Page:United States Statutes at Large Volume 89.djvu/1034

 8 9 STAT. 9 7 4

PUBLIC LAW 9 4 - 1 6 4 — D E C. 23, 1975 " ( i i) 22 percent of so much of the taxable income as exceeds $25,000. " (2) S IX - M O N T H APPLICATION OF GENERAL RULE.— "(A) CALENDAR YEAR TAXPAYERS.—Notwithstanding

the

provisions of paragraph (1), in the case of a taxpayer who has as his taxable year the calendar year 1976, the normal tax for such taxable year is equal to the sum of— " (i) 21 percent of so much of the taxable income as does not e xceed $25,000, plus " ( i i) 22 percent of so much of the taxable income as exceeds $25,000. "(B)

26 USC 11.

FISCAL YEAR TAXPAYERS.—Notwithstanding the p r o -

visions of paragraph (1), in the case of a taxpayer whose taxable year is not the calendar year, effective on July 1, 1976, paragraph (1) shall cease to apply and the normal tax shall be 22 percent.". (b) CORPORATE SURTAX.—Section 11(c) of such Code (relating to surtax) is amended to read as follows: "(c)

SURTAX.—

" (1) GENERAL RULE.—The surtax is 26 percent of the amount by which the taxable income exceeds the surtax exemption for the taxable year. "(2)

SPECIAL RULE FOR IOTG FOR CALENDAR YEAR TAXPAYERS.—

Notwithstanding the provisions of paragraph (1), in the case of a taxpayer who has as his taxable year the calendar year 1976, the surtax for such taxable year is— " (A) 13 percent of the amount by which the taxable income exceeds the $25,000 surtax exemption (as in effect under subsection (d)(2)) but does not exceed $50,000, plus " (B) 26 percent of the amount by which the taxable income exceeds $50,000.". (c) SURTAX EXEMPTION.—Section 11(d) of such Code (relating to surtax exemption) is amended to read as follows: "(d)

26 USC 1561, 1564.

SURTAX E X E M P T I O N. —

" (1) GENERAL RULE.—For purposes of this subtitle, the surtax exemption for any taxable year is $50,000, except that, with respect to a corporation to which section 1561 or 1564 (relating to surtax exemptions in case of certain controlled corporations) applies for the taxable year, the surtax exemption for the taxable year is the amount determined under such section. " (2) S IX - M O N T H APPLICATION OF GENERAL RULE.—Notwithstand-

ing the provisions of paragraph (1) — " (A) CALENDAR YEAR TAXPAYERS.—In the case of a tax p a y e r

who has as his taxable year the calendar year 1976, the provisions of paragraph (1) shall be applied for such taxable year by substituting the amount '$25,000' for the amount '$50,000' a p p e a r i n g therein. "(B)

FISCAL YEAR TAXPAYERS.—In the case of a tax p a y e r

whose taxable year is not the calendar year, effective on July 1, 1976, paragraph (1) shall be applied by substituting the amount '$25,000' for the amount '$50,000' a p p e a r i n g therein, and such substitution shall be treated, for purposes of section 21, as a change in a rate of tax.". (d)

T E C H N I C A L AND CONFORMING C H A N G E S. —

(1) Section 1561(a)(1) of such Code (relating to limitations on certain multiple tax benefits in the case of certain controlled corporations) as such section is in effect for taxable years ending after December 31, 1975, is amended by striking out "$25,000".

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