This report expands an earlier study of the impact of the Targeted Jobs Tax Credit (TJTC) upon program participants. It explains how TJTC has been used in three major urban areas with large disadvantaged populations: Baltimore, Kansas City, and St. Louis. After a summary of the history of TJTC and of the findings of other studies of wage subsidies in Part I, Part II reviews the origins of current employment problems of disadvantaged persons in Maryland and Missouri. Part III reviews income experiences of TJTC participants in the two states 5 years after hiring. Part IV examines changes in use patterns from 1985 to 1987 to determine the impact of the hiatus period (after TJTC expiration and prior to reenactment) on job seekers and employers. Part V reviews the significant changes in the TJTC summer program and relates the changes to efforts to direct more employment and training resources to solving the problems of at-risk youth. Part VI examines the experiences of employment and training agencies with TJTC. Employer use of TJTC is reviewed in Part VII. It focuses on the institutionalization of TJTC within the business community and the implications of current employer use for the design of employment subsidies. The conclusion includes recommendations for modifications of TJTC and an analysis of the role of TJTC as an employment strategy in urban areas with significant unemployment. Notes and a 10-page bibliography complete the report. (YLB)