; and (ii) SMART Students Everywhere Grants are awarded under this section. . (2) Effective date The amendments made by this subsection shall take effect on the date that is 1 year after the date of the enactment of this section. (b) Tax credit for first-Year wages of qualified recipients of a SMART grant (1) In general Section 51(d)(1) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting a comma, and by adding at the end the following new subparagraph: (K) a qualified recipient of a SMART grant. . (2) Definitions and special rules Section 51(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (16) Qualified recipient of a SMART grant (A) In general The term qualified recipient of a SMART grant means any individual who is certified by the designated local agency as a recipient of a SMART Students Everywhere Grant pursuant to Section 401A of the Higher Education Act of 1965 ( 20 U.S.C. 1070a–1 ) during the 1-year period ending on the hiring date. (B) Special rules for determining amount of credit For purposes of applying this subpart to any qualified recipient of a SMART grant— (i) subsection (a) shall be applied by substituting 5 percent (10 percent in the case of any specified recipient of a SMART grant) for 40 percent , and (ii) subsection (b)(3) shall be applied by substituting $50,000 for $6,000 and all that follows in such subsection. (C) Aggregate credit dollar limitation per employer (i) Limitation with respect to qualified recipients of a SMART grant The aggregate credit determined under subsection (a) with respect to qualified recipients of a SMART grant (other than specified recipients of a SMART grant) shall not exceed $10,000 for any taxable year of the taxpayer. (ii) Limitation with respect to specified recipients of a SMART grant The aggregate credit determined under subsection (a) with respect to specified recipients of a SMART grant shall