EXTENSION AND MODIFICATION OF TARGETED JOBS CREDIT.

SEC. 4010, EXTENSION AND MODIFICATION OF TARGETED JOBS CREDIT. (a) 2-Year Extension.— Paragraph (4) of section 51(c) of the 1986 Code (relating to termination) is amended by striking out “December 31, 1988” and inserting in lieu thereof “December 31, 1989”. (b) Extension of Authorization.— Paragraph (2) of section 261(f) of the Economic Recovery Tax Act of 1981 is amended by striking out “and 1988” and inserting in lieu thereof “1988, and 1989”. (c) Economically Disadvantaged Youth Status Restricted to Individuals Under Age 23.— (1) In general.— Subparagraph (B) of section 51(d)(3) of the 1986 Code is amended by striking out “age 25” and inserting in lieu thereof “age 23”. (2) Effective date.— The amendment made by paragraph (1) shall apply to individuals who begin work for the employer after December 31, 1988. (d) Reduction in Percentage of Credit for Summer Youth Employees.— (1) In general.— Subparagraph (B) of section 51(d)(12) of the 1986 Code is amended by striking out clause (i) and by redesignating clauses (ii) and (iii) as clauses (i) and (ii). (2) Effective date.— The amendment made by paragraph (1) shall apply to individuals who begin work for the employer after December 31, 1988.