Page:United States Statutes at Large Volume 107 Part 1.djvu/459

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PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 433 "(ii) any land or property in accordance with section 147(c)(2). ' ' (b) EFFECTIVE DATE.— The amendment made by subsection (a) 26 USC 144 note. shall apply to bonds issued after June 30, 1992. (c) TREATMENT UNDER INDUCEMENT REGULATIONS. —If the 1- year period specified in Treasury Regulation § 1.103-8(a)(5) (as in effect before July 1, 1993) or any successor regulation would (but for this subsection) expire after June 30, 1992, and before January 1, 1994, such period shall not expire before January 1, 1994. PART III—EXPANSION AND SIMPLIFICATION OF EARNED INCOME TAX CREDIT SEC. 13131. EXPANSION AND SIMPLIFICATION OF EARNED INCOME TAX CREDIT. (a) GENERAL RULE. — Section 32 (relating to earned income 26 USC 32. credit) is amended by striking subsections (a) and (b) and inserting the following: "(a) ALLOWANCE OF CREDIT.— "(1) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the credit percentage of so much of the taxpayer's earned income for the taxable year as does not exceed the earned income amount. "(2) LIMITATION.— The amount of the credit allowable to a taxpayer under paragraph (1) for any taxable year shall not exceed the excess (if any) of— "(A) the credit percentage of the earned income amount, over "(B) the phaseout percentage of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds the phaseout amount. "(b) PERCENTAGES AND AMOUNTS.— For purposes of subsection (a)- "(1) PERCENTAGES. —The credit percentage and the phaseout percentage shall be determined as follows: "(A) IN GENERAL.—In the case of taxable years beginning after 1995: ^"^'inSijfl^withf^"^ The credit percentage is: The phaseout percentage 1 qualifying child 34 15.98 2 or more qualifying 40 21.06 children No qualifying children 7.65 7.65 "(B) TRANSITIONAL PERCENTAGES FOR 1995. —In the case of taxable years beginning in 1995: ^" * to^vldull^with:^"* The credit percentage is: ^he phaseout percentage 1 qualifying child 34 15.98 2 or more qualifying 36 20.22 children No qualifying children 7.65 7.65