The Work Opportunity Tax Credit (WOTC) was initiated in the Small Business Job Protection Act of 1996 (P.L. 104-188). It is a temporary measure intended to encourage for-profit employers to hire members of specifically designated groups thought to experience recurring problems in the labor market. The Taxpayer Relief Act of 1997 (P.L. 105-34) modified the employment credit and extended it through June 30, 1998. H.R. 3125 would extend WOTC for 3 years, through June 30, 2001; other bills would increase the number of eligible groups, apply WOTC to the employment taxes of tax-exempt organizations, and allow the credit against the alternative minimum tax. P.L. 105-34 also initiated a new credit, the Welfare-to-Work Tax Credit (WWTC), to promote employment of long-term welfare recipients. It is authorized to run through April 30, 1999. In its FY1999 budget request, the Administration has proposed extending the WOTC and WWTC through April 30, 2000.