Page:United States Statutes at Large Volume 92 Part 3.djvu/205

 PUBLIC LAW 95-600—NOV. 6, 1978 '

92 STAT. 2837

"(ii) subparagraph (B)ofparagraph(l) shall not apply, and "(iii) the aggregate amount of such work incentive program expenses which may be taken into account under paragraph (1) for such taxable year may not exceed $12,000. "(B) DEPENDENT CARE CREDIT MAY NOT BE CLAIMED.—No

credit shall be allowed under section 44A with respect to any Ante, p. 2834. amounts paid or incurred by the taxpayer with respect to which the taxpayer is allowed a credit under section 40. 26 USC 40. "(C) MARRIED INDIVIDUALS.—In the case of a husband or wife who files a separate return, subparagraph (A) shall be applied by substituting '$6,000' and '$12,000'. The preceding sentence shall not apply if the spouse of the taxpayer has no work incentive program expenses described in such subparagraph for the taxable year.". (c) REPEAL OF PROVISIONS PERMITTING RECOVERY OF CREDIT.—

Section 50A is amended by striking out subsections (c) and (d). 26 USC 50A. (d) CHANGES IN DEFINITIONS AND SPECIAL RULES.—

(1) Subsection (a) of section 50B (relating to work incentive 26 USC 50B. program expenses) is amended to read as follows: "(a) WORK INCENTIVE PROGRAM EXPENSES.—For purposes of this subpart— "(1) IN GENERAL.—The term 'work incentive program expenses' means the amount of wages paid or incurred by the taxpayer for services rendered by eligible employees. "(2)

FIRST-YEAR WORK INCENTIVE PROGRAM EXPENSES.—The

term 'first-year work incentive program expenses' means, with respect to any eligible employee, work incentive program expenses attributable to service rendered during the one-year period which begins on the day the eligible employee begins work for the taxpayer. "(3) SECOND-YEAR WORK INCENTIVE PROGRAM EXPENSES.—The

term 'second-year work incentive program expenses' means, with respect to any eligible employee, work incentive program expenses attributable to service rendered during the one-year period which begins on the day after the last day of the one-year period described in paragraph (2). "(4) LIMITATION ON AMOUNT OF WORK INCENTIVE PROGRAM

EXPENSES.—Theamountof the work incentive program expenses taken into account with respect to any eligible employee for any one-year period described in paragraph (2) or (3) (as the case may be) shall not exceed $6,000." (2) Subsection (c) of section 50B is amended by striking out paragraphs (1) and (4) and by redesignating paragraphs (2), (3), and (5) as paragraphs (1), (2), and (3), respectively. (3) Subsection (e) of section 50B (relating to estates and trusts) is amended— (A) by inserting "and" at the end of paragraph (1), (B) by striking out ", and" at the end of paragraph (2) and inserting in lieu thereof a period, and (C) by striking out paragraph (3). (4) Section SOB is amended by redesignating subsections (g) and (h) as subsections (h) and (i), respectively, and by inserting after subsection (f) the following new subsection: "(g) SPECIAL RULES FOR CONTROLLED GROUPS.—

�