PUBLIC LAW 94-455—OCT. 4, 1976
90 STAT. 1555
(b) CLERICAL AMENDMENT. — The table of sections for part VI of
subchapter Q of chapter 1 is amended by striking out the item relating to section 1348 and inserting in lieu thereof the following: "Sec. 1348. 50-percent maximum rate on personal service income." (c) CONFORMING AMENDMENTS. — S e c t i o n 1304(b)(5) is amended by
striking out "earned" and inserting i n lieu thereof "personal service". (d) EFFECTIVE D A T E. — The amendments made by this section apply to taxable years beginning after December 31, 1976.
26 USC 1304.
26 USC 1348 note.
TITLE IV—EXTENSIONS OF INDIVIDUAL INCOME TAX REDUCTIONS SEC. 401. EXTENSIONS OF INDIVIDUAL INCOME TAX REDUCTIONS. (a) GENERAL T A X CREDIT.—
(1) 1-YEAR EXTENSION OF CREDIT.—Section 3(b) of the Revenue Adjustment Act of 1975 is amended by striking out "December 31, 1976" and inserting in lieu thereof "December 31, 1977".
26 USC 42 note.
(2) T E C H N I C A L AMENDMENTS.—
(A) The heading and subsection (a) of section 42 (relating to allowance of taxable income credit) a r e amended to read as follows: "SEC. 42. GENERAL TAX CREDIT. 26 USC 42. " (a) ALLOWANCE OF C R E D I T. — I n the case of an individual, the r e
shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the greater of— " (1) 2 percent of so much of the taxpayer's taxable income for the taxable year as does not exceed $9,000; o r " (2) $35 multiplied by each exemption for which the taxpayer is entitled to a deduction for the taxable year under subsection (b) or (e) of section 151." (B) Paragraph (1) of section 42(c) (relating to special rule for married individuals filing separate returns) is amended to read as follows: " (1) IN GENERAL.—Notwithstanding subsection (a), in the case of a married individual who files a separate return for the taxable year, the amount of the credit allowable under subsection (a) for the taxable year shall be equal to either— " (A) the amount determined under paragraph (1) of subsection (a); or " (B) if this subparagraph applies to the individual for the taxable year, the amount determined under paragraph (2) of subsection (a). For purposes of the preceding sentence, paragraph (1) of subsection (a) shall be applied by substituting '$4,500' for '$9,000'." (C) Section 6096(b) (relating to designation of income 26 USC 6096. tax payments to Presidential Election Campaign F u n d), as in effect on the day before the date of the enactment of the Tax Keduction Act of 1975, is amended by striking out "and 4 1 " ^«'e, p. 1520. and inserting in lieu thereof "41, and 42". (D) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking out the item relating to section 42 and inserting in lieu thereof the following: "Sec. 42. General tax credit."
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