Page:United States Statutes at Large Volume 92 Part 3.djvu/207

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2839

(C) by striking out "this section shall be applied" and inserting in lieu thereof "this subsection shall be applied" in the second sentence, and (D) by inserting immediately after the caption of such section the following new subsection: "(a) RULE FOR SECTION 40 CREDIT.—No deduction shall be allowed 26 USC 40. for that portion of the work incentive program expenses paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 40 (relating to credit for expenses of work incentive programs) determined without regard to the provisions of section 50A(a)(2) (relating to limitation Ante, p. 2836. based on amount of tax). In the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 50B(g)(l)) or a trade or business which is treated as being Ante, p. 2837. under common control with other trades or businesses (within the meaning of section 50B(g)(2), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under paragraphs (1) and (2) of section 50B(g).". (e) EFFECTIVE D A T E. —

26 USC 50A

(1) IN GENERAL.—Except as otherwise provided in this subsec- "ot^. tion, the amendments made by this section shall apply to work incentive program expenses paid or incurred after December 31, 1978, in taxable years ending after such date; except that so much of the amendment made by subsection (a) as affects section 50A(a)(2) of the Internal Revenue Code of 1954 shall apply to taxable years beginning after December 31, 1978. (2) SPECIAL RULES FOR CERTAIN ELIGIBLE EMPLOYEES.— (A) ELIGIBLE EMPLOYEES HIRED BEFORE SEPTEMBER

27,

1978.—In the case of any eligible employee (as defined in section 50B(h)) hired before September 27, 1978, no credit shall be allowed under section 40 with respect to second-year work incentive program expenses (as defined in section 50B(a)) attributable to service performed by such employee.

Ante, p. 2837. Ante, p. 2837.

(B) ELIGIBLE EMPLOYEES HIRED AFTER SEPTEMBER 26, 1978.—

In the case of any eligible employee (as defined in section 50B(h)) hired after September 27, 1978, such individual shall be treated for purposes of the credit allowed by section 40 as having first begun work for the taxpayer not earlier than January 1, 1979.

26 USC 40.

Subtitle D—Tax-Exempt Bonds PART I—INDUSTRIAL DEVELOPMENT BONDS SEC. 331. INCREASE IN LIMIT ON SMALL ISSUES OF INDUSTRIAL DEVELOPMENT BONDS.

(a) GENERAL RULE.—Subparagraph (D) of section 103(b)(6) (relating to $5,000,000 limit in certain cases) is amended by striking out "$5,000,000" in the heading and in the text and inserting in lieu thereof "$10,000,000". (b)

TREATMENT

OF

CERTAIN

URBAN

DEVELOPMENT

ACTION

GRANTS.—Paragraph (6) of section 103(b) (relating to exemption for certain small issues) is amended by adding at the end thereof the following new subparagraph: "(I) AGGREGATE AMOUNT OF CAPITAL EXPENDITURES WHERE THERE IS URBAN DEVELOPMENT ACTION GRANT.—In the case of

any issue substantially all of the proceeds of which are to be

26 USC 103.

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