II
110th CONGRESS
1st Session
S. 248
IN THE SENATE OF THE UNITED STATES
January 10, 2007
Mr. Baucus (for himself and Ms. Snowe) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to permanently extend and modify the work opportunity credit, and for other purposes.
Short title
This Act may be cited as the
Encouraging Work Act of
2007
.
Permanent extension and modification of work opportunity credit
Credit made permanent
Subsection (c) of section 51 of the Internal Revenue Code of 1986 is amended by striking paragraph (4) (relating to termination).
Increase in maximum age for designated community residents
In general
Paragraph (5) of section 51(d) of the Internal Revenue Code of 1986 is amended to read as follows:
Designated community residents
In general
The term designated community resident means any individual who is certified by the designated local agency—
as having attained age 18 but not age 40 on the hiring date, and
as having his principal place of abode within an empowerment zone, enterprise community, or renewal community.
Individual must continue to reside in zone or community
In the case of a designated community resident, the term qualified wages shall not include wages paid or incurred for services performed while the individual’s principal place of abode is outside an empowerment zone, enterprise community, or renewal community.
.
Conforming amendment
Subparagraph (D) of section 51(d)(1) of such Code is amended to read as follows:
a designated community resident,
.
Clarification of treatment of individuals under individual work plans
Subparagraph (B) of section 51(d)(6) of the Internal
Revenue Code of 1986 (relating to vocational rehabilitation referral) is
amended by striking or
at the end of clause (i), by striking the
period at the end of clause (ii) and inserting , or
, and by
adding at the end the following new clause:
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.
.
Treatment of disabled veterans under the work opportunity tax credit
Disabled veterans treated as members of targeted group
In general
Subparagraph (A) of section 51(d)(3) of the Internal
Revenue Code of 1986 (relating to qualified veteran) is amended by striking
agency as being a member of a family
and all that follows and
inserting
agency as—
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
entitled to compensation for a service-connected disability incurred after September 10, 2001.
.
Definitions
Paragraph (3) of section 51(d) of such Code is amended by adding at the end the following new subparagraph:
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.
.
Increase in amount of wages taken into account for disabled veterans
Paragraph (3) of section 51(b) of such Code is amended—
by inserting
($12,000 per year in the case of any individual who is a qualified
veteran by reason of subsection (d)(3)(A)(ii))
before the period at the
end, and
by striking
Only first
$6,000 of
in the
heading and inserting Limitation on
.
Effective date
The amendments made by this section shall apply to individuals who begin work for the employer after the date of the enactment of this Act, in taxable years ending after such date.