Targeted Jobs Tax Credit Program Activity

PAD-83-44: Published: Jun 8, 1983. Publicly Released: Jun 8, 1983.

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In response to a congressional request, GAO provided updated information on the Targeted Jobs Tax Credit Program which focuses on providing jobs for young, economically disadvantaged jobseekers.

A large proportion of program certifications are for lower paying jobs and are located in southern States. Prior to fiscal year (FY) 1982, the largest target group served by the program was composed of cooperative education students. However, the Economic Recovery Tax Act changed the eligibility rules so that only economically disadvantaged cooperative students could be eligible under the program. GAO believes that this narrow targeting of the program was a major factor underlying the sharp drop in program certification in FY 1982. The decline would have been greater except for the addition of two new target groups: laid off public service employees and Aid to Families with Dependent Children Program recipients. Another important program change was the elimination of the practice of retroactive certification.

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