ELECTION OF LOCAL GOVERNMENTS TO USE REIMBURSEMENT METHOD.

SEC. 506. ELECTION OF LOCAL GOVERNMENTS TO USE REIMBURSEMENT METHOD. (a) In General.—Paragraph (2) of section 3309(a) of the Internal Revenue Code of 1954 (relating to State law requirements) is amended— (1) by striking out “an organization” and inserting in lieu thereof “a governmental entity or any other organization”, (2) by striking out “paragraph (1) (A)” and inserting in lieu thereof “paragraph (1) ”, and (3) by striking out “that organizations” and inserting in lieu thereof “that governmental entities or other organizations”, (b) Technical Amendment.—Subparagraph (B) of section 3304 (a)(6) of such Code is amended by striking out “section 3309(a)(1)(A)” and inserting in lieu thereof “section 3309(a)(1)”. (c) Effective Date.—The amendments made by this section shall apply with respect to certifications of States for 1978 and subsequent vears, but only with respect to services performed after December 31, 1977.