PUBLIC LAWS-CH. 666 -AUG. 10 , 1939 "(4) Upon the payment of contributions into the unemploy- ment fund of a State which are required under the unemployment compensation law of that State with respect to remuner- ation on the basis of which, prior to such payment into the proper fund, the taxpayer erroneously paid an amount as con- tributions under another unemployment compensation law, the payment into the proper fund shall, for purposes of credit against the tax, be deemed to have been made at the time of the erroneous payment. If, by reason of such other law, the taxpayer was entitled to cease paying contributions with respect to services subject to such other law, the payment into the proper fund shall, for purposes of credit against the tax, be Ante, p. 186; post, deemed to have been made on the date the return for the taxable p. 1391. PI. . C. 1604. year was filed under section 1604. "(5) Refund of the tax (including penalty and interest col- lected with respect thereto, if any), based on any credit allowable under this section, may be made in accordance with the provi- sions of law applicable in the case of erroneous or illegal collec- tion of the tax. No interest shall be allowed or paid on the amount of any such refund. Additionalcredit. "(b) ADDITIONAL CREDIT.-In addition to the credit allowed under subsection (a), a taxpayer may credit against the tax imposed by Ante, pp . 183, 1387 . section 1600 for any taxable year an amount, with respect to the 1.R. C. 1600. unemployment compensation law of each State certified for the tax- Infra. able year as provided in section 1602 (or with respect to any provi- sions thereof so certified), equal to the amount, if any, by which the contributions required to be paid by him with respect to the taxable year were less than the contributions such taxpayer would have been required to pay if throughout the taxable year he had been subject under such State law to the highest rate applied there- under in the taxable year to any person having individuals in his employ, or to a rate of 2.7 per centum, whichever rate is lower. Limit on totalcred- "t(C) LIMIT ON TOTAL CREDITs. - The total credits allowed to a taxpayer under this subchapter shall not exceed 90 per centum of the tax against which such credits are allowable." in.R. § I2. SEC. 610. (a) Section 1602 of the Internal Revenue Code is amended to read as follows: "SEC. 1602. CONDITIONS OF ADDITIONAL CREDIT ALLOWANCE. State standards. "(a) STATE STANDARDS.- A taxpayer shall be allowed an additional Supr a . credit under section 1601 (b) with respect to any reduced rate of con- tributions permitted by a State law, only if the Board finds that under such law- "(1) No reduced rate of contributions to a pooled fund or to a partially pooled account, is permitted to a person (or group of persons) having individuals in his (or their) employ except on the basis of his (or their) experience with respect to unemploy- ment or other factors bearing a direct relation to unemployment risk during not less than the three consecutive years immediately preceding the computation date; "(2) No reduced rate of contributions to a guaranteed employ- ment account is permitted to a person (or a group of persons) having individuals in his (or their) employ unless (A) the guar- anty of remuneration was fulfilled in the year preceding the computation date; and (B) the balance of such account amounts to not less than 21/2 per centum of that part of the pay roll or pay rolls for the three years preceding the computation date by which contributions to such account were measured; and (C) such con- tributions were payable to such account with respect to three years preceding the computation date; 1388 [53 STAT.
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