Rural Economic Development and Opportunities Act of 2007

Rural Economic Development and Opportunities Act of 2007 - Amends the Internal Revenue Code to allow an employer to claim a work opportunity tax credit during the next five years for the hiring of employees who live in a rural area and perform services for such employer in a rural area.

[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 603 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 603

To amend the Internal Revenue Code of 1986 to provide an incentive for 
  expanding employment in rural areas by allowing employers the work 
        opportunity credit for hiring residents of rural areas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 22, 2007

  Mr. Hayes introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide an incentive for 
  expanding employment in rural areas by allowing employers the work 
        opportunity credit for hiring residents of rural areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Economic Development and 
Opportunities Act of 2007''.

SEC. 2. WORK OPPORTUNITY CREDIT TO APPLY TO NEW EMPLOYEES WHO ARE 
              RESIDENTS OF RURAL AREAS.

    (a) In General.--Paragraph (1) of section 51(d) of the Internal 
Revenue Code of 1986 (defining members of targeted groups) is amended 
by striking ``or'' at the end of subparagraph (H), by striking the 
period at the end of subparagraph (I) and inserting ``, or'', and by 
adding at the end the following new subparagraph:
                    ``(J) a rural area resident.''
    (b) Rural Area Resident.--Subsection (d) of section 51 of such Code 
is amended by redesignating paragraphs (11) through (13) as paragraphs 
(12) through (14), respectively, and by inserting after paragraph (10) 
the following new paragraph:
            ``(11) Rural area resident.--
                    ``(A) In general.--The term `rural area resident' 
                means, with respect to any period, any employee of the 
                employer if--
                            ``(i) substantially all of the services 
                        performed during such period by such employee 
                        for such employer are performed within an area 
                        determined by the Secretary of Agriculture to 
                        be a rural area, and
                            ``(ii) the principal place of abode of such 
                        employee while performing such services is 
                        within such an area.
                    ``(B) Termination.--Such term shall not include any 
                individual who begins work for the employer after the 
                date which is 5 years after the date of the enactment 
                of this paragraph.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to individuals who begin work for the employer after the date of 
the enactment of this Act.
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