90 STAT. 1218
PUBLIC LAW 94-401—SEPT. 7, 1976 "(B)
26 USC 40.
26 USC SOB.
26 USC 50A note.
42 USC 1397a.
Waiver.
Effective date. 42 USC 1397a note.
CHILD DAY CARE SERVICES ELIGIBLE EMPLOYEES.—Not-
withstanding paragraph (1), the credit allowed by section 40 with respect to Federal welfare recipient employment incentive expenses paid or incurred by the taxpayer during the taxable year to an eligible employee whose services are performed in connection with a child day care services program, conducted by the taxpayer, shall not exceed $1,000.". (b) Section 50B(a)(2) of such Code (relating to definitions; special rules) is amended to read as follows: " (2) DEFINITIONS.—For purposes of this section, the term 'Federal welfare recipient employment incentive expenses' means the amount of wages paid or incurred by the taxpayer for services rendered to the taxpayer by an eligible employee— "(A) before July 1, 1976, or "(B) in the case of an eligible employee whose services are performed in connection with a child day care services program of the taxpayer, before October 1, 1977.". (c) The amendments made by this section with respect to Federal welfare recipient employment incentive expenses paid or incurred by the taxpayer to an eligible employee whose services are performed in connection with a child day care services program of the taxpayer shall apply to such expenses paid or incurred by a taxpayer to an eligible employee whom such taxpayer hires after the date of the enactment of this Act. SEC. 5. (a) Section 2002(a)(9)(A) (ii) of the Social Security Act is amended— (1) by striking out "and" at the end of clause ( II), and (2) by adding after the comma at the end of clause ( III) the following: "(IV) the State agency may waive the staffing standards otherwise applicable in the case of a day care center or group day care home in which not more than 20 per centum of the children in the facility (or, in the case of a day care center, not more than 5 children in the center) are children whose care is being paid for (wholly or in part) from funds made available to the State under this title, if such agency finds that it is not feasible to furnish day care for the children, whose care is so paid for, in a day care facility which complies with such staffing standards, and if the day care facility providing care for such children complies with applicable State standards, and (V) in determining whether applicable staffing standards are met in the case of day care provided in a family day care home, the number of children being cared for in such home shall include a child of the mother who is operating the home only if such child is under age 6,". (b) The amendments made by subsection (a) shall, insofar as such amendments add a new clause (V) to section 2002(a)(9)(A)(ii) of the Social Security Act, be effective for the period beginning October 1, 1975, and ending September 30, 1977; and on and after October 1, 1977, section 2002(a)(9)(A) (ii) of the Social Security Act shall read as it would if such amendments had not been made.
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