A bill to amend the Internal Revenue Code of 1954 and the Comprehensive Employment and Training Act to provide for the eligibility of certain in-school youth for, and for the certification and referral of such youth to, jobs under the targeted jobs tax credit program.

(Reported to House from the Committee on Education and Labor with amendment, N. Rept. 96-1033 (Part I))

Amends the Internal Revenue Code to allow an income tax credit for employers who hire economically disadvantaged in-school youth who have attained the age of 16 but not 19 on the date of hiring. Requires certification by a prime sponsor under the Comprehensive Employment and Training Act that such youth meets the requirements of age, attendance at school, and economic disadvantage.

Amends the Comprehensive Employment and Training Act to require a prime sponsor to provide a description of the arrangements used for the certification of eligibility of in-school youths. Requires prime sponsors to provide to eligible in-school youths certification of such eligibility and to refer such youths to employers who are participating in employment programs for which they receive an income tax credit. Requires prime sponsors to withdraw such certification upon notice that an eligible youth has failed to continue attendance at school.