article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Encouraging Work and Supporting Marriage Act of 2002''. TITLE I--ACCELERATION OF MARRIAGE PENALTY RELIEF SEC. 101. ACCELERATION OF INCREASE IN STANDARD DEDUCTION FOR JOINT RETURNS. (a) In General.--Paragraph (7) of section 63(c) of the Internal Revenue Code of 1986, as amended by section 301 of the Economic Growth and Tax Relief Reconciliation Act of 2001, is amended to read as follows: ``(7) Applicable percentage.--For purposes of paragraph (2), the applicable percentage shall be determined in accordance with the following table: ``For taxable years beginning The applicable in calendar year-- percentage is-- 2003 or 2004........................... 170 2005................................... 174 2006................................... 184 2007................................... 187 2008................................... 190 2009 and thereafter.................... 200.''. (b) Conforming Amendment.--Subsection (d) of section 301 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking ``December 31, 2004'' and inserting ``December 31, 2002''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002. TITLE II--MODIFICATIONS TO WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT SEC. 201. MODIFICATIONS TO WORK OPPORTUNITY CREDIT AND WELFARE-TO-WORK CREDIT. (a) Eligibility of Ex-Felons Determined Without Regard to Family Income.--Paragraph (4) of section 51(d) of the Internal Revenue Code of 1986 is amended by adding ``and'' at the end of subparagraph (A), by striking ``, and'' at the end of subparagraph (B) and inserting a period, and by striking all that follows subparagraph (B). (b) Increase in Maximum Age for Eligibility of Food Stamp Recipients.--Clause (i) of section 51(d)(8)(A) of such Code is amended by striking ``25'' and inserting ``30''. (c) Clarification of Treatment of Individuals Under Individual Work Plans.--Subparagraph (B) of section 51(d)(6) of such Code (relating to vocational rehabilitation referral) is amended by striking ``or'' at the end of clause (i), by striking the period at the end of clause (ii) and inserting ``, or'', and by adding at the end the following new clause: ``(iii) an individual work plan developed and implemented by an employment network pursuant to subsection (g) of section 1148 of the Social Security Act with respect to which the requirements of such subsection are met.'' (d) Effective Date.--The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2002. SEC. 202. CONSOLIDATION OF WORK OPPORTUNITY CREDIT WITH WELFARE-TO-WORK CREDIT. (a) In General.--Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 is amended by striking ``or'' at the end of subparagraph (G), by striking the period at the end of subparagraph (H) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(I) a long-term family assistance recipient.'' (b) Long-Term Family Assistance Recipient.--Subsection (d) of section 51 of such Code is amended by redesignating paragraphs (10) through (12) as paragraphs (11) through (13), respectively, and by inserting after paragraph (9) the following new paragraph: ``(10) Long-term family assistance recipient.--The term `long-term family assistance recipient' means any individual who is certified by the designated local agency-- ``(A) as being a member of a family receiving assistance under a IV-A program (as defined in paragraph (2)(B)) for at least the 18-month period ending on the hiring date, ``(B)(i) as being a member of a family receiving such assistance for 18 months beginning after August 5, 1997, and ``(ii) as having a hiring date which is not more than 2 years after the end of the earliest such 18- month period, or ``(C)(i) as being a member of a family which ceased to be eligible for such assistance by reason of any limitation imposed by Federal or State law on the maximum period such assistance is payable to a family, and ``(ii) as having a hiring date which is not more than 2 years after the date of such cessation.'' (c) Increased Credit for Employment of Long-Term Family Assistance Recipients.--Section 51 of such Code is amended by inserting after subsection (d) the following new subsection: ``(e) Credit for Second-Year Wages for Employment of Long-Term Family Assistance Recipients.-- ``(1) In general.--With respect to the employment of a long-term family assistance recipient-- ``(A) the amount of the work opportunity credit determined under this section for the taxable year shall include 40 percent of the qualified second-year wages for such year, and ``(B) in lieu of applying subsection (b)(3), the amount of the qualified first-year wages, and the amount of qualified second-year wages, which may be taken into account with respect to such a recipient shall not exceed $10,000 per year. ``(2) Qualified second-year wages.--For purposes of this subsection, the term `qualified second-year wages' means qualified wages-- ``(A) which are paid to a long-term family assistance recipient, and ``(B) which are attributable to service rendered during the 1-year period beginning on the day after the last day of the 1-year period with respect to such recipient determined under subsection (b)(2). ``(3) Special rules for agricultural and railway labor.--If such recipient is an employee to whom subparagraph (A) or (B) of subsection (h)(1) applies, rules similar to the rules of such subparagraphs shall apply except that-- ``(A) such subparagraph (A) shall be applied by substituting `$10,000' for `$6,000', and ``(B) such subparagraph (B) shall be applied by substituting `$833.33' for `$500'.''. (d) Repeal of Separate Welfare-to-Work Credit.-- (1) In general.--Section 51A of such Code is hereby repealed. (2) Clerical amendment.--The table of sections for subpart F of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 51A. (e) Effective Date.--The amendments made by this section shall apply to individuals who begin work for the employer after December 31, 2002. Passed the House of Representatives May 21, 2002. Attest: JEFF TRANDAHL, Clerk.
summary: Encouraging Work and Supporting Marriage Act of 2002 - Amends the Internal Revenue Code to increase the standard deduction for the married filing jointly category beginning in calendar year 2003.Modifies the work opportunity credit by: (1) repealing the requirement that a "qualified ex-felon" be a member of a low-income (as specified) family; (2) increasing the maximum age for eligibility of food stamp recipients to 30 years; (3) redefining the term "vocational rehabilitation referral"; (4) adding "long-term family assistance recipients" (as defined) to the definition of "targeted groups"; and (5) increasing the maximum allowable credit for employment of long-term family assistance recipients.Repeals the separate welfare-to-work credit.