Page:United States Statutes at Large Volume 96 Part 1.djvu/599

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 557

advances under title XII of the Social Security Act are not 42 USC 1321. less than the sum of— "(i) the potential additional taxes for such taxable year, and (ii) any advances made to such State during such 1-year period under such title XII, "(B) there will be sufficient amounts in the State unemployment fund to pay all compensation during the 3-month period beginning on November 1 of such taxable year without receiving any advance under title XII of the Social Security Act, and "(C) there is a net increase in the solvency of the State unemployment compensation system for the taxable year attributable to changes made in the State law after the date on which the first advance taken into account in determining the amount of the potential additional taxes was made (or, if later, after the date of the enactment of this subsection) and such net increase equals or exceeds the potential additional taxes for such taxable year. "(3) DEFINITIONS.—For purposes of paragraph (2)— "(A) POTENTIAL ADDITIONAL TAXES.—The term 'potential additional taxes' means, with respect to any State for any taxable year, the aggregate amount of the additional tax which would be payable under this chapter for such taxable year by all taxpayers subject to the unemployment compensation law of such State for such taxable year if paragraph (2) of subsection (c) had applied to such taxable year and any preceding taxable year without regard to this subsection but with regard to subsection (f). "(B) TREATMENT OF CERTAIN REDUCTIONS.—Any reduction

in the State's balance under section 901(d)(1) of the Social Security Act shall not be treated as a repayment made by 42 USC 1101. such State. "(4) REPORTS.—The Secretary of Labor may require a State to furnish such information at such time and in such manner as may be necessary for purposes of paragraph (2)." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 3302 shall apply to taxable years beginning after December 31, 1982. ^°^SEC. 273. LIMITATION ON FIFTH YEAR CREDIT REDUCTION.

(a) GENERAL RULE.—Paragraph (2) of section 3302(c) (relating to 26 USC 3302. limit on total credits) is amended by adding at the end thereof the following new sentence: "Subparagraph (C) shall not apply with respect to any taxable year to which it would otherwise apply (but subparagraph (B) shall apply to such taxable year) if the Secretary of Labor determines (on or before November 10 of such taxable year) that the State meets the requirements of subsection (f)(2)(B) for such taxable year." (b) EFFECTIVE DATE.—The amendment made by subsection (a) 26 USC 3302 shall apply to taxable years beginning after December 31, 1982. "°*®SEC. 274. DEFERRAL OF INTEREST IN CASE OF CERTAIN STATES WITH HIGH UNEMPLOYMENT RATES.

(a) GENERAL RULE.—Paragraph (3) of section 1202(b) of the Social Security Act is amended by adding at the end thereof the following 95 Stat. 879. new subparagraph: '^2 USC 1322.

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