Page:United States Statutes at Large Volume 97.djvu/178

 97 STAT. 146 PUBLIC LAW 98-21 —APR. 20, 1983 42 USC 1322. (c) Section 1202(b)(3)(C)(i) of the Social Security Act is amended by striking the matter that follows clause (II) and inserting "No inter- est shall accrue on such deferred interest." CAP ON CREDIT REDUCTION SEC. 512. (a)(1) Section 3302(f) of the Internal Revenue Code of 26 USC 3302. 1954 is amended by adding at the end thereof the following new paragraph: " (8) PARTIAL LIMITATION. — "(A) In the case of a State which would meet the require- ments of this subsection for a taxable year prior to 1987 but for its failure to meet one of the requirements contained in subparagraph (C) or (D) of paragraph (2), the reduction under subsection (c)(2) in credits otherwise applicable to taxpayers in such State for such taxable year and each subsequent year (in a period of consecutive years for each of which a credit reduction is in effect for taxpayers in such State) shall be reduced by 0.1 percentage point. "(B) In the case of a State which does not meet the requirements of paragraph (2) but meets the requirements of subparagraphs (A) and (B) of paragraph (2) and which also meets the requirements of section 1202(b)(8)(B) of the Ante, p. 144. Social Security Act with respect to such taxable year, the reduction under subsection (c)(2) in credits otherwise appli- cable to taxpayers in such State for such taxable year and each subsequent year (in a period of consecutive years for each of which a credit reduction is in effect for taxpayers in such State) shall be further reduced by an additional 0.1 percentage point. "(C) In no case shall the application of subparagraphs (A) and (B) reduce the credit reduction otherwise applicable under subsection (c)(2) below the limitation under para- graph (1)." Effective date. (2) The amendment made by paragraph (1) shall apply with nnfY respect to taxable year 1983 and taxable years thereafter. (b) Section 3302(f)(1) of such Code is amended by striking out "beginning before January 1, 1988,". note. AVERAGE EMPLOYER CONTRIBUTION RATE 26 USC 3302. SEC. 513. (a) Section 3302(d)(4)(B) of the Internal Revenue Code of 1954 is amended to read as follows: "(B)(i) for purposes of subparagraph (B) of subsection (c)(2), the total of the wages (as determined without any limitation on amount) attributable to such State subject to contributions under this chapter with respect to such calen- dar year, and "(ii) for purposes of subparagraph (C) of subsection (c)(2), the total of the remuneration subject to contributions under the State unemployment compensation law with respect to such calendar year." (b) Section 3302(c)(2)(B)(i) of such Code is amended by striking out "2.7" and inserting in lieu thereof "2.7 multiplied by a fraction, the numerator of which is the wage base under this chapter and the denominator of which is the estimated United States average

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