Northern Ireland Fair Employment Incentive Act of 1988

Northern Ireland Fair Employment Incentive Act of 1988 - Amends the Internal Revenue Code to remove limitations on the amount of the foreign tax credit available with respect to taxes imposed on foreign source income generated in connection with a manufacturing facility located in a high unemployment area of Northern Ireland if 40 percent or more of the facility's employees are members of a religious minority in Northern Ireland.

Reduces the foreign tax credit for entities that have operations in Northern Ireland and are in violation of a fair employment standard there during the pertinent taxable year. Prescribes these standards to include conditions to assure both avoidance of religious or political discrimination and the practice of equal opportunity and affirmative action programs. Requires affected taxpayers to present annual compliance reports to the Secretary of the Treasury. Penalizes entities that fail to report.

Revises the definition of "subpart F income" (types of income generally suited to tax haven activity) to exclude from tax deferral provisions amounts attributable to the Northern Ireland source income of entities in violation of the fair employment standards.