SEC. 2. WORK OPPORTUNITY CREDIT TO SMALL BUSI-
NESSES FOR HIRING MEMBERS OF READY 
RESERVE OR NATIONAL GUARD. 
(a) IN GENERAL.—Section 51(d)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the 
end of subparagraph (I), by striking the period at the end 
of subparagraph (J) and inserting ‘‘, or’’, and by adding 
at the end the following new subparagraph: 
‘‘(K) in the case of an eligible employer (as 
defined in section 408(p)(2)(C)(i)), an indi-
vidual who is a member of— 
‘‘(i) the Ready Reserve (as described 
in section 10142 of title 10, United States 
Code), or 
‘‘(ii) the National Guard (as defined 
in section 101(c)(1) of title 10, United 
States Code).’’. 
(b) EFFECTIVE DATE.— 
(1) IN
GENERAL.—The amendment made by 
this section shall apply to wages paid or incurred 
after the date of the enactment of this Act in tax-
able years ending after such date. 
(2) CURRENT EMPLOYEES COVERED BY CRED-
IT.—For purposes of applying section 51 of the In-
ternal Revenue Code of 1986, individuals described 
in section 51(d)(1)(K) of such Code, as added by 
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this section, who are employed by an eligible em-
ployer (as defined in section 408(p)(2)(C)(i) of such 
Code) on the date of the enactment of this Act shall 
be treated as beginning work for such employer on 
such date. 
SEC. 3. PERMANENT EXTENSION OF WORK OPPORTUNITY 
CREDIT FOR EMPLOYERS HIRING QUALIFIED 
VETERANS AND MEMBERS OF READY RE-
SERVE AND NATIONAL GUARD. 
(a) IN GENERAL.—Section 51(c)(4) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘(other 
than any individual described in subparagraph (B) or (K) 
of subsection (d)(1))’’ after ‘‘individual’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to individuals who begin work for 
the employer after the date of the enactment of this Act. 
SEC. 4. TREATMENT OF POSSESSIONS. 
(a) PAYMENTS TO POSSESSIONS.— 
(1) MIRROR
CODE
POSSESSIONS.—The Sec-
retary of the Treasury shall pay to each possession 
of the United States with a mirror code tax system 
amounts equal to the loss to that possession by rea-
son of the amendments made by this Act. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
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ernment of the respective possession of the United 
States. 
(2) OTHER
POSSESSIONS.—The Secretary of 
the Treasury shall pay to each possession of the 
United States which does not have a mirror code tax 
system the amount estimated by the Secretary of the 
Treasury as being equal to the loss to that posses-
sion that would have occurred by reason of the 
amendments made by this Act if a mirror code tax 
system had been in effect in such possession. The 
preceding sentence shall not apply with respect to 
any possession of the United States unless such pos-
session establishes to the satisfaction of the Sec-
retary that the possession has implemented (or, at 
the discretion of the Secretary, will implement) an 
income tax benefit which is substantially equivalent 
to the income tax credit in effect after the amend-
ments made by this Act. 
(b) 
COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—The credit 
allowed against United States income taxes for any tax-
able year under the amendments made by this Act to sec-
tion 51 of the Internal Revenue Code of 1986 to any per-
son shall be reduced by the amount of any credit (or other 
tax benefit described in subsection (a)(2)) allowed to such 
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person against income taxes imposed by the possession of 
the United States by reason of this section for such tax-
able year. 
(c) DEFINITIONS AND SPECIAL RULES.— 
(1) POSSESSION OF THE UNITED STATES.—For 
purposes of this section, the term ‘‘possession of the 
United States’’ shall include such possessions as are 
specified in section 937(a)(1) of the Internal Rev-
enue Code of 1986. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(3) TREATMENT OF PAYMENTS.—For purposes 
of section 1324(b)(2) of title 31, United States 
Code, the payments under subsection (a) shall be 
treated in the same manner as a refund due from 
credit provisions described in such section. 
Æ 
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