Page:United States Statutes at Large Volume 80 Part 1.djvu/1550

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76 Stat. 963.

PUBLIC LAW 89-800-NOV. 8, 1966

term 'suspension period' means the period beginning on October 10, 1966, and ending on December 31, 1967." SEC. 3. (a) Section 46(a) of the Internal Revenue Cbde of 1954 (relating to determination of amount of credit) is amended by striking out paragraph (2) and inserting in lieu thereof the following: "(2)

Ante, p. 1513.

[80 STAT.

LIMITATION BASED ON AMOUNT OF 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) for taxable years ending on or before the last day of the suspension period (as defined in section 4 8 (j)), 25 percent of so much of the liability for tax for the taxable year as exceeds $25,000, or " (C) for taxable years ending after the last day of such suspension period, 50 percent of so much of the liability for tax for the taxable year as exceeds $25,000. I n applying subparagraph (C) to a taxable year beginning on or before the last day of such suspension period and ending after the last day of such suspension period, the percent referred to in such subparagraph shall be the sum of 25 percent plus the percent which bears the same ratio to 25 percent as the number of days in such year after the last day of the suspension period bears to the total number of days in such year. The amount otherwise determined under this paragraph shall be reduced (but not below zero) by the credit which would have been allowable under paragraph (1) for such taxable year with respect to suspension period property but for the application of section

Ante, p. 1508.

Retirement and savings bonds. 40 Stat. 288. 31 USC 774. 55 Stat. 7. 31 USC 757c.

(b) Section 46(b)(1) of such Code (relating to allowance of carryback and carryover of unused credits) is amended— (1) by striking out subparagraph (B) and inserting in lieu thereof the following: " (B) an investment credit carryover to each of the 7 taxable years following the unused credit year,"; and (2) by striking out in the last sentence "8 taxable years" and "other 7 taxable years" and inserting in lieu thereof "10 taxable years" and "other 9 taxable years", respectively. SEC. 4. The amendments made by this Act shall apply to taxable years ending after October 9, 1966, except that the amendments made by section 3(b) shall apply only if the fifth taxable year following the unused credit year ends after December 31, 1966. SEC. 5. The Second Liberty Bond Act, as amended, is amended by inserting after section 22 the following new section: "SEC. 22A. (a) I n addition to the United States savings bonds authorized to be issued under section 22 of this Act, the Secretary of the Treasury, with the approval of the President, is authorized to issue from time to time, through the Postal Service or otherwise. United States retirement and savings bonds, the proceeds of which shall be available to meet any public expenditures authorized by law and to retire any outstanding obligations of the United States bearing interest or issued on a discount basis. The various issues and series of United

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