A bill to amend the Internal Revenue Code of 1954 to allow a refundable tax credit equal to 50 percent of the wages paid to certain new employees.

Amends the Internal Revenue Code to allow employers a refundable income tax credit for 50 percent of the wages paid new employees during the taxable years for work done in the United States. Limits the credit taken to $80,000. Reduces the allowable credit to 35 percent for certain new employees numbering more than five. Limits the number of employees for whom credit may be taken to ten new employees, or the maximum number of employees paid by the taxpayer during the calendar quarter ending the previous June 30th, whichever number is less.

Directs the Secretary to submit reports to Congress in 1978 and 1980 assessing the impact of this credit.