ADDITIONAL CREDIT BASED ON REDUCED RATE FOR NEW EMPLOYERS.

SEC. 122. ADDITIONAL CREDIT BASED ON REDUCED RATE FOR NEW EMPLOYERS. (a) Section 3303(a) of the Internal Revenue Code of 1954 is amended by striking out “on a 3year basis,” in the sentence following paragraph (3) and inserting in lieu thereof “on a 3year basis (i)” and by striking out. the period at the end of such sentence and inserting in lieu thereof “, or (ii) a reduced rate (not less than 1 percent) may be permitted by the State law on a reasonable basis other than as permitted by paragraph (1), (2), or (3).” (b) The amendments made by subsection (a) shall apply with respect to taxable years beginning after December 31, 1971.