Page:United States Statutes at Large Volume 94 Part 2.djvu/1415

 PUBLIC LAW 96-499—DEC. 5, 1980

94 STAT. 2693

"For the holder of the economic interest in the case of a production payment, see section 636." (2) T E C H N I C A L A N D CONFORMING AMENDMENTS. — The t a b l e of

sections for subpart B of chapter 65 of such code is amended by adding a t the e n d thereof the following new item: "Sec. 6429. Credit and refund of chapter 45 taxes paid by royalty owners." (d) D E N I A L O F DEDUCTION. —

(1) IN GENERAL. — Part IX of subchapter B of chapter 1 of such Code (relating to items not deductible) is amended by adding a t the e n d thereof the following n e w section: "SEC. 280D. PORTION OF CHAPTER 45 TAXES FOR WHICH CREDIT OR 26 USC 280D. REFUND IS ALLOWABLE UNDER SECTION 6429. " N o deduction shall be allowed for that portion of the tax imposed by section 4986 for which a credit or refund is allowable under section 26 USC 4986. 6429." 26 USC 6429. (2) CONFORMING AMENDMENT.—The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by adding a t the end thereof the following new item: "Sec. 280D. Portion of chapter 45 taxes for which credit or refund is allowable under section 6429." (3) EFFECTIVE DATE.—The amendments m a d e by this subsection 26 USC 280D shall apply to tax a b l e year s e n d i n g after February 29, 1980. "°*®-

Subtitle E—Inclusion in Wages for Purposes of Social Security and Unemployment Taxes of Employer SEC.

n4L INCLUSION IN WAGES OF EMPLOYEE TAXES PAID BY EMPLOYER.

(a) SOCIAL SECURITY T A X. — (1) AMENDMENT O F INTERNAL REVENUE CODE O F 1954.—Para-

26 USC 3121.

g r a p h (6) of section 3121(a) of the I n t e r n a l Revenue Code of 1954 (defining wages) is amended to read a s follows: "(6) the payment by a n employer (without deduction from the r e m u n e r a t i o n of the employee)— "(A) of the tax imposed upon a n employee under section 3101, o r 26 USC 3101. "(B) of any payment required from a n employee under a State unemployment compensation law, with respect to r e m u n e r a t i o n paid to a n employee for domestic service in a p r i v a t e h o m e of the employer or for a g r i c u l t u r a l labor;". (2) AMENDMENT O F SOCIAL SECURITY ACT.—Subsection (f) of

42 USC 409.

section 209 of the Social Security Act is amended to read a s follows: " ( 0 The payment by a n employer (without deduction from the r e m u n e r a t i o n of the employee)— "(1) of the tax imposed upon a n employee under section 3101 of the I n t e r n a l Revenue Code of 1954, or 26 USC 3101. "(2) of any payment required from a n employee under a State unemployment compensation law, w i t h respect to r e m u n e r a t i o n paid to a n employee for domestic service in a p r i v a t e home of the employer or for a g r i c u l t u r a l labor;".

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