A bill to amend the Internal Revenue Code of 1954 to provide a tax credit for the amount of employment taxes paid by an employer to certain new employees.

Provides, under the Internal Revenue Code, an income tax credit equal to the sum of the employment taxes paid by a taxpayer in connection with wages paid by him during the taxable year to reemployed or newly employed individuals. States that no credit shall be allowed with respect to the employment of an individual if the taxpayer is allowed a credit for work incentive program expenses attributable to such individual for such year.

Allows carrybacks and carryovers of unused credits.

Requires the Secretary of the Treasury to report annually to the Congress on the effectiveness of the employment incentive tax credit enacted by this Act in encouraging new employment together with such other information and recommendations as he considers necessary.