A study was conducted to determine the effectiveness of the Targeted Jobs Tax Credit (TJTC) as observed between July 1980 and March 1981 in 25 areas throughout the United States. Findings include the following: (1) TJTC has not worked as envisioned as a self-marketing effort by vouchered individuals and new hires by employers; most employers are participating in TJTC through retroactive certifications of their current employees rather than by new TJTC hires; (2) vouchering activity and employer participation in TJTC have been increasing over time, although recently these activities have fallen as resources have declined; (3) vouchering and employer participation vary randomly from site to site; (4) four types of organizations have been most active in marketing TJTC employers: Private Industry Councils, private firms assisting employers in obtaining certifications, National Alliance of Business metros, and state and local employment services offices; (5) about half of the participants in the TJTC program are cooperative education students, and about 90 percent of the vouchers go to the targeted groups--economically disadvantaged youth and cooperative education students. Some of the reasons found for TJTC performance problems include employers' beliefs that the tax savings are not worth the trouble of altering their hiring practice, and fear of government involvement; and problems with implementation and enthusiasm for the program by vouchering agencies. It was concluded that TJTC has not been implemented by the delivery system and used by employers in the way intended by its designers, but that it would be premature to draw from this that targeted employment tax credits are in all cases ineffective means for increasing employment opportunities for targeted individuals. (KC)