306
PUBLIC LAW 88-173-NOV. 7, 1963
[77 STAT.
reduction provided by the first sentence of this paragraph shall not apply for such taxable year." Effective date. (d) The amendments made by subsections (a), (b), and (c) of this section shall apply only with respect to taxable years beginning on or after January 1, 1963. SEC. 2. Section 104 of the Temporary Unemployment Compensa72 Stat. 173; liou Act of 1958, as amended (42 U.S.C. 1400c), is amended to read 74 Stat. 982.
Ante, p. 51. 26 USC 3301.
6 8 Stat. 1130. 136142
1371
use
6 6 Stat. 684;
72 SI:at. 1217. 38 USC 2001 note,
26
use
3301.
68A Stat. 447. 26 USC 3306.
aS f olloWS:
"SEC. 104. The total credits allowed under section 3302(c) of the Federal Unemployment Tax Act (26 U.S.C. 330£(c)) to taxpayers with respect to wages attributable to a State shall be reduced— "(1) for the taxable year beginning on January 1, 1963, by 5 percent of the tax imposed by section 3301 of the Federal Unemployment Tax Act, and "(2) for any succeeding taxable year, by 10 percent of the tax imposed by said section 3301, unless and until the Secretary of the Treasury finds that before November 10 of the taxable year there have oeen restored to the Treasury the amounts of temporary unemployment compensation paid in the State under this Act (except amounts paid to individuals who exhausted their unemployment compensation under title X V of the Social Security Act and title IV of the Veterans' Readjustment Assistance Act of 1952 prior to their making their first claims under this Act), the amount of costs incurred in the administration of this Act with respect to the State, and the amount estimated by the Secretary of Labor as the State's proportionate share of other costs incurred in the administration of this Act. I n applying clau^s (1) and (2) of the preceding sentence, the tax imposed by section 3301 of the Federal Unemployment Tax Act shall be computed at the rate of 3 percent in lieu of the rate provided by such section. A t the request (made before November 1 of the taxable year) of the Governor of any State, the Secretary of Labor shall, as soon as practicable after June 30 or (if later) the date of the receipt of such request, certify to such Governor and to the Secretary of the Treasury the amount he estimates for the taxable year beginning on January 1, 1963, equals .15 percent (and for any succeeding taxable year equals.3 percent) of the total of the remuneration which would have been subject to contributions under the State unemployment compensation law with respect to the calendar year preceding such certification if the dollar limit on remuneration subject to contributions under such law were equal to the dollar limit under section 3306(b)(1) of the Federal Unemployment Tax Act for such calendar year. If, aft«r receiving gy(.]^ Certification and before November 10 of the taxable year, the State restores to the general fund of the Treasury the amount so certified (and designates such restoration as being made for purposes of this sentence), the reduction provided by the first sentence of this section shall not apply for such taxable year." Approved November 7, 1963.
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