MISCELLANEOUS DISABILITY RELATED TAX PROVISIONS APPLICABLE TO BUSINESSES (1) Section 51, Title 26, Internal Revenue Code (as of date of enactment of A.D.A.) Targeted Jobs Tax Credit. (2) Section 190, Title 26, Internal Revenue Code (as of date of enactment of A.D.A.) Expenditures to remove architectural and transportation barriers to the handicapped and elderly. (3) Section 11611 of the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508. Credit for cost of providing access for disabled individuals. * Subsequent amendments made by the Omnibus Budget Reconciliation Act of 1990, Public Law 101-508, were not collated for this publication. (911) TARGETED JOBS CREDIT PRIOR LAW cont'd. § 51 1510 [150B8.40] WIN credit. IRC §50B and 50A, repealed by the '84 Tax Re form Act, governed the WIN credit. See 508A.40 for unit explanation. CODE AMOUNT OF CREDIT. (a) Determination of Amount.-For purposes of section 38, the amount of the targeted jobs credit determined under this section for the taxable year shall be equal to 40 percent of the qualified first-year wages for such year. (b) Qualified Wages Defined.-For purposes of this subpart— (1) In general.-The term "qualified wages" means the wages paid or incurred by the employer during the taxable year to individuals who are members of a targeted group. (2) 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. (3) Only first $6,000 of wages per year taken into account.-The amount of the qualified first-year wages which may be taken into account with respect to any individual shall not exceed $6,000 per year. (c) Wages Defined.-For purposes of this subpart— (1) In general.-Except as otherwise provided in this subsection, subsection (d)(8)(D), and subsection (h)(2), the term “wages" has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dolla. limitation contained in such section). (2) On-the-job training and work supplementation payments. (A) Exclusion for employers receiving on-the-job training payments.-The term "wages" shall not include any amounts paid or incurred by an employer for any period to any individual for whom the employer receives federally funded payments for on-the-job training of such individual for such period. (B) Reduction for work supplementation payments to employers.-The amount of wages which would (but for this subparagraph) be qualified wages under this section for an employer with respect to an individual for a taxable year shall be reduced by an amount equal to the amount of the payments made to such employer (however utilized by such employer) with respect to such individual for such taxable year under a program established under section 414 of the Social Security Act. (3) Payments for services during labor disputes.-If (A) the principal place of employment of an individual with the employer is at a plant or facility, and (B) there is a strike or lockout involving employees at such plant or facility, the term "wages" shall not include any amount paid or incurred by the employer to such individual for services which are the same as, or substantially similar to, those services performed by employees participating in, or affected by, the strike or lockout during the period of such strike or lockout. * (4) Termination.-The term "wages" shall not include any amount paid or incurred to an individual who begins work for the employer after 'September 30, 1990. [Footnote IRC $51] • Future amendment (IRC §202(c)(6), '88 Family Support Act. P.L. 100-485. 10-13-88). IRC §51(cX2XB) is amended by striking out "section 414" and inserting in lieu thereof "section 482(e)”. Effective date (Sec. 204(a), '88 Family Support Act)-Takes effect on 10-1-90. Matter in italics in IRC §51(c)(4) added by section 7103(a), '89 OBRA, which struck out: PH. Inc.-Federal Taxes 2nd-See also Recent Developments 1-8-90 (913) 1447 CODE cont'd. IRC § 51(d) (d) Members of Targeted Groups.-For purposes of this subpar! (1) In general.-An individual is a member of a targeted group if such individual is (2) Vocational rehabilitation referral.-The term "vocational rehabilitation referral" means any individual who is certified by the designated local agency as (A) having a physical or mental disability which, for such individual, constitutes or results in a substantial handicap to employment, and (B) having been referred to the employer upon completion of (or while receiving) rehabilitative services pursuant to (i) an individualized written rehabilitation plan under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973, or (ii) a program of vocational rehabilitation carried out under chapter 31 of title 38, United States Code. (3) Economically disadvantaged youth.— (A) In general.-The term "economically disadvantaged youth" means any individual who is certified by the designated local agency as (i) meeting the age requirements of subparagraph (B), and (ii) being a member of an economically disadvantaged family (as determined under paragraph (11)). (B) Age requirements.-An individual meets the age requirements of this subparagraph if such individual has attained age 18 but not age 23 on the hiring date. (4) Vietnam veteran who is a member of an economically disadvantaged family.— The term "Vietnam veteran who is a member of an economically disadvantaged family" means any individual who is certified by the designated local agency as (A)(i) having served on active duty (other than active duty for training) in the Armed Forces of the United States for a period of more than 180 days, any part of which occurred after August 4, 1964, and before May 8, 1975, or (ii) having been discharged or released from active duty in the Armed Forces of the United States for a service-connected disability if any part of such active duty was performed after August 4, 1964, and before May 8, 1975, (B) not having any day during the preemployment period which was a day of extended active duty in the Armed Forces of the United States, and (C) being a member of an economically disadvantaged family (determined under paragraph (11)). For purposes of subparagraph (B), the term "extended active duty" means a period of more than 90 days during which the individual was on active duty (other than active duty for training). (5) SSI recipients.-The term "SSI recipient" means any individual who is certified by the designated local agency as receiving supplemental security income benefits TARGETED JOBS CREDIT CODE cont'd. IRC § 51(d)(5) § 5 951 under title XVI of the Social Security Act (including supplemental security incom benefits of the type described in section 1616 of such Act or section 212 of Publ: Law 93-66) for any month ending in the preemployment period. (6) General assistance receipts. (A) In general.-The term "general assistance recipient" means any individu: who is certified by the designated local agency as receiving assistance under a qua! ified general assistance program for any period of not less than 30 days endin with the pre-employment period. (B) Qualified general assistance program.-The term "qualified general assist ance program" means any program of a State or a political subdivision of State (i) which provides general assistance or similar assistance which— (II) consists of money payments or voucher or scrip, and (ii) which is designated by the Secretary (after consultation with the Secre tary of Health and Human Services) as meeting the requirements of clause (i). (7) Economically disadvantaged ex-convict.-The term "economically disadvan taged ex-convict" means any individual who is certified by the designated local agen cy (A) as having been convicted of a felony under any statute of the United State: or any State, (B) as being a member of an economically disadvantaged family (as determinec under paragraph (11)), and (C) as having a hiring date which is not more than 5 years after the last date on which such individual was so convicted or was released from prison. (8) Youth participating in a qualified cooperative education progran— (A) In general.-The term "youth participating in a qualified cooperative education program" means any individual who is certified by the school participating in the program as (i) having attained age 16 and not having attained age 20. (ii) not having graduated from a high school or vocational school, (iii) being enrolled in and actively pursuing a qualified cooperative education program, and (iv) being a member of an economically disadvantaged family (as determined under paragraph (11)). (B) Qualified cooperative education program defined.-The term "qualified cooperative education program" means a program of vocational education for individuals who (through written cooperative arrangements between a qualified school and 1 or more employers) receive instruction (including required academic instruction) by alternation of study and school with a job in any occupational field (but only if these 2 experiences are planned by the school and employer so that each contributes to the student's education and employability). (C) Qualified school defined.-The term "qualified school" means (i) a specialized high school used exclusively or principally for the provision of vocational education to individuals who are available for study in preparation for entering the labor market, (ii) the department of a high school exclusively or principally used for providing vocational education to persons who are available for study in preparation for entering the labor market, or (iii) a technical or vocational school used exclusively or principally for the provision of vocational education to persons who have completed or left high school and who are available for study in preparation for entering the labor market. CPH. Inc.-Federal Taxes 2nd-See also Recent Developments 1-8-90 1449 |