rials which the Commissioner may consider appro-
priate.
(5) FINAL REPORT.—The Commissioner shall
submit to the Congress a final report with respect
to all experiments and demonstration projects car-
ried out under this section no later than one year
after their completion.
(6) EXPENDITURES.—Expenditures made for
demonstration projects under this subsection shall
be made from the Federal Disability Insurance
Trust Fund and the Federal Old-Age and Survivors
Insurance Trust Fund, as determined appropriate by
the Commissioner, and from the Federal Hospital
Insurance Trust Fund and the Federal Supple-
mentary Medical Insurance Trust Fund, as deter-
mined appropriate by the Secretary of Health and
Human Services, to the extent provided in advance
in appropriation Acts.
SEC. 3. EXTENDING MEDICARE COVERAGE FOR OASDI DIS-
ABILITY 
BENEFIT 
RECIPIENTS 
WHO 
ARE
USING TICKETS TO WORK AND SELF-SUFFI-
CIENCY.
(a) IN GENERAL.—The next to last sentence of sec-
tion 226(b) of the Social Security Act (42 U.S.C. 426)
is amended—
(1) by striking ‘‘throughout all of which’’ and
inserting ‘‘throughout the first 24 months of which’’,
and
(2) by inserting after ‘‘but not in excess of 24
such months’’ the following: ‘‘(plus 24 additional
such months in the case of an individual who the
Commissioner determines is using a ticket to work
and self-sufficiency issued under section 1147, but
only for additional months that occur in the 7-year
period beginning on the date of the enactment of the
Ticket to Work and Self-Sufficiency Act of 1998)’’.
(b) REPORT.—Not later than 6 months prior to the
end of the 7-year period beginning on the date of the en-
actment of this Act, the Secretary of Health and Human
Services and the Commissioner of Social Security shall
submit in writing to each House of the Congress their rec-
ommendations for further legislative action with respect
to the amendments made by subsection (a), taking into
account experience derived from efforts to achieve full im-
plementation of the Ticket to Work and Self Sufficiency
Program under section 1147 of the Social Security Act.
SEC. 4. CREDIT FOR IMPAIRMENT-RELATED WORK EX-
PENSES OF HANDICAPPED INDIVIDUALS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
‘‘SEC. 25B. IMPAIRMENT-RELATED WORK EXPENSES OF
HANDICAPPED INDIVIDUALS.
‘‘(a) ALLOWANCE
OF CREDIT.—In the case of a
handicapped individual, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable
year an amount equal to 50 percent of the impairment-
related work expenses which are paid or incurred by the
taxpayer during the taxable year.
‘‘(b) MAXIMUM CREDIT.—The credit allowed by sub-
section (a) with respect to the expenses of each handi-
capped individual shall not exceed $5,000 for the taxable
year.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) HANDICAPPED
INDIVIDUAL.—The term
‘handicapped individual’ has the meaning given such
term by section 190(b)(3).
‘‘(2) 
IMPAIRMENT-RELATED
WORK
EX-
PENSES.—The term ‘impairment-related work ex-
penses’ means expenses—
‘‘(A) of a handicapped individual for at-
tendant care services at the individual’s place of
employment and other expenses in connection
with such place of employment which are nec-
essary for such individual to be able to work,
and
‘‘(B) with respect to which a deduction is
allowable under section 162 (determined with-
out regard to this section).
‘‘(d) SPECIAL RULES.—
‘‘(1) DENIAL
OF
DOUBLE
BENEFIT.—The
amount of impairment-related work expenses which
is allowable as a deduction under section 162 (deter-
mined without regard to this paragraph) for the tax-
able year shall be reduced by the amount of credit
allowed under this section for such year.
‘‘(2) 
ELECTION
TO
HAVE
SECTION
NOT
APPLY.—No credit shall be allowed under subsection
(a) for the taxable year if the taxpayer elects to not
have this section apply for such year.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 25A the following new item:
‘‘Sec. 25B. Impairment-related work expenses of handicapped in-
dividuals.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
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