89 STAT. 30 26 USC 42.
26 USC 151.
PUBLIC LAW 94-12—MAR. 29, 1975 "SEC. 42. CREDIT FOR PERSONAL EXEMPTIONS. " (a) GENERAL RULE. — I n the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year $30, multiplied by each exemption for which the tax p a y e r is entitled for the taxable year under subsection (b) or (e) of section 151. " (b) APPLICATION W I T H OTHER CREDITS.—The credit allowed by
26 USC 33. 26 USC 37. 26 USC 38. 26 USC 40. 26 USC 41.
subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year. I n determining the credits allowed under— " (1) section 33 (relating to foreign tax c r e d i t), " ^2) section 37 (relating to retirement income), "(3J section 38 (relating to investment in certain depreciable property). " (4) section 40 (relating to expenses of work incentive programs), and " (5) section 41 (relating to contributions to candidates for public office), the tax imposed by this chapter shall (before any other reductions) be reduced by the credit allowed by this section." (b) T E C H N I C A L AND CLERICAL AMENDMENTS. —
26 USC 56.
Supra.
26 USC 6096.
26 USC 43.
(1) The table of sections for such subpart is amended by striking out the last item and inserting in lieu thereof the following: "Sec. 42. Credit for personal exemptions. "Sec. 43. Overpayments of tax." (2) Section 56(a)(2) (relating to imposition of minimum tax) is amended by striking out " and " a t the end of clause ( i v), by striking out "; and " a t the end of clause (v) and inserting in lieu thereof ", and", and by inserting after clause (v) the following new clause: " ( v i) section 42 (relating to credit for personal exemptions); and ". (3) Section 56(c)(1) (relating to tax carryovers) is amended by sti-iking out " and " at the end of subparagraph (D), by striking out "exceed" at the end of subparagraph (E) and inserting in lieu thereof "and", and by inserting after subparagraph (E) the following new subparagraph: " (F) section 42 (relating to credit for personal exemptions), exceed". (4) Section 6096(b) (relating to designation of income tax payments to Presidential Election Campaign F u n d) is amended by striking out " and 4 1 " and inserting in lieu thereof " 4 1, and 42". SEC. 204. CREDIT FOR CERTAIN EARNED INCOME. (a) ALLOWANCE o r CREDIT.—Subpart A of part IV of subchapter A of chapter 1 (relating to credits against tax) is amended by redesignating section 43 as section 44, and by inserting after section 42 the following new section: "SEC. 43. EARNED INCOME. " (a) ALLOWANCE OF CitEDiT.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 10 percent of so much of the earned income for the taxable year as does not exceed $4,000. " (b) LIMITATION.—The amount of the credit allowable to a taxpayer under subsection (a) for any taxable year shall be reduced ( b u t not below zero) by an amount equal to 10 percent of so much of the adjusted gross income (or, if greater, the earned income) of the taxpayer for the taxable year as exceeds $4,000.
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