Page:United States Statutes at Large Volume 92 Part 3.djvu/206

 92 STAT. 2838

PUBLIC LAW 95-600—NOV. 6, 1978 "(1) CONTROLLED GROUP OF CORPORATIONS.—For purposes of

26 USC 40.

26 USC 1563.

this subpart, all employees of all corporations which are members of the same controlled group of corporations shall be treated as employed by a single employer. In any such case, the credit (if any) allowable by section 40 to each such member shall be its proportionate share of the work incentive program expenses giving rise to such credit. For purposes of this subsection, the term 'controlled group of corporations' has the meaning given to such term by section 1563(a), except that— "(A) 'more than 50 percent' shall be substituted for *at least 80 percent' each place it appears in section 1563(a)(l), and "(B) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. "(2) EMPLOYEES OF PARTNERSHIPS, PROPRIETORSHIPS, ETC., WHICH

26 USC 40.

26 USC SOB.

42 USC 601.

42 USC 632.

ARE UNDER COMMON CONTROL.—For purposes of this subpart, under regulations prescribed by the Secretary— "(A) all employees of trades or business (whether or not incorporated) which are under common control shall be treated as employed by a single employer, and "(B) the credit (if any) allowable by section 40 with respect to each trade or business shall be its proportionate share of the work incentive program expenses giving to such credit. The regulations prescribed under this paragraph shall be based on principles similar to the principles which apply in the case of paragraph (1)." (5) Paragraph (1) of subsection (h) (as redesignated by paragraph (4)) of section 50B (relating to eligible employee) is amended to read as follows: "(1) EuGiBLE EMPLOYEE.—For purposes of this subpart the term 'eligible employee' means an individual— "(A) who has been certified by the Secretary of Labor or by the appropriate agency of State or local government as— "(i) being eligible for financial assistance under part A of title IV of the Social Security Act and as having continually received such financial assistance during the 9-day period which immediately precedes the date on which such individual is hired by the employer, or "(ii) having been placed in employment under a work incentive program established under section 432(b)(l) of the Social Security Act, "(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.", (d) DEDUCTION FOR WAGES REDUCED BY AMOUNT OF CREDIT.—

26 USC 28oe. Ante, p. 2834.

(1) Section 280C (relating to portion of wages for which credit is claimed under section 44B) is amended— (A) by striking our "SECTION 44B" in the caption and inserting in lieu thereof "SECTION 40 OR 44B", (B) by inserting "(b) RULE FOR SECTION 44B CREDIT.—"

immediately before "No deduction",

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