Page:United States Statutes at Large Volume 89.djvu/106

 89 STAT. 46

infra. 26 USC SOB.

PUBLIC LAW 94-12—MAR. 29, 1975 (C) by inserting at the end thereof the following new clause: "(iv) a termination of employment of an individual with respect to whom Federal welfare recipient employment incentive expenses (as described in section 50B (a)(2)) are taken into account under subsection (a)." (3) Section 50B(a) (relating to definitions; special rules) is amended to read as follows: "(a) WORK INCENTIVE PROGRAM EXPENSES.—

42 USC 632.

" (1) IN GENERAL.—For purposes of this subpart, the term 'work incentive program expenses' means the sum of— " (A) the amount of waj^es paid or incurred by the taxpayer for services rendered during the first 12 months of employment (whether or not consecutive) of employees who are certified by the Secretary of Labor as— "(i) having been placed in employment under a work incentive program established under section 432(b)(1) of the Social Security Act, and "(ii) not having displaced any individual from employment, plus " (B) the amount of Federal welfare recipient employment incentive expenses paid or incurred by the taxpayer during the taxable year. "(2) DEFINITION.—For purposes of this section, the term 'Federal welfare recipient employment incentive expenses' means the amount of wages paid or incurred by the taxpayer for services rendered to the taxpayer before July 1, 1976, by an eligible employee. "(3) EXCLUSION.—No item taken into account under paragraph (1)(A) shall be taken into account under paragraph (1)(B), No item taken into account under paragraph (1)(B) shall be taken into account under paragraph 1 (A)." (4) Section 50B(c) is amended— (A) by striking out "subsection (a) " in paragraph (1) and inserting in lieu thereof "subsection (a)(1)(A) ", and (B) by striking out "subsection (a) " in paragraph (4) and inserting in lieu thereof "subsection (a)(1)(A)". (5) Section 50B is amended by redesignating subsection (g) as (h) and by inserting immediately after subsection (f) the following new subsection: "(g)

42 USC 601.

ELIGIBLE EMPLOYEE.— "(1) ELIGIBLE EMPLOYEE.—For

purposes of subsection (a)(1) (B), the term 'eligible employee' means an individual— "(A) who has been certified by the appropriate agency of State or local government as being eligible for financial assistance under part A of title IV of the Social Security Act and as having continuously received such financial assistance during the 90 day period which immediately precedes the date on which such individual is hired by the taxpayer, "(B) who has been employed by the taxpayer for a period in excess of 30 consecutive days on a substantially full-time basis, "(C) who has not displaced any other individual from employment by the taxpayer, and "(D) who is not a migrant worker. The term 'eligible employee' includes an employee of the taxpayer whose services are not performed in connection with a trade or business of the taxpayer.

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