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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 1034 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                S. 1034

  To create investment opportunities for rural families and access to 
 credit for rural entrepreneurs and microenterprises, to support rural 
              regional investment, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2007

 Mrs. Clinton introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To create investment opportunities for rural families and access to 
 credit for rural entrepreneurs and microenterprises, to support rural 
              regional investment, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Rural Investment 
to Strengthen our Economy Act of 2007'' or the ``Rural RISE Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
        TITLE I--NEW FINANCIAL OPPORTUNITIES FOR RURAL AMERICANS

Sec. 101. Capital loss deduction allowed with respect to sale or 
                            exchange of principal residence in certain 
                            rural areas.
Sec. 102. Rural student loan forgiveness.
TITLE II--ACCESS TO CREDIT FOR RURAL ENTREPRENEURS AND MICROENTERPRISES

Sec. 201. Rural entrepreneurship and microenterprise program.
            TITLE III--RURAL REGIONAL INVESTMENT INITIATIVE

Sec. 301. Rural regional investment initiative.
Sec. 302. Rural regional entrepreneurship program.
                  TITLE IV--REGIONAL SKILLS ALLIANCES

Sec. 401. Findings.
Sec. 402. Definition of Secretary.
                        Subtitle A--Skill Grants

Sec. 411. Authorization.
Sec. 412. Use of amounts.
Sec. 413. Requirement of matching funds.
Sec. 414. Limit on administrative expenses.
Sec. 415. Authorization of appropriations.
                      Subtitle B--Planning Grants

Sec. 421. Authorization.
Sec. 422. Application.
Sec. 423. Requirement of matching funds.
Sec. 424. Authorization of appropriations.
                TITLE V--SMALL BUSINESS JOBS TAX CREDIT

Sec. 501. Expansion of work opportunity tax credit.

        TITLE I--NEW FINANCIAL OPPORTUNITIES FOR RURAL AMERICANS

SEC. 101. CAPITAL LOSS DEDUCTION ALLOWED WITH RESPECT TO SALE OR 
              EXCHANGE OF PRINCIPAL RESIDENCE IN CERTAIN RURAL AREAS.

    (a) In General.--Subsection (c) of section 165 of the Internal 
Revenue Code of 1986 (relating to limitation on losses of individuals) 
is amended--
            (1) by striking ``and'' at the end of paragraph (2),
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and'', and
            (3) by adding at the end the following new paragraph:
            ``(4) losses arising from the sale or exchange of the 
        principal residence (within the meaning of section 121) of the 
        taxpayer, but only if such principal residence--
                    ``(A) is located in a nonmetropolitan county which, 
                based on information contained in the 2000 decennial 
                census, has a population which resides in areas more 
                than 50 percent of which are classified as rural by the 
                Secretary of Agriculture, and
                    ``(B) was acquired by the taxpayer after the date 
                of the enactment of this paragraph.''.
    (b) Conforming Amendment.--Section 67(b)(3) is amended by striking 
``paragraph (2) or (3)'' and inserting ``paragraph (2), (3), or (4)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to sales and exchanges after the date of the enactment of this 
Act, in taxable years ending after such date.

SEC. 102. RURAL STUDENT LOAN FORGIVENESS.

    (a) Definitions.--In this section:
            (1) Degree.--The term ``degree'' means an associate's 
        degree or baccalaureate degree awarded by an institution of 
        higher education.
            (2) Eligible borrower.--The term ``eligible borrower'' 
        means any borrower who is not in default on any of the 
        borrower's student loans under part B, D, or E of title IV of 
        the Higher Education Act of 1965.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965 (20 
        U.S.C. 1001).
            (4) Eligible area.--The term ``eligible area'' means a 
        nonmetropolitan county that, based on information contained in 
        the 2000 decennial census, has a population that resides in 
        areas more than 50 percent of which are classified as rural by 
        the Secretary of Agriculture.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
    (b) Program.--
            (1) In general.--The Secretary shall carry out a program of 
        assuming or cancelling the obligation to repay, pursuant to 
        subsection (c), a loan made, insured, or guaranteed under part 
        B, D, or E of title IV of the Higher Education Act of 1965 (20 
        U.S.C. 1071 et seq., 20 U.S.C. 1087a et seq., 20 U.S.C. 1087aa 
        et seq.), excluding loans made under section 428B of such Act 
        or comparable loans made under part D of such Act, for any 
        borrower who--
                    (A) obtains a degree;
                    (B) resides in an eligible area; and
                    (C) is employed in an eligible area.
            (2) Regulations.--The Secretary is authorized to prescribe 
        such regulations as may be necessary to carry out the 
        provisions of this section.
    (c) Loan Repayment or Cancellation.--
            (1) In general.--The Secretary shall assume or cancel the 
        obligation to repay, after each of the first 5 years of the 
        residency and employment described in subparagraphs (B) and (C) 
        of subsection (b)(1) that occur after the date of enactment of 
        this Act, 10 percent of the total amount of all loans made to a 
        student under the provisions of title IV of the Higher 
        Education Act of 1965 as described in subsection (b)(1), up to 
        a maximum amount of $2,000 each year.
            (2) Construction.--Nothing in this section shall be 
        construed to authorize the refunding of any repayment of a loan 
        made, insured, or guaranteed under part B, D, or E of title IV 
        of the Higher Education Act of 1965.
            (3) Interest.--If a portion of a loan is repaid or 
        cancelled by the Secretary under this section for any year, the 
        proportionate amount of interest on such loan that accrues for 
        such year shall be repaid or cancelled by the Secretary so long 
        as the total amount repaid or cancelled by the Secretary in any 
        1 year does not exceed $2,000.
    (d) Repayment to Eligible Lenders.--The Secretary shall pay to each 
eligible lender or holder for each fiscal year an amount equal to the 
aggregate amount of loans which are subject to repayment pursuant to 
this section for such year.
    (e) Application for Repayment or Cancellation.--
            (1) In general.--An eligible borrower desiring loan 
        repayment or cancellation under this section shall submit a 
        complete and accurate application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may require.
            (2) Conditions.--An eligible borrower may apply for loan 
        repayment or cancellation under this section after completing 
        each year of qualifying residency and employment. The eligible 
        borrower shall receive forbearance while engaged in qualifying 
        residency and employment unless the borrower is in deferment 
        while so engaged.
    (f) Authorization of Appropriations.--
            (1) Loan repayment and cancellation.--There are authorized 
        to be appropriated to carry out this section such sums as may 
        be necessary.
            (2) Perkins loan funds.--There are authorized to be 
        appropriated such sums as may be necessary for Federal capital 
        contributions to student loan funds established under part E of 
        title IV of the Higher Education Act of 1965.
    (g) Repayment or Cancellation Excluded From Gross Income.--Section 
108(f)(1) of the Internal Revenue Code of 1986 (relating to student 
loans) is amended by inserting ``or pursuant to section 102 of the 
Rural Investment to Strengthen our Economy Act of 2007'' after 
``employers''.

TITLE II--ACCESS TO CREDIT FOR RURAL ENTREPRENEURS AND MICROENTERPRISES

SEC. 201. RURAL ENTREPRENEURSHIP AND MICROENTERPRISE PROGRAM.

    Subtitle D of the Consolidated Farm and Rural Development Act is 
amended by inserting after section 364 (7 U.S.C. 2006f) the following:

``SEC. 365. RURAL ENTREPRENEURSHIP AND MICROENTERPRISE PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Economically disadvantaged microentrepreneur.--The 
        term `economically disadvantaged microentrepreneur' means an 
        owner, majority owner, or developer of a microenterprise in an 
        eligible area that has the ability to compete in the private 
        sector but has been impaired due to diminished capital and 
        credit opportunities, as compared to other microentrepreneurs 
        in the industry.
            ``(2) Eligible area.--The term `eligible area' means a 
        nonmetropolitan county that, based on information contained in 
        the 2000 decennial census, has a population that resides in 
        areas more than 50 percent of which are classified as rural by 
        the Secretary.
            ``(3) Indian tribe.--The term `Indian tribe' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            ``(4) Intermediary.--The term `intermediary' means an 
        entity that--
                    ``(A) makes and services microloans to eligible 
                small business concerns; and
                    ``(B) provides marketing, management, and technical 
                assistance to borrowers, including--
                            ``(i) a microenterprise development 
                        organization or program;
                            ``(ii) a private, nonprofit community 
                        development corporation;
                            ``(iii) a consortium of private, nonprofit 
                        community development corporations or other 
                        entities;
                            ``(iv) a quasi-governmental economic 
                        development entity, other than a State, county, 
                        municipal government, or any agency of a State, 
                        county, or municipal government; or
                            ``(v) an agency of, or a nonprofit entity 
                        established by, a tribal government.
            ``(5) Low-income individual.--The term `low-income 
        individual' means an individual with an income (adjusted for 
        family size) of not more than the greater of--
                    ``(A) 80 percent of median income of an area; or
                    ``(B) 80 percent of the statewide nonmetropolitan 
                area median income.
            ``(6) Microcredit.--The term `microcredit' means a business 
        loan or loan guarantee of not more than $50,000 provided to a 
        rural entrepreneur.
            ``(7) Microenterprise.--The term `microenterprise' means a 
        sole proprietorship, joint enterprise, limited liability 
        company, partnership, corporation, or cooperative that--
                    ``(A) has 5 or fewer employees; and
                    ``(B) is unable to obtain sufficient credit, 
                equity, or banking services elsewhere, as determined by 
                the Secretary.
            ``(8) Microenterprise development organization.--
                    ``(A) In general.--The term `microenterprise 
                development organization' means a nonprofit entity that 
                provides training and technical assistance to rural 
                entrepreneurs and access to capital or another service 
                described in subsection (b) to rural entrepreneurs.
                    ``(B) Inclusions.--The term `microenterprise 
                development organization' includes an organization 
                described in subparagraph (A) with a demonstrated 
                record of delivering services to economically 
                disadvantaged microentrepreneurs.
            ``(9) Microenterprise development program.--The term 
        `microenterprise development organization' means a program 
        administered by a organization serving an eligible area.
            ``(10) Microentrepreneur.--The term `microentrepreneur' 
        means the owner, operator, or developer of a microenterprise.
            ``(11) Program.--The term `program' means the rural 
        entrepreneur and microenterprise program established under 
        subsection (b)(1).
            ``(12) Qualified organization.--The term `qualified 
        organization' means--
                    ``(A) a microenterprise development organization or 
                microenterprise development program that has a 
                demonstrated record of delivering microenterprise 
                services to rural entrepreneurs, as demonstrated by the 
                development of an effective plan of action and the 
                possession of necessary resources to deliver 
                microenterprise services to rural entrepreneurs 
                effectively, as determined by the Secretary;
                    ``(B) an intermediary that has a demonstrated 
                record of delivery assistance to microenterprise 
                development organizations or microenterprise 
                development programs;
                    ``(C) a microenterprise development organization or 
                microenterprise development program that--
                            ``(i) serves rural entrepreneurs; and
                            ``(ii) enters into an agreement with a 
                        local community, in conjunction with a State or 
                        local government or Indian tribe, to provide 
                        assistance described in subsection (b);
                    ``(D) an Indian tribe, the tribal government of 
                which certifies to the Secretary that no 
                microenterprise development organization or 
                microenterprise development program exists under the 
                jurisdiction of the Indian tribe;
                    ``(E) a group of 2 or more organizations or Indian 
                tribes described in subparagraph (A), (B), (C), or (D) 
                that agree to act jointly as a qualified organization 
                under this section; or
                    ``(F) for purposes of subsection (b), an 
                institution of higher education (as defined in section 
                101(a) of the Higher Education Act of 1965 (20 U.S.C. 
                1001(a))).
            ``(13) Rural capacity building service.--The term `rural 
        capacity building service' means a service provided to an 
        organization that--
                    ``(A) is, or is in the process of becoming, a 
                microenterprise development organization or 
                microenterprise development program; and
                    ``(B) serves eligible areas for the purpose of 
                enhancing the ability of the organization to provide 
                training, technical assistance, and other related 
                services to rural entrepreneurs.
            ``(14) Rural entrepreneur.--The term `rural entrepreneur' 
        means a microentrepreneur, or prospective microentrepreneur--
                    ``(A) the principal place of business of which is 
                in an eligible area; and
                    ``(B) that is unable to obtain sufficient training, 
                technical assistance, or microcredit elsewhere, as 
                determined by the Secretary.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Agriculture, acting through the Administrator of the Rural 
        Business-Cooperative Service.
            ``(16) Small business concern.--The term `small business 
        concern' has the meaning given the term in section 3 of the 
        Small Business Act (15 U.S.C. 632).
            ``(17) Training and technical and financial assistance.--
                    ``(A) In general.--The term `training and technical 
                and financial assistance' means assistance provided to 
                rural entrepreneurs to develop the skills the rural 
                entrepreneurs need to plan, market, and manage their 
                own business.
                    ``(B) Inclusions.--The term `training and technical 
                and financial assistance' includes assistance provided 
                for the purpose of--
                            ``(i) enhancing business planning, 
                        marketing, management, or financial management 
                        skills; and
                            ``(ii) obtaining microcredit.
            ``(18) Tribal government.--The term `tribal government' 
        means the governing body of an Indian tribe.
    ``(b) Rural Entrepreneur and Microenterprise Program.--
            ``(1) In general.--From amounts made available under 
        subsection (h), the Secretary shall establish a rural 
        entrepreneurship and microenterprise program.
            ``(2) Purposes.--The purposes of the program are--
                    ``(A) to make grants to qualified organizations and 
                intermediaries to be used for marketing, management, 
                and technical assistance to the target population of 
                the program;
                    ``(B) to make grants to assist in researching and 
                developing the best practices in delivering and 
                evaluating training, technical assistance, and 
                microcredit programs to rural entrepreneurs;
                    ``(C) to make direct and guaranteed loans to 
                qualified organizations and intermediaries for the 
                purpose of making microloans to low-income individuals 
                and moderate-income individuals in rural areas to 
                establish and sustain new small business concerns; and
                    ``(D) to carry out such other projects and 
                activities as the Secretary determines are consistent 
                with this section.
            ``(3) Allocation.--From the total amount of funds made 
        available for a fiscal year to make grants and loans under this 
        section, the Secretary shall ensure that not less than 50 
        percent of funds are used to carry out activities described in 
        subparagraphs (A) and (B) of paragraph (2).
    ``(c) Grants.--
            ``(1) In general.--A qualified organization or intermediary 
        shall be eligible to receive a grant under the program to 
        provide marketing, management, and technical assistance to 
        small business concerns.
            ``(2) Grant limitations.--No single qualified organization 
        may receive more than 10 percent of the total funds that are 
        made available for a fiscal year to carry out this section.
            ``(3) Subgrants.--Subject to such regulations as the 
        Secretary may promulgate, a qualified organization that 
        receives a grant under this section may use the grant to 
        provide assistance to other qualified organizations, including 
        small or emerging qualified organizations.
    ``(d) Loan Administration.--
            ``(1) In general.--In carrying out the program, the 
        Secretary may provide loans to qualified organizations and 
        intermediaries to provide microcredit to rural entrepreneurs 
        and microenterprises, under such terms and conditions as the 
        Secretary may prescribe.
            ``(2) Loan duration.--Loans made under this paragraph shall 
        be for a term of 10 years.
            ``(3) Application interest rates.--Loans made under this 
        paragraph to a qualified organization or intermediary shall 
        bear an interest rate equal to 2 percentage points below the 
        rate determined by the Secretary of the Treasury for 
        obligations of the United States with a period of maturity of 5 
        years, adjusted to the nearest one-eighth of 1 percent.
    ``(e) Administrative Expenses.--Not more than 15 percent of the 
total amount of assistance received by a qualified organization of 
intermediary for a fiscal year under this section may be used for 
administrative expenses.
    ``(f) Targeted Populations.--In making grants and loans under this 
section, the Secretary shall ensure, to the maximum extent practicable, 
that--
            ``(1) grant and loan recipients include qualified 
        organizations and intermediaries--
                    ``(A) of varying sizes; and
                    ``(B) that serve racially, ethnically and 
                geographically diverse populations, and
            ``(2) not less than 50 percent of the grants and loans made 
        under this section are used to benefit low-income individuals, 
        women, or minorities, as identified by the Secretary, including 
        individuals residing on Indian reservations.
    ``(g) Cost Share.--
            ``(1) Federal share.--The Federal share of the cost of a 
        project carried out using funds from a grant under this section 
        shall be 75 percent.
            ``(2) Form of non-federal share.--The non-Federal share of 
        the cost of a project described in paragraph (1) may be 
        provided--
                    ``(A) by public funds, including funds obtained 
                through other Federal, State and local fees and grants; 
                or
                    ``(B) by private funds.
    ``(h) Funding.--There is authorized to be appropriated $30,000,000 
to carry out this section.''.

            TITLE III--RURAL REGIONAL INVESTMENT INITIATIVE

SEC. 301. RURAL REGIONAL INVESTMENT INITIATIVE.

    (a) Definition of Eligible Area.--Section 385B of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 2009dd-1) is amended by 
striking paragraph (3) and inserting the following:
            ``(3) Eligible area.--The term `eligible area' means a 
        nonmetropolitan county that, based on information contained in 
        the 2000 decennial census, has a population that resides in 
        areas more than 50 percent of which are classified as rural by 
        the Secretary.''.
    (b) Composition of Regional Boards.--Section 385C(b)(2)(A) of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd-
2(b)(2)(A)) is amended by striking clauses (vi) and (vii) and inserting 
the following:
                            ``(vi) academic institutions, including 
                        community colleges;
                            ``(vii) faith-based organizations;
                            ``(viii) other entities and organizations, 
                        as determined by the Regional Board; and
                            ``(ix) consortia of entities and 
                        organizations described in clauses (i) through 
                        (viii).''.
    (c) Composition of National Board on Rural America.--Section 
385D(b)(1)(A) of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009dd-3(b)(1)(A)) is amended by striking clauses (iv) through 
(vii) and inserting the following:
                            ``(iv) representatives of State and local 
                        governments;
                            ``(v) representatives of the rural 
                        philanthropic community;
                            ``(vi) representatives of Indian tribes (as 
                        defined in section 4 of the Indian Self-
                        Determination and Education Assistance Act (25 
                        U.S.C. 450b));
                            ``(vii) representatives of nonprofit 
                        organizations;
                            ``(viii) representatives of academic 
                        institutions, including community colleges; and
                            ``(ix) representatives of such other 
                        entities or organizations as the Secretary 
                        considers to be appropriate.''.
    (d) Amount of Grants.--Section 385E of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009dd-4) is amended--
            (1) in subsection (a), by striking ``$100,000,000'' and 
        inserting ``$200,000,000 each year''; and
            (2) in subsection (b)--
                    (A) in the matter before paragraph (1), by 
                inserting ``each year'' after ``shall use'';
                    (B) in paragraph (1), by striking ``$8,000,000'' 
                and inserting ``$20,000,000'';
                    (C) in paragraph (2)--
                            (i) by striking ``$87,000,000'' and 
                        inserting ``$135,000,000''; and
                            (ii) by striking ``and'' at the end;
                    (D) by redesignating paragraph (3) as paragraph 
                (4); and
                    (E) by inserting after paragraph (2) the following:
            ``(3) not less than $40,000,000 to carry out section 385I; 
        and''.
    (e) Rural Strategic Investment Planning Grants.--Section 385F of 
the Consolidated Farm and Rural Development Act (7 U.S.C. 2009dd-5) is 
amended--
            (1) by striking subsection (c) and inserting the following:
    ``(c) Preferences.--In awarding planning grants, the National Board 
shall give a preference to planning grants that will be used--
            ``(1) to address community capacity building and community 
        sustainability;
            ``(2) to incorporate other Federal agency development 
        plans; or
            ``(3) to leverage available public and private assets.''; 
        and
            (2) in subsection (d), by striking ``$100,000'' and 
        inserting ``$250,000''.
    (f) Innovation Grants.--Section 385G of the Consolidated Farm and 
Rural Development Act (7 U.S.C. 2009dd-6) is amended--
            (1) in subsection (a), by inserting ``to be administered by 
        the Office of Rural Development'' after ``innovation grants'';
            (2) in subsection (d)(7), by inserting ``, including 
        poverty alleviation'' before the period at the end; and
            (3) in subsection (e)--
                    (A) by redesignating paragraph (4) as paragraph 
                (5); and
                    (B) by inserting after paragraph (3) the following:
            ``(4) Non-federal organizations.--A Regional Board may 
        select 1 or more non-Federal organizations to manage and use 
        innovation grants approved and awarded under this section.''.

SEC. 302. RURAL REGIONAL ENTREPRENEURSHIP PROGRAM.

    Subtitle I of the Consolidated Farm and Rural Development Act (7 
U.S.C. 2009dd et seq.) is amended by adding at the end the following:

``SEC. 385I. RURAL REGIONAL ENTREPRENEURSHIP PROGRAM.

    ``(a) Definition of Rural Entrepreneur.--The term `rural 
entrepreneur' has the meaning given the term in section 365(a).
    ``(b) Program.--The Secretary shall establish a rural regional 
entrepreneurship program under which the Secretary shall provide grants 
to stimulate rural entrepreneurship and provide technical assistance, 
research, and evaluation to rural entrepreneurs.
    ``(c) Block Grants.--
            ``(1) In general.--From amounts made available under 
        subsection (f), the Secretary shall use $15,000,000 for each 
        fiscal year to make block grants to States in accordance with 
        this subsection.
            ``(2) Amount of grant.--A grant to a State under this 
        subsection for any fiscal year shall be in an amount that is, 
        as determined by the National Board--
                    ``(A) not more than $400,000; and
                    ``(B) not less than $200,000.
            ``(3)  Cost share.--To be eligible to receive a grant under 
        this subsection, a State shall match any grant funds received 
        under this subsection with an equal or greater amount of non-
        Federal funds.
            ``(4) Use of funds.--A State shall use funds received under 
        this subsection to support multi-county entrepreneurship 
        development systems focused on eligible areas in consultation 
        with the RUPRI Center for Rural Entrepreneurship.
    ``(d) Competitive Regional Entrepreneurship Grants.--
            ``(1) In general.--From amounts made available under 
        subsection (f), the Secretary shall--
                    ``(A) transfer $15,000,000 for each fiscal year to 
                the National Board to make regional entrepreneurship 
                grants to rural entrepreneurs through a competitive 
                application process; and
                    ``(B) use at least $10,000,000 to make grants to 
                successful applicants identified as regional 
                intermediaries under subsection (e)(3).
            ``(2) Administration.--The Under Secretary for Rural 
        Development shall administer grants under this subsection.
    ``(e) Center for Rural Entrepreneurship.--
            ``(1) In general.--From amounts made available under 
        subsection (f), the Secretary shall transfer $10,000,000 for 
        each fiscal year to the RUPRI Center for Rural Entrepreneurship 
        (referred to in this subsection as the `Center') for use in 
        accordance with this subsection.
            ``(2) Research, evaluation, and data collection and 
        analysis.--
                    ``(A) In general.--Of the amount transferred to the 
                Center under paragraph (1), the Center shall use 
                $5,000,000 for each fiscal year to carry out research, 
                evaluation, and data collection and analysis programs, 
                of which not less than $500,000 for each fiscal year 
                shall be used to enter into contracts, in accordance 
                with a national research agenda approved by the 
                National Board, with each of--
                            ``(i) the regional rural development 
                        centers described in section 1670(a) of the 
                        Food, Agriculture, Conservation, and Trade Act 
                        of 1990 (7 U.S.C. 5923(a)); and
                            ``(ii) the Economic Research Service.
                    ``(B) Coordination and focus of programs.--The 
                programs carried out under this paragraph shall--
                            ``(i) be coordinated by the Center across a 
                        broad range of higher education institutions 
                        and research organizations; and
                            ``(ii) focus on providing insights and 
                        creating opportunities for sustained 
                        entrepreneurship development in rural areas of 
                        the United States.
            ``(3) Regional intermediaries.--Of the amount transferred 
        to the Center under paragraph (1), the Center shall use 
        $4,000,000 for each fiscal year to establish and maintain a 
        nationwide network of regional intermediaries with the capacity 
        and tools--
                    ``(A) to provide effective entrepreneurship 
                development information, training, and technical 
                assistance to rural regions and communities in the 
                United States; and
                    ``(B) to enhance the effectiveness of organizations 
                that provide direct technical assistance and training 
                services to rural entrepreneurs.
            ``(4) Management activities and reports.--Of the amount 
        transferred to the Center under paragraph (1), the Center shall 
        use $1,000,000 for each fiscal year--
                    ``(A) to enhance and sustain the capacity and 
                ability of the Center to direct and manage the programs 
                and activities described in paragraphs (1), (2), and 
                (3); and
                    ``(B) to submit--
                            ``(i) to the National Board, an annual 
                        report that describes those programs and 
                        activities carried out during the year covered 
                        by the report; and
                            ``(ii) to the Secretary, an annual report 
                        that describes the state of entrepreneurship in 
                        the United States during the year covered by 
                        the report.
            ``(5) Availability of funds; contracts.--
                    ``(A) Availability of funds.--Funds made available 
                under this subsection shall remain available until 
                expended, including for any purpose under this section.
                    ``(B) Contracts.--Each contract entered into by the 
                Center and an individual or entity shall be based on 
                the performance of the individual or entity.
    ``(f) Funding.--Of funds made available under section 385E(b)(3), 
for each of fiscal years 2008 through 2012, the Secretary shall use to 
carry out this section $40,000,000, to remain available until 
expended.''.

                  TITLE IV--REGIONAL SKILLS ALLIANCES

SEC. 401. FINDINGS.

    Congress finds that--
            (1) many small businesses lack the financial capacity to 
        support the training of high-skilled workers;
            (2) many high-tech companies concerned about worker 
        training consider recruiting employees from overseas because a 
        shortage of information technology workers remains a 
        significant problem;
            (3) too many highly educated workers in underserved 
        communities do not have the specialized skills needed to meet 
        the needs of local businesses; and
            (4) regional skills alliances bring businesses and 4-year 
        colleges and universities and community colleges together to 
        help develop and implement effective programs to make sure 
        workers have the training needed to compete in the modern 
        workplace.

SEC. 402. DEFINITION OF SECRETARY.

    In this title, the term ``Secretary'' means the Secretary of Labor.

                        Subtitle A--Skill Grants

SEC. 411. AUTHORIZATION.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Commerce, shall award grants to eligible entities described in 
subsection (b) to assist the entities to improve the job skills 
necessary for employment in specific industries.
    (b) Eligible Entities Described.--
            (1) In general.--An eligible entity described in this 
        subsection is a consortium that--
                    (A) shall consist of representatives from not less 
                than 5 businesses, or a lesser number of businesses if 
                such lesser number of businesses employs at least 30 
                percent of the employees in the industry involved in 
                the region (or a nonprofit organization that represents 
                such businesses);
                    (B) may consist of representatives from--
                            (i) labor organizations;
                            (ii) State and local government; and
                            (iii) educational institutions;
                    (C) is established to serve 1 or more particular 
                industries; and
                    (D) is established to serve an eligible area.
            (2) Eligible area.--The term ``eligible area'' means a 
        nonmetropolitan county that, based on information contained in 
        the 2000 decennial census--
                    (A) has a population that resides in areas more 
                than 50 percent of which are classified as rural by the 
                Secretary of Agriculture; and
                    (B) had an average employment percentage change 
                during the period of calendar years 2001 through 2004 
                that was less than the national average employment 
                percentage change (as determined by the Bureau of 
                Economic Analysis).
            (3) Majority of representatives.--A majority of the 
        representatives comprising the consortium shall be 
        representatives described in paragraph (1)(A).
    (c) Priority for Small Businesses.--In providing grants under 
subsection (a), the Secretary shall give priority to an eligible entity 
if a majority of representatives forming the entity represent small-
business concerns (as defined in section 3(a) of the Small Business Act 
(15 U.S.C. 632(a)).
    (d) Maximum Amount of Grant.--The amount of a grant awarded to an 
eligible entity under subsection (a) may not exceed $1,000,000 for any 
fiscal year.

SEC. 412. USE OF AMOUNTS.

    (a) In General.--The Secretary may not award a grant under section 
411 to an eligible entity unless the entity agrees to use amounts 
received from the grant to improve the job skills necessary for 
employment by businesses in the industry with respect to which the 
entity was established.
    (b) Conduct of Program.--
            (1) In general.--In carrying out the program described in 
        subsection (a), the eligible entity may provide for--
                    (A) an assessment of training and job skill needs 
                for the industry;
                    (B) the development of a sequence of skill 
                standards that are benchmarked to advanced industry 
                practices;
                    (C) the development of curriculum and training 
                methods, including, where appropriate, e-learning or 
                technology-based training;
                    (D) the purchase, lease, or receipt of donations of 
                training equipment;
                    (E) the identification of training providers and 
                the development of partnerships between the industry 
                and educational institutions, including community 
                colleges;
                    (F) the development of apprenticeship programs;
                    (G) the development of training programs for 
                workers, including dislocated workers;
                    (H) the development of training plans for 
                businesses; and
                    (I) the development of the membership of the 
                entity.
            (2) Additional requirement.--In carrying out the program 
        described in subsection (a), the eligible entity shall provide 
        for the development and tracking of performance outcome 
        measures for the program and the training providers involved in 
        the program.
    (c) Administrative Costs.--The eligible entity may use not more 
than 10 percent of the amount of a grant to pay for administrative 
costs associated with the program described in subsection (a).

SEC. 413. REQUIREMENT OF MATCHING FUNDS.

    (a) In General.--The Secretary may not award a grant under section 
411 to an eligible entity unless the entity agrees that the entity will 
make available non-Federal contributions toward the costs of carrying 
out activities under the grant in an amount that is not less than $2 
for each $1 of Federal funds provided under the grant, of which--
            (1) $1 shall be provided by the businesses participating in 
        the entity; and
            (2) $1 shall be provided by the State or local government 
        involved.
    (b) Other Contributions.--
            (1) Equipment.--Equipment donations to facilities that are 
        not owned or operated by the members of the eligible entity 
        involved and that are shared by the members may be included in 
        determining compliance with subsection (a).
            (2) Limitation.--
                    (A) In general.--An eligible entity may not include 
                in-kind contributions in complying with the requirement 
                of subsection (a).
                    (B) Consideration.--The Secretary may consider 
                donations described in subparagraph (A) in ranking 
                applications.

SEC. 414. LIMIT ON ADMINISTRATIVE EXPENSES.

    The Secretary may use not more than 5 percent of the amounts made 
available to carry out this title to pay the Federal administrative 
costs associated with awarding grants under this title.

SEC. 415. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
subtitle--
            (1) $50,000,000 for each of fiscal years 2008 through 2012; 
        and
            (2) such sums as are necessary for each fiscal year 
        thereafter.

                      Subtitle B--Planning Grants

SEC. 421. AUTHORIZATION.

    (a) In General.--The Secretary, in consultation with the Secretary 
of Commerce, shall award grants to States to enable the States to 
assist businesses, organizations, and agencies described in section 
411(b) in conducting planning to form consortia described in that 
section.
    (b) Maximum Amount of Grant.--The amount of a grant awarded to a 
State under subsection (a) may not exceed $500,000 for any fiscal year.

SEC. 422. APPLICATION.

    The Secretary may not award a grant under section 421 to a State 
unless the State submits to the Secretary an application at such time, 
in such manner, and containing such information as the Secretary may 
reasonably require.

SEC. 423. REQUIREMENT OF MATCHING FUNDS.

    The Secretary may not award a grant under section 421 to a State 
unless the State agrees that the State will make available non-Federal 
contributions toward the costs of carrying out activities under this 
subtitle in an amount that is not less than $1 for each $1 of Federal 
funds provided under the grant.

SEC. 424. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this subtitle 
$5,000,000 for fiscal year 2008.

                TITLE V--SMALL BUSINESS JOBS TAX CREDIT

SEC. 501. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 51(d)(1) of the Internal Revenue Code of 
1986 (relating to members of targeted groups) is amended by striking 
``or'' at the end of subparagraph (H), by striking the period at the 
end of subparagraph (I) and inserting ``, or'', and by adding at the 
end the following:
                    ``(J) a qualified small business employee.''.
    (b) Qualified Small Business Employee.--Section 51(d) of the 
Internal Revenue Code of 1986 is amended by redesignating paragraphs 
(11) through (13) as paragraphs (12) through (14), respectively, and by 
inserting after paragraph (10) the following:
            ``(11) Qualified small business employee.--
                    ``(A) In general.--The term `qualified small 
                business employee' means any individual--
                            ``(i) hired by a qualified small business 
                        located in an eligible area, or
                            ``(ii) hired by a qualified small business 
                        and who is certified by the designated local 
                        agency as residing in such an eligible area.
                    ``(B) Qualified small business.--The term 
                `qualified small business' has the meaning given the 
                term `small employer' by section 4980D(d)(2).
                    ``(C) Eligible area.--The term `eligible area' 
                means a nonmetropolitan county that, based on 
                information contained in the 2000 decennial census--
                            ``(i) has a population that resides in 
                        areas more than 50 percent of which are 
                        classified as rural by the Secretary of 
                        Agriculture; and
                            ``(ii) had an average employment percentage 
                        change during the period of calendar years 2001 
                        through 2004 that was less than the national 
                        average employment percentage change (as 
                        determined by the Bureau of Economic Analysis).
                    ``(D) Number of designations.--The Secretary, after 
                consultation with the Secretary of Housing and Urban 
                Development and the Secretary of Agriculture, may not 
                designate more than 400 eligible areas.
                    ``(E) Special rules for determining amount of 
                credit.--For purposes of applying this subpart to wages 
                paid or incurred to any qualified small business 
                employee--
                            ``(i) subsection (a) shall be applied by 
                        substituting `20 percent of the qualified 
                        first, second, third, fourth, or fifth year 
                        wages' for `40 percent of the qualified first 
                        year wages', and
                            ``(ii) in lieu of paragraphs (2) and (3) of 
                        subsection (b), the following definitions and 
                        special rule shall apply:
                                    ``(I) 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.
                                    ``(II) Qualified second-year 
                                wages.--The term `qualified second-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                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 individual 
                                determined under subclause (I).
                                    ``(III) Qualified third-year 
                                wages.--The term `qualified third-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                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 individual 
                                determined under subclause (II).
                                    ``(IV) Qualified fourth-year 
                                wages.--The term `qualified fourth-year 
                                wages' means, with respect to any 
                                individual, qualified wages 
                                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 individual 
                                determined under subclause (III).
                                    ``(V) Qualified fifth-year wages.--
                                The term `qualified fifth-year wages' 
                                means, with respect to any individual, 
                                qualified wages 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 individual determined under 
                                subclause (IV).
                                    ``(VI) Only first $15,000 of wages 
                                per year taken into account.--The 
                                amount of the qualified first, second, 
                                third, fourth, and fifth year wages 
                                which may be taken into account with 
                                respect to any individual shall not 
                                exceed $15,000 per year.''.
    (c) 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.
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