)-(13), respectively, and by adding new par. (10).
Subsec. (d)(12)(A)(ii)(II). Pub. L. 109-432, Sec. 105(d), amended subclause (II) of par. (12)(A)(ii), before redesignation, by substituting “28th day” for “21st day”.
Subsec. (e). Pub. L. 109-432, Sec. 105(e)(3), added subsec. (e).
2004 - Subsec. (c)(4). Pub. L. 108-311, Sec. 303(a)(1), amended subpar. (B) by substituting “December 31, 2005” for “December 31, 2003”.
Subsec. (i)(1)(A). Pub. L. 108-311, Sec. 207(5)(A), amended subpar. (A) by substituting “subparagraphs (A) through (G) of section 152(d)(2)" for “paragraphs (1) through (8) of section 152(a)”.
Subsec. (i)(1)(B). Pub. L. 108-311, Sec. 207(5)(B), amended subpar. (B) by substituting “subparagraphs (A) through (G) of section 152(d)(2)" for “paragraphs (1) through (8) of section 152(a)”.
Subsec. (i)(1)(C). Pub. L. 108-311, Sec. 207(5)(C), amended subpar. (C) by substituting “152(d)(2)(H)” for “152(a)(9)”.
2002 - Subsec. (c)(4)(B). Pub. L. 107-147, Sec. 604(a), amended subpar. (B) by substituting “2003” for “2001”.
2000 - Subsec. (d)(2)(B). Pub. L. 106-554, Sec. 316(a), amended subpar. (B) by substituting “program funded” for “plan approved" and by striking “(relating to assistance for needy families with minor children)”.
Subsec. (d)(5)(A)(ii). Pub. L. 106-554, Sec. 102(a), amended clause (ii) by substituting “empowerment zone, enterprise community, or renewal community” for “empowerment zone or enterprize community”.
Subsec. (d)(5)(B). Pub. L. 106-554, Sec. 102(a), amended subpar. (B) by substituting “empowerment zone, enterprise community, or renewal community" for “empowerment zone or enterprize community”.
Subsec. (d)(5)(B). Pub. L. 106-554, Sec. 102(c), amended subpar. (B) by inserting “or community” after “zone” in the heading.
Subsec. (d)(7)(A)(iv). Pub. L. 106-554, Sec. 102(b), amended clause (iv) by substituting “empowerment zone, enterprise community, or renewal community” for “empowerment zone or enterprize community”.
Subsec. (d)(7(C). Pub. L. 106-554, Sec. 102(c), amended subpar. (B) by inserting “or community” after “zone” in the 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 “during which he was not a member of a targeted group” at the 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). Pub. L. 105-277, Sec. 4006(c)(1) substituted “plan for employment” for “rehabilitation plan” in clause (i).
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). Pub. L. 105-34, Sec. 603(c)(1), struck “or” at the end of subpar. (F); substituting “, or” for “.” at the end of subpar. (G); and added subpar. (H).
Subsec. (d)(2)(A). Pub. L. 105-34, Sec. 603(b)(1), substituted the language following “a IV-A program”, above, 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 subpar. (A). Prior to amendment it read as follows:
“(A) In general.— 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). Pub. L. 105-34, Sec. 603(c)(2), redesignated pars. (9)-(11) as pars (10)-(12), respectively, and added a new par. (9).
Subsec. (i)(3). Pub. L. 105-34, Sec. 603(d)(2), amended par. (3). Prior to amendment it read as follows:
“(3) 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 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. (d)(9). Pub. L. 104-193, Sec. 110(l)(1), amended sec. 51(d)(9) as it appeared before amendment by Pub. L. 104-188 by deleting subparagraphs (A) and (B) and inserting the text that appears after ‘agency as’.
Subsecs. (a), (c)(1), (g). Pub. L. 104-188, Sec. 1201(a), amended subsec. (a), changing “40 percent” to “35 percent”; Sec. 1201(e)(1), amended subsecs. (a) and (g), changing “targeted jobs credit” each place it appears to “work opportunity credit”; Sec. 1201(f), struck “, subsection (d)(8)(D)” in subsec. (c)(1);
Subsec. (c)(4). Pub. L. 104-188, Sec. 1201(d), amended subsec. (c)(4). Before amendment, subsec. (c)(4) read as follows:
“(4) 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), amended subsec. (d). Before amendment, subsec. (d) read as follows:
“(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 vocational rehabilitation referral,
(B) an economically disadvantaged youth,
(C) an economically disadvantaged Vietnam-era veteran,
(D) an SSI recipient,
(E) a general assistance recipient,
(F) a youth participating in a cooperative education program,
(G) an economically disadvantaged ex-convict,
(H) an eligible work incentive employee,
(I) an involuntarily terminated CETA employee, or
(J) a qualified summer youth employee.
(2) 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 rehabilitation plan under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973, or
(ii) a program of vocational rehabilitation carried out under chapter 31 of title 38, United States Code.
(3) Economically disadvantaged youth.—
(A) In general.—The term “economically disadvantaged youth” means any individual who is certified by the designated local agency as—
(i) meeting the age requirements of subparagraph (B), and
(ii) being a member of an economically disadvantaged family (as determined under paragraph (11)).
(B) Age requirements.—An individual meets the age requirements of this subparagraph if such individual has attained age 18 but not age 23 on the hiring date.
(4) Vietnam veteran who is a member of an economically disadvantaged family.—The term “Vietnam veteran who is a member of an economically disadvantaged family” means any individual who is certified by the designated local agency as—
(A)
(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, any part of which occurred after August 4, 1964, and before May 8, 1975, or
(ii) having been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability if any part of such active duty was performed after August 4, 1964, and before May 8, 1975,
(B) not having any day during the preemployment period which was a day of extended active duty in the Armed Forces of the United States, and
(C) being a member of an economically disadvantaged family (determined under paragraph (11)).
For purposes of subparagraph (B), 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).
(5) SSI recipients.—The term “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 in the pre-employment period.
(6) General assistance recipients.—
(A) In general.—The term “general assistance recipient” means any individual who is certified by the designated local agency as receiving assistance under a qualified general assistance program for any period of not less than 30 days ending within the preemployment period.
(B) Qualified general assistance program.—The term “qualified general assistance program” means any program of a State or a political subdivision of a State—
(i) which provides general assistance or similar assistance which—
(I) is based on need, and
(II) consists of money payments or voucher or scrip, and
(ii) which is designated by the Secretary (after consultation with the Secretary of Health and Human Services) as meeting the requirements of clause (i).
(7) Economically disadvantaged ex-convict.—The term “economically disadvantaged ex-convict" 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,
(B) as being a member of an economically disadvantaged family (as determined under paragraph (11)), and
(C) as having a hiring date which is not more than 5 years after the last date on which such individual was so convicted or was released from prison.
(8) Youth participating in a qualified cooperative education program.—
(A) In general.—The term “youth participating in a qualified cooperative education program" means any individual who is certified by the school participating in the program as—
(i) having attained age 16 and not having attained age 20,
(ii) not having graduated from a high school or vocational school,
(iii) being enrolled in and actively pursuing a qualified cooperative education program, and
(iv) being a member of an economically disadvantaged family (as determined under paragraph (11)).
(B) Qualified cooperative education program defined.—The term “qualified cooperative education program" means a program of vocational education for individuals who (through written cooperative arrangements between a qualified school and 1 or more employers) receive instruction (including required academic instruction) by alternation of study and school with a job in any occupational field (but only if these 2 experiences are planned by the school and employer so that each contributes to the student's education and employability).
(C) Qualified school defined.—The term “qualified school” means—
(i) a specialized high school used exclusively or principally for the provision of vocational education to individuals who are available for study in preparation for entering the labor market,
(ii) the department of a high school exclusively or principally used for providing vocational education to persons who are available for study in preparation for entering the labor market, or
(iii) a technical or vocational school used exclusively or principally for the provision of vocational education to persons who have completed or left high school and who are available for study in preparation for entering the labor market.
A school which is not a public school shall be treated as a qualified school only if it is exempt from tax under section 501(a).
(D) Wages.—In the case of remuneration attributable to services performed while the individual meets the requirements of clauses (i), (ii), and (iii) of subparagraph (A), wages, and unemployment insurance wages, shall be determined without regard to section 3306(c)(10)(C).
(9) Eligible work incentive employees.—The term “eligible work incentive employee” means an individual who has been certified by the designated local agency as—
(A) 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, or
(B) having been placed in employment under a work incentive program established under section 432(b)(1) or 445 of the Social Security Act.
(10) Involuntarily terminated CETA employee.—The term “involuntarily terminated CETA employee" means an individual who is certified by the designated local agency as having been involuntarily terminated after December 31, 1980, from employment financed in whole or in part under a program under part D of title II or title VI of the Comprehensive Employment and Training Act. This paragraph shall not apply to any individual who begins work for the employer after December 31, 1982.
(11) Members of economically disadvantaged families.—An individual is a member of an economically disadvantaged family if the designated local agency determines that such individual was a member of a family which had an income during the 6 months immediately preceding the earlier of the month in which such determination occurs or the month in which the hiring date occurs, which, on an annual basis, would be 70 percent or less of the Bureau of Labor Statistics lower living standard. Any such determination shall be valid for the 45-day period beginning on the date such determination is made. Any such determination with respect to an individual who is a qualified summer youth employee or youth participating in a qualified cooperative education program with respect to any employer shall also apply for purposes of determining whether such individual is a member of another targeted group with respect to such employer.
(12) Qualified summer youth employee
(A) In general.—The term “qualified summer youth employee” means an 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)(iii), and
(iv) who is certified by the designated local agency as being a member of an economically disadvantaged family (as determined under paragraph (11)).
(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”.
(C) Special rule for continued employment for same employer.—In the case of 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, paragraph (14) shall be applied by substituting “certified" for “hired by the employer”.
(13) Preemployment period.—The term “preemployment period” means the 60-day period ending on the hiring date.
(14) Hiring date.—The term “hiring date” means the day the individual is hired by the employer.
(15) 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).
(16) Special rules for certifications.—
(A) In general.—An individual shall not be treated as a member of a targeted group unless, on or before the day on which such individual begins work for the employer, the employer—
(i) has received a certification from a designated local agency that such individual is a member of a targeted group, or
(ii) has requested in writing such certification from the designated local agency.
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.
(B) Incorrect certifications.—If—
(i) an individual has been certified 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) Employer Request Must Specify Potential Basis for Eligibility. In any request for a certification of an individual as a member of a targeted group, the employer shall —
(i) specify each subparagraph (but not more than 2) of paragraph (1) by reason of which the employer believes that such individual is such a member, and
(ii) certify that a good faith effort was made to determine that such individual is such a member. “
Subsec. (i)(3). Pub. L. 104-188, Sec. 1201(c), amended subsec. (i)(3). Before amendment, subsec. (i)(3) read as follows:
“(3) 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. (g). Pub. L. 104-188, Sec. 1201(e)(1), struck out “targeted jobs credit” each place it appeared and inserted “work opportunity credit”.
Subsec. (j). Pub. L. 104-188, Sec. 1201(e)(5), substituted “work opportunity credit” for “targeted jobs credit” in the heading. Before amendment, the heading in subsec. (j) read as follows: “Election to have targeted jobs credit not apply.—”
1993 - Subsec. (c)(4). Pub. L. 103-66, Section 13102(a) amended paragraph (4) by substituting “December 31, 1994” for “June 30, 1992”.
Subsec. (i)(1)(A). Pub. L. 103-66, Section 13302(d) amended subparagraph (A) by inserting “, 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, Sec. 105, substituted “June 30, 1992” for “December 31, 1991”.
1990 - Subsec. (c)(4). Pub. L. 101-508, Sec. 11405(a), 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, Sec. 202(c)(6), 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, Sec. 10601(a), 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 ‘preemployment’.
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, Sec. 321(a), amended section generally and limited allowance of credit to the hiring of seven target groups with high unemployment rates.
EFFECTIVE DATE OF 2019 AMENDMENTS
Amendment by Pub. L. 116-94, Div. Q, Sec. 143(a), effective for individuals who begin work for the employer after December 31, 2019
EFFECTIVE DATE OF 2018 AMENDMENTS
Amendments by Pub. L. 115-141, Div. U, Sec. 401(a)(26)-(29), effective March 23, 2018.
EFFECTIVE DATE OF 2015 AMENDMENTS
Amendment by Pub. L. 114-113, Div. Q, Sec. 142(a), effective for individuals who begin work for the employer after December 31, 2014.
Amendments by Pub. L. 114-113, Div. Q, Sec. 142(b), effective for individuals who begin work for the employer after December 31, 2015.
EFFECTIVE DATE OF 2014 AMENDMENTS
Amendment by Pub. L. 113-295, Div. A, Sec. 119(a), effective for individuals who begin work for the employer after December 31, 2013.
EFFECTIVE DATE OF 2013 AMENDMENTS
Amendment by Sec. 309 of Pub. L. 112-240 effective for individuals who begin work for the employer after December 31, 2011.
EFFECTIVE DATE OF 2011 AMENDMENTS
Amendments by Sec. 261 of Pub. L. 112-56 effective for individuals who begin work for the employer after the date of the enactment of this Act [Enacted: Nov. 21, 2011].
EFFECTIVE DATE OF 2010 AMENDMENTS
Amendment by Sec. 757 of Pub. L. 111-312 effective for individuals who begin work for the employer after the date of the enactment of this Act [Enacted: Dec. 17, 2010].
Amendment by Sec. 101(b) of Pub. L. 111-147 effective for wages paid after the date of the enactment of this Act [Enacted: Mar. 18, 2010].
EFFECTIVE DATE OF 2009 AMENDMENTS
Amendment by Sec. 1221(a) of Pub. L. 111-5, Div. B, effective for individuals who begin work for the employer after December 31, 2008.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Sec. 8211 of Pub. L. 110-28 effective for individuals who begin work for the employer after the date of the enactment of this Act [Enacted: May 25, 2007].
EFFECTIVE DATE OF 2006 AMENDMENTS
Amendment by Sec. 105(a) of Pub. L. 109-432 effective for individuals who begin work for the employer after December 31, 2005.
Amendments by Sec. 105(b)-(e) of Pub. L. 109-432 effective for individuals who begin work for the employer after December 31, 2006.
EFFECTIVE DATE OF 2004 AMENDMENTS
Section 208 of Pub. L. 108-311 provided that: “The amendments made by this title shall apply to taxable years beginning after December 31, 2004.”
Section 303(b) of Pub. L. 108-311 provided that: “The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2003.”
EFFECTIVE DATE OF 2002 AMENDMENTS
Section 604(b) of Pub. L. 107-147 provided that: “The amendment made by subsection (a) shall apply to individuals who begin work for the employer after December 31, 2001.
EFFECTIVE DATE OF 1999 AMENDMENTS
Section 316(e) of Pub. L. 106-554 provided that: “The amendments made by this section shall take effect as if included in the provisons of the Small Business Job Protection Act of 1996 to which they relate [individuals who begin work for employers after September 30, 1996].
Section 102(d) of Pub. L. 106-554 provided that: “The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2001
EFFECTIVE DATE OF 1999 AMENDMENTS
Section 505(c) of Pub. L. 106-170 provided that: “The amendments made by this section shall apply to individuals who begin work for the employer after June 30, 1999”.
EFFECTIVE DATE OF 1998 AMENDMENTS
Section 1002(a) of Pub. L. 105-277 provided that: “The amendment made by this section shall apply to individuals who begin work for the employer after June 30, 1998.”
Amendment by section 4006(c)(1) of Pub. L. 105-277 shall take effect on the date of the enactment of this Act [enacted: Oct. 21, 1998]. Sec. 4006(c)(1) also provided that: “The reference to ‘plan for employment’ in such clause [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.”
EFFECTIVE DATE OF 1997 AMENDMENTS
Section 603(e) of Pub. L. 105-34 provided that: “The amendments made by this section shall apply to individuals who begin work for the employer after September 30, 1997.”
EFFECTIVE DATE OF 1996 AMENDMENTS
Section 116(a)(1) of Pub. L. 104-193, provided that: “Except as otherwise provided in this title, this title and the amendments made by this title shall take effect on July 1, 1997.”
Section 1201(g) of Pub. L. 104-188, provided that: “The amendments made by this section shall apply to individuals who begin work for the employer after September 30, 1996.”
EFFECTIVE DATE OF 1993 AMENDMENTS
Amendment by section 13102(a) of Pub. L. 103-66 applicable to individuals who begin work for the employer after June 30, 1992.
Amendment by section 13302(d) of Pub. L. 103-66 shall take effect on the date of the enactment of this Act [enacted: Aug. 10, 1993].
EFFECTIVE DATE OF 1991 AMENDMENTS
Amendment by section 105 of Pub. L. 102-227 applicable to individuals who begin work for the employer after December 31, 1991.
EFFECTIVE DATE OF 1990 AMENDMENTS
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 AMENDMENTS
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 an Effective Date note under section 681 of Title 42, The Public Health and Welfare.
EFFECTIVE DATE OF 1987 AMENDMENTS
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 AMENDMENTS
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 AMENDMENTS
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 AMENDMENTS
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 AMENDMENTS
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 AMENDMENTS
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) 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 AMENDMENTS
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 AMENDMENTS
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.’
DISASTER-RELATED EMPLOYMENT RELIEF
Section 503 of Pub. L. 115-63 provided that:
“(a) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY HURRICANE HARVEY.
“(1) IN GENERAL.—For purposes of section 38 of the Internal Revenue Code of 1986, in the case of an eligible employer, the Hurricane Harvey employee retention credit shall be treated as a credit listed in subsection (b) of such section. For purposes of this subsection, the Hurricane Harvey employee retention credit for any taxable year is an amount equal to 40 percent of the qualified wages with respect to each eligible employee of such employer for such taxable year. For purposes of the preceding sentence, the amount of qualified wages which may be taken into account with respect to any individual shall not exceed $6,000.
“(2) DEFINITIONS.—For purposes of this subsection—
“(A) ELIGIBLE EMPLOYER.—The term “eligible employer” means any employer—
“(i) which conducted an active trade or business on August 23, 2017, in the Hurricane Harvey disaster zone, and
“(ii) with respect to whom the trade or business described in clause (i) is inoperable on any day after August 23, 2017, and before January 1, 2018, as a result of damage sustained by reason of Hurricane Harvey.
“ (B) ELIGIBLE EMPLOYEE.—The term “eligible employee” means with respect to an eligible employer an employee whose principal place of employment on August 23, 2017, with such eligible employer was in the Hurricane Harvey disaster zone.
“(C) QUALIFIED WAGES.—The term “qualified wages” means wages (as defined in section 51(c)(1) of the Internal Revenue Code of 1986, but without regard to section 3306(b)(2)(B) of such Code) paid or incurred by an eligible employer with respect to an eligible employee on any day after August 23, 2017, and before January 1, 2018, which occurs during the period—
“(i) beginning on the date on which the trade or business described in subparagraph (A) first became inoperable at the principal place of employment of the employee immediately before Hurricane Harvey, and
“(ii) ending on the date on which such trade or business has resumed significant operations at such principal place of employment.
“Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.
“(3) CERTAIN RULES TO APPLY.—For purposes of this subsection, rules similar to the rules of sections 51(i)(1) and 52, of the Internal Revenue Code of 1986, shall apply.
“(4) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE THAN ONCE.—An employee shall not be treated as an eligible employee for purposes of this subsection for any period with respect to any employer if such employer is allowed a credit under section 51 of the Internal Revenue Code of 1986 with respect to such employee for such period.
“(b) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY HURRICANE IRMA.
“(1) IN GENERAL.—For purposes of section 38 of the Internal Revenue Code of 1986, in the case of an eligible employer, the Hurricane Irma employee retention credit shall be treated as a credit listed in subsection (b) of such section. For purposes of this subsection, the Hurricane Irma employee retention credit for any taxable year is an amount equal to 40 percent of the qualified wages with respect to each eligible employee of such employer for such taxable year. For purposes of the preceding sentence, the amount of qualified wages which may be taken into account with respect to any individual shall not exceed $6,000.
“(2) DEFINITIONS.—For purposes of this subsection”
“(A) ELIGIBLE EMPLOYER.—The term “eligible employer” means any employer—
“(i) which conducted an active trade or business on September 4, 2017, in the Hurricane Irma disaster zone, and
“(ii) with respect to whom the trade or business described in clause (i) is inoperable on any day after September 4, 2017, and before January 1, 2018, as a result of damage sustained by reason of Hurricane Irma.
“(B) ELIGIBLE EMPLOYEE.—The term “eligible employee” means with respect to an eligible employer an employee whose principal place of employment on September 4, 2017, with such eligible employer was in the Hurricane Irma disaster zone.
“(C) QUALIFIED WAGES.—The term “qualified wages” means wages (as defined in section 51(c)(1) of the Internal Revenue Code of 1986, but without regard to section 3306(b)(2)(B) of such Code) paid or incurred by an eligible employer with respect to an eligible employee on any day after September 4, 2017, and before January 1, 2018, which occurs during the period—
“(i) beginning on the date on which the trade or business described in subparagraph (A) first became inoperable at the principal place of employment of the employee immediately before Hurricane Irma, and
“(ii) ending on the date on which such trade or business has resumed significant operations at such principal place of employment.
“Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.
“(3) CERTAIN RULES TO APPLY.—For purposes of this subsection, rules similar to the rules of sections 51(i)(1) and 52, of the Internal Revenue Code of 1986, shall apply.
“(4) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE THAN ONCE.—An employee shall not be treated as an eligible employee for purposes of this subsection for any period with respect to any employer if such employer is allowed a credit under subsection (a), or section 51 of the Internal Revenue Code of 1986, with respect to such employee for such period.
“(c) EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY HURRICANE MARIA.
“(1) IN GENERAL.—For purposes of section 38 of the Internal Revenue Code of 1986, in the case of an eligible employer, the Hurricane Maria employee retention credit shall be treated as a credit listed in subsection (b) of such section. For purposes of this subsection, the Hurricane Maria employee retention credit for any taxable year is an amount equal to 40 percent of the qualified wages with respect to each eligible employee of such employer for such taxable year. For purposes of the preceding sentence, the amount of qualified wages which may be taken into account with respect to any individual shall not exceed $6,000.
“(2) DEFINITIONS.—For purposes of this subsection—
“(A) ELIGIBLE EMPLOYER.—The term “eligible employer” means any employer—
“(i) which conducted an active trade or business on September 16, 2017, in the Hurricane Maria disaster zone, and
“(ii) with respect to whom the trade or business described in clause (i) is inoperable on any day after September 16, 2017, and before January 1, 2018, as a result of damage sustained by reason of Hurricane Maria.
“(B) ELIGIBLE EMPLOYEE.—The term “eligible employee” means with respect to an eligible employer an employee whose principal place of employment on September 16, 2017, with such eligible employer was in the Hurricane Maria disaster zone.”
“(C) QUALIFIED WAGES.—The term “qualified wages” means wages (as defined in section 51(c)(1) of the Internal Revenue Code of 1986, but without regard to section 3306(b)(2)(B) of such Code) paid or incurred by an eligible employer with respect to an eligible employee on any day after September 16, 2017, and before January 1, 2018, which occurs during the period—
“(i) beginning on the date on which the trade or business described in subparagraph (A) first became inoperable at the principal place of employment of the employee immediately before Hurricane Maria, and
“(ii) ending on the date on which such trade or business has resumed significant operations at such principal place of employment.
“Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.
“(3) CERTAIN RULES TO APPLY.—For purposes of this subsection, rules similar to the rules of sections 51(i)(1) and 52, of the Internal Revenue Code of 1986, shall apply.
“(4) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE THAN ONCE.—An employee shall not be treated as an eligible employee for purposes of this subsection for any period with respect to any employer if such employer is allowed a credit under subsection (a) or (b), or section 51 of the Internal Revenue Code of 1986, with respect to such employee for such period.”
TREATMENT OF POSSESSIONS
Section 261(f) of Pub. L. 112-56 provided the following special rule:
“(f) Treatment of Possessions.—
“(1) PAYMENTS TO POSSESSIONS.—
“(A) MIRROR CODE POSSESSIONS.—The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession of the United States.
“(B) OTHER POSSESSIONS.—The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system the amount estimated by the Secretary of the Treasury as being equal to the loss to that possession that would have occurred by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession establishes to the satisfaction of the Secretary that the possession has implemented (or, at the discretion of the Secretary, will implement) an income tax benefit which is substantially equivalent to the income tax credit in effect after the amendments made by this section.
“(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES.—The credit allowed against United States income taxes for any taxable year under the amendments made by this section to section 51 of the Internal Revenue Code of 1986 to any person with respect to any qualified veteran shall be reduced by the amount of any credit (or other tax benefit described in paragraph (1)(B)) allowed to such person against income taxes imposed by the possession of the United States by reason of this subsection with respect to such qualified veteran for such taxable year.
“(3) DEFINITIONS AND SPECIAL RULES.—
“(A) POSSESSION OF THE UNITED STATES.— For purposes of this subsection, the term ‘possession of the United States’ includes American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Commonwealth of Puerto Rico, and the United States Virgin Islands.
“(B) MIRROR CODE TAX SYSTEM.—For purposes of this subsection, the term ‘mirror code tax system’ means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
“(C) TREATMENT OF PAYMENTS.—For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from credit provisions described in such section.”
WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA EMPLOYEES
Section 201 of Pub. L. 109-73, as amended by Pub. L. 110-343, Div. B, Sec. 319(a), provided that:
“(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 4-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 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 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.”
EMPLOYEE RETENTION CREDIT FOR EMPLOYERS AFFECTED BY HURRICANE KATRINA
Section 202 of Pub. L. 109-73, before repeal by Pub. L. 109-135, Sec. 201(b)(4) (effective Dec. 21, 2005), provided that:
“(a) IN GENERAL.—In the case of an eligible employer, there shall be allowed as a credit against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for the taxable year an amount equal to 40 percent of the qualified wages with respect to each eligible employee of such employer for such taxable year. For purposes of the preceding sentence, the amount of qualified wages which may be taken into account with respect to any individual shall not exceed $6,000.
“(b) DEFINITIONS.—For purposes of this section—
“(1) ELIGIBLE EMPLOYER.—The term “eligible employer” means any employer—
“(A) which conducted an active trade or business on August 28, 2005, in a core disaster area, and
“(B) with respect to whom the trade or business described in subparagraph (A) is inoperable on any day after August 28, 2005, and before January 1, 2006, as a result of damage sustained by reason of Hurricane Katrina.
“(2) ELIGIBLE EMPLOYEE.—The term “eligible employee” means with respect to an eligible employer an employee whose principal place of employment on August 28, 2005, with such eligible employer was in a core disaster area.
“(3) QUALIFIED WAGES.—The term “qualified wages” means wages (as defined in section 51(c)(1) of such Code, but without regard to section 3306(b)(2)(B) of such Code) paid or incurred by an eligible employer with respect to an eligible employee on any day after August 28, 2005, and before January 1, 2006, which occurs during the period—
“(A) beginning on the date on which the trade or business described in paragraph (1) first became inoperable at the principal place of employment of the employee immediately before Hurricane Katrina, and
“(B) ending on the date on which such trade or business has resumed significant operations at such principal place of employment.
“Such term shall include wages paid without regard to whether the employee performs no services, performs services at a different place of employment than such principal place of employment, or performs services at such principal place of employment before significant operations have resumed.
“(c) CREDIT NOT ALLOWED FOR LARGE BUSINESSES.—The term “eligible employer” shall not include any trade or business for any taxable year if such trade or business employed an average of more than 200 employees on business days during the taxable year.
“(d) CERTAIN RULES TO APPLY.—For purposes of this section, rules similar to the rules of sections 51(i)(1), 52, and 280C(a) of such Code shall apply.
“(e) EMPLOYEE NOT TAKEN INTO ACCOUNT MORE THAN ONCE.—An employee shall not be treated as an eligible employee for purposes of this section for any period with respect to any employer if such employer is allowed a credit under section 51 of such Code with respect to such employee for such period.
“(f) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT.—The credit allowed under this section shall be added to the current year business credit under section 38(b) of such Code and shall be treated as a credit allowed under subpart D of part IV of subchapter A of chapter 1 of such Code.”
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.’
(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.’
PRIOR PROVISIONS
A prior section 51, added Pub. L. 90-364, title I, Sec. 102(a), June 28, 1968, 82 Stat. 252, and 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, which related to the imposition of a tax surcharge, was repealed by Pub. L. 94-455, title XIX, Sec. 1901(a)(7), Oct. 4, 1976, 90 Stat. 1765.