40

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2

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III of chapter 53 of such title relating to classification

and General Schedule pay rates, and

"(2) to procure temporary and intermittent services to the same extent as is authorized by section 3109

of title 5, United States Code, but at rates not to exceed $100 a day for individuals.

"(d) The Comptroller General is authorized to enter 8 into contracts with Federal or State agencies, private firms,

9 institutions, and individuals for the conduct of research or

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surveys, the preparation of reports, and other activities neces11 sary to the discharge of his duties under this title.

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13

"AUTHORIZATION

"SEC. 604. There are hereby authorized to be appropri

14 ated such sums as may be necessary to carry out the pro15 visions of this title."

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TECHNICAL AMENDMENTS

SEC. 104. (a) Section 302 of the Manpower Develop

18 ment and Training Act of 1962 is amended by inserting a 19 comma and "other than titles IV, V, and VI," inmediately 20 after "this Act".

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(b) Section 308 of such Act is amended by inserting 22 "other than titles IV, V, and VI,” immediately after “this 23 Act,".

90TH CONGRESS 2D SESSION

S. 3249

IN THE SENATE OF THE UNITED STATES

MARCH 28 (legislative day, MARCH 27), 1968

Referred to the Committee on Labor and Public Welfare and ordered to be

printed

AMENDMENT

Intended to be proposed by Mr. JAVITS (for himself, Mr. ALLOTT, Mr. BROOKE, Mr. CASE, Mr. COOPER, Mr. HANSEN, Mr. HATFIELD, Mr. KUCHEL, Mr. MORTON, Mr. PEARSON, Mr. PERCY, Mr. PROUTY, and Mr. SCOTT) to S. 3249, a bill to provide a comprehensive national manpower policy, to improve the Manpower Development and Training Act of 1962, to authorize a community service employment program, and for other purposes, viz: Insert at the end thereof the following new title:

TITLE II-PRIVATE INDUSTRY EMPLOYMENT

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4 SEC. 201. This title may be cited as the "Employment.

5 Incentive Act of 1968".

Amdt. No. 679

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2

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DECLARATION OF PURPOSE

SEC. 202. It is the purpose of this title to provide an

3 incentive to American business to invest in the improvement

4 of the Nation's human resources by hiring, training, and

5 employing presently unemployed and underemployed work6 ers lacking needed job skills.

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ALLOWANCE OF TAX CREDIT

SEC. 203. (a) Subpart A of part IV of subchapter A

of chapter 1 of the Internal Revenue Code of 1954 (relating

10 to credits allowable) is amended by renumbering section 40

11 as section 41, and by inserting after section 39 the following new section:

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13 "SEC. 40. WAGES OF DISADVANTAGED EMPLOYEES.

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"(a) GENERAL RULE.-There shall be allowed, as a 15 credit against the tax imposed by this chapter, the amount 16 determined under subpart C of this part.

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"(b) REGULATIONS.-The Secretary or his delegate 18 shall prescribe such regulations as may be necessary to carry

19 out the purposes of this section and subpart C."

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(b) Part IV of subchapter A of chapter 1 of the In

21 ternal Revenue Code of 1954 (relating to credits against

tax) is amended by adding at the end thereof the following

23 new subpart:

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1 "Subpart C-Rules for Computing Credit for Wages of

"(a) DETERMINATION OF AMOUNT.—

"(1) GENERAL RULE.-The amount of the credit

allowed by section 40 for the taxable year shall be equal to the sum of—

"(A) 75 percent of the qualified wages paid to, or with respect to, each disadvantaged employee for services performed during the first six months of employment of each such employee,

"(B) 50 percent of the qualified wages paid to, or with respect to, each disadvantaged employee for services performed during the second six months of employment of each such employee, and

"(C) 25 percent of the qualified wages paid to, or with respect to, each disadvantaged employee for services performed during the second year of employment of each such employee.

"(2) LIMITATION BASED ON AMOUNT OF TAX.— Notwithstanding paragraph (1), the credit allowed by section 40 for the taxable year shall not exceed

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"(A) so much of the liability for the taxable year as does not exceed $25,000, plus

"(B) 50 percent of so much of the liability for tax for the taxable year as exceeds $25,000.

"(3) LIABILITY FOR TAX.-For purposes of paragraph (2), the liability for tax for the taxable year shall be the tax imposed by this chapter for such year, re

duced by the sum of the credits allowable under

"(A) section 33 (relating to foreign tax credit),

"(B) section 35 relating to partially tax exempt interest),

and

"(C) section 37 (relating to retirement income,

"(D) section 38 (relating to investment in certain depreciable property).

For purposes of this paragraph, any tax imposed for the taxable year by section 531 (relating to accumulated earnings tax) or by section 541 (relating to personal holding company tax) shall not be considered tax im

posed by this chapter for such year.

"(4) MARRIED INDIVIDUALS.-In the case of a husband or wife who files a separate return, the amount

specified under subparagraphs (A) and (B) of para

graph (2) shall be $12,500 in lieu of $25,000. This