100 STAT. 2772
PUBLIC LAW 99-514—OCT. 22, 1986
TITLE XVII—MISCELLANEOUS PROVISIONS SEC. 1701. EXTENSION AND MODIFICATION OF TARGETED JOBS CREDIT.
(a) 3-YEAR EXTENSION.—Paragraph (3) of section 51(c) (relating to termination) is amended by striking out "December 31, 1985" and inserting in lieu thereof "December 31, 1988". (b) CREDIT FOR FIRST-YEAR WAGES ONLY.—
(1) IN GENERAL.—Section 51(a) (relating to determination of amount of credit) is amended to read as follows: "(a) DETERMINATION OF AMOUNT.—For purposes of section 38, the
amount of the targeted jobs credit determined under this section for the taxable year shall be equal to 40 percent of the qualified firstyear wages for such year." (2) CONFORMING AMENDMENTS.—
(A) Subsection (b) of section 51 (defining qualified wages) is amended— (i) by striking out paragraph (3) and by redesignating paragraph (4) as paragraph (3), and (ii) by striking out ", and the amount of the qualified second-year wages," in paragraph (3) (as so redesignated). (B) Subparagraph (B) of section 51(d)(12) (relating to qualified summer youth employee) is amended— (i) by striking out "50 percent" in clause (i) thereof and inserting in lieu thereof "40 percent", (ii) by striking out clause (ii) and redesignating clauses (iii) and (iv) as clauses (ii) and (iii), respectively, (iii) by striking out "subsection (b)(4)" and inserting in lieu thereof "subsection (b)(3)" in clause (iii) (as so redesignated). (c) ELIGIBLE INDIVIDUALS—PERIOD OF EMPLOYMENT.—Subsection (i)
of section 51 (relating to certain individuals ineligible) is amended by adding at the end thereof the following new paragraph: "(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 y 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." (d) EXTENSION OF AUTHORIZATION.—Paragraph (2) of section 261(f) of the Economic Recovery Tax Act of 1981 is amended by striking out "fiscal years 1983, 1984, and 1985" and inserting in lieu thereof "fiscal years 1983, 1984, 1985, 1986, 1987, and 1988". (e) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to individuals who begin work for the employer after December 31, 1985.
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