Page:United States Statutes at Large Volume 110 Part 3.djvu/43

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PUBLIC LAW 104-188—AUG. 20, 1996 110 STAT. 1773 beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.". (b) LIMITATION TO EDUCATION BELOW GRADUATE LEVEL.—The last sentence of section 127(c)(1) is amended by inserting before the period the following: ", and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree". (c) EFFECTIVE DATES. — 26 USC 127 note. (1) EXTENSION.— The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1994. (2) GRADUATE EDUCATION.— The amendment made by subsection (b) shall apply with respect to expenses relating to courses beginning after June 30, 1996. (3) EXPEDITED PROCEDURES.—The Secretary of the Treasury shall establish expedited procedures for the refund of any overpayment of taxes imposed by the Internal Revenue Code of 1986 which is attributable to amounts excluded from gross income during 1995 or 1996 under section 127 of such Code, including procedures waiving the requirement that an employer obtain an employee's signature where the employer demonstrates to the satisfaction of the Secretary that amy refund collected by the employer on behalf of the employee will be paid to the employee. SEC. 1203. FUTA EXEMPTION FOR ALIEN AGRICULTURAL WORKERS. (a) IN GENERAL. —Subparagraph (B) of section 3306(c)(1) (defining employment) is amended by striking "before January 1, 1995,". (b) EFFECTIVE DATE.— The amendment made by subsection (a) shall apply to services performed after December 31, 1994. SEC. 1204. RESEARCH CREDIT. (a) IN GENERAL.— Subsection (h) of section 41 (relating to credit for research activities) is amended to read as follows: "(h) TERMINATION.— "(1) IN GENERAL.— T his section shall not apply to any amount paid or incurred— "(A) after June 30, 1995, and before July 1, 1996, or "(B) after May 31, 1997. Notwithstanding the preceding sentence, in the case of a taxpayer making an election under subsection (c)(4) for its first taxable year beginning after June 30, 1996, and before July 1, 1997, this section shall apply to amounts paid or incurred: during the first 11 months of such taxable year. "(2) COMPUTATION OF BASE AMOUNT.—In the case of any taxable year with respect to which this section applies to a number of days which is less than the total number of days in such taxable year, the base amount with respect to such taxable year shall be the amount which bears the same ratio ' to the base amount for such year (determined without regard to this paragraph) as the number of days in such taxable year to which this section applies bears to the total number of days in such taxable year.". (b) BASE AMOUNT FOR START-UP COMPANIES. — Clause (i) of section 41(c)(3)(B) (relating to start-up companies) is amended to read as follows: