,,ii  #aae? ,,congress  #b;d ,session   
,s4 #bfdh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #aa1 #bjah ,mr4 
,nelson introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to enc\rage       
employ]s to hire individuals work+ 9 dy+
 indu/ries or occupations made obsolete 
by te*nology1 & = o!r purposes4  #a4    
,%ort title  ,?is ,act may be cit$ z !  
,economic ,mod]nization ,act4  #b4      
,economic ,transition ,cr$it  7a7 ,9    
g5]al ,subp>t ,d ( "p ,,iv ( sub*apt] ,a
 ( *apt] #a ( ! ,int]nal ,rev5ue ,code (
 #aihf1 z am5d$ by section #acdjc7;a7 ( 
,public ,law #aae-ig1 is am5d$ by add+  
at ! end ! foll[+ new section3  #de,t4  
,economic ,transition ,cr$it  7a7 ,9    
g5]al ,= purposes ( section #ch1 ! am\nt
 ( ! economic transition cr$it det]m9$  
"u ?is section = ! taxable ye> %all be  
equal to ! sum ( any applicable payroll 
taxes paid by an employ] dur+ ! taxable 
ye> ) respect to employm5t ( any        

qualifi$ employee4  7b7 ,def9itions ,=  
purposes ( ?is section3 7#a7 ,applicable
 payroll taxes  7,a7 ,9 g5]al ,! t]m    
applicable payroll taxes means1 )       
respect to any employ] = any taxable    
ye>1 ! am\nt ( ! taxes impos$ by--  7i7 
section #caaa on wages paid by an       
employ] ) respect to employm5t (        
qualifi$ employee dur+ ! applicable     
p]iod1 &  7ii7 section #cbba7;a7 on     
comp5sation paid by an employ] ) respect
 to s]vices r5d]$ by a qualifi$ employee
 dur+ ! applicable p]iod4  7,b7         
,applicable p]iod ,= purposes (         
subp>agraph 7,a71 ! t]m applicable p]iod
 means ! #c-ye> p]iod beg9n+ ) ! day !  
qualifi$ employee beg9s "w = ! employ]4 
7#b7 ,decl9+ field  7,a7 ,9 g5]al ,! t]m
 decl9+ field means any occupation or   
field ( "w :i* has be5 det]m9$ by !     
,secret>y1 9 consultation ) ! ,bureau ( 
,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor1
 to h exp]i5c$ a decl9e 9 ! level (     
av]age employm5t 9 su* occupation or    
field 9 ! ,unit$ ,/ates ( n less ?an #h 

p]c5t ov] ! mo/ rec5t #c-ye> p]iod = :i*
 su* in=mation is available4  7,b7      
,det]m9ation & publication ,! ,secret>y1
 9 consultation ) ! ,bureau ( ,labor    
,/ati/ics ( ! ,dep>tm5t ( ,labor1 %all  
annually--  7i7 det]m9e :i* occupations 
or fields ( "w satisfy ! requirem5ts    
describ$ 9 subp>agraph 7,a71 &  7ii7    
publi% & make available on ! website ( !
 ,dep>tm5t ( ! ,treasury a complete li/ 
( su* occupations & fields ( "w4  7#c7  
,qualifi$ employee  7,a7 ,9 g5]al ,! t]m
 qualifi$ employee means an individual  
:o-- 7i7 is provid$ wages = employm5t by
 ! employ] 7z su* t]ms are def9$ 9      
section #caba71 provid$ t su* employm5t 
is n 9 a decl9+ field1  7ii7 is n a     
cov]$ employee 7z def9$ 9 section       
#afb7m77#c771 &  7iii7 0 employ$ 9 a    
decl9+ field = any p]iod dur+ ! #ab-mon?
 p]iod prec$+ ! applicable p]iod "u     
p>agraph 7#a77;,b74  7,b7 ,nonqualify+  
rehires ,! t]m qualify+ employee %all n 
include any individual :o1 prior to !   
beg9n+ ( ! applicable p]iod "u p>agraph 

7#a77;,b71 _h be5 employ$ by ! employ]  
at any "t4  4  7b7 ,cr$it "p ( g5]al    
bus9ess cr$it ,section #ch7;b7 ( !      
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by section #acdjc7;b7 ( ,public ,law    
#aae-ig1 is am5d$ by /rik+ plus at ! end
 ( p>agraph 7#cf71 by /rik+ ! p]iod at !
 end ( p>agraph 7#cg7 & ins]t+ 1 plus1 &
 by add+ at ! end ! foll[+ new p>agraph3
  7#ch7 ! economic transition cr$it     
det]m9$ "u section #de,t7a74  4  7c7    
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #de,t4 ,economic      
,transition ,cr$it4  4  7d7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4  #c4     
,enhancem5ts to c]ta9 education tax     
b5efits = pr(essionals 9 %ort supply    
7a7 ,9 g5]al  7#a7 ,publication ,= ea*  
cal5d> ye> beg9n+ aft] ! date ( !       
enactm5t ( ?is ,act1 ! ,secret>y ( !    

,treasury1 9 consultation ) ! ,secret>y 
( ,labor1 %all publi% & make available  
on ! website ( ! ,dep>tm5t ( ! ,treasury
 a li/ ( any occupation or field ( "w   
:i* qualifies z a %ort supply field =   
su* cal5d> ye>4  7#b7 ,%ort supply field
 ,! t]m %ort supply field means an      
occupation or field ( "w :i* ! ,secret>y
 ( ! ,treasury1 9 consultation ) !      
,secret>y ( ,labor1 has det]m9$--  7,a7 
requires-- 7i7 !oretical & practical    
application ( a body ( highly specializ$
 k2 &  7ii7 7,i7 atta9m5t ( a ba*elor's 
or high] degree 9 ! specific specialty  
7or its equival5t72 or  7,,ii7 exp]i5ce 
9 ! specialty equival5t to ! completion 
( su* degree2 &  7,b7 has an insuffici5t
 numb] ( individuals :o are citiz5s or  
resid5ts ( ! ,unit$ ,/ates & are        
qualifi$1 will+1 & able to satisfy !    
dem& = labor 9 su* occupation or field (
 "w4  7b7 ,enhancem5ts to c]ta9         
education tax b5efits  7#a7 ,9 g5]al    
7,a7 ,educational assi/ance programs    
,p>agraph 7#b7 ( section #abg7;a7 ( !   

,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 7or1 9 ! case ( an individual 
employ$ 9 an occupation or field ( "w   
:i* has be5 designat$ z a %ort supply   
field = su* cal5d> ye> pursuant to      
section #c7;a7 ( ! ,economic            
,mod]nization ,act1 ! fir/ #ae1jjj ( su*
 assi/ance s furni%$7 be=e ! p]iod at ! 
end4  7,b7 ,int]e/ on education loans   
,p>agraph 7#a7 ( section #bba7;b7 ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ 7or1 9 ! case ( a individual  
employ$ 9 an occupation or field ( "w   
:i* has be5 designat$1 pursuant to      
section #c7;a7 ( ! ,economic            
,mod]nization ,act1 z a %ort supply     
field = ! cal5d> ye> 9 :i* su* taxable  
ye> began1 %all n exce$ #h1jjj7 be=e !  
p]iod at ! end4  7,c7 ,qualifi$ tuition 
& relat$ exp5ses ,p>agraph 7#a7 (       
section #bbb7;b7 ( ! ,int]nal ,rev5ue   
,code ( #aihf is am5d$ by ins]t+ 7or1 9 
! case ( an individual employ$ 9 an     
occupation or field ( "w :i* has be5    
designat$1 pursuant to section #c7;a7 ( 

! ,economic ,mod]nization ,act1 z a %ort
 supply field = ! cal5d> ye> 9 :i* su*  
taxable ye> began1 an am\nt equal to !  
applicable doll> limit multipli$ by #b7 
be=e ! p]iod at ! end4  7#b7 ,exclusion 
= c]ta9 employ] paym5ts ( /ud5t loans   
7,a7 ,9 g5]al ,p>agraph 7#a7 ( section  
#abg7;c7 ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by /rik+ & at ! end (    
subp>agraph 7,a71 by r$esignat+         
subp>agraph 7,b7 z subp>agraph 7,c71 &  
by ins]t+ aft] subp>agraph 7,a7 ! foll[+
 new subp>agraph3  7,b7 9 ! case ( an   
employee employ$ 9 an occupation or     
field ( "w :i* has be5 designat$ z a    
%ort supply field = a cal5d> ye>        
pursuant to section #c7;a7 ( ! ,economic
 ,mod]nization ,act1 ! paym5t by an     
employ] dur+ su* cal5d> ye>1 :e!r paid  
to ! employee or to a l5d]1 ( pr9cipal  
or int]e/ on any qualifi$ education loan
 7z def9$ 9 section #bba7;d77#a77       
incurr$ by ! employee1 &  4  7,b7       
,con=m+ am5dm5t2 d5ial ( d\ble b5efit   
,p>agraph 7#a7 ( section #bba7;e7 ( !   

,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ be=e ! p]iod ! foll[+3 1 or = 
:i* an exclusion is all[able "u section 
#abg to ! taxpay]'s employ] by reason ( 
! paym5t by su* employ] ( any           
indebt$ness on a qualifi$ education loan
 ( ! taxpay]4  7#c7 ,effective date ,!  
am5dm5ts made by ?is subsection %all    
apply to taxable ye>s beg9n+ aft] ! date
 ( ! enactm5t ( ?is ,act4  #d4 ,d$uction
 ( qualifi$ ent]prise income  7a7 ,9    
g5]al ,"p ,,vi ( sub*apt] ,b ( *apt] #a 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by ins]t+ aft] section #aha !     
foll[+ new section3  #ahb4 ,qualifi$    
ent]prise income  7a7 ,9 g5]al ,9 ! case
 ( a qualifi$ taxpay]1 !re %all be all[$
 z a d$uction an am\nt equal to any     
qualifi$ ent]prise income ( su* taxpay]4
  7b7 ,limitation ,! am\nt ( ! d$uction 
all[$ "u subsection 7a7 = any taxable   
ye> %all n exce$ an am\nt equal to #ej  
p]c5t ( ! ,w-#b wages paid by ! qualifi$
 taxpay] dur+ su* taxable ye>4  7c7     
,def9itions ,9 ?is section3 7#a7        

,qualifi$ ent]prise income  7,a7 ,9     
g5]al ,! t]m qualifi$ ent]prise income  
means ! am\nt equal to ! excess 7if any7
 (--  7i7 ! gross receipts ( ! qualifi$ 
taxpay] = ! taxable ye> :i* are prop]ly 
allocable to a qualifi$ facility1 ov]   
7ii7 an am\nt equal to ! sum (-- 7,i7 ! 
co/ ( goods sold :i* are allocable to   
su* receipts1 &  7,,ii7 any o!r exp5ses1
 losses or d$uctions 7) ! exception ( ! 
d$uction all[$ "u ?is section7 :i* are  
allocable to su* receipts4  7,b7        
,limitation ,! t]m qualifi$ ent]prise   
income %all apply only to gross receipts
 describ$ 9 subp>agraph 7,a7 = !        
#c-taxable-ye> p]iod beg9n+ aft] !      
qualifi$ facility is plac$ 9 s]vice4    
7,c7 ,me?od ( allocation ,! ,secret>y   
%all prescribe regulations = ensur+     
prop] allocation ( am\nts "u subp>agraph
 7,a74  7#b7 ,qualifi$ facility  7,a7 ,9
 g5]al ,! t]m qualifi$ facility means   
any nonresid5tial build+ 7& its         
/ructural compon5ts7 :i*-- 7i7 prior to 
#bjjj1 0 plac$ 9 s]vice & us$ 9 ! active

 conduct ( a trade or bus9ess by a p]son
 o!r ?an ! qualifi$ taxpay]1  7ii7 aft] 
be+ acquir$ by ! qualifi$ taxpay]1 has  
be5 sub/antially rehabilitat$1  7iii7   
dur+ ! #b-ye> p]iod prior to comm5cem5t 
( rehabilitation by ! qualifi$ taxpay]1 
0 n us$ 9 ! active conduct ( a trade or 
bus9ess1 &  7iv7 is locat$ )9 a ,/ate4  
7,b7 ,sub/antial rehabilitation ,=      
purposes ( ?is p>agraph1 a build+ %all  
be deem$ to h be5 sub/antially          
rehabilitat$ only if--  7i7 n less ?an  
#ej p]c5t ( ! exi/+ ext]nal walls ( su* 
build+ are reta9$ 9 place z ext]nal     
walls1  7ii7 n less ?an #ge p]c5t ( !   
exi/+ int]nal /ructural framework ( su* 
build+ is reta9$ 9 place1 &  7iii7 !    
am\nt prop]ly *>geable to ! capital     
acc\nt = any addition to or improvem5t (
 ! build+ is 9 excess ( an am\nt equal  
to ! great] (--  7,i7 ! adju/$ basis (  
su* build+ 7& its /ructural compon5ts71 
or  7,,ii7 #bj1jjj4  7#c7 ,qualifi$     
taxpay] ,! t]m qualifi$ taxpay] means ! 
p]son t owns ! qualifi$ facility &      

directly incurs n less ?an #ej p]c5t ( !
 exp5ses = sub/antially rehabilitat+ su*
 facility 7"u rules simil> to ! rules   
applicable to self-rehabilitat$ build+s 
"u section #dg7;d77#d774  7#d7 ,/ate ,! 
t]m ,/ate means any ,/ate ( ! ,unit$    
,/ates or ! ,di/rict ( ,columbia or any 
,t]ritory or possession ( ! ,unit$      
,/ates4  7#e7 ,w-#b ,wages  7,a7 ,9     
g5]al ,! t]m ,w-#b wages means1 )       
respect to any p]son = any taxable ye> (
 su* p]son1 ! am\nts describ$ 9         
p>agraphs 7#c7 & 7#h7 ( section         
#fjea7;a7 paid by su* p]son ) respect to
 employm5t ( employees by su* p]son dur+
 ! cal5d> ye> end+ dur+ su* taxable ye>4
  7,b7 ,limitation to wages attributable
 to qualifi$ ent]prise income ,su* t]m  
%all n include any am\nt :i* is n       
prop]ly allocable to qualifi$ ent]prise 
income = purposes ( subsection 7c77#a74 
7,c7 ,return requirem5t ,su* t]m %all n 
include any am\nt :i* is n prop]ly      
includ$ 9 a return fil$ ) ! ,social     
,security ,adm9i/ration on or be=e !    

#fj? day aft] ! due date 7includ+       
ext5sions7 = su* return4  4  7b7        
,cl]ical am5dm5t ,! table ( sections =  
"p ,,vi ( sub*apt] ,b ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new item3     
,sec4 #ahb4 ,qualifi$ ,ent]prise        
,income4  4  7c7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4