Page:United States Statutes at Large Volume 89.djvu/104

 89 STAT. 44

PUBLIC LAW 94-12—MAR. 29, 1975 leaseback to, a taxpayer who, when the property is placed in service, will be a lessee to whom section 4 8 (d) applies shall not be treated as a cessation described in sulaparagraph (A) to the extent that the qualified investment which will be passed through to the lessee under section 4 8 (d) with respect to such property is not less than the qualified progress expenditures properly taken into account by the lessee with respect to such property. " (D) COORDINATION WITH PARAGRAPH (i).—If, after property is placed in service, there is a disposition or other cessation described in paragraph (1), paragraph (1) shall be applied as if any credit which was allowable by reason of Section 4 6 (d) and which has not been required to be recaptured before such cessation were allowable for the taxable year the property was placed in service."

26 USC 48.

Ante, p. 40.

(c)

Ante, p. 43.

26 USC 48. 26 USC SOB.

26 USC 11.

(1) Paragraph (4) of section 4 7 (a) (as redesignated by subsection (b)(2)(A) of this section) is amended by striking out " paragraph (1) " and insertino- in lieu thereof " paragraph (1) or (3)". (2) Paragraph s (5) and (6)(B) of section 4 7 (a) are each amended by striking out " paragraph (3) " and inserting in lieu thereof " paragraph (4) ". (3) Paragraph s (1) and (2) of section 4 8 (d) are each amended by striking out "section 4 6 (d)(1) " and inserting in lieu thereof "section 46(e)(1) ". (4) Subsection (f) of section 50B is amended by striking out "section 4 6 (d) " and inserting in lieu thereof "section 4 6 (e) ". SEC. 303. CHANGE IN CORPORATE TAX RATES AND INCREASE IN SURTAX EXEMPTION. (a) TAX RATES.—Section 11(b) (relating to corporate normal tax) is amended to read as follows: " (b) NORMAL T A X. — The normal tax is equal to— " (1) in the case of a taxable year ending before January 1, 1975, or after December 31, 1975, 22 percent of the taxable income, and " (2) in the case of a taxable year ending after December 31, 1974, and before January 1, 1976, the sum of— " (A) 20 percent of so much of the taxable income as doesnot exceed $25,000, plus " (B) 22 percent of so much of the taxable income as exceeds $25,000.". (b) SURTAX EXEMPTION.—Section 11(d) (relating to surtax exemption) is amended by striking out "$25,000" and inserting in lieu thereof "$50,000". (c)

26 USC 1561.

26 USC 11 note.

26 USC 12.

CLERICAL AMENDMENTS. —

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

(1) Paragraph (1) of section 1561(a) (as in effect for taxable years beginning after December 31, 1974) (relating to limitations on certain multiple tax benefits in the case of certain controlled corporations) is amended by striking out "$25,000" and inserting in lieu thereof "$50,000". I n a p p l y i n g subsection (b)(2) of section 11, the first $25,000 of taxable income and the second $25,000 of taxable income shall each be allocated among the component members of a controlled group of corporations in the same manner as the surtax exemption is allocated. (2) Paragraph (7) of section 12 (relating to cross references for tax on corporations) is amended by striking out "$25,000" and inserting in lieu thereof "$50,000".

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