TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

    (a) Short Title.--This Act may be cited as the ``Individual 
Retirement Account Equity and Enhancement Act of 1994''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.

SEC. 2. HOMEMAKERS ELIGIBLE FOR FULL IRA DEDUCTION.

    (a) Spousal IRA Computed on Basis of Compensation of Both 
Spouses.--Subsection (c) of section 219 (relating to special rules for 
certain married individuals) is amended to read as follows:
    ``(c) Special Rules for Certain Married Individuals.--
            ``(1) In general.--In the case of an individual to whom 
        this paragraph applies for the taxable year, the limitation of 
        paragraph (1) of subsection (b) shall be equal to the lesser 
        of--
                    ``(A) $2,000, or
                    ``(B) the sum of--
                            ``(i) the compensation includible in such 
                        individual's gross income for the taxable year, 
                        plus
                            ``(ii) the compensation includible in the 
                        gross income of such individual's spouse for 
                        the taxable year reduced by the amount 
                        allowable as a deduction under subsection (a) 
                        to such spouse for such taxable year.
            ``(2) Individuals to whom paragraph (1) applies.--Paragraph 
        (1) shall apply to any individual if--
                    ``(A) such individual files a joint return for the 
                taxable year, and
                    ``(B) the amount of compensation (if any) 
                includible in such individual's gross income for the 
                taxable year is less than the compensation includible 
                in the gross income of such individual's spouse for the 
                taxable year.''
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 219(f) (relating to other 
        definitions and special rules) is amended by striking 
        ``subsections (b) and (c)'' and inserting ``subsection (b)''.
            (2) Section 408(d)(5) is amended by striking ``$2,250'' and 
        inserting ``$2,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1994.

SEC. 3. DISTRIBUTIONS FROM CERTAIN PLANS MAY BE USED WITHOUT PENALTY TO 
              PURCHASE FIRST HOMES, TO PAY HIGHER EDUCATION OR 
              QUALIFIED LONG-TERM CARE EXPENSES, OR BY THE LONG-TERM 
              UNEMPLOYED.

    (a) In General.--Paragraph (2) of section 72(t) (relating to 
exceptions to 10-percent additional tax on early distributions from 
qualified retirement plans) is amended by adding at the end the 
following new subparagraph:
            ``(D) Distributions from certain plans for first home 
        purchases or educational or long-term care expenses.--
        Distributions to an individual from an individual retirement 
        plan, or from amounts attributable to employer contributions 
        made pursuant to elective deferrals described in subparagraph 
        (A) or (C) of section 402(g)(3) or section 501(c)(18)(D)(iii)--
                    ``(i) which are qualified first-time homebuyer 
                distributions (as defined in paragraph (6)), or
                    ``(ii) to the extent such distributions do not 
                exceed the sum of the qualified higher education 
                expenses (as defined in paragraph (7)) and the 
                qualified long-term care expenses (as defined in 
                paragraph (8)) of the taxpayer for the taxable year.''
    (b) Definitions.--Section 72(t) is amended by adding at the end the 
following new paragraphs:
            ``(6) Qualified first-time homebuyer distributions.--For 
        purposes of paragraph (2)(D)(i)--
                    ``(A) In general.--The term `qualified first-time 
                homebuyer distribution' means any payment or 
                distribution received by an individual to the extent 
                such payment or distribution is used by the individual 
                before the close of the 60th day after the day on which 
                such payment or distribution is received to pay 
                qualified acquisition costs with respect to a principal 
                residence of a first-time homebuyer who is such 
                individual, the spouse of such individual, or the child 
                or grandchild of such individual or the individual's 
                spouse.
                    ``(B) Qualified acquisition costs.--For purposes of 
                this paragraph, the term `qualified acquisition costs' 
                means the costs of acquiring, constructing, or 
                reconstructing a residence. Such term includes any 
                usual or reasonable settlement, financing, or other 
                closing costs.
                    ``(C) First-time homebuyer; other definitions.--For 
                purposes of this paragraph--
                            ``(i) First-time homebuyer.--The term 
                        `first-time homebuyer' means any individual 
                        if--
                                    ``(I) such individual (and if 
                                married, such individual's spouse) had 
                                no present ownership interest in a 
                                principal residence during the 3-year 
                                period ending on the date of 
                                acquisition of the principal residence 
                                to which this paragraph applies, and
                                    ``(II) subsection (a)(6), (h), or 
                                (k) of section 1034 did not suspend the 
                                running of any period of time specified 
                                in section 1034 with respect to such 
                                individual on the day before the date 
                                the distribution is applied pursuant to 
                                subparagraph (A)(ii).
                            ``(ii) Principal residence.--The term 
                        `principal residence' has the same meaning as 
                        when used in section 1034.
                            ``(iii) Date of acquisition.--The term 
                        `date of acquisition' means the date--
                                    ``(I) on which a binding contract 
                                to acquire the principal residence to 
                                which subparagraph (A) applies is 
                                entered into, or
                                    ``(II) on which construction or 
                                reconstruction of such a principal 
                                residence is commenced.
                    ``(D) Special rule where delay in acquisition.--If 
                any distribution from any individual retirement plan 
                fails to meet the requirements of subparagraph (A) 
                solely by reason of a delay or cancellation of the 
                purchase or construction of the residence, the amount 
                of the distribution may be contributed to an individual 
                retirement plan as provided in section 408(d)(3)(A)(i) 
                (determined by substituting `120 days' for `60 days' in 
                such section), except that--
                            ``(i) section 408(d)(3)(B) shall not be 
                        applied to such contribution, and
                            ``(ii) such amount shall not be taken into 
                        account in determining whether section 
                        408(d)(3)(A)(i) applies to any other amount.
            ``(7) Qualified higher education expenses.--For purposes of 
        paragraph (2)(D)(ii)--
                    ``(A) In general.--The term `qualified higher 
                education expenses' means tuition, fees, books, 
                supplies, and equipment required for the enrollment or 
                attendance of--
                            ``(i) the taxpayer,
                            ``(ii) the taxpayer's spouse, or
                            ``(iii) the child (as defined in section 
                        151(c)(3)) or grandchild of the taxpayer or the 
                        taxpayer's spouse,
                at an eligible educational institution (as defined in 
                section 135(c)(3)).
                    ``(B) Coordination with savings bond provisions.--
                The amount of qualified higher education expenses for 
                any taxable year shall be reduced by any amount 
                excludable from gross income under section 135.
            ``(8) Qualified long-term care expenses.--For purposes of 
        paragraph (2)(D)(ii)--
                    ``(A) In general.--The term `qualified long-term 
                care expenses' means amounts paid or incurred for 
                qualified long-term care services, including amounts 
                for insurance covering such services.
                    ``(B) Qualified long-term care services.--For 
                purposes of subparagraph (A)--
                            ``(i) In general.--The term `qualified 
                        long-term care services' means necessary 
                        diagnostic, preventive, therapeutic, 
                        rehabilitative, and maintenance (including 
                        personal care) services--
                                    ``(I) which are required by an 
                                individual during any period during 
                                which such individual is a functionally 
                                impaired individual,
                                    ``(II) which have as their primary 
                                purpose the provision of needed 
                                assistance with 1 or more activities of 
                                daily living which a functionally 
                                impaired individual is certified as 
                                being unable to perform under clause 
                                (ii)(I), and
                                    ``(III) which are provided pursuant 
                                to a continuing plan of care prescribed 
                                by a licensed health care practitioner 
                                (other than a relative of such 
                                individual).
                            ``(ii) Functionally impaired individual.--
                                    ``(I) In general.--The term 
                                `functionally impaired individual' 
                                means any individual who is certified 
                                by a licensed health care practitioner 
                                (other than a relative of such 
                                individual) as being unable to perform, 
                                without substantial assistance from 
                                another individual (including 
                                assistance involving verbal reminding, 
                                physical cueing, or substantial 
                                supervision), at least 3 activities of 
                                daily living described in clause (iii).
                                    ``(II) Special rule for home health 
                                care services.--In the case of services 
                                which are provided during any period 
                                during which an individual is residing 
                                within the individual's home (whether 
                                or not the services are provided within 
                                the home), subclause (I) shall be 
                                applied by substituting `2' for `3'. 
                                For purposes of this subclause, a 
                                nursing home or similar facility shall 
                                not be treated as a home.
                            ``(iii) Activities of daily living.--Each 
                        of the following is an activity of daily 
                        living:
                                    ``(I) Eating.
                                    ``(II) Transferring.
                                    ``(III) Toileting.
                                    ``(IV) Dressing.
                                    ``(V) Bathing.
                    ``(C) Licensed health care practitioner.--For 
                purposes of subparagraph (B)--
                            ``(i) In general.--The term `licensed 
                        health care practitioner' means--
                                    ``(I) a physician or registered 
                                professional nurse,
                                    ``(II) a qualified community care 
                                case manager (as defined in clause 
                                (ii)), or
                                    ``(III) any other individual who 
                                meets such requirements as may be 
                                prescribed by the Secretary after 
                                consultation with the Secretary of 
                                Health and Human Services.
                            ``(ii) Qualified community care case 
                        manager.--The term `qualified community care 
                        case manager' means an individual or entity 
                        which--
                                    ``(I) has experience or has been 
                                trained in providing case management 
                                services and in preparing individual 
                                care plans;
                                    ``(II) has experience in assessing 
                                individuals to determine their 
                                functional and cognitive impairment;
                                    ``(III) is not a relative of the 
                                individual receiving case management 
                                services; and
                                    ``(IV) meets such requirements as 
                                may be prescribed by the Secretary 
                                after consultation with the Secretary 
                                of Health and Human Services.
                    ``(D) Relative.--For purposes of this paragraph, 
                the term `relative' means an individual bearing a 
                relationship to another individual which is described 
                in paragraphs (1) through (8) of section 152(a).''
    (c) Penalty-Free Distributions for Certain Unemployed 
Individuals.--Paragraph (2) of section 72(t) is amended by adding at 
the end the following new subparagraph:
                    ``(E) Distributions to unemployed individuals.--A 
                distribution from an individual retirement plan to an 
                individual after separation from employment, if--
                            ``(i) such individual has received 
                        unemployment compensation for 12 consecutive 
                        weeks under any Federal or State unemployment 
                        compensation law by reason of such separation, 
                        and
                            ``(ii) such distributions are made during 
                        any taxable year during which such unemployment 
                        compensation is paid or the succeeding taxable 
                        year.''
    (d) Conforming Amendments.--
            (1) Section 401(k)(2)(B)(i) is amended by striking ``or'' 
        at the end of subclause (III), by striking ``and'' at the end 
        of subclause (IV) and inserting ``or'', and by inserting after 
        subclause (IV) the following new subclause:
                                    ``(V) the date on which qualified 
                                first-time homebuyer distributions (as 
                                defined in section 72(t)(6)), or 
                                distributions for qualified higher 
                                education expenses (as defined in 
                                section 72(t)(7)), or for qualified 
                                long-term care expenses (as defined in 
                                section 72(t)(18)), are made, and''.
            (2) Section 403(b)(11) is amended by striking ``or'' at the 
        end of subparagraph (A), by striking the period at the end of 
        subparagraph (B) and inserting ``, or'', and by inserting after 
        subparagraph (B) the following new subparagraph:
                    ``(C) for qualified first-time homebuyer 
                distributions (as defined in section 72(t)(6)) or for 
                the payment of qualified higher education expenses (as 
                defined in section 72(t)(7)) or qualified long-term 
                care expenses (as defined in section 72(t)(8)).''
    (e) Effective Date.--The amendments made by this section shall 
apply to payments and distributions after the date of the enactment of 
this Act.

SOLUTION: Individual Retirement Account Equity and Enhancement Act of 1994 - Amends the Internal Revenue Code to allow certain spouses a deduction for contributions to an individual retirement account. 
Allows distribution from certain retirement plans without penalty to purchase first homes, pay higher education expenses and qualified long-term care expenses, and assist certain unemployed individuals.

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting American Jobs Act''.

SEC. 2. AMENDMENTS TO THE NATIONAL LABOR RELATIONS ACT.

    (a) Duties of the General Counsel and Administrative Law Judges.--
The National Labor Relations Act (29 U.S.C. 151 et seq.) is amended--
            (1) in section 3(d) (29 U.S.C. 153(d)), by striking 
        ``investigation of charges and issuance of complaints under 
        section 10, and in respect of the prosecution of such 
        complaints before the Board'' and inserting ``investigation of 
        allegations under section 10''; and
            (2) in section 4(a) (29 U.S.C. 154(a)), by striking the 
        fourth sentence.
    (b) Clarification of the Board's Rulemaking Authority.--Section 6 
of such Act (29 U.S.C. 156) is amended by adding at the end the 
following: ``Such rulemaking authority shall be limited to rules 
concerning the internal functions of the Board. The Board shall not 
promulgate rules or regulations that affect the substantive or 
procedural rights of any person, employer, employee, or labor 
organization, including rules and regulations concerning unfair labor 
practices and representation elections.''.
    (c) Investigatory Power and Adjudicatory Authority Over Unfair 
Labor Practice Allegations.--Section 10 of such Act (29 U.S.C. 160) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``prevent any person from engaging 
                in'' and inserting ``investigate''; and
                    (B) by striking ``This power shall'' and all that 
                follows through the end of the subsection;
            (2) in subsection (b)--
                    (A) by striking ``Whenever it is charged'' and 
                inserting ``Whenever it is alleged'';
                    (B) by striking ``or is engaging in'' and inserting 
                ``, is engaging in, or is about to engage in'';
                    (C) by striking ``the Board, or any agent'' and all 
                that follows through ``Provided, That no complaint 
                shall issue'' and inserting ``the aggrieved person may 
                bring a civil action for such relief (including an 
                injunction) as may be appropriate. Any such civil 
                action may be brought in the district court of the 
                United States where the violation occurred, or, at the 
                option of the parties, in the United States District 
                Court for the District of Columbia. No civil action may 
                be brought'';
                    (D) by striking ``charge with the Board'' and all 
                that follows through ``prevented from filing such 
                charge'' and inserting ``civil action, unless the 
                person aggrieved thereby was prevented from filing such 
                civil action''; and
                    (E) by striking ``Any such complaint may be 
                amended'' and all that follows through ``Any such 
                proceeding shall, so far as practicable,'' and 
                inserting ``Any proceeding under this subsection 
                shall'';
            (3) by striking subsections (c) through (k);
            (4) by redesignating subsections (l) and (m) as subsections 
        (c) and (d), respectively;
            (5) in subsection (c) (as so redesignated)--
                    (A) by striking ``Whenever it is charged'' and 
                inserting ``Whenever it is alleged'';
                    (B) in the first sentence, by striking ``charge'' 
                and inserting ``allegation''; and
                    (C) by striking ``such charge is true and that a 
                complaint should issue, he shall'' and all that follows 
                through the end of the subsection and inserting ``such 
                allegation is true, the officer or regional attorney 
                shall, on behalf of the Board, submit a written summary 
                of the findings to all parties involved in the alleged 
                unfair labor practice.''; and
            (6) in subsection (d) (as so redesignated)--
                    (A) by striking ``Whenever it is charged'' and 
                inserting ``Whenever it is alleged'';
                    (B) by striking ``such charge'' and inserting 
                ``such allegation''; and
                    (C) by striking ``and cases given priority under 
                subsection (i)''.
    (d) Conforming Amendments.--The National Labor Relations Act (29 
U.S.C. 151 et seq.) is amended--
            (1) in section 9 (29 U.S.C. 159)--
                    (A) in subsection (c)(2), by striking ``and in no 
                case shall the Board'' and all that follows through the 
                end of such subsection and inserting a period;
                    (B) by striking subsection (d); and
                    (C) by redesignating subsection (e) as subsection 
                (d);
            (2) in section 3(b) (29 U.S.C. 153(b)), by striking ``or 
        (e) of section 9'' and inserting ``or (d) of section 9'';
            (3) in section 8 (29 U.S.C. 158), by striking ``9(e)'' each 
        place it appears and inserting ``9(d)''; and
            (4) in section 18 (29 U.S.C. 168), by striking ``section 10 
        (e) or (f)'' and inserting ``subsection (e) or (f) of section 
        10, as such subsections were in effect on the day before the 
        date of enactment of the Protecting American Jobs Act,''.

SEC. 3. REGULATIONS.

    Not later than 6 months after the date of enactment of this Act, 
the National Labor Relations Board shall review all regulations 
promulgated before such date of enactment and revise or rescind any 
such regulations as necessary to implement the amendment made by 
section 2(b).

SOLUTION: Protecting American Jobs Act       This bill amends the National Labor Relations Act, with respect to the authority of the National Labor Relations Board, to:   repeal the authority of the General Counsel ofthe board, to issue, and prosecute before the board, complaints of unfair labor practices;  limit the board's rulemaking authority to rules concerning the internal functions of the board;  prohibit the board from promulgating regulations affecting the substantive or procedural rights of any person, employer, employee, or labor organization, including rules concerning unfair labor practices and representation elections;  repeal the board's authority to prevent persons from engaging in unfair labor practices, limiting such authority to the investigation of allegations of such practices; and  repeal the board's authority to petition courts for enforcement of its orders, seek injunctions, or hold hearings on jurisdictional strikes.  

PROBLEM: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Worksite Child Care Development 
Center Act of 1998''.

SEC. 2. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR CHILD CARE 
              ASSISTANCE.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.

    ``(a) In General.--For purposes of section 38, the employer-
provided child care credit determined under this section for the 
taxable year is an amount equal to the sum of--
            ``(1) 50 percent of the qualified child care facility 
        start-up expenses,
            ``(2) 50 percent of the qualified child care facility 
        expenses, and
            ``(3) 50 percent of the qualified child care expenses,
of the taxpayer during the taxable year.
    ``(b) Dollar Limitations.--
            ``(1) Qualified child care facility start-up expenses.--The 
        total amount of the credit determined under subsection (a)(1) 
        for all taxable years shall not exceed $100,000.
            ``(2) Qualified child care facility expenses.--The amount 
        of the credit determined under subsection (a)(2) for any 
        taxable year shall not exceed $25,000.
            ``(3) Qualified child care expenses.--The amount of the 
        credit determined under subsection (a)(3) for any taxable year 
        shall not exceed $50,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified child care expenses.--
                    ``(A) In general.--The term `qualified child care 
                expenses' means any amount paid or incurred to 
                reimburse an employee for expenses for child care which 
                enables the employee to be gainfully employed including 
                expenses related to--
                            ``(i) day care and before and after school 
                        care,
                            ``(ii) transportation associated with such 
                        care, and
                            ``(iii) before and after school and holiday 
                        programs including educational and recreational 
                        programs and camp programs.
                    ``(B) Fair market value.--The term `qualified child 
                care expenses' shall not include expenses in excess of 
                the fair market value of such care.
            ``(2) Qualified child care facility.--
                    ``(A) In general.--The term `qualified child care 
                facility' means a facility--
                            ``(i) the principal use of which is to 
                        provide child care assistance to dependents of 
                        employees, and
                            ``(ii) which meets the requirements of all 
                        applicable laws and regulations of the State or 
                        local government in which it is located, 
                        including, but not limited to, the licensing of 
                        the facility as a child care facility or back-
                        up child care facility providing daily care for 
                        dependents who are mildly ill or need temporary 
                        care for other reasons that disrupt the normal 
                        care arrangements of employees.
                Clause (i) shall not apply to a facility which is the 
                principal residence (within the meaning of section 
                1034) of the operator of the facility.
                    ``(B) Special rules with respect to a taxpayer.--A 
                facility shall not be treated as a qualified child care 
                facility with respect to a taxpayer unless--
                            ``(i) enrollment in the facility is open to 
                        employees of the taxpayer during the taxable 
                        year,
                            ``(ii) the facility is not the principal 
                        trade or business of the taxpayer, and
                            ``(iii) the use of such facility (or the 
                        eligibility to use such facility) does not 
                        discriminate in favor of employees of the 
                        taxpayer who are highly compensated employees 
                        (within the meaning of section 414(q)).
                    ``(C) Child care facilities sponsored by more than 
                one taxpayer.--A facility that is sponsored by more 
                than 1 taxpayer shall be treated as a qualified child 
                care facility if it meets the requirements of this 
                paragraph.
            ``(3) Qualified child care facility expenses.--The term 
        `qualified child care facility expenses' means any amount paid 
        or incurred--
                    ``(A) for the operating costs of a qualified child 
                care facility of the taxpayer,
                    ``(B) under a contract with a qualified child care 
                facility to provide child care services to employees of 
                the taxpayer, or
                    ``(C) under a contract to provide child care 
                resource and referral coordination services to 
                employees of the taxpayer.
            ``(4) Qualified child care facility start-up expenses.--The 
        term `qualified child care facility start-up expenses' means 
        any amount paid or incurred--
                    ``(A) to acquire, construct, rehabilitate, or 
                expand property--
                            ``(i) which is to be used as part of a 
                        qualified child care facility of the taxpayer,
                            ``(ii) with respect to which a deduction 
                        for depreciation (or amortization in lieu of 
                        depreciation) is allowable, and
                            ``(iii) which does not constitute part of 
                        the principal residence (within the meaning of 
                        section 1034) of the taxpayer or any employee 
                        of the taxpayer, or
                    ``(B) to acquire equipment and supplies necessary 
                for the operation of a qualified child care facility.
    ``(d) Child Care Facilities Sponsored by More Than One Taxpayer.--
In the case of a qualified child care facility that is sponsored by 
more than 1 taxpayer, the credit determined under paragraphs (1) and 
(2) of subsection (a) for each taxpayer for any taxable year may be 
apportioned among the taxpayers in any manner determined by the 
taxpayers.
    ``(e) Recapture of Acquisition and Construction Credit.--
            ``(1) In general.--If, as of the close of any taxable year, 
        there is a recapture event with respect to any qualified child 
        care facility of the taxpayer, then the tax of the taxpayer 
under this chapter for such taxable year shall be increased by an 
amount equal to the product of--
                    ``(A) the applicable recapture percentage, and
                    ``(B) the aggregate decrease in the credits allowed 
                under section 38 for all prior taxable years which 
                would have resulted if the qualified child care 
                facility expenses of the taxpayer described in 
                subsection (c)(4) with respect to such facility had 
                been zero.
            ``(2) Applicable recapture percentage.--
                    ``(A) In general.--For purposes of this subsection, 
                the applicable recapture percentage shall be determined 
                from the following table:

  
                                                         The applicable
  
                                                              recapture
            ``If the recapture event occurs in:
                                                         percentage is:
                Years 1-3............................          100     
                Year 4...............................           90     
                Year 5...............................           80     
                Year 6...............................           70     
                Year 7...............................           60     
                Year 8...............................           50     
                Year 9...............................           40     
                Year 10 and thereafter...............            0.    
                    ``(B) Years.--For purposes of subparagraph (A), 
                year 1 shall begin on the first day of the taxable year 
                in which the qualified child care facility is placed in 
                service by the taxpayer.
            ``(3) Recapture event defined.--For purposes of this 
        subsection, the term `recapture event' means--
                    ``(A) Cessation of operation.--The cessation of the 
                operation of the facility as a qualified child care 
                facility.
                    ``(B) Change in ownership.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the disposition of a taxpayer's 
                        interest in a qualified child care facility 
                        with respect to which the credit described in 
                        subsection (a) was allowable.
                            ``(ii) Agreement to assume recapture 
                        liability.--Clause (i) shall not apply if the 
                        person acquiring such interest in the facility 
                        agrees in writing to assume the recapture 
                        liability of the person disposing of such 
                        interest in effect immediately before such 
                        disposition. In the event of such an 
                        assumption, the person acquiring the interest 
                        in the facility shall be treated as the 
                        taxpayer for purposes of assessing any 
                        recapture liability (computed as if there had 
                        been no change in ownership).
            ``(4) Special rules.--
                    ``(A) Tax benefit rule.--The tax for the taxable 
                year shall be increased under paragraph (1) only with 
                respect to credits allowed by reason of this section 
                which were used to reduce tax liability. In the case of 
                credits not so used to reduce tax liability, the 
                carryforwards and carrybacks under section 39 shall be 
                appropriately adjusted.
                    ``(B) No credits against tax.--Any increase in tax 
                under this subsection shall not be treated as a tax 
                imposed by this chapter for purposes of determining the 
                amount of any credit under subpart A, B, or D of this 
                part.
                    ``(C) No recapture by reason of casualty loss.--The 
                increase in tax under this subsection shall not apply 
                to a cessation of operation of the facility as a 
                qualified child care facility by reason of a casualty 
                loss to the extent such loss is restored by 
                reconstruction or replacement within a reasonable 
                period established by the Secretary.
    ``(f) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons which are treated as 
        a single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(2) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(3) Allocation in the case of partnerships.--In the case 
        of partnerships, the credit shall be allocated among partners 
        under regulations prescribed by the Secretary.
    ``(g) No Double Benefit.--
            ``(1) Reduction in basis.--For purposes of this subtitle--
                    ``(A) In general.--If a credit is determined under 
                this section with respect to any property by reason of 
                expenditures described in subsection (c)(4), the basis 
                of such property shall be reduced by the amount of the 
                credit so determined.
                    ``(B) Certain dispositions.--If during any taxable 
                year there is a recapture amount determined with 
                respect to any property the basis of which was reduced 
                under subparagraph (A), the basis of such property 
                (immediately before the event resulting in such 
                recapture) shall be increased by an amount equal to 
                such recapture amount. For purposes of the preceding 
                sentence, the term `recapture amount' means any 
                increase in tax (or adjustment in carrybacks or 
                carryovers) determined under subsection (e).
            ``(2) Other deductions and credits.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
    ``(h) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2008.''
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking out ``plus'' at the end of 
                paragraph (11),
                    (B) by striking out the period at the end of 
                paragraph (12), and inserting a comma and ``plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the employer-provided child care credit determined 
        under section 45D.''
            (2) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 is amended by adding at the end the 
        following new item:

                              ``Sec. 45D. Employer-provided child care 
                                        credit.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.

SOLUTION:
Worksite Child Care Development Center Act of 1998 - Amends the Internal Revenue Code to provide a limited tax credit for employers who provide child care assistance for dependents of their employees. Terminates such credit for taxable years beginning after December 31, 2008.