SEC. 2. SPECIAL ALLOCATION UNDER NEW MARKETS TAX 
CREDIT IN CONNECTION WITH TRADE AD-
JUSTMENT ASSISTANCE. 
(a) IN GENERAL.—Section 45D of the Internal Rev-
enue Code of 1986 is amended by redesignating subsection 
(i) as subsection (j) and by inserting after subsection (h) 
the following new subsection: 
‘‘(i) SPECIAL ALLOCATIONS IN CONNECTION WITH 
TRADE ADJUSTMENT ASSISTANCE.— 
‘‘(1) ALLOCATIONS.—The new markets tax 
credit limitation otherwise determined under sub-
section (f)(1) shall be increased by an amount equal 
to $500,000,000 for 2008 to be allocated among 
qualified community development entities to make 
capital or equity investments in, or loans to, quali-
fied TAA businesses. 
‘‘(2) RESTRICTION ON DESIGNATION.—A quali-
fied community development entity receiving an allo-
cation under paragraph (1) may not use such alloca-
tion to designate any qualified equity investment 
under subsection (b)(1)(C) unless substantially all of 
such investment is used for the purpose described in 
paragraph (1). 
‘‘(3) QUALIFIED TAA BUSINESSES.—For pur-
poses of this subsection— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
TAA business’ means, with respect to any tax-
able year— 
‘‘(i) any qualified active low-income 
community business (as defined in sub-
section (d)(2)) which meets the require-
ments of clause (i) or (ii) of subparagraph 
(B) for such taxable year, and 
‘‘(ii) any specified TAA business. 
‘‘(B) SPECIFIED
TAA
BUSINESS.—The 
term ‘specified TAA business’ means, with re-
spect to any taxable year, any corporation (in-
cluding a nonprofit corporation) or partnership 
if— 
‘‘(i) not less than 40 percent of the 
individuals hired by such entity during 
such taxable year were eligible TAA recipi-
ents (as defined in section 35(c)(2)) or eli-
gible alternative TAA recipients (as de-
fined in section 35(c)(3)) with respect to 
any month beginning during the 1-year pe-
riod ending on the hiring date (as defined 
in section 51(d)) of such individual, 
‘‘(ii) such entity is certified by the 
Secretary of Commerce as eligible to apply 
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for adjustment assistance under chapter 3 
of title II of the Trade Act of 1974 with 
respect to any portion of the taxable year 
in which the investment or loan referred to 
in paragraph (1) is made, and 
‘‘(iii) the Secretary determines that 
such entity will utilize the assistance pro-
vided pursuant to this section in a manner 
consistent with the purposes of subsection 
(d)(2)(A). 
The requirement of clause (i) shall be treated 
as satisfied for any taxable year if such clause 
would be satisfied if all individuals hired by 
such entity during such taxable year and all 
preceding taxable years which are not before 
the taxable year in which the investment or 
loan referred to in paragraph (1) was made 
were taken into account. 
‘‘(4) REALLOCATIONS.—Subsection (f)(3) shall 
be applied separately with respect to the amount of 
the increase under paragraph (1).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made after December 
31, 2007. 
Æ 
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