Page:United States Statutes at Large Volume 89.djvu/1032

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PUBLIC LAW 94-000—MMMM. DD, 1975

89 STAT. 972 26 USC 43 note. 26 USC 43.

PUBLIC LAW 9 4 - 1 6 4 — D E C. 23, 1975 (d) DISREGARD OF R E F U N D. — Any refund of Federal income taxes made to any individual by reason of section 43 of the I n t e r n a l Revenue Code of 1954 (relating to earned income credit) shall not be taken into account as income or receipts for purposes of determining the eligibility, for the month in which such refund is made or any month thereafter which begins prior to July 1, 1976, of such individual or any other individual for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or i n part with Federal funds, b u t only if such individual (or the family unit of which he is a member) is a recipient of benefits or assistance under such a program for the month before the month in which such refund is made.

26 USC 42 note.

(e) EXTENSION OF CERTAIN L O W - I N C O M E ALLOWANCE, PERCENTAGE STANDARD DEDUCTION, AND T A X CREDIT PROVISIONS.—The last sentence

Ante, p. 35. 26 USC 42 note,

of section 209(a) of the T a x Reduction Act of 1975 is amended to read ^s follows: " The amendments made by section 201(a) and 202(a) shall cease to apply to taxable years ending after December 31, 1975; those made by sections 201(b), 201 (c), and 203 shall cease to a p p l y to taxable years ending after December 31, 1976.". (f) EXTENSION OF EARNED INCOME CREDIT.—Section 209(b) of the

26 USC 43 note. 26 USC 42 note.

T a x Reduction Act of 1975 (relating to effective date for section 204) is amended by striking out " January 1, 1976," and inserting in lieu thereof " January 1, 1977.". (g) EFFECTIVE D A T E. — The amendments made by this section apply to taxable years ending after December 31, 1975, and before January 1, 1977. SEC. 3. TAXABLE INCOME CREDIT. (a) TAXABLE INCOME CREDIT.—

26 USC 42.

(1) IN GENERAL.—Section 42 of the I n t e r n a l Revenue Code of 1954 (relating to credit for personal exemptions) is amended to read as follows: "SEC. 42. TAXABLE INCOME CREDIT. " (a) ALLOWANCE OF CREDIT.—

26 USC 151.

" (1) IN GENERAL.—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year a n amount equal to the greater of— " (A) 2 percent of so much of the taxpayer's taxable income for the taxable year as does not exceed $9,000; or " (B) $35 multiplied by each exemption for which the taxpayer is entitled to a deduction for the taxable year under subsection (b) o r (e) of section 151. "(2)

APPLICATION OF SIX-MONTH RULE.—Notwithstanding the

provisions of paragraph (1) of this subsection, the percentage "1 percent" shall be substituted for "2 percent" in subparagraph (A) of such paragraph, and the amount "$17.50" shall be substituted for the amount " $ 3 5 " in subparagraph (B) of such paragraph. " (b) APPLICATION W I T H OTHER CREDITS.—The credit allowed by

26 USC 33. 26 USC 37. 26 USC 38.

subsection (a) shall not exceed the amount of the tax imposed by t h i s chapter for the taxable year. I n determining the credits allowed under— " n ^ section 33 (relating to foreign tax c r e d i t), " (2) section 37 (relating to retirement income c r e d i t), " (3) section 38 (relating to investment in certain depreciable property).