PUBLIC LAW 101-239—DEC. 19, 1989 103 STAT. 2305 FRINGE. —Subsection (h) of section 132 is amended by adding at the 26 USC 132. end thereof the following new paragraph: "(9) APPLICATION OF SECTION TO OTHERWISE TAXABLE EM- PLOYER-PROVIDED EDUCATIONAL ASSISTANCE.— Amounts which would be excludible from gross income under section 127 but for subsection (a)(2) thereof or the last sentence of subsection (c)(1) thereof shall be excluded from gross income under this section if (and only if) such amounts are a working condition fringe." (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 127 note. apply to taxable years beginning after December 31, 1988. SEC. 7102. EMPLOYER-PROVIDED GROUP LEGAL SERVICES. (a) EXTENSION.— (1) IN GENERAL.— Subsection (e) of section 120 (relating to group legal services plans) is amended by striking "ending after December 31, 1988" and inserting "beginning after September 30, 1990". (2) SPECIAL RULE.—In the case of any taxable year beginning 26 USC 120 note, in 1990, only amounts paid before October 1, 1990, by the employer for coverage for the employee, his spouse, or his dependents under a qualified group legal services plan for periods before October 1, 1990, shall be taken into account in determining the amount excluded under section 120 of the Internal Revenue Code of 1986 with respect to such employee for such taxable year. (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 120 note, shall apply to taxable years ending after December 31, 1988. SEC. 7103. EXTENSION AND MODIFICATION OF TARGETED JOBS CREDIT. (a) EXTENSION. —Paragraph (4) of section 51(c) (relating to termi- nation) is amended by striking "December 31, 1989" and inserting "September 30, 1990". (b) EXTENSION OF AUTHORIZATION.— Paragraph (2) of section 261(f) of the Economic Recovery Tax Act of 1981 is amended by striking 26 USC 51 note, "and 1989" and inserting "1989, and 1990". (c) MODIFICATION OF REQUEST FOR CERTIFICATION. — (1) IN GENERAL. —Paragraph (16) of section 51(d) is amended by adding at the end thereof the following new subparagraph: " (C) EMPLOYER REQUEST MUST SPECIFY POTENTIAL BASIS FOR ELIGiBiLiTY.— In any request for a certification of an individ- ual 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 be- lieves 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." (2) EFFECTIVE DATE. — The amendment made by paragraph (1) 26 USC 51 note, shall apply to individuals who begin work for the employer after December 31, 1989. SEC. 7104. EXTENSION OF QUALIFIED MORTGAGE BONDS. (a) IN GENERAL. — Subparagraph (B) of section 143(a)(l) (defining qualified mortgage bond) is amended by striking "December 31, 1989" each place it appears and inserting "September 30, 1990". (h) MORTGAGE CREDIT CERTIFICATES.—Subsection (h) of section 25 is amended by striking "for any calendar year after 1989" and inserting "for any period after September 30, 1990".
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