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‘‘(5) ELECTION
OF
ALTERNATIVE
SIMPLIFIED
CREDIT.—
‘‘(A) IN GENERAL.—At the election of the
taxpayer, the credit determined under subsection
(a)(1) shall be equal to 12 percent of so much of
the qualified research expenses for the taxable
year as exceeds 50 percent of the average quali-
fied research expenses for the 3 taxable years pre-
ceding the taxable year for which the credit is
being determined.
‘‘(B) SPECIAL RULE IN CASE OF NO QUALI-
FIED RESEARCH EXPENSES IN ANY OF 3 PRE-
CEDING TAXABLE YEARS.—
‘‘(i) TAXPAYERS TO WHICH SUBPARA-
GRAPH
APPLIES.—The credit under this
paragraph shall be determined under this
subparagraph if the taxpayer has no quali-
fied research expenses in any 1 of the 3 tax-
able years preceding the taxable year for
which the credit is being determined.
‘‘(ii) CREDIT RATE.—The credit deter-
mined under this subparagraph shall be
equal to 6 percent of the qualified research
expenses for the taxable year.
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‘‘(C) ELECTION.—An election under this
paragraph shall apply to the taxable year for
which made and all succeeding taxable years un-
less revoked with the consent of the Secretary. An
election under this paragraph may not be made
for any taxable year to which an election under
paragraph (4) applies.’’.
(2) COORDINATION WITH ELECTION OF ALTER-
NATIVE INCREMENTAL CREDIT.—
(A) IN GENERAL.—Section 41(c)(4)(B) (re-
lating to election) is amended by adding at the
end the following: ‘‘An election under this para-
graph may not be made for any taxable year to
which an election under paragraph (5) applies.’’.
(B) TRANSITION RULE.—In the case of an
election under section 41(c)(4) of the Internal
Revenue Code of 1986 which applies to the tax-
able year which includes the date of the enact-
ment of this Act, such election shall be treated as
revoked with the consent of the Secretary of the
Treasury if the taxpayer makes an election
under section 41(c)(5) of such Code (as added by
subsection (a)) for such year.
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HR 4297 EAS
(d) EXPANSION OF CREDIT TO EXPENSES OF GENERAL
COLLABORATIVE RESEARCH CONSORTIA.—Section 41 is
amended—
(1) by striking ‘‘an energy research consortium’’
in subsections (a)(3) and (b)(3)(C)(i) and inserting
‘‘a research consortium’’,
(2) by striking ‘‘energy’’ each place it appears in
subsection (f)(6)(A),
(3) by inserting ‘‘or 501(c)(6)’’ after ‘‘section
501(c)(3)’’ in subsection (f)(6)(A)(i)(I), and
(4) by striking ‘‘ENERGY
RESEARCH’’ in the
heading for subsection (f)(6) and inserting ‘‘RE-
SEARCH’’.
(e) EFFECTIVE DATE.—Except as provided in sub-
section (a)(3), the amendments made by this section shall
apply to taxable years ending after December 31, 2005.
SEC. 109. WORK OPPORTUNITY TAX CREDIT AND WELFARE-
TO-WORK CREDIT.
(a) IN GENERAL.—Section 51(c)(4)(B) is amended by
striking ‘‘2005’’ and inserting ‘‘2007’’.
(b) ELIGIBILITY OF EX-FELONS DETERMINED WITH-
OUT REGARD TO FAMILY INCOME.—Paragraph (4) of sec-
tion 51(d) is amended by adding ‘‘and’’ at the end of sub-
paragraph (A), by striking ‘‘, and’’ at the end of subpara-
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graph (B) and inserting a period, and by striking all that
follows subparagraph (B).
(c) INCREASE IN MAXIMUM AGE FOR ELIGIBILITY OF
FOOD
STAMP
RECIPIENTS.—Clause 
(i) 
of 
section
51(d)(8)(A) is amended by striking ‘‘25’’ and inserting
‘‘40’’.
(d) INCREASE IN MAXIMUM AGE FOR DESIGNATED
COMMUNITY RESIDENTS.—
(1) IN
GENERAL.—Paragraph (5) of section
51(d) is amended to read as follows:
‘‘(5) DESIGNATED COMMUNITY RESIDENTS.—
‘‘(A) IN
GENERAL.—The term ‘designated
community resident’ means any individual who
is certified by the designated local agency—
‘‘(i) as having attained age 18 but not
age 40 on the hiring date, and
‘‘(ii) as having his principal place of
abode within an empowerment zone, enter-
prise community, or renewal community.
‘‘(B) INDIVIDUAL MUST CONTINUE TO RE-
SIDE IN ZONE OR COMMUNITY.—In the case of a
designated community resident, the term ‘quali-
fied wages’ shall not include wages paid or in-
curred for services performed while the individ-
ual’s principal place of abode is outside an em-
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powerment zone, enterprise community, or re-
newal community.’’
(2) CONFORMING
AMENDMENT.—Subparagraph
(D) of section 51(d)(1) is amended to read as follows:
‘‘(D) a designated community resident,’’.
(e) CONSOLIDATION OF WORK OPPORTUNITY CREDIT
WITH WELFARE-TO-WORK CREDIT.—
(1) IN
GENERAL.—Paragraph (1) of section
51(d) is amended by striking ‘‘or’’ at the end of sub-
paragraph (G), by striking the period at the end of
subparagraph (H) and inserting ‘‘, or’’, and by add-
ing at the end the following new subparagraph:
‘‘(I) a long-term family assistance recipi-
ent.’’
(2) LONG-TERM
FAMILY
ASSISTANCE
RECIPI-
ENT.—Subsection (d) of section 51 is amended by re-
designating paragraphs (10) through (12) as para-
graphs (11) through (13), respectively, and by insert-
ing after paragraph (9) the following new paragraph:
‘‘(10) LONG-TERM FAMILY ASSISTANCE RECIPI-
ENT.—The term ‘long-term family assistance recipi-
ent’ means any individual who is certified by the des-
ignated local agency—
‘‘(A) as being a member of a family receiv-
ing assistance under a IV–A program (as defined