text:
Page:United States Statutes at Large Volume 91.djvu/151

 PUBLIC LAW 95-28—MAY 13, 1977

91 STAT. 117

factured articles, materials, and supplies as have been manufactured in the United States substantially all from articles, materials, and supplies mined, produced, or manufactured, as the case may be, in the United States, will be used in such project. "(B) Subparagraph (A) of this paragraph shall not apply in any case where the Secretary determines it to be inconsistent with the public interest, or the cost to be unreasonable, or if articles, materials, or supplies of the class or kind to be used or the articles, materials, or supplies from which they are manufactured are not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality. "(2) Except to the extent that the Secretary determines otherwise, Grant allocation no grant shall be made under this Act for any local public works proj- requirements. ect unless the applicant gives satisfactory assurance to the Secretary that at least 10 per centum of the amount of each grant shall be expended for minority business enterprises. For purposes of this para- "Minority graph, the term 'minority business enterprise' means a business at business least 50 per centum of which is owned by minority group members enterprise." or, in case of a publicly owned business, at least 51 per centum of the stock of which is owned by minority group members. For the purposes Minority group of the preceding sentence, minority group members are citizens of the members. United States who are Negroes, Spanish-speaking, Orientals, Indians, Eskimos, and Aleuts. "(g) No grant shall be made under this Act for any project for Accessibility which the applicant does not give assurances satisfactory to the Sec- standards for retary that the project will be designed and constructed in accordance handicapped and with the standards for accessibility for public buildings and facilities elderly. to the handicapped and elderly under the Act entitled 'An Act to insure that certain buildings financed with Federal funds are so designed and constructed as to be accessible to the physically handicapped', approved August 12, 1968 (42 U.S.C. 4151 et seq.). The Architectural and Transportation Barriers Compliance Board established by the Kehabilitation Act of 1973 (P.L. 93-112) is authorized 29 USC 701 note. to insure that any construction and renovation done pursuant to any grant made under this Act complies with the accessibility standards oVd for public bunldings and facilities issued under the Act of August 12, 1968.". SEC. 104. Section 107 of the Local Public Works Capital Develop- Employment of ment and Investment Act of 1976 is amended by inserting after the disabled third sentence thereof the following new sentence: "The Secretary, in veterans, regulations. consultation with the Secretary of Labor, and consistent with existing 42 USC 6706. applicable collective bargaining agreements and practices, shall promulgate regulations to assure special consideration to the employment in projects under this Act of qualified disabled veterans (as defined in section 2011(1) of title 38, United States Code) and qualified Vietnam-era veterans (as defined in section 2011(2)(A) of such title 38).". SEC. 105. Subsection (a) of section 108 of the Local Public Works Funds, allocation. Capital Development and Investment Act of 1976 is amended to read 42 USC 6707. as follows: "(a) The Secretary shall allocate funds appropriated after the date of enactment of the Public Works Employment Act of 1977 Post, p. 119. under section 111 of this Act as follows: "(1) 214 per centum of such funds shall be set aside and shall be expended only for grants for public works projects under this Act to Indian tribes and Alaska Native villages. None of the

�


text:
Page:United States Statutes at Large Volume 91.djvu/152

 91 STAT. 118

•

•

,

' '-;" ' ' '' '

 * 3ir
 * 3ir

., 42 USC 6707.

 * c

" '^'' 'j^

' Waiver.

^ "'

PUBLIC LAW 95-28—MAY 13, 1977 remainder of such funds shall be expended for such grants to such tribes and villages. "(2) After the set aside required by paragraph (1) of this subsection, $70,000,000 shall be set aside and expended only for grants for any public works project the application for a grant for which was made under this Act after the date of enactment of this Act and before December 24, 1976, and which application was not received, was not considered, or was rejected solely because of an error by an officer or employee of the United States. Any allocation made to an applicant pursuant to regulation shall be reduced by the amount of any grant made to such applicant under this paragraph. "(3) After the set asides required by paragraphs (1) and (2) of this subsection, 65 per centum of such funds shall be allocated among the States on the basis of the ratio that the number of unemployed persons in each State bears to the total number of unemployed persons in all the States and 35 per centum of such funds shall be allocated among those States with an average unemployment rate for the preceding twelve-month period in excess of 6.5 per centum on the basis of the relative severity of unemployment in each such State, except that (A) no State shall be allocated less than three-quarters of one per centum or more than 1214 per centum of such funds for local public works projects within such State, except that in the case of Guam, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands, not less than one-half of one per centum in the aggregate shall be granted for such projects in all four of these jurisdictions, and (B) no State whose unemployment data was converted for the first time in 1976 to the benchmark data of the current population survey annual average compiled by the Bureau of Labor Statistics shall receive a percentage of such funds less than the percentage of funds allocated to such State under this Act from funds appropriated to carry out this Act prior to the date of enactment of the Public Works Employment AJct of 1977.". SEC. 106. Subsection (b) of section 108 of the Local Public Works Capital Development and Investment Act of 1976 is amended by— (1) inserting " (1) " immediately after " (b) "; and (2) adding at the end thereof the following new paragraphs: "(2) In making grants for projects for construction, renovation, repair, or other improvement of buildings, the Secretary shall also give consideration as between such building projects to those projects which will result in conserving energy, including, but not limited to, projects to redesign and retrofit existing public facilities for energy conservation purposes, and projects using alternative energy systems, " (3) In making grants under this Act, the Secretary shall also give priority and preference to any public works project requested by a State or by a special purpose unit of local government which is endorsed by a general purpose local government within such State. "(4) A project requested by a school district shall be accorded the full priority and preference to public works projects of local governments provided in section 108(b) of this Act.". SEC. 107. (a) The first sentence of subsection (c) of section 108 of the Local Public Works Capital Development and Investment Act of 1976 is amended by striking out "three most recent consecutive months" each place it appears and inserting in lieu thereof at each such place "twelve most recent consecutive months". (b) Subsection (c) of section 108 of such Act is amended by adding

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 91.djvu/153

 PUBLIC LAW 95-28—MAY 13, 1977 at the end thereof the following new sentence: "The Secretary may waive the application of the first sentence of this subsection to any State which receives a minimum allocation pursuant to paragraph (3) of subsection (a) of this section." (c) Subsection (d) of section 108 of such Act is amended to read as follows: "(d) Whenever a State or local government submits applications for grants under this Act for two or more projects, such State or local government shall submit as part of such applications its priority for each such pioject.". (d) Subsection (e) of section 108 of such Act is amended by striking out "of direct benefit to," and all that follows down through and including the period at the end of the sentence and inserting in lieu thereof: "to be constructed in such community or neighborhood.". . (e) Subsection (f) of section 108 of such Act is hereby repealed. (f) Section 108 of such Act is amended by adding at the end thereof the following new subsections: "(h)(1) Except as provided in paragraph (2) of this subsection, the Secretary shall not consider or approve or make a grant for any project for which any application was not submitted for a grant under this Act on or before December 23, 1976. " (2) The Secretary may receive applications for grants for projects under this Act— "(A) from the Trust Territory of the Pacific Islands; f "(B) from Indian tribes and Alaska Native villages; "(C) from any applicant to use any allocation which may be made pursuant to regulation, to the extent necessary to expend such allocation, if a sufficient number of applications were not submitted on or before December 23, 1976, to use such allocation. "(i) The Secretary may allow any applicant which has received a grant for a project under this Act to substitute one or more projects for such project if in the judgment of the Secretary (1) the Federal cost in the aggregate of such substituted project or projects does not exceed such grant, (2) such substituted project or projects comply with section 106(d) of this Act, and (3) such substituted project or projects will in fact aid in alleviating drought or other emergency or disasterrelated conditions or damage. Section 106(a) of this Act shall not apply to projects substituted under this subsection. " (j) Notwithstanding subsection (h)(1) of this section, grants may be made from appropriations made under section 111 of this Act after September 30, 1977, to States or local governments for projects for the construction, renovation, repair, or other improvements of health care or rehabilitation facilities owned and operated by private nonprofit entities.". SEC. 108. The first sentence of section 109 of the Local Public Works Capital Development and Investment Act of 1976 is amended by striking out "by contractors or subcontractors". SEC. 109. Section 111 of the Local Public Works Capital Development and Investment Act of 1976 is amended by striking out ''$2,000,000,000 for the period ending September 30, 1977," and inserting in lieu thereof "$6,000,000,000 for the period ending December 31, 1978,". SEC. 110. (a) The Secretary of Commerce is authorized and directed to study public works investment in the United States and the implications for the future of recent trends in such investment. (b) The study authorized by this section shall include, but not be limited to, the following:

91 STAT. 119

42 USC 6707.

Repeal.

Ante, p. 118.

Post, p. 120.

42 USC 6708. 42 USC 6710.

Public works investment, study. 42 USC 6701 note.

�


text:
Page:United States Statutes at Large Volume 91.djvu/154

 91 STAT. 120

Report to Congress.

42 USC 6710 note.

Funds, prohibition. 42 USC 6710.

PUBLIC LAW 95-28—MAY 13, 1977 '• (1) The historical scope and n a t u r e of public works invest; 'f ment, including— • (A) shifts in the types of public facilities constructed over the last t h i r t y years and the implications of such shifts; • ' f' (B) the patterns of regional distribution of investment; (C) the role of the Federal Government, States, and local '' communities in funding public facilities; (D) the impact upon unemployment in minority groups. '' (2) The proportion of the gross national product devoted to public works investment over the last t h i r t y years. (3) Methods by which the aggregate need for public works can '• ' be determined. (4) H o w public works are financed and how financing arrangements affect the p a t t e r n and type of investment. (5) The level of maintenance or renovation of existing public facilities needed, compared to that provided. (c) The Secretary of Commence shall submit to Congress a report with respect to its findings and recommendations no later than eighteen months after the date of enactment of this section. A preliminary report p u t t i n g forth the study design shall be submitted to Congress within four months after the date of enactment of this section. SEC. 111. The Secretary of Agriculture and the Secretary of the Interior shall immediately initiate the construction of those Federal public works projects (A) which are the responsibility of their respective departments, (B) which have been authorized, and (C) which can be commenced within 60 days of the date of enactment of this section and completed no later than the 180th day after commencement of construction. No funds authorized by section 111 of the Local Public W o r k s Capital Development and Investment Act of 1976 (Public Law 94r-369) may be used to carry out this section. TITLE II—FEDERAL PUBLIC WORKS CONTINUATION

90 Stat. 889. 90 Stat. 851.

31 USC 1301 note. Budget deferrals and rescissions, exception.

PROJECTS

SEC. 201. The Congress hereby finds and declares that: (A) the construction projects listed in Public Law 94-355, the Public W o r k s for W a t e r and Power Development and Energy Research Appropriations Act, 1977, and in Public Law 94-351, the Agriculture and Related Agencies Program s Appropriations Act, 1977, represent the foundation of our national public works activity. Such projects are essential to the reduction of unemployment; (B) such projects provide long-term benefits to communities, to States, and to the entire Nation in terms of water management, flood control, navigation, recreation, and enhanced economic activity; and (C) such projects have been authorized by the Congress after protracted hearings and consideration extended over m any years. , Appropriations have been made and are being made pursuant , < thereto. I t is the judgment of Congress that such projects should not be discontinued except by following the legislative process r„ provided by the Constitution of the United States and the provisions of Public Law 93-344, the Congressional Budget and I m p o u n d m e n t Control Act of 1974. SEC. 202. Notwithstanding the deferral and rescission provisions of Public Law 93-344, all appropriations provided in Public Laws 94-355 and 94-351 for construction projects or for investigation, plan-

�


text:
Page:United States Statutes at Large Volume 91.djvu/155

 PUBLIC LAW 95-28—MAY 13, 1977

91 STAT. 121

ning, or design related to construction projects shall be made available for obligation by the President and expended for the purposes for which the appropriations are made, with the exception of those appropriations or expenditures relating to the Meramec Park Lake project in Missouri. SEC. 203. With the exception noted relating to the Meramec Park AI Lake project in Missouri, section 202 of this Act shall be equivalent to and have the legal effect of a resolution disapproving any deferral of budget authority previously provided for construction projects in Public Law 93-355 or in any prior law appropriating funds for the 90 Stat. 889. United States Army Corps of Engineers or the Department of the Interior Bureau of Reclamation, or for construction projects in Public Law 94-351 or any prior law appropriating funds for construction 90 Stat. 851. projects in the Department of Agriculture as provided for in section 1013(b) of Public Law 93-344, the Congressional Budget and Impoundment Control Act of 1974. With the exception noted relating 31 USC 1403. to the Meramec Park Lake project in Missouri, section 202 is also Ante, p. 120. equivalent to a congressional statement of intent not to uphold any rescission of budget authority with regard to funds appropriated for construction projects in Public Law 94-355 or Public Law 94-351 or for construction projects in any prior law appropriating funds for the United States Army Corps of Engineers, the Department of the Interior Bureau of Reclamation, or the Department of Agriculture, as provided for in section 1012(b) of Public Law 93-344. 31 USC 1402. SEC. 204. It is hereby reiterated that the interest rates or rates of Interest rates discount to be used to assess the return on the Federal Government's and rates of investment in projects of the United States Army Corps of Engineers discount. or the Department of the Interior Bureau of Reclamation, shall be 42 USC those interest rates or rates of discount established by Public Law 1962d-17 note. 93-251, the Water Resources Development Act of 1974, or by any prior law authorizing projects of the United States Army Corps of 88 Stat. 12. Engineers or the Department of the Interior Bureau of Reclamation. Approved May 13, 1977.

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 95-20 (Comm. on Public Works and Transportation) and No. 95-230 (Comm. of eonference). SENATE REPORTS: No. 95-38 accompanying S. 427 (Comm. on Environment and Public Works) and No. 95-110 (Comm. of eonference). CONGRESSIONAL RECORD, Vol. 123 (1977): Feb. 24, considered and passed House. Mar. 10, considered and passed Senate, amended, in lieu of S. 427. Apr. 5, House concurred in Senate amendment with an amendment. Apr. 28, 29, Senate agreed to conference report. May 3, House agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 20: May 13, Presidential statement.

�


text:
Page:United States Statutes at Large Volume 91.djvu/156

 91 STAT. 122

PUBLIC LAW 95-29—MAY 13, 1977

Public Law 95-29 95th Congress An Act May 13, 1977 [H.R. 4876] Economic stimulus appropriations, 1977.

Making economic stimulus appropriations for the fiscal year ending September 30, 1977, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for economic stimulus appropriations for the fiscal year ending September 30, 1977, and for other purposes, namely: TITLE I CHAPTER I

>]'-.'

DEPARTMENT OF THE TREASURY PAYMENTS TO STATE AND LOCAL GOVERNMENT FISCAL ASSISTANCE TRUST FUND

For payments to the State and Local Government Fiscal Assistance Trust Fund, as authorized by the State and Local Fiscal Assistance Act of 1972, as amended (31 U.S.C. 1221-1263), $4,991,085,000. ANTIRECESSION FINANCIAL ASSISTANCE FUND

For an additional amount for the "Antirecession Financial Assistance Fund", $632,500,000, to remain available until September 30, 1978. NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

^

RESEARCH AND DEVELOPMENT

For an additional amount for "Research and development", $95,000,000, to remain available until expended. ENVIRONMENTAL PROTECTION AGENCY CONSTRUCTION GRANTS

33 USC 1286.

For payment of reimbursement claims pursuant to section 206(a) of the Federal Water Pollution Control Act, as amended, $300,000,000, to remain available until expended.

�


text:
Page:United States Statutes at Large Volume 91.djvu/157

 PUBLIC LAW 95-29—MAY 13, 1977

91 STAT. 123

CHAPTER II DEPARTMENT OF LABOR EMPLOYMENT AND TRAINING ADMINISTRATION PROGRAM ADMINISTRATION

For an additional amount for "Program administration", $4,397,000, together with not to exceed $100,000 which may be expended from the Employment Security Administration account in the Unemployment Trust Fund. EMPLOYMENT AND TRAINING ASSISTANCE

For an additional amount for "Employment and training assistance", $2,578,000,000, to remain available until September 30, 1978. TEMPORARY EMPLOYMENT ASSISTANCE

For financial assistance as authorized by Title VI of the Comprehensive Employment and Training Act of 1973, as amended, 29 USC 961. $6,847,000,000, to remain available until September 30, 1978. COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

For an additional amount for "Community service employment for older Americans", $59,400,000, of which $44,500,000 is to carry out section 906(a)(1) of the Older Americans Act. 42 USC 3056d. BUREAU or LABOR STATISTICS

A

.;«

-

SALARIES AND EXPENSES

For an additional amount for "Salaries and expenses", $500,000. j DEPARTMENTAL MANAGEMENT SALARIES AND EXPENSES

For an additional amount for "Salaries and expenses", $602,000.

,.r

CHAPTER III

DEPARTMENT OF COMMERCE

rf

ECONOMIC DEVELOPMENT ADMINISTRATION DROUGHT A S S I S T A N C E PROGRAM

For expenses necessary to carry out a community emergency drought assistance program, $175,000,000: Provided, That this appropriation shall be available only upon enactment into law of authorizing legislation. LOCAL

PUBLIC

WORKS

PROGRAM

For an additional amount for "Local public works program", $4,000,000,000: Provided, That not to exceed $15,000,000, to remain available until September 30, 1979, may be used for necessary admin-

�


text:
Page:United States Statutes at Large Volume 91.djvu/158

 91 STAT. 124

PUBLIC LAW 95-29—MAY 13, 1977 istrative expenses, including expenses for program evaluation by the Secretary of Commerce.

CHAPTER IV DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION GRANTS-IN-AID FOR AIRPORTS (AIRPORT AND AIRWAY TRUST FUND)

90 Stat. 1184.

Section 302 of the Department of Transportation and Related Agencies Appropriation Act, 1977 (Public Law 94-387) is amended by striking out "$510,000,000" and inserting in lieu thereof: "$545,000,000". '

'

FEDERAL HIGHWAY ADMINISTRATION OFF-SYSTEM RAILWAY-HIGHWAY CROSSINGS

For necessary expenses for the elimination of hazards of railway.. rw - * X iiig}^-v^ay crossings on roads other than those on any Federal-aid system in accordance with the provisions of section 203 of the "Highway 23 USC 130 note. Safety Act of 1976", to remain available until September 30, 1980; $75,000,000. SAFER OFF-SYSTEM ROADS

For necessary expenses to carry out the provisions of 23 U.S.C. 219; a- $200,000,000, to remain available until September 30, 1980. TRAFFIC CONTROL SIGNALIZATION DEMONSTRATION

PROJECTS

For necessary expenses to carry out the provisions of section 146 23 USC 135 note, of the "Federal-Aid Highway Act of 1976"; $10,000,000, to be derived from the Highway Trust Fund and to remain available until September 30, 1980. H I G H W A Y S CROSSING FEDERAL PROJECTS

For an additional amount for "Highways crossing Federal projects" authorized by 23 U.S.C. 156; $15,000,000, to remain available until September 30, 1979. RAILROAD-HIGHWAY CROSSINGS DEMONSTRATION PROJECTS

For necessary expenses of railroad-highway crossings demonstration projects, as authorized by section 163 of the Federal-Aid High23 USC 130 note, way Act of 1973, as amended, and title III of the National Mass 49 USC 1605 Transportation Assistance Act of 1974, to remain available until note. expended, $16,000,000 of which $10,666,667 shall be derived from the Highway Trust Fund. . ,<..
 * t \ i f^tji'. k

FEDERAL RAILROAD ADMINISTRATION

> '

NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

For an additional amount for the Northeast Corridor improvement program, $50,000,000, to remain available until expended.

�


text:
Page:United States Statutes at Large Volume 91.djvu/159

 PUBLIC LAW 95-29—MAY 13, 1977

91 STAT. 125

RAILROAD REHABILITATION AND IMPROVEMENT F I N A N C I N G FUNDS

For an additional amount pursuant to sections 502, 505-507, and 509 of the Railroad Revitalization and Regulatory Reform Act of 1976 (Public Law 94-210) as amended, $50,000,000, to remain available 45 USC 822, until September 30, 1978. 825-827, 829.

DEPARTMENT OF THE TREASURY OFFICE OF THE SECRETARY

V

INVESTMENT I N F U N D ANTICIPATION NOTES

>--

For an additional amount for investment in fund anticipation notes, $50,000,000, to remain available until September 30, 1978. CHAPTER V

'"

'

DEPARTMENT OF THE TREASURY •

 * K.;!

I N T E R N A L R E V E N U E SERVICE

ACCOUNTS, C O L L E C T I O N AND TAXPAYER SERVICE

'.

'

'

For an additional amount for "Accounts, collection and taxpayer service", $2,000,000. TITLE II '"' ^ GENERAL PROVISIONS SEC. 201. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein. Approved May 13, 1977.

\:

LEGISLATIVE HISTORY: HOUSE REPORTS: No. 95-66, No. 95-66, pt. II (Comm. on Appropriations) and No. 95-238 (Comm. of Conference). SENATE REPORT No. 95-58 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 123 (1977): Mar. 15, considered and passed House. May 2, considered and passed Senate, amended. May 4, House agreed to conference; receded and concurred in certain Senate amendments with amendments. May 5, Senate agreed to conference report; concurred in House amendments to Senate amendments. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 20: May 13, Presidential statement.
 * J Ti;

�


text:
Page:United States Statutes at Large Volume 91.djvu/160

 91 STAT. 126

PUBLIC LAW 95-30—MAY 23, 1977

Public Law 95-30 95th Congress An Act May 23, 1977 [H.R. 3477]

Tax Reduction and Simplification Act of 1977. 26 USC 1 note.

To reduce individual and business income taxes and to provide tax simplification and reform.

Be it enacted by the Senate and House of Representatives United States of America in Congress assembled,

of the

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE. — T h i s Act may be cited as the " T a x Reduction

and Simplification Act of 1977". (b) T A B L E OF C O N T E N T S. —

Sec. 1. Short title; table of contents. Sec. 2. Amendment of 1954 Code. TITLE I—REDUCTION AND SIMPLIFICATION OF INDIVIDUAL INCOME TAXES Sec. 101. Change in tax rates and tax tables to reflect permanent increase in standard deduction. Sec. 102. Change in definition of taxable income to reflect change in tax rates and tables. Sec. 103. Extension of individual income tax reductions. Sec. 104. Change in filing requirements. Sec. 105. Withholding tax. Sec. 106. EflEective dates. TITLE II—REDUCTION IN BUSINESS TAXES Sec. 201. Extension of certain corporate income tax reductions. Sec. 202. New jobs credit. TITLE III—PROVISIONS RELATING TO EFFECTIVE DATES AND OTHER PROVISIONS OF THE TAX REFORM ACT OF 1976 Sec. 301. Effective date of changes in the exclusion for sick pay. Sec. 302. Changes in treatment of income earned abroad by United States citizens living or residing abroad. Sec. 303. Underpayments of estimated tax. Sec. 304. Underwithholding. Sec. 305. Interest on underpayments of tax. Sec. 306. Use of residence as day care facility. Sec. 307. State legislators' travel expenses av^^ay from home. Sec. 308. Treatment of intangible drilling costs for purposes of the minimum tax. Sec. 309. Transfers of partial interests in property for conservation purposes. TITLE IV—MISCELLANEOUS PROVISIONS Sec. 401. Authorization of additional appropriations for the work incentive program. Sec. 402. Rapid amortization of child care facilities. Sec. 403. Election of former retirement income credit provisions for 1976. Sec. 404. Postponement of effective date of changes made by the Tax Reform Act of 1976 in the method of accounting for certain corporations engaged in farming. Sec. 405. Withholding tax on certain gambling winnings. Sec. 406. Termination of 1975 special payments to certain individuals. Sec. 407. Payments to the governments of American Samoa, Guam, and the Virgin Islands. Sec. 408. Withholding of county income tax on Federal employees.

�


text:
Page:United States Statutes at Large Volume 91.djvu/161

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 127

TITLE V—CERTAIN SOCIAL SECURITY ACT AMENDMENTS Sec. 501. Clarification of garnisliment provisions. Sec. 502. Bonding of certain State or local employees; handling of cash receipts. Sec. 503. Incentive payments to States and localities. Sec. 504. Annual report of the Secretary. Sec. 505. Certain AFDC payments. SEC. 2. AMENDMENT OF 1954 CODE. E x c e p t as other w i s e e x p r e s s l y provided, w h e n e v e r in t h i s Act a n amendment o r r e p e a l is e x p r e s s e d i n term s of a n amendment to, o r r e p e a l of, a s e c t i o n o r other p r o v i s i o n, the r e f e r e n c e s h a l l b e c o n s i d e r e d to be m a d e to a s e c t i o n o r other p r o v i s i o n of the I n t e r n a l Revenue C o d e of 1954.

26 USC 1 et seq.

TITLE I—REDUCTION AND SIMPLIFICATION OF INDIVIDUAL INCOME TAXES SEC. 101. CHANGE IN TAX RATES AND TAX TABLES TO REFLECT PERMANENT INCREASE IN STANDARD DEDUCTION. (a) Cii.xNGE IN T. \ x R A T E S. — S e c t i o n 1 ( r e l a t i n g to tax i m p o s e d) is amended to read as f o l l o w s: "SECTION 1. TAX IMPOSED. "(a)

]\IARRIED INDIVIDUALS F I L I N G JOINT R E T U R N S A N D S U R VIV I N G

S P O U S E S. — The r e is h e r e by i m p o s e d o n the tax a b l e i n c o m e of— " (1) e v e r y m a r r i e d i n d i v i d u a l ( a s defined i n s e c t i o n 143) w h o m a k e s a single r e t u r n joint l y w i t h his spouse under section 6013, and " (2) e v e r y s u r v i v i n g s p o u s e ( a s defined i n s e c t i o n 2 (a)), a tax determined in accordance with the following t a b l e: "If the taxable income i s: Not over $3,200 Over $3,200 but not over $4,200 Over $4,200 but not over $5,200 Over $5,200 but not over $6,200 Over $6,200 but not over $7,200 Over $7,200 but not over $11,200 Over $11,200 but not over $15,200 Over $15,200 but not over $19,200 Over $19,200 but not over $23,200 Over $23,200 but not over $27,200 Over $27,200 but not over $31,200 Over $31,200 but not over $35,200 Over $35,200 but not over $39,200 Over $39,200 but not over $43,200 Over $43,200 but not over $47,200 Over $47,200 but not over $55,200

The tax i s: No tax. 14% of the excess over $3,200, $140, plus 15% of excess over $4,200. $290, plus 16% of excess over $5,200. $450, plus 17% of excess over $6,200. $620, plus 19% of excess over $7 200. $1,380, plus 22% of excess over $11,200. $2,260, plus 25% of excess over $15,200. $3,260, plus 28%o of excess over $19 200. $4,380, pius 32% of excess over $23,200. $5,660, plus 36% of excess over $27 200 $7,100, plus 39% of excess over $31,200. $8,660, plus 42% of excess over $35,200. $10,340, plus 45% of excess over $39,200. $12,140, plus 48%, of excess over $43 200 $14,060, plus 50% of excess over $47,200.

26 USC 1.

�


text:
Page:United States Statutes at Large Volume 91.djvu/162

 "(b) HEADS OF HOUSEHOLDS.—There is hereby imposed on taxable income of every individual who is the head of a household (as defined in section 2(b)) a tax determined in accordance with the following table:


text:
Page:United States Statutes at Large Volume 91.djvu/163

 PUBLIC LAW 95-30—MAY 23, 1977 "If the taxable income i s: Over $52,200 but not over $54,200 Over $54,200 but not over $66,200 Over $66,200 but not over $72,200 Over $72,200 but not over $78,200 Over $78,200 but not over $82,200 Over $82,200 but not over $90,200 Over $90,200 but not over $102,200 Over $102,200 but not over $122,200 Over $122,200 but not over $142,200 Over $142,200 but not over $162,200 Over $162,200 but not over $182,200 Over $182,200

The tax i s: $18,640, plus 56% of $52 200. $19,760, plus 58% of $54,200. $26,720, plus 59% of $66,200. $30,260, plus 6 1 % of $72 200. $33,920, plus 62% of $78,200. $36,400, plus 63% of $82,200. $41,440, plus 64% of $90,200. $49,120, plus 66% of $102 200. $62,320, plus 67% of $122 200. $75,720, plus 68% of $142 200. $89,320, plus 09% of $162,200. $103,120, plus 70% of $182,200.

91 STAT. 129 excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over excess over

"(c) UNMARRIED INDIVIDUALS (OTHER THAN SURVIVING SPOUSES AND H E A D S OF H O U S E H O L D S). — The r e is h e r e by i m p o s e d o n the tax a b l e i n c o m e of e v e r y i n d i v i d u a l ( other than a s u r v i v i n g s p o u s e a s defined in s e c t i o n 2 (a) o r the h e a d of a h o u s e l i o l d a s defined i n s e c t i o n 2 (b)) w h o is not a m a r r i e d i n d i v i d u a l ( a s defined i n s e c t i o n 143) a tax determined in accordance w i t h the following t a b l e: "If the taxable income i s: Not over $2,200 Over $2,200 but not over $2,700 Over $2,700 but not over $3,200 Over $3,200 but not over $3,700 Over $3,700 but not over $4,200 Over $4,200 but not over $6,200 Over $6,200 but not over $8,200 Over $8,200 but not over $10,200 Over $10,200 but not over $12,200 Over $12,200 but not over $14,200 Over $14,200 but not over $16,200 Over $16,200 but not over $18,200 Over $18,200 but not over $20,200 Over $20,200 but not over $22,200 Over $22,200 but not over $24,200 Over $24,200 but not over $28,200 Over $28,200 but not over $34,200 Over $34,200 but not over $40,200 Over $40,200 but not over $46,200 Over $46,200 but not over $52,200

The tax i s: No tax. 14% of the excess over $2,200. $70, plus 15% of excess over $2,700. $145, plus 16% of excess over $3,200. $225, plus 17% of excess over $3,700. $310, plus 19% of excess over $4,200. $690, plus 2 1 % of excess over $6,200. $1,110, plus 24% of excess over $8 200 $1,590, plus 25% of excess over $10,200. $2,090, plus 27% of excess over $12,200. $2,630, plus 29% of excess over $14,200. $3,210, plus 3 1 % of excess over $16,200. $3,830, plus 34% of excess over $18,200. $4,510, plus 36% of excess over $20,200. $5,230, plus 38% of excess over $22,200. $5,990, plus 40% of excess over $24 200. $7,590, pius 45% of excess over $28,200. $10,290, plus 50% of excess over $34 200. $13,290, plus 55% of excess over $40,200. $16,590, plus 60% of excess over $46,200.

�


text:
Page:United States Statutes at Large Volume 91.djvu/164

 91 STAT. 130

PUBLIC LAW 95-30—MAY 23, 1977 "If the taxable income i s: Over $52,200 but not over $62,200 Over $62,200 but not over $72,200 Over $72,200 but not over $82,200 Over $82,200 but not over $92,200 Over $92,200 but not over $102,200 Over $102,200 "(d)

The tax i s: $20,190, plus $52 200. $26,390, plus $62,200. $32,790, plus $72 200. $39,390, plus $82,200. $46,190, plus $92 200. $53,090, plus $102,200.

62% of excess over 64% of excess over 66% of excess over 68% of excess over 69% of excess over 70% of excess over

MARRIED INDIVIDUALS FILING SEPARATE RETURNS.—There is

hereby imposed on the taxable income of every married individual (as defined in section 143) who does not make a single return jointly with his spouse under section 6013 a tax determined in accordance with the following table: "If the taxable income i s: Not over $1,600 Over $1,600 but not over $2,100 Over $2,100 but not over $2,600 Over $2,600 but not over $3,100 Over $3,100 but not over $3,600 Over $3,600 but not over $5,600 Over $5,600 but not over $7,600 Over $7,600 but not over $9,600 Over $9,600 but not over $11,600 Over $11,600 but not over $13,600 Over $13,600 but not over $15,600 Over $15,600 but not over $17,600 Over $17,600 but not over $19,600 Over $19,600 but not over $21,600 Over $21,600 but not over $23,600 Over $23,600 but not over $27,600 Over $27,600 but not over $33,600 Over $33,600 but not over $39,600 Over $39,600 but not over $45,600 Over $45,600 but not over $51,600 Over $51,600 but not over $61,600 Over $61,600 but not over $71,600 Over $71,600 but not over $81,600 Over $81,600 but not over $91,600 Over $91,600 but not over $101,600 Over $101,600 ,,

The tax i s: No tax. 14% of the excess over $1,600. $70, plus 15% of excess over $2,100. $145, plus 16% of excess over $2,600. $225, plus 17% of excess over $3,100. $310, plus 19% of excess over $3,600. $690, plus 22% of excess over $5,600. $1,130, plus 25% of excess over $7,600. $1,630, plus 28% of excess over $9,600. $2,190, plus 32% of excess over $11,600. $2,830, plus 36% of excess over $13,600. $3,550, plus 39% of excess over $15,600. $4,330, plus 42% of excess over $17,600. $5,170, plus 45% of excess over $19,600. $6,070, plus 48% of excess over $21,600. $7,030, plus 50% of excess over $23,600. $9,030, plus 5 3 % of excess over $27,600. $12,210, plus 55% of excess over $33,600. $15,510, plus 58% of excess over $39,600. $18,990, plus 60% of excess over $45,600. $22,590, plus 62% of excess over $51,600. $28,790, plus 64% of excess over $61,600. $35,190, plus 66% of excess over $71,600. $41,790, plus 68% of excess over $81,600. $48,590, plus 69% of excess over $91,600. $55,490, plus 70% of excess over $101,600.

�


text:
Page:United States Statutes at Large Volume 91.djvu/165

 PUBLIC LAW 95-30—MAY 23, 1977 " (e) E STATES A N D T R U S T S. — The r e is h e r e by i m p o s e d o n the tax a b l e i n c o m e of e v e r y e s t a t e and t r u s t tax a b l e under t h i s s u b s e c t i o n a tax determined in accordance with the following t a b l e: The tax i s: 14% of the taxable income. $70, plus 15% of excess over $500. $145, plus 16% of excess over $1,000. Over $1,500 but not over $2,000 $225, plus 17% of excess over $1,500. Over $2,000 but not over $4,000 $310, plus 19% of excess over $2,000. Over $4,000 but not over $6,000 $690, plus 22% of excess over $4,000. Over $6,000 but not over $8,000 $1,130, plus 25% of excess over $6,000. Over $8,000 but not over $10,000 $1,630, plus 28% of excess over $8,000. Over $10,000 but not over $12,000 $2,190, plus 32% of excess over $10,000. Over $12,000 but not over $14,000 $2,830, plus 36% of excess over $12,000. Over $14,000 but not over $16,000 $3,550, plus 39% of excess over $14,000. Over $16,000 but not over $18,000 $4,330, plus 42% of excess over $16,000. Over $18,000 but not over $20,000 $5,170, plus 45% of excess over $18 000 Over $20,000 but not over $22,000 $6,070, plus 48% of excess over $20,000. Over $22,000 but not over $26,000 $7,030, plus 50% of excess over $22,000. Over $26,000 but not over $32,000 $9,030, plus 5 3 % of excess over $26,000. Over $32,000 but not over $38,000 $12,210, plus 55% of excess over $32,000. Over $38,000 but not over $44,000 $15,510, plus 58% of excess over $38,000. Over $44,000 but not over $50,000 $18,990, plus 60% of excess over $44,000. Over $50,000 but not over $60,000 $22,590, plus 62% of excess over $50,000. Over $60,000 but not over $70,000 $28,790, plus 64% of excess over $60,000. Over $70,000 but not over $80,000 $35,190, plus 66% of excess over $70,000. Over $80,000 but not over $90,000 $41,790, plus 68% of excess over .<R8n.000. Over $90,000 but not over $100,000— $48,590, plus 69% of excess over $90,000. Over $100,000 $55,490, plus 70% of excess over $100,000." (b) C H A N G E I N T A X TABLES.—Section 3 (relating to tax tables for i n d i v i d u a l s h a v i n g tax a b l e i n c o m e of less than $20,000) i s amended to read as follows:

91 STAT. 131

^i;

"If the taxable income i s: Not over $500 Over $500 but not over $1,000 Over $1,000 but not over $1,500

26 USC 3.

"SEC. 3. TAX TABLES FOR INDIVIDUALS. " (a)

IMPOSITION or T A X TABLE T A X. —

" (1) IN GENERAL. — I n l i e u of the tax i m p o s e d by s e c t i o n 1, Ante, p. 127. the r e is h e r e by i m p o s e d for each tax a b l e year on the tax table i n c o m e of e v e r y i n d i v i d u a l w h o s e tax t a b l e i n c o m e for s u c h year does not exceed the ceiling a m o u n t, a tax determined under tables, applicable to such taxable year, which shall be prescribed by

�


text:
Page:United States Statutes at Large Volume 91.djvu/166

 91 STAT. 132

PUBLIC LAW 95-30—MAY 23, 1977 the Secretary. I n the tables so prescribed, the amounts of tax shall be computed on the basis of the rates prescribed by section 1.

Ante, p. 127.

"(2)

C E I L I N G AMOUNT DEFINED.—For purposes of

paragraph

(1), the term 'ceiling amount' means, with respect to any taxpayer, the amount (not less than $20,000) determined by the Secretary for the tax rate category in which such taxpayer falls. " (3) CERTAIN TAXPAYERS W I T H LARGE NUMBER OF EXEMPTIONS.—

,,j

The Secretary may exclude from the application of this section taxpayers in any tax rate category having more than the number of exemptions for that category determined by the Secretary. "(4)

Post, p. 135.

T A X TABLE INCOME DEFINED.—For purposes of t h i s sec-

tion, the term 'tax table income' means adjusted gross income— • " (A) reduced by the excess itemized deductions, and " (B) increased (in the case of a n individual to whom section 63(e) applies) by the unused zero bracket amount. " (b) SECTION INAPPLICABLE TO CERTAIN INDIVIDUALS.—This section

shall not apply to— " (1) an individual to whom— " (A) section 911 (relating to earned income from sources without the United States), " (B) section 1201 (relating to alternative capital gains tax), " (C) section 1301 (relating to income a v e r a g i n g), or " (D) section 1348 (relating to maximum rate on personal service income), applies for the taxable year, " (2) an individual making a r e t u r n under section 4 4 3 (a)(1) for a period of less than 12 months on account of a change i n annual accounting period, and " (3) an estate or trust.

)

" (c) T A X TREATED AS IMPOSED BY SECTION 1.—For purposes of t h i s

title, the tax imposed by this section shall be treated as tax imposed by section 1. "(d)

TAXABLE INCOME.—Whenever it is necessary to determine the

taxable income of an individual to whom this section applies, the taxable income shall be determined under section 63. "(e)

CROSS R E F E R E N C E. —

"For computation of tax by Secretary, see section 6014." (c) CHANGES IN GENERAL T A X CREDIT.—

26 USC 42.

(1) Subsection (a) of section 42 (relating to allowance of general tax credit) is amended to read as follows: "(a)

<,

ALLOWANCE OF C R E D I T. — I n the case of an i n d i v i d u a l, the r e

shall be allowed as a credit against the tax imposed by section 1, or against the tax imposed in lieu of the tax imposed by section 1, for the taxable year an amount equal to the greater of— " (1) 2 percent of so much of the taxpayer's taxable income for the taxable year (reduced by the zero bracket amount) as does not exceed $9,000; o r " (2) $35 multiplied by each exemption for which the taxpayer is entitled to a deduction for the taxable year under section 151." (2) Section 42 is amended by a d d i n g a t the end thereof the following new subsection:

�


text: Page:Australia, from Port Macquarie to Moreton Bay.djvu/11


text:
Page:United States Statutes at Large Volume 91.djvu/167

 PUBLIC LAW 9 5 - 3 0 — M A Y 23, 1977 "(e)

91 STAT. 133

INCOME T A X TABLES TO E E F L E C T CREDIT.—The tables pre-

'

scribed by the Secretary under section 3 shall reflect the credit allowed Ante, p. 131. by this section." '^(3) Subsection (c) of section 42 is amended to read as follows: 26 USC 42. " (c) SPECIAL RULE FOR MARRIED INDIVIDUALS F I L I N G SEPARATE RETURNS.—

" (1) IN GENERAL.—In the case of a married individual who files ,.t a separate return for the taxable year, the amount of the credit allowable under subsection (a) for the taxable year shall be the, 5 amount determined under paragraph (2) of subsection (a). Ante, p. 132., " (2) MARITAL STATUS.—For purposes of this subsection, the determination of marital status shall be made under section 143." ^, (4) The first sentence of subsection (b) of section 42 is amended by striking out "by this chapter" and inserting in lieu thereof the following: "by section 1, or the amount of the tax imposed Ante, p. 127., in lieu of the tax imposed by section 1,". (d) T E C H N I C A L AND CONFORMING AMENDMENTS. —

(1) Section 141 (relating to standard deduction), section 142 (relating to individuals not eligible for standard deduction), section 144 (relating to election of standard deduction), and section 145 (cross reference) are hereby repealed. '' (2) Section 21 (relating to effect of changes) is amended— • • (A) by striking out subsections (d) and (e), (B) by redesignating subsection (f) as subsection (d), and '='' (C) by inserting after subsection (d) (as so redesignated) the following new subsection: "(e)

Repeals, 26 USC 141, 142. 26 USC 144. ^^ {}|^ ^™' '•

CHANGES MADE BY T A X REDUCTION AND SIMPLIFICATION ACT

OF 1977.—In applying subsection (a) to a taxable year of an individual which is not a calendar year, the amendments made by sections 101 and 102 of the T a x Reduction and Simplification Act of 1977 shall not be treated as changes in a rate of tax." (3) Section 36 (relating to credits not allowed to individuals taking standard deduction) is hereby repealed. (4) Section 143 (relating to determination of marital status) is amended by striking out "this part and " each place it appears. •^ (5)(A) Paragraph (1) of section 57(a) (relating to items of tax preference) is amended by striking out "excess" in the heading and text and inserting in lieu thereof "adjusted". (B) The heading of subsection (b) of section 57, and so much of paragraph (1) of such subsection as precedes subparagraph • * (A), are each amended by striking out "excess" and inserting in lieu thereof "adjusted". (C) Paragraph (1) of section 57(b) isamended— (i) by striking out subparagraph (B), and (ii) by redesignating subparagraphs (C) through (E) as ' subparagraphs (B) through (D), respectively. '^ (6) Paragraph (1) of section 511(b) (relating to tax on unrelated business income of charitable, etc., trusts) is amended by striking out "section 1(d) " and inserting in lieu thereof "section ' (Y) Subsection (d) of section 584 (relating to common t r u s t funds) is amended— (A) by inserting " and " at the end of paragraph (2), • (B) by striking out "; and " at the end of paragraph (3) and inserting in lieu thereof a period, and (C) by striking out paragraph (4).
 * {' 1 (e) ".

^^ Repeal, 26 USC 36. 26 USC 143. > 26 USC 57.

-26 USC 511.

26 USC 584.

�


text:
Page:United States Statutes at Large Volume 91.djvu/168

 91 STAT. 134

PUBLIC LAW 95-30—MAY 23, 1977

26 USC 641.

(8) Subsection (a) of section 641 (relating to imposition of tax for estates and trusts) is amended by striking out "section 1(d) " and inserting in lieu thereof "section 1(e) ". (9) Subsection (k) of section 642 (relating to special rules for credits and deductions of estate or trust) is amended to read as follows: i s t«i

Ante, p. 131. 26 USC 642.

"(k)

26 USC 703. ,f

26 USC 873.

"For special rule for determining the time of receipt of dividends by a beneficiary under section 652 or 662, see section 116(c)(3)." (10) Subsection (a)(2) of section 703 (relating to partnership income and deductions) is amended— (A^ by striking out subparagraph (A), and (B) by redesignating subparagraphs (B) through (G) as subparagraph s (A) through (F),respectively. (11) Subsection (c) of section 873 (relating to deductions in the case of nonresident alien individuals) is amended to read as follows: "(c)

Repeal. 26 USC 931. 26 USC 6014.

Post, p. 135. 26 USC 6014.

26 USC 6212.

26 USC 6504. ,'

CROSS R E F E R E N C E. —

CROSS R E F E R E N C E. —

"For rule that certain foreign taxes are not to be taken into account in determining deduction or credit, see section 906(b)(1)." (12) Paragraph (3) of section 931(d) (relating to deductions jn computing income from sources within possessions of the United States) is hereby repealed. (13) Subsection (a) of section 6014 (relating to tax not computed by taxpayer} is amended— (A) by striking out "entitled to t a k e " through "section ] 1 4 1 (e)) " in the first sentence thereof and inserting in lieu thereof "who does not itemize his deductions and who does not have an unused zero bracket amount (determined under section 63(e)), ", and .. (B) by striking out " and shall constitute an election to take the standard deduction" in the second sentence thereof. (14) Paragraph (4) of section 6014(b) (relating to regulations) is amended to read as follows: " (4) to cases where the taxpayer itemizes his deductions or has an unused zero bracket amount." (15) Subparagraph (A) of section 6212(c)(2) (relating to further deficiency letters restricted) is amended to read as -t follows: I, " (A) Deficiency attributable to change of treatment with respect to itemized deductions and zero bracket amount, see section 63(g)(5). " (16) Paragraph (2) of section 6504 (relating to cross references) is amended to read as follows: "(2) Change of treatment with respect to itemized deductions and •, zero bracket amount where taxpayer and his spouse make separate returns, see section 63(g)(5)." .

-•:-'... r'

'

(e)

CLERICAL AMENDMENTS. —

(1) The table of sections for subpart A of part IV of subchapter A of chapter 1 (relating to credits allowable against tax) is amended by striking out the item relating to section 36. (2) The heading and table of sections for part IV of subchapter B of chapter 1 (relating to standard deduction for individuals) are amended to read as follows:

�


text:
Page:United States Statutes at Large Volume 91.djvu/169

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 135

"PART IV—DETERMINATION OF MARITAL STATUS "Sec. 143. Determination of marital status."

(3) The table of part s for subchapter B of chapter 1 (relating to computation of taxable income) is amended by striking o u t the item relating to part IV and inserting in lieu thereof the following: "Part IV. Determination of marital status."

SEC. 102. CHANGE IN DEFINITION OF TAXABLE INCOME TO REFLECT CHANGE IN TAX RATES AND TABLES. (a)

TAXABLE

INCOME

DEFINED.—Section

63

(defining

taxable

26 USC 63.

income) is amended to read as follows: "SEC. 63. TAXABLE INCOME DEFINED. " (a) CORPORATIONS.—For purposes of this subtitle, in the case of a corporation, the term 'taxable income' means gross income minus the deductions allowed by this chapter. " (b) INDIVIDUALS.—For purposes of this subtitle, in the case of an individual, the term 'taxable income' means adjusted gross income— " (1) reduced by the sum of— " (A) the excess itemized deductions, and " (B) the deductions for personal exemptions provided by section 151, and " (2) increased (in the case of an individual for whom an unused zero bracket amount computation is provided by subsection (e)) by the unused zero bracket amount (if any). " (c) EXCESS ITEMIZED DEDUCTIONS.—For purposes of this subtitle,

the term 'excess itemized deductions' means the excess (if any) of— " (1) the itemized deductions, over " (2) the zero bracket amount. " (d) ZERO BRACKET A M O U N T. — For purposes of t h i s subtitle, the

term 'zero bracket amount' means— " (1) $3,200 in the case of— " (A) a joint return under section 6013, or " (B) a surviving spouse (as defined in section 2(a)), " (2) $2,200 in the case of an individual who is not married and who is not a surviving spouse (as so defined), " (3) $1,600 in the case of a married individual filing a separate return, or " (4) zero in any other case. " (e) ITNUSED ZERO BRACKET A M O U N T. — " (1) INDIVIDUALS FOR WHOM COMPUTATION MUST BE MADE.—A

computation for the taxable year shall be made under this subsection for the following individuals: " (A) a married individual filing a separate return where either spouse itemizes deductions, " (B) a nonresident alien individual, " (C) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States), and " (D) an individual with respect to whom a deduction under section 151(e) is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins.

"Excess itemized deductions."

"Zero bracket amount."

�


text:
Page:United States Statutes at Large Volume 91.djvu/170

 91 STAT. 136

PUBLIC LAW 95-30—MAY 23, 1977 " (2) COMPUTATION.—For purposes of this subtitle, an individual's unused zero bracket amount for the taxable year is an amountequal to the e x c e s s (if any) of— ,, " (A) the zero bracket amount, over "'(B) the itemized deductions. I n the case of an individual referred to in paragraph (1)(D), if such individual's earned income (as defined in section 911(b)) exceeds the itemized deductions, such earned income shall be substituted for the itemized deductions in subparagraph (B). ' ' (f) ITEMIZED DEDUCTIONS.—For purposes of this subtitle, the term 'itemized deductions' means the deductions allowable by this chapter other than— " (1) the deductions allowable in arriving a t adjusted gross income, and " (2) the deductions for personal exemptions provided by section 151.

"Itemized ^ ^ deductions."

"(g)

" (1) IN GENERAL.—Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. For purposes of this subtitle, the determination of whether a deduction is allowable under this chapter shall be made without regard to the preceding sentence. " (2) W H O MAY ELECT.—Except as provided in paragraph (3), an individual may make an election under this subsection for the taxable year only if such individual's itemized deductions exceed the zero bracket amount.

... ,. ^,.

.

ELECTION TO I T E M I Z E. —

•

"(3)

CERTAIN INDIVIDUALS TREATED AS ELECTING TO ITEMIZE.^—

A n individual who has an unused zero bi-acket amount (as determined under subsection (e)(2)) shall be treated as having made an election under this subsection for the taxable year. "(4)

T I M E AND MANNER o r ELECTION.—Any election under this

subsection shall be made on the taxpayer's return, and the Secretary shall prescribe the manner of signifying such election on the return. .

" (5) C H A N G E o r TREATMENT.—Under regulations prescribed by

the Secretary, a change of treatment with respect to the zero bracket amount and itemized deductions for any taxable year may be made after the filing of the return for such year. I f the spouse of the taxpayer filed a separate return for any taxable year corresponding to the taxable year of the taxpayer, the change shall not be allowed unless, in accordance with such regulations— " (A) the spouse makes a change of treatment with respect to the zero bracket amount and itemized deductions, for the taxable year covered in such separate return, consistent with the change of treatment sought by the taxpayer, and " (B) the taxpayer and his spouse consent in writing to the assessment, within such period as may be agreed on with the Secretary, of any deficiency, to the extent attributable to such change of treatment, even though at the time of the filing of such consent the assessment of such deficiency would otherwise be prevented by the operation of any law or rule of law.

�


text:
Page:United States Statutes at Large Volume 91.djvu/171

 PUBLIC LAW 95-30—MAY 23, 1977 This paragraph shall not apply if the tax liability of the taxpayer's spouse, for the taxable year corresponding to the taxable year of the taxpayer, has been compromised under section 7122. " (h) MARITAL STATUS.—For purposes of this section, marital status shall be determined under section 143."

91 STAT. 137

-- '

'

(b) T E C H N I C A L AND CONFORMING AMENDMENTS.—•

(1) Section 161 (relating to allowance of deductions) is 26 USC 161. amended by striking out "section 6 3 (a) " and inserting in lieu Ante, p. 135. thereof "section 63". (2) Subsection (d) of section 172 (relating to modifications in 26 USC 172. determining net operating loss) is amended by adding at the end thereof the following new paragraph: " (8) ZERO BRACKET A M O U N T. — I n the case of a tax p a y e r other

than a corporation, the zero bracket amount shall be treated as a deduction allowed by this chapter. For purposes of subsection " (A) the deduction provided by the preceding sentence shall be in lieu of any itemized deductions of the taxpayer, and " (B) such sentence shall not apply to an individual who elects to itemize deductions.". (3) Section 211 (relating to allowance of deductions) is 26 USC 211. amended by striking out "section 6 3 (a) " and inserting in lieu thereof "section 63". (4) Subparagraph (C) of section 402(e)(1) (relating to impo- 26 USC 402. sition of separate tax on lump sum distributions) is amended by striking out "amount equal to one-tenth of the excess of" and inserting in lieu thereof "amount equal to $2,200 plus one-tenth of the excess of". (5) Clause (iii) of section 4 4 1 (f)(2)(B) (relating to change 26 USC 441. in accounting period) is amended to read as follows: " ( i i i) if such change results in a short period to which subsection (b) of section 443 applies, the taxable income ^"fia. for such short period shall be placed on an annual basis ' for purposes o f such subsection by multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions as described in section 443(c)) by 365, by dividing the result by the number of days in the short period, and by a d d i n g the zero bracket amount, and the tax shall be the same part of the tax computed on the annual basis as the number of days in the short period is of 365 days." (6) Paragraph (1) of section 443(b) (relating to computation 26 USC 443. of tax on change of annual accounting period) is amended to read as follows: " (1) GENERAL RULE.—If a return is made under paragraph (1) '" ' of subsection (a), the taxable income for the short period shall be placed on an annual basis by multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, b u t only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket

�


text:
Page:United States Statutes at Large Volume 91.djvu/172

 91 STAT. 138

PUBLIC LAW 95-30—MAY 23, 1977

26 USC 613A.

26 USC 667. ' 5:;::

^

amount. The tax shall be the same part of the tax computed on the annual basis as the number of months in the short period is of 12 months." (7) Paragraph (1) of section 613A(d) (relating to limitation on percentage depletion based on taxable income) is amended by inserting ' ' (reduced in the case of an individual by the zero bracket a m o u n t) " after "the taxpayer's taxable income". (8) Paragraph (2) of section 667(b) (relating to tax on amount deemed distributed by trust in preceding years) is amended to read as follows: " (2) TREATMENT OF LOSS YEARS.—For purposes of

26 USC 861.

26 USC 862.

26 USC 904.

26 USC 911. Ante, p. 127.

26 USC 1034. ^rete, p. 135. 26 USC 1211. - •'. s. 26 USC 1302.

paragraph

(1), the taxable income of the beneficiary for any taxable year • shall be deemed to be not less than— " (A) in the case of a beneficiary who is an individual, the zero bracket amount for such year, or " (B) in the case of a beneficiary who is a corporation, zero." . =.,. (9) Subsection (b) of section 861 (relating to income from sources within the United States) is amended by adding a t the end thereof the following new sentence: " I n the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income.", (10) Subsection (b) of section 862 (relating to income from sources without the United States) is amended by a d d i n g a t the end thereof the following new sentence: " I n the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income." (11) Subsection (a) of section 904 (relating to limitation on, foreign tax credit) is amended by a d d i n g a t the end thereof the following new sentence: " For purposes of the preceding sentence, in the case of a n individual the entire taxable income shall be reduced by an amount equal to the zero bracket amount." (12) Subparagraph (B) of section 9 1 1 (d)(1) (relating to computation of tax where there is earned income from sources without the United States) is amended to read as follows: " (B) the tax imposed by section 1 or section 1201 (whichever is applicable) on the sum of— " (i) the amount of net excluded earned income, and " (ii) the zero bracket amount." (13) Clause (i) of section 1034(b)(2)(C) (relating to limitations on sales price adjustment) is amended by striking out "section 6 3 (a) " and inserting i n lieu thereof "section 63". (14) Subparagraph (A) of section 1211(b)(1) (relating to limitation on capital losses) is amended to read as follows: " (A) the taxable income for the taxable year reduced (but not below zero) by the zero bracket amount,". (15) Section 1302(b) (defining average base period income) is amended by a d d i n g a t the end thereof the following new paragraph: " (3) TRANSITIONAL RULE FOR DETERMINING BASE PERIOD INCOME.—

The base period income (determined under paragraph (2)) for any taxable year beginning before January 1, 1977, shall be increased by the amount of the taxpayer's zero bracket amount for the computation year."

�


text:
Page:United States Statutes at Large Volume 91.djvu/173

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 139

(16) Subparagraph (A) of section 6654(d)(2) (relating to 26 USC 6654. annualized taxable income) is amended to read as follows: " (A) The taxable income shall be placed on an annualized basis under regulations prescribed by the Secretary.". SEC. 103. EXTENSION OF INDIVIDUAL INCOME TAX REDUCTIONS. (a) GENERAL T A X CREDIT.—Section 3(b) of the Revenue Adjustment Act of 1975, as amended by section 401(a) of the T a x Reform 26 USC 42 note. Act of 1976, is amended by striking out "December 31, 1977" and inserting in lieu thereof "December 31, 1978". (b) EARNED INCOME CREDIT.—Section 209(b) of the T a x Reduction

Act of 1975, as amended by section 401(c) of the T a x Reform Act of 26 USC 43 note. 1976, is amended by striking out " January 1, 1978" and inserting in lieu thereof " January 1, 1979". (c) TECHNICAL AMENDMENT.—Subsection (e) of section 401 of the

T a x Reform Act of 1976 is amended by striking out the first sentence 26 USC 42 note, and inserting in lieu thereof the following new sentences: " The amendments made by subsection (a) shall apply to taxable years ending after December 31, 1975, and shall cease to apply to taxable years ending after December 31, 1978. The amendments made by subsection (c) shall apply to taxable years ending after December 31, 1975, and shall cease to apply to taxable years beginning after December 31, 1978." SEC. 104. CHANGE IN FILING REQUIREMENTS. Paragraph (1) of section 6012(a) (relating to persons required to 26 USC 6012. make returns of income) is amended to read as follows: " (1)(A) E v e r y individual having for the taxable year a gross income of $750 or more, except that a return shall not be required of an individual (other than an individual described in subparagraph (C)) — " (i) who is not married (determined by applying section 143), is not a surviving spouse (as defined in section 2(a)), and for the taxable year has a gross income of less than $2,950, " ( i i) who is a surviving spouse (as so defined) and for the taxa^ble year has a gross income of less than $3,950, or " ( i i i) who is entitled to make a joint return under section 6013 and whose gross income, when combined with the gross income of his spouse, is. for the taxable year, less than $4,700, but only if such individual and his spouse, at the close of the taxable year, h a d the same household as their home. Clause (iii) shall not apply if for the taxable year such spouse makes a separate r e t u r n or any other taxpayer is entitled to an exemption for such spouse under section 151(e). " (B) The amount specified in clause (i) or (ii) of subparagraph (A) shall be increased by $750 in the case of an individual entitled to an additional personal exemption under section 151 (c)(1), and the amount specified in clause (iii) of subparagraph (A) shall be increased by $750 for each additional personal exemption to which the individual or his spouse is entitled under section 151(c). " (C) The exception under subparagraph (A) shall not apply to— " (i) a nonresident alien individual; " ( i i) a citizen of the United States entitled to the benefits of section 931;

�


text:
Page:United States Statutes at Large Volume 91.djvu/174

 91 STAT. 140

PUBLIC LAW 95-30—MAY 23, 1977

• ' ' ' •

" ( i i i) an individual making a return under section 443(a) (1) for a period of less than 12 months on account of a change ^ >;:?<: in his annual accounting period; " ( i v) an individual who has income (other than earned V. income) of $750 or more and who is described in section Ante, p. 135. ,,., 63(e)(1)(D); or " (v) an estate or trust." SEC. 105. WITHHOLDING TAX. 26 USC 3402. (a) IN GENERAL.—Subsection (a) of section 3402 (relating to income taxes collected at source) is amended to read as follows: " (a) REQUIKKMENT OF W I T H H O L D I N G. — E x c e p t as otherwise provided in this section, every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with tables prescribed by the Secretary. W i t h respect to wages paid • -- • - " after INIay 31, 1977, and before January 1, 1979, the tables so pioscribed shall be the same as the tables prescribed under this subsection which weie in eH'ect on January 1, 1976; except that such tables shall be modi (led to the extent necessary so that, had they been in effect for all of 1977, they would reflect the full year effect of the amendments made by sections 101 and 102 of the T a x Reduction and Simplification Act of 1977. AVith respect to wages paid after December 31, 1978, the tables so prescribed shall be the same as the tables prescribed inider this subsection which were in effect on January 1, 1975, except that such tables shall be modified to the extent necessary to reflect the amendments made by sections 101 and 102 of the T a x Reduction and Simplification Act of 1977. For purposes of applying such tables, the term 'the amount of wages' means the amount by which the Avages exceed the number of withholding exemptions claimed, multiplied by the amount of one such exemption as shown in the table pi-escribed under subsection (b)(1). " (b) TixMiNicAL ANo CONFORMING AMENDMENTS. —

26 USC 3402.

(1) Paragraph (1) of section 3402(f) (relating to withholding exemptions) is amended— (A) by striking out "a standard deduction" in subparagraph (G) and inserting in lieu thereof "a zero bracket", and (B) by striking out " standard deduction" in the sentence following subparagraph (G) and inserting in lieu thereof "zero bracket". (2) Subparagraph (B) of section 3402(m)(1) (relating to, withholding allowances based on itemized deductions) is amended to read as follows: " (B) an amount equal to $3,200 ($2,200 in the case of an, 143) and who is not a surviving spouse (as defined in section n' 2(a)))," (3) Section 3402(m)(2) (relating to definitions) is amended— (A) by striking out "sections 141 and " in subparagraph (A) and inserting in lieu thereof "section", (B) by striking out " ( o r the amount of the standard _,. deduction) " in subparagraph (A) and inserting in lieu thereof " ( o r the zero bracket amount (within the meaning of section 63(d))) ", and
 * „individual who is not married (within the meaning of section

�


text:
Page:United States Statutes at Large Volume 91.djvu/175

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 141

(C) by striking out " ( o r the standard deduction) " in subparagraph (C) and inserting in lieu thereof " ( o r the zero bracket a m o u n t) ". SEC. 106. EFFECTIVE DATES. (a) GENERAL K U K E. — The amendments made by sections 101, 102, 26 USC 1 note, and 104 shall apply to taxable years beginning after December 31, 1976. (b) W I T H H O L D I N G AMENDMENTS. — The amendments made by sec-

tion 105 shall apply to wages paid after April 30, 1977.

TITLE II—REDUCTION IN BUSINESS TAXES

26 USC 3402 note.

j^i

SEC. 201. EXTENSION OF CERTAIN CORPORATE INCOME TAX REDUCTIONS. The following provisions are each amended by striking out "December 31, 1977" and inserting in lieu thereof "December 31, 1978" and by striking out " January 1, 1978" and inserting in lieu thereof " January 1, 1979": (1) section 11(b) (relating to normal tax); 26 USC 11. ' (2) section 11(d) (relating to surtax e x e m p t i o n); , (3) section 8 2 1 (a)(1) (relating to mutual insurance com- 26 USC 821. p a n i e s); and (4) section 821(c)(1)(A) (relating to alternative tax for certain small companies). SEC. 202. NEW JOBS CREDIT. (a) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 (relating to credits allowable) is amended by inserting after section 44A the following new section: "SEC. 44B. CREDIT FOR EMPLOYMENT OF CERTAIN NEW EMPLOYEES. 26 USC 44B. " (a) GENERAL RULE. — The r e shall be allowed as a credit against the tax imposed by this chapter the amount determined under subpart D of this part. " (b) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary to carry out the purposes of this section and subpart D." (b) RULES FOR COMPUTING C R E D I T. — Part IV of subchapter A of

chapter 1 (relating to credits against tax) is amended by adding a t the end thereof the following new subpart: "Subpart D—Rules for Computing Credit for Employment of Certain N e w E m p l o y e e s "Sec. 51. Amount of credit. "Sec. 52. Special rules. _,] "Sec. 53. Limitation based on amount of tax. "SEC. 51. AMOUNT OF CREDIT. 26 USC 5 1. " (a) DETERMINATION OF A M O U N T. — The amount of the credit allow-

able by section 44B shall be— Supra. " (1) for a taxable year beginning in 1977, an amount equal to 50 percent of the excess of the aggregate unemployment insurance wages p a i d during 1977 over 102 percent of the aggregate unemployment insurance wages paid during 1976, and

�


text:
Page:United States Statutes at Large Volume 91.djvu/176

 91 STAT. 142

PUBLIC LAW 95-30—MAY 23, 1977 " (2) for a taxable year beginning in 1978, an amount equal to fvf 50 percent of the excess of the aggregate unemployment insurance wages paid during 1978 over 102 percent of the aggregate unemployment insurance wages paid during 1977.

,^

'

.

"(b)

MINIMUM PRECEDING YEAR W A G E S. — For purposes of deter-

mining the amount of the credit under subsection (a) with respect to 1977 or 1978, 102 percent of the amount of the aggregate unemployment insurance wages paid during the preceding calendar year shall be deemed to be not less than 50 percent of the amount of such wages paid during 1977 or 1978, as the case may be.

j;^

"(c)

Ante, p. 141.

TOTAL WAGES M U S T INCREASE.—The a m o u n t of the credit

allowable by section 44B for any taxable year shall not exceed the amount which would be determined for such year under subsection (a) (without regard to subsection (b)) if— " (1) the aggregate amounts taken into account as unemployment insurance wages were determined without any dollar limitation, and " (2) '105 percent' were substituted for '102 percent' in the appropriate paragraph of subsection (a). " (d) $100,000 P E R YEAR LIMITATION ON CREDIT.—Except as p r o -

vided in subsection (e), the amount of the credit determined under this subpart for any employer (and the amount of the credit allowable by section 44B to any taxpayer) with respect to any calendar year shall not exceed $100,000. " (e) ADDITIONAL 10 PERCENT CREDIT FOR VOCATIONAL REHABILITATION REFERRALS.—

I

" (1) IN GENERAL.—The amount of the credit allowable by section 44B for any taxable year beginning in 1977 or 1978 (determined without regard to this subsection) shall be increased by an amount equal to 10 percent of the unemployment insurance wages paid by the employer to vocational rehabilitation referrals during the calendar year in which such taxable year begins.

'.,

"(2)

O N L Y FIRST YEAR TAKEN INTO ACCOUNT.—For purposes

of this subsection, unemployment insurance wages may be taken , into account with respect to any individual— -ill,.,... " (A) only to the extent attributable to services rendered during the 1-year period beginning with his first payment of wages by the employer after the beginning of such individual's rehabilitation plan, and " (B) only if such first payment occurs after December 31, 1976. Iif

..,.;.. '

" (3) O N L Y FIRST $4,200 OF WAGES TAKEN INTO ACCOUNT FOR ANY

INDIVIDUAL.—For purposes of this subsection, the unemployment insurance wages paid during 1978 which are taken into account with respect to any individual shall not exceed $4,200 reduced by the amount of unemployment insurance wages paid by the employer to such individual during 1977. " (4) 20-PERCENT LIMITATION.-—The amouut of the Credit allowable by reason of this subsection for any taxable year shall not exceed one-fifth of the credit determined for such year under this section without regard to this subsection and subsection (d). " (f) DEFINITIONS — For purposes of this subpart—

�


text:
Page:United States Statutes at Large Volume 91.djvu/177

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 143

" (1) UNEMPLOYMENT INSUIIANCE WAGES.—Except as otherwise

provided i n this subpart, the term 'unemployment insurance wages' has the meaning given to the term 'wages' by section 3306(b), except that, in the case of amounts paid during 1978, '$4,200' shall be substituted for '$6,000' each place it appears i n section 3306(b). " (2) AGRICULTUKAL LABOR.—If the services performed by any

employee for an employer during more than one-half of any p a y period (within the meaning of section 3306(d)) taken into account with respect to any calendar year constitute agricultural labor (within the meaning of section 3 3 0 6 (k)), the term 'unemployment insurance wages' means, with respect to the remuneration paid by the employer to such employee for such year, a n amount equal to so much of such remuneration as constitutes 'wages' within the meaning of section 3121(a), except that the contribution and benefit base for each calendar year shall be deemed to be $4,200. " (3) RAILWAY LABOR.—If more than one-half of the remuneration paid by an employer to an employee during the calendar year is remuneration for service described in section 3306(c)(9), the term 'unemployment insurance wages' means, with respect to such employee for such year, an amount equal to % of so much of the remuneration paid to such employee during such year as is subject to contributions under section 8(a) of the Railroad Unemployment Insurance Act (45 U.S.C. 3 5 8 (a)).

'

" (4) VOCATIONAL REHABILITATION REFERRAL.—The term 'voca-

tional rehabilitation referral' means any individual who— " (A) has a physical or mental disability which, for such individual, constitutes or results in a substantial handicap to employment, and " (B) has been referred to the employer upon completion of ( o r while receiving) rehabilitative services pursuant to— " (i) an individualized written rehabilitation plan under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973, or 29 USC 701 note. " ( i i) a program of vocational rehabilitation carried out under chapter 31 of title 38, United States Code. 38 USC 1501. "(g)

RULES FOR APPLICATION OF S E C T I O N. — For purposes of t h i s

subpart— " (1) REMUNERATION MUST BE FOR TRADE OR BUSINESS EMPLOY-

MENT WITHIN UNITED STATES.—Remuneration paid by an employer to an employee during any calendar year shall be taken into account only if more than one-ihalf of the remuneration so paid is for services performed in the United States in a trade or business of the employer. "(2)

SPECIAL RULE FOR CERTAIN DETERMINATIONS.—Any deter-

mination as to whether paragraph (1) of this subsection, or paragraph (2) or (3) of subsection (f), applies with respect to any employee for any calendar year shall be made without regard to subsections (a) and (b) of section 52. "SEC. 52. SPECIAL RULES. 26 USC 52. "(a)

CONTROLLED GROUP OF CORPORATIONS.—For purposes of t h i s

subpart, all employees of all corporations which are members of the same controlled g r o u p of corporations shall be treated as employed by

2 9 - 1940 - 80 - 12

�


text:
Page:United States Statutes at Large Volume 91.djvu/178

 9 1 STAT. 144

Ante, p. 141. "Controlled group of corporations.'

Regulations.

PUBLIC LAW 95-30—MAY 23, 1977 a single employer. I n any such case, the credit (if any) allowable by section 44B to each such member shall be its proportionate contribution to the increase in unemployment insurance wages giving rise to such credit. For purposes of this subsection, the term 'controlled group of corporations' has the meaning given to such term by section 1563 (a), except that— " (1) 'more than 50 percent' shall be substituted for 'at least 80 percent' each place it appears in section 1563(a)(1), and " (2) the determination shall be made without regard to subsections (a)(4) and (e)(3)(C) of section 1563. "(b)

EMPLOYKES OF PARTNERSHIPS, PROPRIETORSHIPS, E T C., W H I C H

A R E UNDER COMMON CONTROL.—For purposes of this subpart, under regulations prescribed by the Secretary— " (1) all employees of trades or business (whether or not incorporated) which are under common control shall be treated as . employed by a single employer, and " (2) the credit (if any) allowable by section 44B w i t h respect to each trade or business shall be its proportionate contribution to the increase in unemployment insurance wages giving rise to such credit. The regulations prescribed under this subsection shall be based on principles similar to the principles which apply in the case of subsection (a). Regulations.

"(c)

ADJUSTMENTS FOR CERTAIN ACQUISITIONS, E T C. — Under reg-

ulations prescribed by the Secretary— " (1) ACQUISITIONS.—If, after December 31, 1975, an employer acquires the major portion of a trade or business of another person s.|j (hereinafter in this paragraph referred to as the 'precedessor') or
 * ,v- the major portion of a separate unit of a trade or business of a

predecessor, then, for purposes of applying this subpart for any periods before such acquisition shall be increased by so much of such wages paid by the precedessor with respect to the acquired trade or business as is attributable to the portion of such trade or . - business acquired by the employer. " (2) DISPOSITIONS.—If, after December 31, 1975— ,,- ,, "CA) an employer disposes of the major portion of any trade or business of the employer or the major portion of a separate unit of a trade or business of the employer in a transaction to which paragraph (1) applies, and ,;<. "(1^) the employer furnishes the acquiring person such V. information as is necessary for the application of paragraph (1), then, for purposes of applying this subpart for any calendar year J.; ending after such disposition, the amount of unemployment insurance wages deemed paid by the employer during periods before such disposition shall be decreased by so much of such wages as is attributable to such trade or business or separate unit. " (d) T A X - E X E M P T ORGANIZATIONS.—No credit shall be allowed under section 44B to any organization (other than a cooperatiA^e described in section 521) which is exempt from income tax under this chapter.
 * ,,. calendar year ending after such acquisition, the amount of unemployment insurance wages deemed paid by the employer during

�


text:
The New International Encyclopædia/Müller, Ferdinand von

MÜLLER, (1825-96). A German naturalist. He was born in Rostock, studied at Kiel, and in 1848 went to Australia, where he was for several years engaged in botanic explorations, and was director of the Melbourne Public Garden (1857-73). His researches on the subject of the acclimatization of plants yielded highly valuable results. Müller wrote: Fragmenta Phytographia Australiæ (1862-81); Plants of Victoria (1860-65); Flora Australiana (7 vols., 1863-70); and Select Extratropical Plants (1891).


text:
Page:United States Statutes at Large Volume 91.djvu/179

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 145

" (e) C H A N G E I N STATUS F R O M SELF-EMPLOYED TO E M P L O Y E E. — I f —

" (1) during 1976 or 1977 an individual has net earnings from self-employment (as defined in section 1402(a)) which are attributable to a trade or business, and " (2) for any portion of the succeeding calendar year such individual is an employee of such trade or business, then, for purposes of determining the credit allowable for a taxable year beginning in such succeeding calendar year, the employer's aggregate unemployment insurance wages for 1976 or 1977. as the case may be, shall be inci-eased by an amount equal to so much of the n e t earnings referred to in paragraph (1) as does not exceed $4,200. "(f)

SUBCHAPTER S CORPORATIONS.—In the case of an electing small

business corporation (as defined in section 1371) — " (1) the amount of the credit determined under this subpart for any taxable year shall be apportioned p r o rata among the persons who are shareliolders of such corporation on the last day of such taxable year, and " (2) any person to whom an amount is apportioned under paragraph (1) shall be allowed, subject to section 53, a credit Ante, p. 141. under section 44B for such amount. "(g)

ESTATES AND T R I STS.—In the case of an estate or t r u s t —

" (1) the amount of the credit determined under this subpart for any taxable year shall be apportioned between the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each, " (2) any beneficiary to whom any amount has been apportioned under paragraph (1) shall be allowed, subject to section 53, a credit under section 44B for such amount, and " (3) the $100,000 amount specified in section 51(d) applicable to such estate or trust shall be reduced to an amount which bears the same ratio to $100,000 as the portion of the credit allocable to the estate or trust under paragraph (1) bears to the entire amount of such credit. "(h)

LIMITATIONS W I T H

RESPECT TO CERTAIN PERSONS.—^ITnder

regulations prescribed by the Secretary, in the case of— " (1) an organization to which section 593 (relating to reserves for losses on loans) applies, " (2) a regulated investment company or a real estate invest;- ment trust subject to taxation under subchapter M (section 851 and following), and " (3) a cooperative organization described in section 1381(a), rules similar to the rules provided in section 46(e) shall apply in determining the amount of the credit under this subpart. " (i) $50,000 L I M I T A T I O N I N THE CASE o r MARRIED INDIVIDUALS F I L I N G SEPARATE RETT^RNS.—In the case of a h u s b and or wife who

files a separate return, the limitation under section 51(d) shall be $50,000 in lieu of $100,000. T h i s subsection shall not apply if the spouse of the taxpayer has no interest in a trade or business for the taxable year of such spouse which ends within or with the taxpayer's taxable year. "(j)

CERTAIN SHORT TAXABLE Y E A R S. — I f the emplover has more

than one taxable year beginning in 1977 or 1978, the credit under this subpart, shall be determined for the employer's last taxable year beginning in 1977 or 1978. as the case may be.

Regulations.

�


text:
Page:United States Statutes at Large Volume 91.djvu/180

 91 STAT. 146 26 USC 53. Ante, p. 141.

Ante, p. 132.

,, •'

'

PUBLIC LAW 95-30—MAY 23, 1977 "SEC, 53. LIMITATION BASED ON AMOUNT OF TAX. " (a) GENERAL RULE.—Notwithstanding section 51, the amount of the credit allowed by section 44B for the taxable year shall not exceed the amount of the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowable under— " (1) section -33 (relating to foreif^n tax c r e d i t), " (2) section 37 (relating to credit for the elderly), " (3) section 38 (relating to investment in certain depreciable - property), • " (4) section 40 (relating to expenses of work incentive programs), " " (5) section 41 (relating to contributions to candidates for public office), ' " (6) section 42 (relating to general tax c r e d i t), and " (7) section 44A (relating to expenses for household and dependent care services necessary for gainful employment). For purposes of this subsection, any tax imposed for the taxable year by section 56 (relating to minimum tax for tax preferences), section 72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employees), section 408(f) (relating to additional tax on income from certain retirement accounts), section 402(e) (relating to tax on lump-sum distributions), section 531 (relating to accumulated earnings tax), section 541 (relating to personal holding company tax), or section 1378 (relating to tax on certain capital gains of subchapter S corporations), and any additional tax imposed for the taxable year by section 1351(d)(1) (relating to recoveries of foreign expropriation losses), shall not be considered tax imposed by this chapter for such year. "(b)

Ante, p. 135.

SPECIAL RULE FOR P A S S - T H R U OF C R E D I T. — I n the

a

part n e r in a partnership, a beneficiary of an estate or trust, and a shareholder in a subchapter S corporation, the limitation provided by subsection (a) for the taxable year shall not exceed a limitation separately computed with respect to such person's interest in such entity by taking an amount which bears the same relationship to such limitation as— " (1) that portion of the person's taxable income which is allocable or apportionable to the person's interest in such entity, bears to " (2) the person's taxable income for such year reduced by his zero bracket amount (determined under section 6 3 (d)), if any. "(c)

CARRYBACK AND CARRYOVER OF U N U S E D CREDIT.—

"(1)

Ante, p. 141.

case of

ALLOWANCE OF CREDIT.—If the amount of the

credit

determined under section 51 for any taxable year exceeds the limitation provided by subsection (a) for such taxable year (hereinafter in this subsection referred to as the 'unused credit year '), such excess shall be— " (A) a new employee credit carryback to each of the 3 taxable years preceding the unused credit year, and ->; "(I^) ^ ^6w employee credit carryover to each of the 7 taxable years following the unused credit year, and shall be added to the amount allowable as a credit by section 44B for such years. I f any portion of such excess is a carryback to a taxable year beginning before January 1, 1977, section 44B shall be deemed to have been in effect for such taxable year for purposes

�


text:
Page:United States Statutes at Large Volume 91.djvu/181

 PUBLIC LAW 95-30—MAY 23, 1977 of allowing such carryback as a credit under such section. The entire amount of the unused credit for an unused credit year shall be carried to the earliest of the 10 taxable years to which (by reason of subparagraphs (A) and (B)) such credit may be carried, and then to each of the other 9 taxable years to the extent that, because of the limitation contained in paragraph (2), such . unused credit may not be added for a prior taxable year to which such unused credit may be carried. " (2) LIMITATION.—The amount of the unused credit which may be added under paragraph (1) for any preceding or succeeding taxable year shall not exceed the amount by which the limitation provided by subsection (a) for such taxable year exceeds the sura of— " (A) the credit allowable under section 44B for such taxable year, and " (B) the amounts which, by reason of this subsection, are added to the amount allowatsle for such taxable year and which are attributable to taxable years preceding the unused credit year."

9 1 STAT. 147

. *

Ante, p. 141.

'* '"•

(c) DEDUCTION FOR WAGES P A I D REDUCED BY A M O U N T OF CREDIT.—

(1) IN GENERAL.—Part IX of subchapter B of chapter 1 (relating to items not deductible) is amended by adding at the end thereof the following new section: "SEC. 280C. PORTION OF WAGES FOR WHICH CREDIT IS CLAIMED UNDER SECTION 44B. "No deduction shall be allowed for that portion of the wages or salaries paid or incurred for the taxable year which is equal to the amount of the credit allowable for the taxable year under section 44B (relating to credit for employment of certain new employees) determined without regard to the provisions of section 53 (relating to limitation based on amount of tax). I n the case of a corporation which is a member of a controlled group of corporations (within the meaning of section 5 2 (a)) or a trade or business which is treated as being under common control with other trades or businesses (within the meaning of section 5 2 (b)), this section shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.". (2) CLERICAL AMENDMENT.—The table of sections for such part is amended by adding at the end thereof the following new item: "Sec. 280C. Portion of wages for which credit is claimed under section 44B." (d) T E C H N I C A L AND CONFORMING AMENDMENTS. — (1) CLERICAL AMENDMENTS.—

(A) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 44A the following new item: "Sec. 44B. Credit for employment of certain new employees."

(B) The table of subparts for part IV of subchapter A of chapter 1 is amended by adding at the end thereof the following new item: "Subpart D. Rules for computing credit for employment of certain new employees."

26 USC 280C.

Ante, p. 146. Ante, p. 143.

�


text:
Page:United States Statutes at Large Volume 91.djvu/182

 91 STAT. 14«

PUBLIC LAW 95-30—MAY 23, 1977 (2)

26 USC 56.

Anu, p. 141.

'

(A) Section 56(c) (defining regular tax deduction) is amended by striking out " and " at the end of paragraph (7), by striking out the period at the end of paragraph (8) and inserting in lieu thereof ", and", and by adding at the end thereof the following new paragraph: .: " (9) section 44B (relating to credit for employment of certain new employees)." (B) Subparagraph (A) of section 5 6 (e)(1) (relating to tax carryover for timber) is amended— (i) by striking out " and " at the end of clause ( i i), (ii) by striking out "exceed" at the end of clause (iii) and inserting in lieu thereof "and", and (iii) by inserting after clause (iii) the following new clause: " ( i v) section 44B (relating to credit for employment of certain new employees), exceed".

26 USC 381.

(3)

,.. „

26 USC 383.

Ante, p. 146.

CORPORATE REORGANIZATIONS.—

(A) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: "(26)

,.

MINIMUM TAX.—

CREDIT UNDER SECTION 4 4 B FOR EMPLOYMENT OF CERTAIN

NEW EMPLOYEES.—The acquiring corporation shall take into ,, account (to the extent proper to carry out the purposes of this section and section 44B. and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44B in respect of the distributor or transferor corporation." (B) Section 383 (relating to special limitations on unused investment credits, work incentive program credits, foreign taxes, and capital losses), as in effect for taxable years beginning after June 30, 1978, is amended— (i) by inserting "to any unused new employee credit of the corporation under section 5 3 (c), " after "section 50A(b),";and (ii) by striking out "WORK INCENTIVE PROGRAM CREDITS," in the section heading and inserting in lieu thereof "WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,". (C) Section 383 (as in effect on the day before the date of the enactment of the T a x Reform Act of 1976) is amended— (i) by inserting "to any unused new employee credit of the corporation which could otherwise be carried forward under section 5 3 (c), " after "section 5 0 A (b), "; and (ii) by striking out "WORK INCENTIVE PROGRAM CREDITS," in the section heading and inserting in lieu thereof "WORK INCENTIVE PROGRAM CREDITS, NEW EMPLOYEE CREDITS,". (D) The table of sections for part V of subchapter C of „.' chapter 1 is amended by striking out "work incentive program credits," in the item relating to section 383 and inserting in lieu thereof "work incentive program credits, new employee credits,".

�


text:
Page:United States Statutes at Large Volume 91.djvu/183

 PUBLIC LAW 95-30—MAY 23, 1977

91 STAT. 149

(4) STATUTES OF LIMITATION AND INTEREST RELATING TO N E W EMPLOYEE CREDIT CARRYBACK. (A) ASSESSMENT AND COLLECTION.—Section 6501 ( r e l a t i n g 26 USC 6501.

to limitations on assessment and collection) is amended by adding a t the end thereof the following new subsection: "(p)

N E W EMPLOYEE CREDIT CARRYBACKS.—In the case of a defi-

ciency attributable to the application to the taxpayer of a new employee credit carryback (including deficiencies which may be assessed pursuant to the provisions of section 6213(b)(3)), such deficiency may be assessed at any time before the expiration of the period within which a deficiency for the taxable year of the unused new employee credit which results in such carryback may be assessed, or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, a t any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed." (B) CREDIT OR REFUND.—Section 6511(d) ( r e l a t i n g to lim-

itations on credit or refund) is amended by adding at the end thereof the following new paragraph: " (9) SPECIAL PERIOD OF LIMITATION W I T H RESPECT TO N E W EMPLOYEE C R E D I T CARRYBACKS. " (A) PERIOD OF LIMITATIONS.—If the claim for credit or

refund relates to an overpayment attributable to a new employee credit carryback, in lieu of the 3-year period of limitation prescribed in subsection (a), the period shall be that period which ends with the expiration of the 15th day of the 40th month (or 39th month, in the case of a corporation) following the end of the taxable year of the unused new employee credit which results in such carryback (or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, the period shall be that period which ends with the expiration of the 15th day of the 40th month, or 39th month, in the case of a corporation, following the end of such taxable year) or the period prescribed in subsection (c) in respect of such taxable year, whichever expires later. I n the case of such a claim, the amount of the credit or refund may exceed the portion of the tax p a i d within the period provided in subsection (b)(2) or (c), whichever is applicable, to the extent of the amount of the overpayment attributable to such carryback. "(B)

APPLICABLE RUT.ES.—If the allowance of

a

credit

or refund of an overpayment of tax attributable to a new employee credit carryback is otherwise prevented by the operation of any law or rule of law other than section 7122, relating to compromises, such credit or refund may be allowed or made, if claim therefor is filed within the period provided in subparagraph (A) of this paragraph. I n the case of any such claim for credit or refund, the determination by any court, including the T a x Court, in any proceeding in which

26 USC 6511.

�


text:
Page:United States Statutes at Large Volume 91.djvu/184

 91 STAT. 150

PUBLIC LAW 95-30—MAY 23, 1977 ^•

,,,

,.,,

effect of such credit, to the extent that such credit is affected by a carryback which was not in issue in such proceeding."
 * the decision of the court has become final shall not be conelusive with respect to the new employee credit, and the

26 USC 6601.

(C)

INTEREST

ON UNDERPAYMENTS.—Section

6601(d)

(relating to income tax reduced by carryback or adjustment for certain unused deductions) is amended by adding at the end thereof the following new paragraph: " (5) N E W EMPLOYEE CREDIT CARRYBACK.—If the credit allowed

Anu, p. 141.

' 26 USC 6611.

by section 44B for any taxable year is increased by reason of a new employee credit carryback, such increase shall not affect the computation of interest under this section for the period ending with the last day of the taxable year in which the new employee credit carryback arises, or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the last day of such subsequent taxable year." (D) INTEREST ON ovERPiVYMENTS.—Section 6611(f) (relating to refund of income tax caused by carryback or adjustment for certain unused deductions) is amended by adding at the end thereof the following new paragraph: "(5)

N E W EMPLOYEE CREDIT CARRYBACK.—For

purposes

of

subsection (a), if any overpayment of tax imposed by subtitle A results from a new employee credit carryback, such overpayment shall be deemed not to have been made before the close of the taxable year in which such new employee credit carryback arises, or, with respect to any portion of a new employee credit carryback from a taxable year attributable to a net operating loss carryback, an investment credit carryback, a work incentive program credit carryback, or a capital loss carryback from a subsequent taxable year, such overpayment shall be deemed not to have been made before the close of such subsequent taxable year." 26 USC 6411.

Ante, p. 146.

(5) TENTATIVE CARRYBACK ADJUSTMENTS.— (A) APPLICATION FOR ADJUSTMENT.—Section 6411 (relat-

ing to quick refunds in respect of tentative carryback adjustments) is amended— (i) by striking o u t " o r unused work incentive program credit" each place it appears in such section and inserting in lieu thereof "unused work incentive program credit, or unused new employee credit", (ii) by inserting after "section 5 0 A (b), " in the first sentence of subsection (a) "by a new employee credit carryback provided in section 53(c),", (iii) by striking out " o r a work incentive program carryback from" in the second sentence of subsection (a) and inserting in lieu thereof ", a work incentive program carryback, or a new employee credit carryback from", and (iv) by striking out "investment credit c a r r y b a c k) " in the second sentence of subsection (a) and inserting in lieu thereof "investment credit carryback, or, in the case

�