Page:United States Statutes at Large Volume 95.djvu/902

 95 STAT. 876

26 USC 3304 note.

26 USC 3304 "°^®

PUBLIC LAW 97-35—AUG. 13, 1981 individual's most recent weekly benefit amount or 1 ^ times the individual's insured wages in that calendar quarter of the base period in which the individual's insured wages were the highest (or one such quarter if his wages were the same for more than one such quarter). The State shall by law provide which one of the foregoing methods of measuring employment and earnings shall be used in that State.". (b) CONFORMING AMENDMENT.—Section 202(a)(6) of such Act (as redesignated bjj subsection (a)) is amended— (1) by striking out "paragraphs (3) and (4)" and inserting in lieu thereof "paragraphs (3), (4), and (5)"; and (2) by inserting "extended compensation or" before "sharable regular compensation". (c) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to extended compensation and sharable regular compensation payable for weeks which begin after September 25, 1982. ELIGIBILITy REQUIREMENTS FOR EX-SERVICEMEMBERS

2405. (a) GENERAL RULE.—Section 8521(aKlXB) of title 5, United States C!ode, is amended to read as follows: "(B) with respect to that service, the individual— "(i) was dischai^ed or released under honorable conditions; "(ii) did not resign or voluntarily leave the service; and "(iii) was not released or discharged for cause as defined by the Department of Defense;". 5 USC 8521 note. (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to terminations of service on or after July 1, 1981, but only in the case of weeks of unemployment beginning after the date of the enactment of this Act. SEC.

AOJUSTBdENTS TO PROVISIONS WHICH INCREASE FEDERAL UNEMPLOYMENT TAX IN STATES WTTH OUTSTANDING LOANS

2406. (a) LIMITATIONS ON CREDIT REDUCTION IN CERTAIN CASES.—Section 3302 of the Internal Revenue Code of 1954 (relating to credits against unemployment tax) is amended by adding at the end thereof the following new subsection: SEC.

26 USC 3302.

"(f) LIMITATION ON CREDIT REDUCTION.—

"(1) LIMITATION.—In the case of any Stjite which meets the requirements of paragraph (2) with respect to any taxable year beginning before January 1, 1988, the reduction under subsection (cK2) in credits otherwise applicable to taxpayers subject to the unemployment compensation law of such State shall not exceed the greater of— "(A) the reduction which was in efTect with respect to such State under subsection (c)(2) for the preceding taxable year, or "(B) 0.6 percent of the wages paid by the taxpayer during such taxaole year which are attributable to such State. "(2) REQUIREMENTS.—The requirements of this paragraph are met by any State with respect to any taxable year if the S»:n*etary of Labor determines (on or before November 10 of such taxable year) that— "(A) no State action was taken during the 12-month period ending on September 30 of such taxable year (excluding any £u^on required under State law as in effect prior to the date

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