; and (C) by adding at the end the following new clause: (vii) the basis of any property to which paragraph (1) of section 48E(e) applies which is part of a Qualified Job Training Partnership under such section 48E. . (2) Section 280C of such Code is amended by adding at the end the following new subsection: (j) Qualified Job Training Partnership credit (1) In general No deduction shall be allowed for that portion of the qualified investment (as defined in section 48E(b)) otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 48E(a), reduced by— (A) the amount disallowed as a deduction by reason of section 48E(e)(2)(B), and (B) the amount of any basis reduction under section 48E(e)(1). (2) Similar rule where taxpayer capitalizes rather than deducts expenses In the case of expenses described in paragraph (1)(A) taken into account in determining the credit under section 48E for the taxable year, if— (A) the amount of the portion of the credit determined under such section with respect to such expenses, exceeds (B) the amount allowable as a deduction for such taxable year for such expenses (determined without regard to paragraph (1)), the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess. (3) Controlled groups Paragraph (3) of subsection (b) shall apply for purposes of this subsection. . (d) Clerical amendment The table of sections for subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 48D the following new item: Sec. 48E. Qualified Job Training Partnership credit. . (e) Grants for qualified investments in Qualified Job Training Partnerships in lieu of tax credits (1) In general Upon application, the Secretary of the Treasury shall, subject to the requirements of this subsection, provide a grant to each person who makes a qualified investment in a Qualified Job