‘‘(d) CREDIT FOR CORPORATE CONTRIBUTIONS TO
SPECIALIZED TRAINING CENTERS.—No deduction shall
be allowed for that portion of the designated qualified con-
tributions (as defined in section 1400I(b)) made during
the taxable year which is equal to the credit determined
for the taxable year under section 1400I(a). Paragraph
(3) of subsection (b) shall apply for purposes of this sub-
section.’’
(2) CREDIT TO BE PART OF GENERAL BUSI-
NESS CREDIT.—
(A) Section 38(b) of such Code is
amended—
(i) by striking ‘‘plus’’ at the end of
paragraph (11),
(ii) by striking the period at the end
of paragraph (12) and inserting ‘‘, plus’’,
and
(iii) by adding at the end the fol-
lowing new paragraph:
‘‘(13) in the case of a corporation, the special-
ized training center credit determined under section
1400I(a).’’
(B) Subsection (d) of section 39 of such
Code (relating to carryback and carryforward of
unused credits) is amended by adding at the
end the following new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 1400I CREDIT
BEFORE JANUARY 1, 2000.—No portion of the un-
used business credit for any taxable year which is
attributable to the credit determined under section
1400I may be carried back to a taxable year begin-
ning before January 1, 2000.’’.
(d) OTHER CONFORMING AMENDMENTS.—
(1) Subchapter U of chapter 1 of such Code is
amended by striking part IV, by redesignating part
V as part IV, and by redesignating section 1397F
as section 1397E.
(2) The table of subchapters for chapter 1 of
such Code is amended by adding at the end the fol-
lowing new item:
‘‘Subchapter X. Public school modernization provisions.’’
(3) The table of parts of subchapter U of chap-
ter 1 of such Code is amended by striking the last
2 items and inserting the following item:
‘‘Part IV. Regulations.’’
(e) EFFECTIVE DATES.—
(1) IN
GENERAL.—Except as otherwise pro-
vided in this subsection, the amendments made by
this section shall apply to obligations issued after
December 31, 1999.
(2) CREDIT FOR CORPORATE CONTRIBUTIONS
TO
SPECIALIZED
TRAINING
CENTERS.—Section
1400I of the Internal Revenue Code of 1986 (as
added by this section) shall apply to taxable years
beginning after December 31, 1999.
(3) REPEAL OF RESTRICTION ON ZONE ACAD-
EMY
BOND
HOLDERS.—In the case of bonds to
which section 1397E of the Internal Revenue Code
of 1986 (as in effect before the date of the enact-
ment of this Act) applies, the limitation of such sec-
tion to eligible taxpayers (as defined in subsection
(d)(6) of such section) shall not apply after the date
of the enactment of this Act.
SEC. 3. APPLICATION OF CERTAIN LABOR STANDARDS ON
CONSTRUCTION 
PROJECTS 
FINANCED
UNDER PUBLIC SCHOOL MODERNIZATION
PROGRAM.
Section 439 of the General Education Provisions Act
(relating to labor standards) is amended—
(1) by inserting ‘‘(a)’’ before ‘‘All laborers and
mechanics’’, and
(2) by adding at the end the following:
‘‘(b)(1) For purposes of this section, the term ‘appli-
cable program’ also includes the qualified zone academy
bond provisions enacted by section 226 of the Taxpayer
Relief Act of 1997 and the program established by section
2 of the Public School Modernization Act of 1999.
‘‘(2) A State or local government participating in a
program described in paragraph (1) shall—
‘‘(A) in the awarding of contracts, give priority
to contractors with substantial numbers of employ-
ees residing in the local education area to be served
by the school being constructed; and
‘‘(B) include in the construction contract for
such school a requirement that the contractor give
priority in hiring new workers to individuals residing
in such local education area.
‘‘(3) In the case of a program described in paragraph
(1), nothing in this subsection or subsection (a) shall be
construed to deny any tax credit allowed under such pro-
gram. If amounts are required to be withheld from con-
tractors to pay wages to which workers are entitled, such
amounts shall be treated as expended for construction pur-
poses in determining whether the requirements of such
program are met.’’.
SEC. 4. EMPLOYMENT AND TRAINING ACTIVITIES RELAT-
ING TO CONSTRUCTION OR RECONSTRUC-
TION OF PUBLIC SCHOOL FACILITIES.
(a) IN GENERAL.—Section 134 of the Workforce In-
vestment Act of 1998 (29 U.S.C. 2864) is amended by
adding at the end the following:
‘‘(f) LOCAL EMPLOYMENT AND TRAINING ACTIVI-
TIES RELATING TO CONSTRUCTION OR RECONSTRUCTION
OF PUBLIC SCHOOL FACILITIES.—
‘‘(1) IN GENERAL.—In order to provide training
services related to construction or reconstruction of
public school facilities receiving funding assistance
under an applicable program, each State shall estab-
lish a specialized program of training meeting the
following requirements:
‘‘(A) The specialized program provides
training for jobs in the construction industry.
‘‘(B) The program is designed to provide
trained workers for projects for the construction
or reconstruction of public school facilities re-
ceiving funding assistance under an applicable
program.
‘‘(C) The program is designed to ensure
that skilled workers (residing in the area to be
served by the school facilities) will be available
for the construction or reconstruction work.
‘‘(2) COORDINATION.—The specialized program
established under paragraph (1) shall be integrated
with other activities under this Act, with the activi-
ties carried out under the National Apprenticeship
Act of 1937 by the State Apprenticeship Council or
through the Bureau of Apprenticeship and Training
in the Department of Labor, as appropriate, and
with activities carried out under the Carl D. Perkins
Vocational and Technical Education Act of 1998.
Nothing in this subsection shall be construed to re-
quire services duplicative of those referred to in the
preceding sentence.
‘‘(3) APPLICABLE
PROGRAM.—In this sub-
section, the term ‘applicable program’ has the mean-
ing given the term in section 439(b) of the General
Education Provisions Act (relating to labor stand-
ards).’’.
(b) STATE PLAN.—Section 112(b)(17)(A) of the
Workforce 
Investment 
Act 
of 
1998 
(29 
U.S.C.
2822(b)(17)(A)) is amended—
(1) in clause (iii), by striking ‘‘and’’ at the end;
(2) by redesignating clause (iv) as clause (v);
and
(3) by inserting after clause (iii) the following: