In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

This Act may be cited as the ''Small Business Jobs Tax Credit Act
of 2004''.

SEC. 2. FINDINGS.

Congress finds the following:
(1) In many parts of the United States, segments of large
cities, smaller cities, and rural areas are experiencing
population loss and low job growth that hurt the surrounding
communities.
(2) In areas hurt by low job growth, people are forced to
leave the communities they have lived in their whole life to
secure a job.
(3) A small business tax credit to promote jobs in areas
suffering from low job growth and population loss would spur
economic growth and would provide incentives for businesses to
take advantage of an often underutilized, well-educated
workforce.
(4) By promoting economic growth, such a tax credit would
revitalize these areas that are less likely to receive other
Federal investments.

SEC. 3. EXPANSION OF WORK OPPORTUNITY TAX CREDIT.

(a) In General.--Section 51(d)(1) 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 inserting '', or'', and by adding at the
end the following:
''(I) a qualified small business employee.''.
(b) Qualified Small Business Employee.--Section 51(d) of the
Internal Revenue Code of 1986 is amended by redesignating paragraphs
(10) through (12) as paragraphs (11) through (13), respectively, and by
inserting after paragraph (9) the following:
''(10) Qualified small business employee.--
''(A) In general.--The term 'qualified small
business employee' means any individual--
''(i) hired by a qualified small business
located in a development zone, or
''(ii) hired by a qualified small business
and who is certified by the designated local
agency as residing in such a development zone.
''(B) Qualified small business.--The term
'qualified small business' has the meaning given the
term 'small employer' by section 4980D(d)(2).
''(C) Development zone.--For purposes of this
section--
''(i) In general.--The term 'development
zone' means any area--
''(I) which is nominated under the
procedures defined in sections
1400E(a)(1)(A) and 1400E(a)(4) for
renewal communities;
''(II) which the Secretary of
Housing and Urban Development
designates as a development zone, after
consultation with the Secretary of
Commerce;
''(III) which has a population of
not less than 5,000 and not more than
150,000;
''(IV) which has a poverty rate not
less than 20 percent (within the
meaning of section 1400E(c)(3)(C));
''(V) which has an average annual
rate of job growth of less than 2
percent during any 3 years of the
preceding 5-year period; and
''(VI) which, during the period
beginning January 1, 1990 and ending
with the date of the enactment of this
Act, has a net out-migration of
inhabitants, or other population loss,
from the area of at least 2 percent of
the population of the area during such
period.
''(ii) Number of designations.--The
Secretary of Housing and Urban Development may
not designate more than 100 development zones.
''(D) Special rules for determining amount of
credit.--For purposes of applying this subpart to wages
paid or incurred to any qualified small business
employee--
''(i) subsection (a) shall be applied by
substituting ''20 percent of the qualified
first, second, third, fourth, or fifth year
wages'' for ''40 percent of the qualified first
year wages'', and
''(ii) in lieu of paragraphs (2) and (3) of
subsection (b), the following definitions and
special rule shall apply:
''(I) Qualified first-year wages.--
The term 'qualified first-year wages'
means, with respect to any individual,
qualified wages attributable to service
rendered during the 1-year period
beginning with the day the individual
begins work for the employer.
''(II) Qualified second-year
wages.--The term 'qualified second-year
wages' means, with respect to any
individual, qualified wages
attributable to service rendered during
the 1-year period beginning on the day
after the last day of the 1-year period
with respect to such individual
determined under subclause (I).
''(III) Qualified third-year
wages.--The term 'qualified third-year
wages' means, with respect to any
individual, qualified wages
attributable to service rendered during
the 1-year period beginning on the day
after the last day of the 1-year period
with respect to such individual
determined under subclause (II).
''(IV) Qualified fourth-year
wages.--The term 'qualified fourth-year
wages' means, with respect to any
individual, qualified wages
attributable to service rendered during
the 1-year period beginning on the day
after the last day of the 1-year period
with respect to such individual
determined under subclause (III).
''(V) Qualified fifth-year wages.--
The term 'qualified fifth-year wages'
means, with respect to any individual,
qualified wages attributable to service
rendered during the 1-year period
beginning on the day after the last day
of the 1-year period with respect to
such individual determined under
subclause (IV).
''(VI) Only first $15,000 of wages
per year taken into account.--The
amount of the qualified first, second,
third, fourth, and fifth year wages
which may be taken into account with
respect to any individual shall not
exceed $15,000 per year.''.
(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.
Small Business Jobs Tax Credit Act of 2004 - Amends the Internal Revenue Code to include qualified small business employees as a targeted group eligible for the work opportunity tax credit. Defines "qualified small business employee" as an individual who resides in and is hired by a small business located in a development zone. Defines "development zone" as any area which has (1) a development zone designation and a nomination as a renewal community; (2) a population between 5,000 and 150,000; (3) a certain level of poverty; (4) an annual average rate of job growth of less than two percent over a specified period; and (5) a population loss of at least two percent since 1990. Sets forth special rules for determining the amount of the allowable credit based upon wages paid to employees in a development zone over a five-year period.