Page:United States Statutes at Large Volume 55 Part 1.djvu/717

 PUBLIC LAWS-CH. 412 -SEPT. 20 ,1941 Ante, p. 689. 53 Stat. 24 . 26U.S.C. §31,32. "SEC. 402. MANNER OF ELECTION. "The election referred to in section 400 shall be considered to have been made if the taxpayer files the return prescribed for this Supple- ment and such election shall be irrevocable. If the taxpayer for any taxable year has filed a return computing his tax without regard to this Supplement, he may not thereafter elect for such year to compute his tax under this Supplement. "SEC. 403. CREDITS AGAINST TAX NOT ALLOWED. "Section 31 (relating to foreign tax credit) and section 32 (relating to credit for taxes withheld at source) shall not apply with respect to the tax imposed by this Supplement. "SEC. 404 . CERTAIN TAXPAYERS NOT ELIGIBLE. "This Supplement shall not apply to a nonresident alien individual, or an estate or trust." (b) CROSS-REFERENCES. - 53 Stat. 5. l1) Section 11 of the Internal Revenue Code is amended by insert- 26U..C. 11. ing at the end thereof the following: "(For alternative tax if gross income from certain sources is $3,000 or less, see section 400) ". 53 Stat. 5, 7. (2) Section 12 of the Internal Revenue Code is amended by insert- 26 U. .C. ing at the end thereof the following: "(g) For alternative tax if gross income from certain sources is Ante, p. 689. $3,000 or less, see section 400." 3 Stat. 4,5. (c) AMENDMENT TO SECTION 4. -Section 4 of the Internal Revenue 26 .C.4. Code is amended by inserting at the end thereof the following: 54 Sta. 1005. "(k) Shareholders of Personal Service Corporations,-Supple- 26 U. S. C. §391- '- 396. ment S. Ante, p.689. "(1) Individuals with gross income from certain sources of $3,000 or less,-Supplement T." SEC. 103. CORPORATION DEFENSE TAX RATES INCORPORATED IN RATE SCHEDULES. 53 Stat. 864. 26U.S . 13 (b) (1) -(2). 53 Stat. 864. 26 U. S. C. 14(b) (a) TAX ON CORPORATIONS IN GENERAL. -Section 13 (b) (1) and (2) of the Internal Revenue Code are amended to read as follows: " (1) GENERAL RULE.-A tax of 24 per centum of the normal-tax net income; or " (2) ALTERNATIVE TAX (CORPORATIONS WITH NORMAL-TAX NET INCOME SLIGHTLY MORE THAN $25,000).-A tax of $4,250, plus 37 per centum of the amount of the normal-tax net income m excess of $25,000." (b) TAX ON SPECIAL CLASSES OF CORPORATIONS. - Section 14 (b) of the Internal Revenue Code is amended to read as follows: "(b) CORPORATIONS WITH NORMAL-TAX NET INCOMES OF NOT MORE THAN $25,000. -If the normal-tax net income of the corporation is not more than $25,000, and if the corporation does not come within one of the classes specified in subsection (c), (d), or (e) of this section, the tax shall be as follows: "Upon normal-tax net incomes not in excess of $5,000, 15 per centum. "$750 upon normal-tax net incomes of $5,000, and upon normal- tax net incomes in excess of $5,000 and not in excess of $20,000, 17 per centum in addition of such excess. "$3,300 upon normal-tax net incomes of $20,000, and upon nor- mal-tax net incomes in excess of $20,000, 19 per centum in addition of such excess." 692 [55 STAT.

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