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(3) The table of subparts for such part IV is
amended by striking ‘‘targeted jobs credit’’ and in-
serting ‘‘work opportunity credit’’.
(g) BUSINESS AWARENESS PROGRAM.—The Sec-
retary of Labor shall implement a program to encourage
small businesses to use the services of local agencies to
identify individuals who qualify to be certified as members
of targeted groups (as defined in section 51 of the Internal
Revenue Code of 1986, as amended by this section). Such
Secretary, and the heads of other Federal agencies, shall
make every effort to encourage small businesses to benefit
from the credit allowable under such section by simplifying
procedures to the extent possible.
(h) TECHNICAL AMENDMENTS.—
(1) Paragraph (1) of section 51(c) is amended
by striking ‘‘, subsection (d)(8)(D),’’.
(2) Paragraph (3) of section 51(i) is amended
by striking ‘‘(d)(12)’’ each place it appears and in-
serting ‘‘(d)(6)’’.
(i) EFFECTIVE DATE.—The amendments made by
this section shall apply to individuals who begin work for
the employer after December 31, 1995.
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SEC. 13102. EMPLOYER-PROVIDED EDUCATIONAL ASSIST-
ANCE PROGRAMS.
(a) EXTENSION.—Subsection (d) of section 127 (re-
lating to educational assistance programs) is amended by
striking ‘‘December 31, 1994’’ and inserting ‘‘December
31, 1997’’.
(b) LIMITATION TO EDUCATION BELOW GRADUATE
LEVEL.—The last sentence of section 127(c)(1) is amend-
ed by inserting before the period ‘‘or at the graduate
level’’.
(c) EFFECTIVE DATES.—
(1) EXTENSION.—The amendment made by
subsection (a) shall apply to taxable years beginning
after December 31, 1994.
(2) LIMITATION.—The amendment made by
subsection (b) shall apply to taxable years beginning
after December 31, 1995.
SEC. 13103. RESEARCH CREDIT.
(a) IN GENERAL.—Subsection (h) of section 41 (re-
lating to credit for research activities) is amended—
(1) by striking ‘‘June 30, 1995’’ each place it
appears and inserting ‘‘December 31, 1997’’, and
(2) by striking ‘‘July 1, 1995’’ each place it ap-
pears and inserting ‘‘January 1, 1998’’.
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(b) BASE AMOUNT FOR START-UP COMPANIES.—
Clause (i) of section 41(c)(3)(B) (relating to start-up com-
panies) is amended to read as follows:
‘‘(i) TAXPAYERS TO WHICH SUBPARA-
GRAPH APPLIES.—The fixed-base percent-
age shall be determined under this sub-
paragraph if—
‘‘(I) the first taxable year in
which a taxpayer had both gross re-
ceipts and qualified research expenses
begins after December 31, 1983, or
‘‘(II) there are fewer than 3 tax-
able years beginning after December
31, 1983, and before January 1,
1989, in which the taxpayer had both
gross receipts and qualified research
expenses.’’
(c) ELECTION
OF
ALTERNATIVE
INCREMENTAL
CREDIT.—Subsection (c) of section 41 is amended by re-
designating paragraphs (4) and (5) as paragraphs (5) and
(6), respectively, and by inserting after paragraph (3) the
following new paragraph:
‘‘(4) ELECTION
OF
ALTERNATIVE
INCREMEN-
TAL CREDIT.—
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‘‘(A) IN GENERAL.—At the election of the
taxpayer, the credit determined under sub-
section (a)(1) shall be equal to the sum of—
‘‘(i) 1.65 percent of so much of the
qualified research expenses for the taxable
year as exceeds 1 percent of the average
described in subsection (c)(1)(B) but does
not exceed 1.5 percent of such average,
‘‘(ii) 2.2 percent of so much of such
expenses as exceeds 1.5 percent of such av-
erage but does not exceed 2 percent of
such average, and
‘‘(iii) 2.75 percent of so much of such
expenses as exceeds 2 percent of such aver-
age.
‘‘(B) ELECTION.—An election under this
paragraph may be made only for the first tax-
able year of the taxpayer beginning after June
30, 1995. Such an election shall apply to the
taxable year for which made and all succeeding
taxable years unless revoked with the consent of
the Secretary.’’
(d) INCREASED CREDIT FOR CONTRACT RESEARCH
EXPENSES WITH RESPECT TO CERTAIN RESEARCH CON-