PUBLIC LAW 94-455—OCT. 4, 1976
9 0 STAT. 1560
" (b) SECTION 37 A M O U N T. — For purposes of subsection (a) —
" (1) IN GENERAL.—An individual's section 37 amount for the taxable year is the applicable initial amount determined under paragraph (2), reduced as provided i n paragraph (3) and in subsection (c). " (2) I N I T I A L AMOUNT.—The i n i t i a l a m o u n t is—
42 USC 401. 45 USC 215— 228 notes, 228a. 26 USC 72. Post, p. 1926.
" ^ A) $2,500 in the case of a single individual, " (B) $2,500 in the case of a joint return where only one spouse is eligible for the credit under subsection (a), " (C) $3,750 in the case of a joint return where both spouses are eligible for the credit under subsection (a), or " (D) $1,875 in the case of a married individual filing a separate return. " (3) REDUCTION.—The reduction under this paragraph is an amount equal to the sum of the amounts received by the individual (or, in the case of a joint return, by either spouse) as a pension or annuity— " (A) under title II of the Social Security Act, " (B) under the Railroad Retirement Act of 1935 or 1937, or " (C) otherwise excluded from gross income. No reduction shall be made under this paragraph for any amount excluded from gross income under section 72 (relating to annuities), 101 (relating to life insurance proceeds), 104 (relating to compensation for injuries or sickness), 105 (relating to amounts received under accident and health p l a n s), 120 (relating to amounts received under qualified g r o u p legal services p l a n s), 402 (relating to taxability of beneficiary of employees' t r u s t), 403 (relating to taxation of employee annuities), or 405 (relating to qualified bond purchase p l a n s). "(c)
LIMITATIONS.— " (1) ADJUSTED GROSS INCOME L I M I T A T I O N. — I f
the
adjusted
gross income of the taxpayer exceeds— " (A) $7,500 in the case of a single individual, " (B) $10,000 in the case of a joint return, or " (C) $5,000 in the case of a married individual filing a separate return, the section 37 amount shall be reduced by one-half of the excess of the adjusted gross income over $7,500, $10,000, or $5,000, as the case may be. " (2) L I M I T A T I O N BASED ON AMOUNT o r TAX.—The a m o u n t of
26 USC 1.
the credit allowed by this section for the taxable year shall not exceed the amount of the tax imposed by this chapter for such taxable year. "(d)
DEFINITIONS
AND SPECIAL
RULES.—For
purposes
of
this
section— " (1) MARRIED COUPLE MUST FILE JOINT R E T U R N. — E x c e p t in the
"Joint return.
case of a husband and wife who live a part a t all times during the taxable year, if the taxpayer is married a t the close of the taxable year, the credit provided by this section shall be allowed only if the taxpayer and his spouse file a joint r e t u r n for the taxable year. " (2) MARITAL STATUS.—Marital status shall be determined under section 143. " (3) JOINT RETURN.—The term 'joint r e t u r n ' means the joint r e t u r n of a husband and wife made under section 6013.
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