Page:United States Statutes at Large Volume 76.djvu/1011

 76 STAT. ]

PUBLIC LAW 8 7 - 8 3 4 - O C T. 16, 1962

" (b) REGULATIONS.—The Secretary or his delegate shall prescribe such regulations as may be necessary to carry out the purposes of this section and subpart B. " (b) RULES FOR COMPUTING CREDIT.—Part IV of subchapter A of chapter 1 is amended by adding at the end thereof the following new subpart:

963

26 USC 31-38.

"Subpart B—Rules for Computing Credit for Investment in Certain Depreciable Property "Sec. 46. Amount of credit. "Sec. 47. Certain dispositions, etc., of section 38 property. "Sec. 48. Definitions; special rules. "SEC. 46. AMOUNT OF CREDIT. " (a) DETERMINATION OF A M O U N T. — "(1) GENERAL RULE.—The amount of the credit allowed by

section 38 for the taxable year shall be equal to 7 percent of the qualified investment (as defined in subsection (c)).

Ante. p. 962.

" (2) LIMITATION BASED ON AMOUNT OP TAX.—Notwithstanding

paragraph (1), the credit allowed by section 38 for the taxable year shall not exceed— " (A) so much of the liability for tax for the taxable year as does not exceed $25,000, plus " (B) 25 percent of so much of the liability for tax for the taxable year as exceeds $25,000. "(3) LIABILITY FOR TAX.—For purposes of paragraph (2), the liability for tax for the taxable year shall be the tax imposed by this chapter for such year, reduced by the sum of the credits allowable under— " (A) section 33 (relating to foreign tax credit), " (B) section 34 (relating to dividends received by individuals), " (C) section 35 (relating to partially tax-exempt interest), and " (D) section 37 (relating to retirement income). For purposes of this paragraph, any tax imposed for the taxable year by section 531 (relating to accumulated earnings tax) or by section 541 (relating to personal holding company tax) shall not be considered tax imposed by this chapter for such year. "(4) MARRIED INDIVIDUALS.—In the case of a husband or wife who fiiles a separate return, the amount specified under subparagraphs (A) and (B) of paragraph (2) shall be $12,500 in lieu of $25,000. This paragraph shall not apply if the spouse of the taxpayer has no qualified investment for, and no unused credit carryback or carryover to, the taxable year of such spouse which ends within or with the taxpayer's taxable year. "(5) AFFILIATED GROUPS.—In the case of an affiliated group, the $25,000 amount specified under subparagraphs (A) and (B) of paragraph (2) shall be reduced for each member of the group by apportioning $25,000 among the members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term ^affiliated group' has the meaning assigned to such term by section 1504(a), except that all corporations shall be treated as includible corporations (without any exclusion under section 1504(b)). " (b) CARRYBACK AND CARRYOVER OF UNUSED CREDITS.— " (1) ALLOWANCE OF CREDIT.—If the amount of the credit deter-

mined under subsection (a)(1) for any taxable year exceeds the limitation provided by subsection (a)(2) for such taxable year

26 USC 33.

�