DEDUCTIBILITY OF ACCRUED VACATION PAY.

SEC. 97. DEDUCTIBILITY OF ACCRUED VACATION PAY. Deduction under section 162 of the Internal Revenue Code of 1954 for accrued vacation nay, computed in accordance with the method of accounting consistently followed by the taxpayer in arriving at such deduction, shall not be denied for any taxable year ending before January 1, 1961, solely by reason of the fact that (1) the liability for the vacation pay to a specific person has not been clearly established, or (2) the amount of the liability to each individual is not capable of computation with reasonable accuracy, if at the time of the accrual the employee in respect of whom the vacation pay is accrued has performed the qualifying service necessary under a plan or policy (communicated to the employee before the beginning of the vacation year) which provides for vacations with pay to qualified employees.