I 
109TH CONGRESS 
2D SESSION 
H. R. 6208 
To amend the Trade Act of 1974 to make certain modifications to the 
trade adjustment assistance program. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 27, 2006 
Mr. ENGLISH of Pennsylvania introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Trade Act of 1974 to make certain 
modifications to the trade adjustment assistance program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Competitive-
ness and Adjustment Act’’. 
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TITLE —TRADE ADJUSTMENT 
ASSISTANCE 
SEC. 101. CALCULATION OF SEPARATION TOLLED DURING 
LITIGATION. 
Section 233 of the Trade Act of 1974 (19 U.S.C. 
2293) is amended by adding at the end the following: 
‘‘(h) SPECIAL RULE
FOR CALCULATING SEPARA-
TION.—Notwithstanding any other provision of this chap-
ter, any period during which a judicial or administrative 
appeal is pending with respect to the denial by the Sec-
retary of a petition under section 223 shall not be counted 
for purposes of calculating the period of separation under 
subsection (a)(2), and an adversely affected worker that 
would otherwise be entitled to a trade readjustment allow-
ance shall not be denied such allowance because of such 
appeal.’’. 
SEC. 102. REVISION OF ELIGIBILITY CRITERIA. 
(a) DOWNSTREAM WORKERS.—Section 222(c)(3) of 
the Trade Act of 1974 (19 (U.S.C. 2272(c)(3)) is amend-
ed by striking ‘‘, if the certification of eligibility’’ and all 
that follows through the end and inserting a period. 
(b) SHIFTS IN PRODUCTION.—Section 222(a)(2)(B) 
of the Trade Act of 1974 (19 (U.S.C. 2272(a)(2)(B)) is 
amended to read as follows: 
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‘‘(B) there has been a shift in production by 
such workers’ firm or subdivision to a foreign coun-
try of articles like or directly competitive with arti-
cles which are produced by such firm or subdivi-
sion.’’. 
SEC. 103. HEALTH CARE TAX CREDIT. 
(a) REMOVAL OF TRAINING REQUIREMENT.—Section 
35(c)(2) of the Internal Revenue Act of 1986 (26 U.S.C. 
35(c)(2)) is amended by striking ‘‘subsection (a)(3)(B)’’ 
and inserting ‘‘subsections (a)(3)(B) and (a)(5)’’. 
(b) PRESUMPTIVE ELIGIBILITY
FOR PETITIONERS 
FOR TRADE ADJUSTMENT ASSISTANCE.— 
(1) IN GENERAL.—Section 35(c) of the Internal 
Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(5) PRESUMPTIVE STATUS AS A TAA RECIPI-
ENT.—The term ‘eligible individual’ shall include 
any individual who is covered by a petition filed with 
the Secretary of Labor under section 221 of the 
Trade Act of 1974. This paragraph shall apply to 
any individual only with respect to months which— 
‘‘(A) end after the date that such petition 
is so filed, and 
‘‘(B) begin before the earlier of— 
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‘‘(i) the 90th day after the date of fil-
ing of such petition, or 
‘‘(ii) the date on which the Secretary 
of Labor makes a final determination with 
respect to such petition.’’. 
(2) CONFORMING AMENDMENTS.— 
(A) Paragraph (1) of section 7527(d) of 
such Code is amended by striking ‘‘or an eligi-
ble alternative TAA recipient (as defined in sec-
tion 35(c)(3))’’ and inserting ‘‘, an eligible al-
ternative TAA recipient (as defined in section 
35(c)(3)), or an individual who is an eligible in-
dividual by reason of section 35(c)(5)’’. 
(B) Section 173(f)(4) of the Workforce In-
vestment Act of 1998 (29 U.S.C. 2918(f)(4)) is 
amended— 
(i) in subparagraph (B), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (C), by striking 
the period and inserting ‘‘, and’’ ; and 
(iii) by inserting after subparagraph 
(C), the following new subparagraph: 
‘‘(D) an individual who is an eligible indi-
vidual by reason of section 35(c)(5) of the In-
ternal Revenue Code of 1986.’’. 
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(c) CLARIFICATION OF 3-MONTH CREDITABLE COV-
ERAGE REQUIREMENT.— 
(1) 
IN
GENERAL.—Clause 
(i) 
of 
section 
35(e)(2)(B) of the Internal Revenue Code of 1986 is 
amended by inserting ‘‘(prior to the employment 
separation necessary to attain the status of an eligi-
ble individual)’’ after ‘‘9801(c)’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
173(f)(2)(B)(ii)(I) of the Workforce Investment Act 
of 1998 (29 U.S.C. 2918(f)(2)(B)(ii)(I)) is amended 
by inserting ‘‘(prior to the employment separation 
necessary to attain the status of an eligible indi-
vidual)’’ after ‘‘1986’’. 
(d) INCREASE IN TAX CREDIT.—Section 35(a) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘65 percent’’ and inserting ‘‘75 percent’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to months beginning after the date 
of the enactment of this Act in taxable years ending after 
that date. 
SEC. 104. ALTERNATIVE TRADE ADJUSTMENT ASSISTANCE. 
(a) ELIGIBILITY OF ALL WORKERS; LOWER AGE RE-
QUIREMENT.—Section 246(a)(3) of the Trade Act of 1974 
(19 U.S.C. 2318(a)(3)) is amended to read as follows: 
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