[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.44B-1]

[Page 215]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.44B-1  Credit for employment of certain new employees.

    (a) In general--(1) Targeted jobs credit. Under section 44B a 
taxpayer may elect to claim a credit for wages (as defined in section 
51(c) paid or incurred to members of a targeted group (as defined in 
section 51(d)). Generally, to qualify for the credit, the wages must be 
paid or incurred to members of a targeted group first hired after 
September 26, 1978. However, wages paid of incurred to a vocational 
rehabilitation referral (as defined in section 51(d)(2)) hired before 
September 27, 1978, may qualify for the credit if a credit under section 
44B (as in effect prior to enactment of the Revenue Act of 1978) was 
claimed for the individual by the taxpayer for a taxable year beginning 
before January 1, 1979. The amount of the credit shall be determined 
under section 51. Section 280C(b) (relating to the requirement that the 
deduction for wages be reduced by the amount of the credit) and the 
regulations thereunder will not apply to taxpayers who do not elect to 
claim the credit.
    (2) New jobs credit. Under section 44B (as in effect prior to 
enactment of the Revenue Act of 1978) a taxpayer may elect to claim as a 
credit the amount determined under sections 51, 52, and 53 (as in effect 
prior to enactment of the Revenue Act of 1978). Section 280C(b) 
(relating to the requirement that the deduction for wages be reduced by 
the amount of the credit) and the regulations thereunder will not apply 
to taxpayers who do not elect to claim the credit.
    (b) Time and manner of making election. The election to claim the 
targeted jobs credit and the new jobs credit is made by claiming the 
credit on an original return, or on an amended return, at any time 
before the expiration of the 3-year period beginning on the last date 
prescribed by law for filing the return for the taxable year (determined 
without regard to extensions). The election may be revoked within the 
above-described 3-year period by filing an amended return on which the 
credit is not claimed.
    (c) Election by partnership, electing small business corporation, 
and members of a controlled group. In the case of a partnership, the 
election shall be made by the partnership. In the case of an electing 
small business corporation (as defined in section 1371(a)), the election 
shall be made by the corporation. In the case of a controlled group of 
corporations (within the meaning of section 52(a) and the regulations 
issued thereunder) not filing a consolidlated return under section 1501, 
the election shall be made by each member of the group. In the case of 
an affiliated group filing a consolidated return under section 1501, the 
election shall be made by the group.

(Secs. 44B, 381, and 7805 of the Internal Revenue Code of 1954 (92 Stat. 
2834, 26 U.S.C. 44B; 91 Stat. 148, 26 U.S.C. 381(c)(26); 68A Stat. 917, 
26 U.S.C. 7805)

[T.D. 7921, 48 FR 52904, Nov. 23, 1983]

   Research Credit--For Taxable Years Beginning Before January 1, 1990