A bill to extend for one year the provisions of law relating to the business expenses of state legislators.
PL 96-178 (H.R.3091), enacted 01/02/1980

PUBLIC LAW 96-178—JAN. 2, 1980 
93 STAT. 1295 
Public Law 96-178 
96th Congress 
An Act 
To extend for one year the provisions of law relating to the business expenses of 
State legislators. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, That subsections (a) 
and (d) of section 604 of the Tax Reform Act of 1976 (PubHc Law 
94-455) are each amended by striking out "January 1, 1978" and 
inserting in Ueu thereof "January 1,1979". 
CHILD SUPPORT ENFORCEMENT 
Jan. 2, 1980 
[H.R. 3091] 
State legislators' 
business 
expenses, 
provisions of 
law, extension. 
26 u s e 162 note. 
SEC. 2. (a) Section 455(a) of the Social Security Act is amended— 42 use 655. 
(1) by striking out the semicolon at the end of paragraph (2) and 
inserting in lieu of such semicolon a period, and 
(2) by striking out all that follows paragraph (2). 
(b) This section shall become effective on the date of the enactment 
of this Act, and shall apply with respect to services furnished during 
the period beginning October 1, 1978, and ending March 31, 1980. 
Effective date. 
42 u s e 655 note. 
WIN CREDIT 
SEC. 3. (a)(1) Section SOB of the Internal Revenue Code of 1954 is 26 use 5
0
B 
amended by redesignating subsection (i) as subsection 0) and by 
adding after subsection (h) the following new subsection: 
"(i) SPECIAL RULES WITH RESPECT TO EMPLOYMENT OF DAY CARE 
WORKERS.— 
"(1) EuGiBLE EMPLOYEE.—An individual who would be an 
'eligible employee' (as that term is defined for purposes of this 
section) except for the fact that such individual's employment is 
not on a substantially full-time basis, shall be deemed to be an 
eligible employee as so defined, if such employee's employment 
consists of services performed in connection with a child day care 
program of the taxpayer, on either a full-time or part-time basis. 
"(2) ALTERNATIVE UMITATION WITH RESPECT TO CHILD DAY CARE 
S
E
R
V
I
C
E
S EUGIBLE EMPLOYEES.—The amount of the credit allowed 
a taxpayer under the preceding provisions of this section with 
respect to work incentive program expenses paid or incurred by 
him with respect to an eligible employee whose services are 
performed in connection with a child day care services program 
conducted by the taxpayer shall, at the election of the taxpayer, 
be determined by including (in computing the amount of such 
expenses so paid or incurred by him) any amount with respect to 
such employee for which he was reimbursed from funds made 
available pursuant to section 3(c) of Public Law 94-401 or section 
2007 of title XX of the Social Security Act, except that, if the total 
amount of such credit, as so computed, plus such amount reim-
bursed to him under such sections, exceeds the lesser of $6,000 or 
100 percent of the total expenses paid or incurred by him with 
respect to such employee, the amount of such credit shall be 
42 u s e 1397a 
note. 
42 u s e 1397f. 
93 STAT. 1296 
PUBLIC LAW 96-178—JAN. 2, 1980 
Effective date. 
26 u s e 50B 
note. 
26 u s e SOB. 
91 Stat. 1353; 
92 Stat. 2763. 
42 u s e 1397a 
note. 
Effective date. 
42 u s e 1397a 
note. 
42 u s e 1397a. 
42 u s e 1397f. 
42 u s e 1397e-l. 
reduced (but not below zero) so as to provide that such total does 
not exceed the lesser of 
$6,000 or 100 percent of 
the total expenses 
paid or incurred by him with respect to such employee.". 
(2) The amendment made by paragraph (1) shall become effective 
on the date of the enactment of this Act, and shall apply with respect 
to taxable years beginning after December 31, 1978, and before 
January 1,1980. 
(3) Section 50B(a)(2)(B) of the Internal Revenue Ck)de of 1954 as in 
effect prior to amendment by the Revenue Act of 1978 is amended, 
effective October 1, 1978, by striking out "October 1, 1978" and 
inserting in lieu thereof "January 1,1979". 
(b) Paragraphs (1) and (2)(A) of section 3(c) of Public Law 94-401 are 
each amended by striking out "(other than the fiscal year ending 
September 30,1979)". 
(c) Paragraphs (1) and (3)(B) of section 3(c) of Public Law 94-401 are 
each amended by striking out "Federal welfare recipient employ-
ment incentive expenses" each time it appears and inserting in lieu 
thereof in each instance "work incentive program expenses". 
(d) Section 3(c)(3)(B) of 
Public Law 94-401 is amended— 
(1) by striking out "Federal welfare recipient employment 
expenses" and inserting in lieu thereof "work incentive program 
expenses"; and 
(2) by striking out "section 50B(a)(2)" and inserting in lieu 
thereof "section 50B(a)(l)". 
(e) Section 3(cX2XB) of Public Law 94-401 is amended— 
(1) by striking out "$5,000" and inserting in lieu thereof 
"$6,000"; and 
(2) by striking out "$4,000" and inserting in lieu thereof 
"$5,000". 
(fKD The amendments made by subsection (b) shall become effec-
tive on the date of the enactment of this Act, and shall apply with 
respect to grants made to qualified providers of child day care 
services on or after October 1,1978. 
(2) The amendments made by subsections (c), (d), and (e) shall 
become effective on the date of the enactment of this Act, and shall 
apply with respect to expenses paid or incurred after December 31, 
1978. 
CHILD DAY CARE SERVICES 
SEC. 4. (a) Section 2002(a)(1) of the Social Security Act is amended 
by inserting "100 per centum of the expenditures during that quarter 
(which are not in excess of 2 per centum of the limitation applicable 
to that State under paragraph (2)(A) for the fiscal year in which such 
quarter occurs) for grants to qualified providers under section 2007," 
after "an amount equal to". 
(b) Title XX of such Act is amended by redesignating section 2007 as 
section 2008 and inserting after section 2006 the following new 
section: 
"CHILD DAY CARE SERVICES 
"SEC. 2007. (a) Subject to subsection (b), sums granted by a State to a 
qualified provider of child day care services (as defined in subsection 
(c)) to assist such provider in meeting its work incentive program 
expenses (as defined in subsection (c)) with respect to individuals 
employed in jobs related to the provision of child day care services in 
one or more child day care facilities of such provider, shall be deemed 
for purposes of section 2002 to constitute expenditures made by the 
PUBLIC LAW 96-178—JAN. 2, 1980 
93 STAT. 1297 
State in accordance with the provisions of this title for the provision 
of 
child day care services. 
"(b) The provisions of subsection (a) shall not be applicable with 
respect to any grant made to a particular qualified provider of child 
day care services to the extent that (as determined by the Secretary) 
such grant is or will be used to pay wages to any employee at an 
annuEd rate in excess of $6,000, in the case of a public or nonprofit 
private provider, or at an annual rate in excess of $5,000, or to pay 
more than 80 per centum of the wages of any employee, in the case of 
any other provider. 
"(c) For purposes of 
this subsection— 
"(1) the term 'qualified provider of child day care services', 
when used in reference to a recipient of a grant by a State, 
includes a provider of such services only if, of the total number of 
children receiving such services from such provider in the 
facility with respect to which the grant is made, at least 20 per 
centum thereof have some or all of the costs for the child day care 
services so furnished to them by such provider paid for under the 
State's services program conducted pursuant to this title; and 
"(2) the term 'work incentive program expenses' means ex-
penses of a qualified provider of child day care services which 
constitute work incentive program expenses as defined in section 
50B(a)(l) of the Internal Revenue Code of 1954, or which would 
constitute work incentive program expenses as so defined if the 
provider were a taxpayer entitled to a credit (with respect to the 
wages involved) under section 40 of such Clode.". 
(c) Sections 2002(a)(4)(C), 2002(a)(4)(D), and 2002(a)(5)(A) of such Act 
are each amended by striking out "2007(1)" and inserting in lieu 
thereof "2008(1)". 
(d) The amendments made by this section shall become effective on 
the date of the enactment of this Act, and shall apply with respect to 
grants made to qualified providers of child day care services during 
the period beginning October 1, 1979, and ending March 31, 1980. 
Definitions. 
26 u s e SOB. 
26 u s e 40. 
42 u s e 1397a. 
Effective date. 
42 u s e 1397e-l 
note. 
EXTENSION OF PROVISIONS RELATING TO ALCOHOUCS AND DRUG 
ADDICTS 
SEC. 5. (a) Section 4(c) of Public Law 94-120 is amended by striking 
out "only for the period" and all that follows and inserting in lieu 
thereof "from and after October 1,1975.". 
(b) The amendment made by subsection (a) shall become effective 
on the date of the enactment of this Act, and shall apply with respect 
to services provided during the period beginning October 1,1978, and 
ending March 31,1980. 
42 u s e 1397a 
note. 
Effective date. 
42 u s e 1397a 
note. 
AMENDMENTS RELATED TO SECTION 322 OF THE REVENUE ACT OF 1978 
SEC. 6. (a) Paragraph (1) of section 322(e) of the Revenue Act of 1978 92 Stat. 2836. 
(relating to effective date) is amended by adding at the end thereof 26 use 5
0
A note;. 
the following new sentence: "For purposes of applying section 
50A(a)(2) of the Internal Revenue Code of 1954 with respect to a 26 use 50A. 
taxable year beginning before January 1,1979, the rules of sections 
50A(a)(4), 50A(a)(5), and 50B(e)(3) of such Code (as in effect on the day 2
6 use 50B. 
before the date of 
the enactment of this Act shall apply.". 
(b) Subparagraph (B) of section 322(e)(2) of the Revenue Act of 1978 
(relating to eligible employees hired after September 26, 1978) is 
amended— 
59-194 0 — 81 
84 : QL3 
93 STAT. 1298 
PUBLIC LAW 96-178—JAN. 2, 1980 
(1) by striking out "September 27,1978," and inserting in lieu 
thereof "September 26,1978, for purposes of 
applying the amend-
ments made by this section,"; and 
(2) by striking out "January 1, 1979." and inserting in lieu 
thereof "January 1,1979, and any wages paid or incurred after 
December 31, 1978, with respect to such individual shall be 
considered to be attributable to services rendered after that 
date.". 
26 use 50A. 
(c)(1) Subparagraph (C) of section 50A(a)(4) of 
the Internal Revenue 
Code of 1954 (relating to limitation with respect to nonbusiness 
eligible employees) is amended by striking out " '$6,000* and" and 
inserting in lieu thereof " '$6,000' for". 
26 use 50B. 
(2) Subparagraph (B) of 
section 50B(g)(2) of 
such Code is amended by 
striking out giving to such credit" and inserting in lieu thereof 
"giving rise to such credit". 
(3) Clause (i) of section 50B(h)(l)(A) of such Code is amended by 
striking out "9-day" and inserting in lieu thereof "90-day". 
92 Stat. 2836. 
(4) The second subsection designated as subsection (d) of 
section 322 
26 use 28oe. 
of the Revenue Act of 1978 is amended by striking out "our" in 
paragraph (1)(A) thereof and inserting in lieu thereof'x)ut". 
Effective date. 
(d) Any amendment made by this section to the Revenue Act of 
2
6 use 5
0
A note, jg-jg gj^^ll take effect as if it had been included in the provision of 
the 
Revenue Act of 1978 to which such amendment relates. 
Approved January 2, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-63 (eomm. on Ways and Means) and No. 96-718 (Oomm. of 
eonference). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
Mar. 27, considered and passed House. 
Mar. 28, considered and passed Senate, amended. 
Dec. 19, House agreed to conference report. 
Dec. 20, Senate agreed to conference report.