Job Training Partnership credit. . (c) Conforming amendments (1) Section 49(a)(1)(C) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (iv), by striking the period at the end of clause (v) and inserting , and , and by adding at the end the following new clause: (vi) the basis of any property to which section 48D(e)(1) applies which is part of a Qualified Job Training Partnership under such section 48D. . (2) Section 280C of such Code is amended by adding at the end the following new subsection: (i) Qualified Job Training Partnership credit (1) In general No deduction shall be allowed for that portion of the qualified investment (as defined in section 48D(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 48D(a), reduced by— (A) the amount disallowed as a deduction by reason of section 48D(e)(2)(B), and (B) the amount of any basis reduction under section 48D(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 48D 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 48C the following new item: Sec. 48D. Qualified Job Training Partnership credit. . (e) Grants for qualified investments in Qualified Job Training Partnerships