II

105TH CONGRESS

2D SESSION S. 2018

To amend the Internal Revenue Code of 1986 to extend the work opportunity

tax credit to employers providing employment in economically distressed

communities.

IN THE SENATE OF THE UNITED STATES

APRIL 30, 1998

Mr. JOHNSON 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 extend

the work opportunity tax credit to employers providing

employment in economically distressed communities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Reemployment Tax

5 Credit Act of 1998’’.

6 SEC. 2. WORK OPPORTUNITY TAX CREDIT.

7 (a) QUALIFIED DISLOCATED WORKERS TREATED AS

8 MEMBERS OF TARGETED GROUPS.—
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1 (1) IN GENERAL.—Paragraph (1) of section

2 51(d) of the Internal Revenue Code of 1986 (relat3 ing to members of targeted groups) is amended by

4 striking ‘‘or’’ at the end of subparagraph (G), by

5 striking the period at the end of subparagraph (H)

6 and inserting ‘‘, or’’, and by adding at the end the

7 following new subparagraph:

8 ‘‘(I) a qualified dislocated worker.’’.

9 (2) QUALIFIED DISLOCATED WORKER.—Section

10 51(d) of such Code is amended by redesignating

11 paragraphs (10), (11), and (12) as paragraphs (11),

12 (12), and (13), respectively, and by inserting after

13 paragraph (9) the following new paragraph:

14 ‘‘(10) QUALIFIED DISLOCATED WORKER.—

15 ‘‘(A) IN GENERAL.—The term ‘qualified

16 dislocated worker’ means any individual who is

17 certified by the designated local agency as—

18 ‘‘(i) being eligible for unemployment

19 compensation (within the meaning of sec20 tion 85) as a result of loss of employment

21 at a work-site located in an economic dis22 location area,

23 ‘‘(ii) having a hiring date which is not

24 later than 90 days after the date on which
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1 the individual becomes eligible for such un2 employment compensation, and

3 ‘‘(iii) being offered employment at a

4 work-site which is not more than 60 miles

5 from the previous work-site of the individ6 ual.

7 ‘‘(B) CERTIFICATION OF ECONOMIC DIS8 LOCATION AREA.—

9 ‘‘(i) CERTIFICATION.—Not later than

10 20 days after an application for certifi11 cation of a community as an economic dis12 location area is received by the Assistant

13 Secretary of Economic Development of the

14 Department of Commerce under clause

15 (ii), the Assistant Secretary shall certify

16 whether or not the community is an eco17 nomic dislocation area as determined

18 under subparagraph (C) or (D).

19 ‘‘(ii) APPLICATION.—For purposes of

20 clause (i), the application for certification

21 shall be submitted by the Governor of the

22 State (or the Governor’s designee) in which

23 the community for which certification is

24 being sought is located and shall be in

25 such form and contain such information as
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1 the Assistant Secretary may require in

2 order to determine whether the community

3 is an economic dislocation area.

4 ‘‘(C) COMMUNITIES LOCATED IN A METRO5 POLITAN STATISTICAL AREA.—Except as pro6 vided in subparagraph (E), a community lo7 cated in a metropolitan statistical area (within

8 the meaning of section 143(k)(2)(B)) shall be

9 certified as an economic dislocation area if the

10 community suffers actual or threatened perma11 nent job loss and—

12 ‘‘(i) in the case of a metropolitan sta13 tistical area in which the unemployment

14 rate is greater than the national average,

15 the job loss in the community is equal to

16 or greater than the lesser of—

17 ‘‘(I) 0.5 percent of the employed

18 population in the community, or

19 ‘‘(II) 4,000, or

20 ‘‘(ii) in the case of a metropolitan sta21 tistical area in which the unemployment

22 rate is equal to or less than the national

23 average, the job loss in the community is

24 equal to or greater than the lesser of—
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1 ‘‘(I) 1 percent of the employed

2 population in the community, or

3 ‘‘(II) 8,000.

4 ‘‘(D) COMMUNITIES NOT LOCATED IN A

5 METROPOLITAN STATISTICAL AREA.—Except as

6 provided in subparagraph (E), a community

7 that is not located in a metropolitan statistical

8 area shall be certified as an economic disloca9 tion area if the community suffers actual or

10 threatened permanent job loss and—

11 ‘‘(i) if the unemployment rate of the

12 Labor Market Area in which the commu13 nity is located is greater than the national

14 average, the job loss in the community is

15 equal to or greater than the lesser of—

16 ‘‘(I) 2 percent of the employed

17 population in the community, or

18 ‘‘(II) 500, or

19 ‘‘(ii) if the unemployment rate of the

20 Labor Market Area in which the commu21 nity is located is equal to or less than the

22 national average, the job loss in the com23 munity is equal to or greater than the less24 er of—
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1 ‘‘(I) 4 percent of the employed

2 population in the community, or

3 ‘‘(II) 1,000.

4 ‘‘(E) REQUIRED JOB LOSS PERCENTAGE.—

5 A community shall not be certified under this

6 paragraph as an economic dislocation area un7 less at least—

8 ‘‘(i) 50 percent of the job loss in the

9 community is the result of the action of a

10 single employer, or

11 ‘‘(ii) 80 percent of such job loss oc12 curs in a single standard industry classi13 fication.’’.

14 (b) EFFECTIVE DATE.—The amendments made by

15 this section shall apply to individuals who begin work for

16 the employer after December 31, 1998.

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