To amend the Job Training Partnership Act to encourage the placement of youths in private sector jobs under the Summer Youth Employment and Training Program, and for other purposes.

Amends the Job Training Partnership Act to give priority to placement in private sector jobs under the summer youth employment and training program. Provides that retention in unsubsidized employment shall not be considered an appropriate factor in prescribing performance standards for such program.

Amends the Internal Revenue Code to modify the targeted jobs tax credit with respect to qualified summer youth employees by: (1) revising the age limitation to age 14 to 22 (currently 16 to 18); (2) increasing the amount of creditable wages from $3,000 to $3,500; (3) coordinating the credit with Federal summer youth employment programs; and (4) reducing certain paperwork burdens.