text: 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.
target: 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.
feat_title: To amend the Internal Revenue Code of 1986 to accelerate the marriage penalty relief in the standard deduction and to modify the work opportunity credit and the welfare-to-work credit.