Page:United States Statutes at Large Volume 89.djvu/1033

 PUBLIC LAW 94-164—DEC. 23, 1975

89 STAT. 973

"(4) section 40 (relating to expenses of work incentive pro- 26 USC 40. grams), and "(5) section 41 (relating to contributions to candidates for 26 USC 41. public office), the tax imposed by this chapter shall (before any other reductions) be reduced by the credit allowed by this section. "(c) SPECIAL RULE FOR MARRIED INDIVIDUALS FILING SEPARATE RETURNS.—

"(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)(A) of subsection (a); or "(B) if this subparagraph applies to the individual for the taxable year, the amount determined under paragraph (1)(B) of subsection (a). For purposes of the preceding sentence, paragraph (1) of subsection (a) shall be applied by substituting '$4,500' for '$9,000'. "(2) APPLICATION or PARAGRAPH (1)(B).—Subparagraph (B)

of paragraph (1) shall apply to any taxpayer for any taxable year if— " (A) such taxpayer elects to have such subparagraph apply for such taxable year, and "(B) the spouse of such taxpayer elects to have such subparagraph apply for any taxable year corresponding, for purposes of section 142(a), to the taxable year of the 26 USC 142. taxpayer. Any such election shall be made at such time, and in such manner, as the Secretary or his delegate shall by regulations prescribe. "(3) MARITAL STATUS.—For purposes of this subsection, the determination of marital status shall be made under section 143. 26 USC 143. "(d) CERTAIN PERSONS NOT ELIGIBLE.—This section shall not apply to any estate or trust, nor shall it apply to any nonresident alien individual.". (2) CLERICAL AMENDMENT.—The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking out the item relating to section 42 and inserting in lieu thereof the following: "Sec. 42. Taxable income credit.", (b) EFFECTIVE DATE.—The amendments made by subsection (a)

26 USC 42 laote.

shall apply to taxable years ending after December 31, 1975. Such amendments shall cease to apply to taxable years ending after December 31, 1976. SEC. 4 CORPORATE TAX RATES AND SURTAX EXEMPTION. . (a) CoRPOiti\TE NORMAL TAX.—Section 11(a) of the Internal Revenue Code of 1954 (relating to corporate normal tax) is amended to 26 USC 11. read as follows: "(b) NORMAL TAX.— " (1) GENERAL RULE.—The normal tax is equal to—

"(A) in the case of a taxable year ending after December 31, 1976,22 percent of the taxable income, and "(B) in the case of a taxable year ending after December 31, 1974, and before January 1, 1977, the sum of— "(i) 20 percent of so much of the taxable income as does not exceed $25,000, plus

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