A bill to amend the Internal Revenue Code of 1986 to provide for the extension of certain expiring provisions.

Amends the Internal Revenue Code to decrease the targeted jobs credit from 40 to 35 percent of the amount of qualified first-year wages. Revises targeted group membership provisions. Excludes from the definition of wages (for computing the credit) any wages paid after: (1) December 31, 1994, and before January 1, 1996; or (2) December 31, 1997. Redesignates such credit the "work opportunity credit."

Extends to December 31, 1997, the: (1) exclusion from gross income of employer-provided educational assistance; (2) credit for increasing research activities; (3) orphan drug tax credit; (4) special rule concerning deductions for contributions of stock for which market quotations are readily available; and (5) exclusion from gross income of employer contributions to qualified group legal services plans.

Extends the binding contract date for biomass and coal facilities to July 1, 1997.

Amends the Revenue Act of 1987 to extend from December 31, 1997, to December 31, 1999, the effective date (for existing partnerships) of provisions relating to the treating of certain publicly traded partnerships as corporations.