115 STAT. 42 PUBLIC LAW 107-16-JUNE 7, 2001 The corresponding percentages "In the case of taxable years iifi'f^li^tf^^^^l'iitffJ^L. beginning during calendar year: the following percentages; 28% 31% 36% 39.6% 2001 27.5% 2002 and 2003 27.0% 2004 and 2005 26.0% 2006 and thereafter 25.0% 30.5% 30.0% 29.0% 28.0% 35.5% 35.0% 34.0% 33.0% 39.1% 38.6% 37.6% 35.0% "(3) ADJUSTMENT OF TABLES.—The Secretary shall adjust the tables prescribed under subsection (f) to carry out this subsection.". (b) ACCELERATION OF 10 PERCENT RATE BRACKET BENEFIT FOR 2001. — (1) IN GENERAL. —Subchapter B of chapter 65 (relating to abatements, credits, and refunds) is amended by adding at the end the following new section: "SEC. 6428. ACCELERATION OF 10 PERCENT INCOME TAX RATE BRACKET BENEFIT FOR 2001. "(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 for the taxpayer's first taxable year beginning in 2001 an amount equal to 5 percent of so much of the taxpayer's taxable income as does not exceed the initial bracket amount (as defined in section KiXlXB)). " (b) LIMITATION BASED ON AMOUNT OF TAX.—The credit allowed by subsection (a) shall not exceed the excess (if any) of— "(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over "(2) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits). "(c) ELIGIBLE INDIVIDUAL.—For purposes of this section, the term 'eligible individual' means any individual other than— "(1) any estate or trust, "(2) any nonresident alien individual, and "(3) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins. "(d) SPECIAL RULES. — " (1) COORDINATION WITH ADVANCE REFUNDS OF CREDIT. — "(A) IN GENERAL.—The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). "(B) JOINT RETURNS.—In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return. "(2) COORDINATION WITH ESTIMATED TAX.— The credit under this section shall be treated for purposes of section 6654(f)
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