WORK OPPORTUNITY TAX CREDIT.

SEC. 603. WORK OPPORTUNITY TAX CREDIT. (a) Extension.—Subparagraph (B) of section 51(c)(4) (relating to termination) is amended by striking “September 30, 1997” and inserting “June 30, 1998”. (b) Modification of Eligibility Requirement Based on Period on Welfare.— (1) In general.—Subparagraph (A) of section 51(d)(2) (defining qualified IV–A recipient) is amended by striking all that follows “a IV–A program” and inserting “for any 9 months during the 18-month period ending on the hiring date.”. (2) Conforming amendment.—Subparagraph (A) of section 51(d)(3) is amended to read as follows: “(A) In general.—The term ‘qualified veteran’ means any veteran who is certified by the designated local agency as being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date.”. (c) Qualified SSI Recipients Treated as Members of Targeted Groups.— (1) In general.—Section 51(d)(1) (relating to members of targeted groups) is amended by striking “or” at the end of subparagraph (F), by striking the period at the end of subparagraph (G) and inserting “, or”, and by adding at the end the following new subparagraph: “(H) a qualified SSI recipient.”. (2) Qualified ssi recipients.—Section 51(d) is amended by redesignating paragraphs (9), (10), and (11) as paragraphs (10), (11), and (12), respectively, and by inserting after paragraph (8) the following new paragraph: “(9) Qualified ssi recipient.—The term ‘qualified SSI recipient’ means any individual who is certified by the designated local agency as receiving supplemental security income benefits under title XVI of the Social Security Act (including supplemental security income benefits of the type described in section 1616 of such Act or section 212 of Public Law 9366) for any month ending within the 60-day period ending on the hiring date.”. (d) Percentage of Wages Allowed as Credit.— (1) In general.—Subsection (a) of section 51 (relating to determination of amount) is amended by striking “35 percent” and inserting “40 percent”.111 STAT. 863 (2) Application of credit for individuals performing fewer than 400 hours of services.—Paragraph (3) of section 51(i) is amended to read as follows: “(3) Individuals not meeting minimum employment periods.— “(A) Reduction of credit for individuals performing fewer than 400 hours of service.—In the case of an individual who has performed at least 120 hours, but less than 400 hours, of service for the employer, subsection (a) shall be applied by substituting ‘25 percent’ for ‘40 percent’. “(B) Denial of credit for individuals performing fewer than 120 hours of service.—No wages shall be taken into account under subsection (a) with respect to any individual unless such individual has performed at least 120 hours of service for the employer.”. (e) Effective Date.—The amendments made by this section shall apply to individuals who begin work for the employer after September 30, 1997.