TECHNICAL AND CONFORMING AMENDMENTS.

SEC. 13302. TECHNICAL AND CONFORMING AMENDMENTS. (a) Empowerment Zone Employment Credit Part of General Business Credit.— (1) Subsection (b) of section 38 (relating to current year business credit) is amended by striking “plus” at the end of paragraph (7), by striking the period at the end of paragraph (8) and inserting “, and”, and by adding at the end the following new paragraph: “(9) the empowerment zone employment credit determined under section 1396(a).” (2) Subsection (d) of section 39 is amended by adding at the end the following new paragraph: “(4) Empowerment zone employment credit.— No portion of the unused business credit which is attributable to the credit determined under section 1396 (relating to empowerment zone employment credit) may be carried to any taxable year ending before January 1, 1994. (b) Denial of Deduction for Portion of Wages Equal to Empowerment Zone Employment Credit.— (1) Subsection (a) of section 280C (relating to rule for targeted jobs credit) is amended— (A) by striking “the amount of the credit determined for the taxable year under section 51(a)” and inserting “the sum of the credits determined for the taxable year under sections 51(a) and 1396(a)”, and (B) by striking “Targeted Jobs Credit” in the subsection heading and inserting “Employment Credits”. (2) Subsection (c) of section 196 (relating to deduction for certain unused business credits) is amended by striking “and” at the end of paragraph (4), by striking the period at the end of paragraph (5) and inserting “, and”, and by adding at the end the following new paragraph: “(6) the empowerment zone employment credit determined under section 1396(a).” (c) Empowerment Zone Employment Credit May Offset 25 Percent of Minimum Tax.— (1) In general.— Section 38(c) (relating to limitation based on amount of tax) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph: 107 STAT. 556 “(2) Empowerment zone employment credit may offset 26 percent of minimum tax.— “(A) In general.— In the case of the empowerment zone employment credit credit— “(i) this section and section 39 shall be applied separately with respect to such credit, and “(ii) for purposes of applying paragraph (1) to such credit— “(I) 75 percent of the tentative minimum tax shall be substituted for the tentative minimum tax under subparagraph (A) thereof, and “(II) the limitation under paragraph (1) (as modified by subclause (I)) shall be reduced by the credit allowed under subsection (a) for the taxable year (other than the empowerment zone employment credit). “(B) Empowerment zone employment credit.— For purposes of this paragraph, the term ‘empowerment zone employment credit’ means the portion of the credit under subsection (a) which is attributable to the credit determined under section 1396 (relating to empowerment zone employment credit).” (d) Amendment of Targeted Jobs Credit.— Subparagraph (A) of section 51(i)(1) is amended by inserting “, or, if the taxpayer is an entity other than a corporation, to any individual who owns, directly or indirectly, more than 50 percent of the capital and profits interests in the entity,” after “of the corporation”. (e) Carryovers.— Subsection (c) of section 381 (relating to carryovers in certain corporate acquisitions) is amended by adding at the end the following new paragraph: “(26) Enterprise zone provisions.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and subchapter U, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of subchapter U in respect of the distributor or transferor corporation.”