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.
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