Page:United States Statutes at Large Volume 94 Part 3.djvu/844

 94 STAT. 3488

PUBLIC LAW 96-598—DEC. 24, 1980 "(B) STATE AUDIT AGENCY.—For purposes of subparagraph

26 USC 6103 "°*®

42 USC 1381. 42 USC 1382.

26 USC 274.

(A), the term 'State audit agency' means any State agency, body, or commission which is charged under the laws of the State with the responsibihty of auditing State revenues and programs.". (b) EFFECTIVE DATE.—The amendment made by this section shall take effect on the date of the enactment of this Act. SEC. 4. TREATMENT OF BONNER'S FERRY RESTORIUM UNDER THE SUPPLEMENTARY SECURITY INCOME PROGRAM. (a) TREATMENT AS NON-PUBLIC INSTITUTION.—For purposes of title XVI of the Social Security Act, the Boundary County Restorium (popularly known as the Bonner's Ferry Restorium) in Bonner's Ferry, Idaho, shall not be considered a public institution (within the meaning of section 1611(e)(1)(C) of such Act). (b) EFFECTIVE DATE.—Subsection (a) shall apply to supplemental security income benefits payable under title XVI of the Social Security Act for months beginning with November 1980. SEC. 5. TREATMENT OF CERTAIN EXPENSES INCLUDIBLE IN THE INCOME OF THE RECIPIENT. (a) IN GENERAL.—Subsection (e) of section 274 of the Internal Revenue Code of 1954 (relating to specific exceptions to application of disallowance of certain entertainment, etc., expenses) is amended by inserting after paragraph (9) the following new paragraph: "(10) EXPENSES INCLUDIBLE IN INCOME OF PERSONS WHO ARE NOT

EMPLOYEES.—Expenses paid or incurred by the taxpayer for goods, services, and facilities to the extent that the expenses are includible in the gross income of a recipient of the entertainment, amusement, or recreation who is not an employee of the taxpayer as compensation for services rendered or as a prize or award under section 74. The preceding sentence shall not apply to any amount paid or incurred by the taxpayer if such amount is required to be included (or would be so required except that the amount is less than $600) in any information return filed by such 26 USC 6031. taxpayer under part III of subchapter A of chapter 61 and is not so included." 26 USC 274 note. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to any expenses paid or incurred after December 31, 1980, in taxable years ending after such date. SEC. 6. PRESERVING EXISTING TAX STATUS OF WINE AND FLAVORS USED IN THE PRODUCTION OF DISTILLED SPIRITS. (a) ALLOWANCE OF CREDIT.—Subpart A of part I of subchapter A of chapter 51 of the Internal Revenue Code of 1954 (relating to distilled spirits) is amended by adding at the end thereof the following new section: 26 USC 5010. SEC. 5010. CREDIT FOR WINE CONTENT AND FOR FLAVORS CONTENT. "(a) ALLOWANCE OF CREDIT.— "(1) WINE CONTENT.—On each proof gallon of the wine content

of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to the excess of— "(A) $10.50, over "(B) the rate of tax which would be imposed on the wine under section 5041(b) but for its removal to bonded premises. "(2) FLAVORS CONTENT.—On each proof gallon of the flavors content of distilled spirits, there shall be allowed a credit against the tax imposed by section 5001 (or 7652) equal to $10.50.

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