Page:United States Statutes at Large Volume 92 Part 3.djvu/140

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PUBLIC LAW 95-000—MMMM. DD, 1978

92 STAT. 2772

PUBLIC LAW 95-600—NOV. 6, 1978 SEC. 104. INCREASE IN AND SIMPLIFICATION OF THE EARNED INCOME TAX CREDIT.

26 USC 43.

(a) INCREASE IN CREDIT.—Subsection (a) of section 43 (relating to earned income credit) is amended— (1) by striking out "chapter" and inserting in lieu thereof "subtitle", and (2) by striking out "$4,000" and inserting in lieu thereof "$5,000". (b) REVISION OF THE LIMITATION.—Subsection Ob) of section 43 is amended to read as follows: "(b) LIMITATION.—The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall not exceed the excess (if any) of— "(1) $500, over "(2) 12.5 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $6,000.". (c) AMOUNT OF CREDIT TO B E DETERMINED UNDER TABLES.-=-Section 43 is amended by adding at the end thereof the following new subsection: "(f)

AMOUNT OF CREDIT TO B E DETERMINED UNDER TABLES,—

"(1) IN GENERAL.—The amount of the credit allowed by this section shall be determined under tables prescribed by the Secretary. "(2) REQUIREMENTS FOR TABLES.—The tables prescribed under paragraph (1) shall reflect the provisions of subsections (a) and (b) and shall have income brackets of not greater than $50 each— "(A) for earned income between $0 and $10,000, and "(B) for adjusted gross income between $6,000 and $10,000.". (d) EXCLUDABLE EARNED INCOME TAKEN INTO ACCOUNT.—Subpara-

graph (B) of section 43(c)(2) (defining earned income) is amended by striking out clause (i) and by redesignating clauses (ii), (iii), and (iv) as clauses (i), (ii), and (iii), respectively. (e) DEFINITION OF ELIGIBLE INDIVIDUAL.—Paragraph (1) of section 43(c) (defining eligible individual) is amended to read as follows: "(1) ELIGIBLE INDIVIDUAL.—

"(A) IN GENERAL.—The term 'eligible individual' means an individual who, for the taxable year— "(i) is married (within the meaning of section 143) and is entitled to a deduction under section 151 for a child (within the meaning of section 151(e)(3)), "(ii) is a surviving spouse (as determined under section 2(a)), or "(iii) is a head of a household (as determined under subsection (b) of section 2 without regard to subparagraphs (A)(ii) and (B) of paragraph (1) of such subsection).

26 USC 143. 26 USC 151. 26 USC 2.

"(B) CHILD MUST RESIDE WITH TAXPAYER IN THE UNITED

.

., .

26 USC 911.

^

STATES.—An individual shall be treated as satisfying clause (i) of subparagraph (A) only if the child has the same principal place of abode as the individual and such abode is in the United States. An individual shall be treated as satisfying clause (ii) or (iii) of subparagraph (A) only if the household in question is in the United States. "(C) INDIVIDUAL ENTITLED TO EXCLUDE INCOME UNDER SECTION 911 NOT ELIGIBLE INDIVIDUAL.—The term 'eligible indi-