(1) Section 55(c)(1) is amended by inserting 
‘‘or subsection (i) or (j) of section 42A’’ after ‘‘sec-
tion 42’’. 
(2) Subsections (i)(c)(3), (i)(c)(6)(B)(i), and 
(k)(1) of section 469 are each amended by inserting 
‘‘or 42A’’ after ‘‘section 42’’. 
(3) Section 772(a) is amended by striking 
‘‘and’’ at the end of paragraph (10), by redesig-
nating paragraph (11) as paragraph (12), and by in-
serting after paragraph (10) the following: 
‘‘(11) the rural investment credit determined 
under section 42A, and’’. 
(4) Section 774(b)(4) is amended by inserting 
‘‘, 42A(i),’’ after ‘‘section 42(j)’’. 
(e) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
is amended by inserting after the item relating to section 
42 the following:
‘‘Sec. 42A. Rural investment credit.’’.
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenditures made in taxable 
years beginning after the date of the enactment of this 
Act.
TITLE II—EMPLOYER TAX CRED-
IT FOR HIRING RURAL EM-
PLOYEES 
§ 201. Employer tax credit to apply to new employees 
who are residents of rural areas 
(a) IN GENERAL.—Paragraph (1) of section 51(d) of 
the Internal Revenue Code of 1986 (relating to members 
of targeted groups) is amended by striking ‘‘or’’ at the 
end of subparagraph (G), by striking the period at the 
end of subparagraph (H), and by adding at the end the 
following new subparagraph: 
‘‘(I) a qualified rural employee.’’. 
(b) QUALIFIED RURAL EMPLOYEE.—Subsection (d) 
of section 51 of such Code is amended by redesignating 
paragraphs (10), (11), and (12) as paragraphs (11), (12), 
and (13), respectively, and by inserting after paragraph 
(9) the following new paragraph: 
‘‘(10) QUALIFIED
RURAL
EMPLOYEE.—The 
term ‘qualified rural employee’ means, with respect 
to any period, any employee of an employer if—
‘‘(A) substantially all of the services per-
formed during such period by such employee for 
such employer are performed within an area de-
termined by the Secretary of Agriculture to be 
a rural area, and
‘‘(B) the principal place of abode of such 
employee while performing such services is 
within such area.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to individuals who begin work for 
the employer after the date of the enactment of this Act. 
TITLE III—GRANTS FOR JOB 
TRAINING IN RURAL AREAS 
§ 301. Grants for job training in rural areas 
(a) AUTHORIZATION.—
(1) IN GENERAL.—The Secretary of Labor, in 
consultation with the Secretary of Commerce, shall 
award grants to eligible entities described in para-
graph (2) to assist such entities to improve the job 
skills necessary for employment in specific indus-
tries. 
(2) ELIGIBLE ENTITIES.—
(A) IN
GENERAL.—For the purposes of 
this section, eligible entities shall include busi-
nesses, job training centers, and educational in-
stitutions that offer career training to residents 
of rural areas. 
(B) RURAL AREA DEFINED.—For purposes 
of this section, the term ‘‘rural area’’ means an
area that has a population density of less than 
500 people per square mile. 
(3) PRIORITY
FOR
SMALL
BUSINESSES.—In 
providing grants under paragraph (1), the Secretary 
of Labor shall give priority to small-business con-
cerns (as defined in section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a))). 
(4) 
MAXIMUM
AMOUNT
OF
GRANT.—The 
amount of a grant awarded to an eligible entity 
under paragraph (1) may not exceed $250,000 for 
any fiscal year. 
(b) USE OF AMOUNTS.—
(1) IN GENERAL.—The Secretary of Labor may 
not award a grant under subsection (a) to an eligible 
entity unless such entity agrees to use amounts re-
ceived from such grant to improve the job skills nec-
essary for employment in the rural area in which 
such entity is located. 
(2) CONDUCT OF PROGRAM.—
(A) IN
GENERAL.—In carrying out the 
program described in paragraph (1), the eligible 
entity may provide for—
(i) an assessment of training and job 
skill needs for the industry;
(ii) the development of a sequence of 
skill standards that are benchmarked to 
advanced industry practices; 
(iii) the development of curriculum 
and training methods, including, where ap-
propriate, e-learning or technology-based 
training; 
(iv) the purchase, lease, or receipt of 
donations of training equipment; 
(v) the identification of training pro-
viders and the development of partnerships 
between the industry and educational insti-
tutions, including community colleges; 
(vi) the development of apprenticeship 
programs; 
(vii) the development of training pro-
grams for workers, including dislocated 
workers; 
(viii) the development of training 
plans for businesses; and 
(ix) the development of the member-
ship of the entity. 
(B) ADDITIONAL REQUIREMENT.—In car-
rying out the program described in paragraph 
(1), the eligible entity shall provide for the de-
velopment and tracking of performance outcome 
measures for the program and the training pro-
viders involved in the program. 
(3) ADMINISTRATIVE COSTS.—The eligible enti-
ty may use not more than 10 percent of the amount 
of a grant to pay for administrative costs associated 
with the program described in paragraph (1). 
(c) REQUIREMENT OF MATCHING FUNDS.—
(1) IN GENERAL.—The Secretary of Labor may 
not award a grant under subsection (a) to an eligible 
entity unless such entity agrees that the entity will 
make available non-Federal contributions toward the 
costs of carrying out activities under the grant in an 
amount that is not less than $1 for each $5 of Fed-
eral funds provided under the grant. 
(2) OTHER CONTRIBUTIONS.—
(A) EQUIPMENT.—Equipment donations to 
facilities that are not owned or operated by the 
eligible entity involved may be included in de-
termining compliance with paragraph (1). 
(B) LIMITATION.—An eligible entity may 
not include in-kind contributions in complying 
with the requirement of paragraph (1). The 
Secretary of Labor may consider such dona-
tions in ranking applications.