Conversion Adjustment Assistance Act

Conversion Adjustment Assistance Act Title I: Petitions and Determinations - Directs the Secretary of Labor, upon petition by a group of workers or its representative, to certify a group as eligible to apply for adjustment assistance under this Act if it is determined (1) that at least five workers in the group's firm or appropriate subdivision have been, or are threatened with becoming, partially or totally separated from employment and (2) that the termination of production funding for a major government procurement program contributed importantly to such actual or threatened separation.

Excludes from coverage under such a certification workers whose last separation from employment occurred more than a year prior to certification.

Title II; Program Benefits - Provides weekly readjustment allowances for certain unemployed workers who apply for such assistance within two years of group certification.

Directs the Secretary to establish a Job and Retraining Information Service within the Department of Labor to facilitate assistance to adversely affected workers covered by a group certification.

Authorizes the Secretary to provide appropriate job training to such workers.

Entitles such workers to additional benefits including (1) job search and relocation allowances and (2) continued pension and health insurance coverage.

Title III: General Provisions - Directs the Secretary to enter into agreement with States and State agencies relative to the administration of the assistance programs established under title II.

Sets forth guidelines for payments to states under this Act.

Title IV: Tax Credit for Employing Certain Retrained Workers - Amends the tax credit under the Internal Revenue Code for expenses of work incentive programs to permit a limited credit for wages paid to retrained defense workers.