,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #ddgc  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #aj1 #bjad ,mr4
 ,fo/] 7= himself1 ,ms4 ,tsongas1 ,mr4  
,ow5s1 ,mr4 ,eny>t1 & ,mr4 ,crd5as7     
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to all[ small employ]s a  
cr$it aga9/ income tax = ! co/ (        
on-!-job tra9+ exp5ses1 to make ! rese>*
 cr$it p]man5t1 & to increase !         
simplifi$ rese>* cr$it4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,small       
,bus9ess ,gr[? 9 ,manufactur+ ,act (    
#bjad4  #b4 ,cr$it = on-!-job tra9+  7a7
 ,9 g5]al ,subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #de,s4  
,on-!-job tra9+ cr$it  7a7 ,9 g5]al ,= !
 purposes ( section #ch1 9 ! case ( a   
small bus9ess employ]1 ! job tra9+ cr$it
 det]m9$ "u ?is section = ! taxable ye> 
is an am\nt equal to #ej p]c5t ( !      

qualifi$ tra9+ exp5ses paid or incurr$  
by ! taxpay] dur+ ! taxable ye>4  7b7   
,limitations  7#a7 ,9 g5]al ,! cr$it    
all[$ "u subsection 7a7 ) respect to any
 eligible tra9ee %all n exce$ ! excess  
7if any7 ( #e1jjj ov] ! aggregate cr$it 
all[$ to su* taxpay] "u ?is section )   
respect to su* eligible tra9ee = all    
prior taxable ye>s4  7#b7 #c-ye>        
limitation on exp5ses p] tra9ee         
,qualifi$ tra9+ exp5ses may be tak5 into
 acc\nt "u ?is section ) respect to any 
eligible tra9ee only dur+ ! #c-ye> p]iod
 beg9n+ on ! date t su* exp5ses 7 fir/  
incurr$ by ! taxpay] ) respect to su*   
tra9ee4  7c7 ,small bus9ess employ] ,=  
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m small bus9ess employ] means any  
employ] if su* employ] employ$ an av]age
 ( #ejj or few] employees on bus9ess    
days dur+ ! mo/ rec5t cal5d> ye> end+   
be=e ! beg9n+ ( ! taxable ye>4 ,=       
purposes ( ! prec$+ s5t5ce1 a prec$+    
cal5d> ye> may be tak5 into acc\nt only 
if ! employ] 0 9 exi/5ce ?r\gh\t su*    

ye>4  7#b7 ,employ]s n 9 exi/5ce 9      
prec$+ ye> ,9 ! case ( an employ] :i* 0 
n 9 exi/5ce ?r\gh\t ! cal5d> ye> o!rwise
 tak5 into acc\nt "u p>agraph 7#a71 !   
det]m9ation "u p>agraph 7#a7 %all be    
bas$ on ! av]age numb] ( employees t x  
is reasonably expect$ su* employ] w     
employ on bus9ess days 9 ! curr5t cal5d>
 ye>4  7d7 ,def9itions ,= purposes ( ?is
 section--  7#a7 ,qualifi$ tra9+ exp5ses
 ,! t]m qualifi$ tra9+ exp5ses means    
am\nts paid or incurr$ to an unrelat$   
p>ty =--  7,a7 ! pur*ase or use (       
in/ructional mat]ials & equipm5t us$    
exclusively = ! tra9+ ( eligible        
tra9ees1  7,b7 ! use ( classroom or o!r 
space s us$1 &  7,c7 tea*]s1 tra9]s1 &  
consultants engag$ 9 c>ry+ out su* tra9+
 program4  7#b7 ,eligible tra9ee ,! t]m 
eligible tra9ee means any employee ( !  
taxpay] :o p]=ms s]vices = ! employ] =  
at lea/ #cj h\rs p] week :ile receiv+ ! 
tra9+ = :i* ! qualifi$ tra9+ exp5ses are
 incurr$4  7e7 ,special rules  7#a7     
,d5ial ( d\ble b5efit ,no d$uction %all 

be all[$ = t portion ( ! qualifi$ tra9+ 
exp5ses 7o!rwise all[able z a d$uction =
 ! taxable ye>7 :i* is equal to ! am\nt 
( ! cr$it det]m9$ = su* taxable ye> "u  
?is section4  7#b7 ,aggregation ,=      
purposes ( ?is section1 all p]sons      
treat$ z a s+le employ] "u subsection   
7a7 or 7b7 or section #eb1 or subsection
 7m7 or 7o7 ( section #dad1 %all be     
treat$ z "o p]son4  7f7 ,election ,to h 
cr$it n apply ,a taxpay] may elect 7at  
su* "t & 9 su* mann] z ! ,secret>y may  
by regulations prescribe7 to h ?is      
section n apply = any taxable ye>4  4   
7b7 ,cr$it ,to be "p ( g5]al bus9ess    
cr$it ,subsection 7b7 ( section #ch ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ plus at ! end ( p>agraph 7#ce71
 by /rik+ ! p]iod at ! end ( p>agraph   
7#cf7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#cg7 9 !   
case ( a small bus9ess employ] 7z def9$ 
9 section #de,s7c771 ! job tra9+ cr$it  
det]m9$ "u section #de,s7a74  4  7c7    
,cr$it all[$ aga9/ alt]native m9imum tax

 ,section #ch7;c77#d77;,b7 ( su* ,code  
is am5d$ by r$esignat+ clauses 7vii71   
7viii71 & 7ix7 z clauses 7viii71 7ix71 &
 7x71 respectively1 & by ins]t+ aft]    
clause 7vi7 ! foll[+ new clause3  7vii7 
! cr$it det]m9$ "u section #de,s1  4    
7d7 ,te*nical am5dm5t ,section #feja7m7 
( su* ,code is am5d$ by ins]t+ #de,s7e71
 aft] #de;,h7g714  7e7 ,cl]ical am5dm5t 
,! table ( sections = subp>t ,d ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #de,s4 ,on-!-job tra9+
 cr$it4  4  7f7 ,effective dates  7#a7  
,9 g5]al ,! am5dm5ts made by ?is section
 %all apply to exp5ses paid or incurr$  
aft] ! date ( ! enactm5t ( ?is ,act1 9  
taxable ye>s end+ aft] su* date4  7#b7  
,m9imum tax ,! am5dm5t made by          
subsection 7c7 %all apply to cr$its     
det]m9$ "u section #de,s ( ! ,int]nal   
,rev5ue ,code ( #aihf 9 taxable ye>s    
end+ aft] ! date ( ! enactm5t ( ?is     
,act1 & to c>rybacks ( su* cr$its4  #c4 
,rese>* cr$it made p]man5t2 increase 9  

alt]native simplifi$ rese>* cr$it  7a7  
,rese>* cr$it made p]man5t  7#a7 ,9     
g5]al ,section #da ( ! ,int]nal ,rev5ue 
,code ( #aihf is am5d$ by /rik+         
subsection 7h74  7#b7 ,con=m+ am5dm5ts  
7,a7 ,subsection 7c7 ( section #da ( su*
 ,code is am5d$ by /rik+ p>agraph 7#d74 
7,b7 ,p>agraph 7#a7 ( section #de;,c7b7 
( su* ,code is am5d$ by /rik+           
subp>agraph 7,d74  7#c7 ,effective date 
,! am5dm5ts made by ?is subsection %all 
apply to am\nts paid or incurr$ aft]    
,decemb] #ca1 #bjac4  7b7 ,increase 9   
alt]native simplifi$ rese>* cr$it  7#a7 
,9 g5]al ,subp>agraph 7,a7 ( section    
#da7;c77#e7 ( su* ,code 7relat+ to      
election ( alt]native simplifi$ cr$it7  
is am5d$ by /rik+ #ad p]c5t 7#ab p]c5t 9
 ! case ( taxable ye>s end+ be=e ,janu>y
 #a1 #bjji7 & ins]t+ #bj p]c5t4  7#b7   
,effective date ,! am5dm5t made by ?is  
subsection %all apply to taxable ye>s   
end+ aft] ! date ( ! enactm5t ( ?is     
,act4