Page:United States Statutes at Large Volume 78.djvu/73

 78 STAT. ]

PUBLIC LAW 88-272-FEB. 26, 1964

31

'* (d) CHANGES MADE BY REVENUE ACT OF 1964.— "(1) INDIVIDUALS.—In applying subsection (a) to the taxable year of an individual beginning in 1963 and ending in 1964— " (A) the rate of tax for the period on and after January 1, 1964, shall be applied to the taxable income determined as if part IV of subchapter B (relating to standard deduction for individuals), as amended by the Revenue Act of 1964, applied to taxable years ending after December 31, 1963, and 68A Stat. " (B) section 4 (relating to rules for optional tax), as post, pp. I l 10; 140. l, amended by such Act, shall be applied to taxable years " 26 'use 4 ending after December 31, 1963. I n applying subsection (a) to a taxable year of an individual beginning in 1963 and ending in 1964, or beginning in 1964 and ending in 1965, the change in the tax imposed under section 3 shall be treated as a change in a rate of tax. 5 USC'3!^^ "(2) CORPORATIONS.—In applj^in^ subsection (a) to a taxable year of a corporation beginning in 1963 and ending in 1964, if— " (A) the surtax exemption of such corporation for such taxable year is less than $25,000 by reason of the application of section 1561 (relating to surtax exemptions ^°sP- ii^ in case of certain controlled corporations), or " (B) an additional tax is imposed on the taxable income of such corporation for such taxable year by section 1562(b) (relathig to additional tax in case of component ^°«P- "7 members of controlled groups which elect multiple surtax exemptions), the change in the surtax exemption, or the imposition of such additional tax, shall be treated as a change in a rate of tax taking effect on January 1, 1964."

Title II—Structural Changes SEC. 201. DIVIDENDS RECEIVED BY INDIVIDUALS. (a)

REDUCTION OF 4 PERCENT CREDIT TO 2 PERCENT CREDIT FOR

('Ar.ENDAR YEAR 1964.— (1) GP:NERAL RULE.—Section 34(a) (relating to general rule for credit for dividends received) is amended by striking out "an amount equal to 4 percent of the dividends which are received after July 31, 1954, from domestic corporations and are included in gross income" and inserting in lieu thereof: "an amount equal to the following percentage of the dividends which lire received from domestic corporations and are included in gi*oss iiK'ome:

"(1) 4 percent of the amount of such dividends which are received before January 1, 1964, and "(2) 2 percent of the amount of such dividends which are received during the calendar year 1964." (2) LIMITATIONS.—Section 34(b)(2) (relating to limitations on amount of credit) is amended— (A) by inserting ", or beginning after December 31, 1963" after "1955" at the end of subparagraph (A), and (B) by inserting ", and beginning before January 1, 1964" after "1954" at the end of subparagraph (B). (b)

REPEAL OF CREDIT FOR DIVIDENDS RECEIVED BY INDIVIDUALS.—

Effective with respect to dividends received after December 31, 1964,

26 USC 34.

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