; (2) that is located in a State that has a State new jobs training tax credit program in effect; and (3) that participates in such program by having in effect a contract that meets the requirements of subsection (d)(2). (d) State new jobs training tax credit program (1) Programs described For purposes of this section, the term State new jobs training tax credit program means a program established by a State government that provides that, if an eligible community college and an employer sign a contract that meets the requirements of paragraph (2) with respect to an eligible trainee— (A) the State income taxes withheld by the employer on behalf of the eligible trainee, once employed by the employer, to the extent they do not exceed the cost of qualified training specified in such contract, will not be remitted to the State in payment of income taxes, but will be remitted to the eligible community college; (B) the amounts so remitted will be treated in the hands of the eligible community college as payment for education provided by such community college; and (C) for purposes of determining the State income tax liability of the eligible trainee, the amounts so remitted will be treated as if they had been remitted to the State in payment of income taxes owed by the eligible trainee. (2) Qualified contract A contract meets the requirements of this paragraph if— (A) the contract is between an eligible community college located in the State that has the program described in paragraph (1) and an employer with at least 1 job site located in such State; (B) the contract meets all applicable requirements under such State program; (C) the contract provides that— (i) the eligible community college will directly provide qualified training to individuals designated by the employer or will contract with a provider of qualified training to provide such training to such individuals; (ii) the eligible community college will not charge tuition or fees to such individuals