PUBLIC LAW 94-401—SEPT. 7, 1976 (3) For purposes of this subsection— (A) 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 title X X of the Social Security Act; and (B) the term "Federal welfare recipient employment expenses" means expenses of a qualified provider of child day care services which constitute Federal welfare recipient employment incentive expenses as defined in section SOB (a)(2) of the Internal Revenue Code of 1954, or which would constitute Federal welfare recipient employment incentive 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 Code. (d)(1) In the administration of title X X of the Social Security Act, the figure "75", as contained in the first sentence of section 2002 (a)(1) of such Act, shall, subject to paragraph (2), be deemed to read "100" for purposes of applying such sentence to expenditures made by a State for the provision of child day care services during the fiscal year ending September 30, 1977. (2) The total amount of Federal payments which may be paid to any State for such fiscal year under title X X of the Social Security Act at the rate specified in paragraph (1) shall not exceed an amount equal to the excess (if any) of— (A) the amount by which such State's limitation (as referred to in subsection (a)) is increased pursuant to such sulDsection for such year, over (B) the aggregate of the amounts of the grants, made by the State during such year, to which the provisions of subsection (c)(1) are applicable. SEC. 4. (a) Section 50A(a) of the Internal Revenue Code of 1954 (relating to amount of credit for work incentive program expenses) is amended— (1) by adding at the end of paragraph (2) the following new sentence: "The preceding sentence shall not apply to so much of the credit allowed by section 40 as is attributable to Federal welfare recipient employment incentive expenses described in subsection (a)(6)(B).", and (2) by striking out paragraph (6) and inserting in lieu thereof the following: "(6) EES.—
90 STAT. 1217 Definitions.
42 USC 1397.
26 USC SOB. 26 USC 40. 42 USC 1397a.
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26 USC 50A.
LIMITATION WITH RESPECT TO CERTAIN ELIGIBLE EMPLOY" (A)
NONBUSINESS ELIGIBLE EMPLOYEES.—Notwithstanding
paragraph (1), the credit allowed by section 40 with respect 26 USC 40. to Federal welfare recipient employment incentive expenses paid or incurred by the taxpayer during the taxable year to an eligible employee whose services are not performed in connection with a trade or business of the taxpayer shall not exceed $1,000.
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