Page:United States Statutes at Large Volume 89.djvu/96

 89 STAT. 36

PUBLIC LAW 94-12—MAR. 29, 1975

TITLE III—CERTAIN CHANGES IN BUSINESS TAXES SEC. 301. INCREASE IN INVESTMENT CREDIT. (a) INCREASE OF INVESTMENT C R E D I T. — Paragraph (1) of section 46

26 USC 46.

(a) (determining the amount of the investment credit) is amended to read as follows: " (1) GENERAL RULE.—

" (A) T E N PERCENT CREDIT.—Except as otherwise provided in this paragraph, in the case of a property described in subparagraph (D), the amount of the credit allowed by section 38 for the taxable year shall be an amount equal to 10 percent of the qualified investment (as determined under subsections (c) and (d)). "(B)

26 USC 38.

Supra.

ELEVEN PERCENT CREDIT.—Except as otherwise pro-

vided in this paragraph, in the case of a corporation which elects to have the provisions of this subparagraph apply, the amount of the credit allowed by section 38 for the taxable year with respect to property described in subparagraph (D) shall be an amount equal to 11 percent of the qualified investment (as determined under subsections (c) and (d)). A n election may not be made to have the provisions of this subparagraph apply for the taxable year unless the corporation meets the requirements of section 301(d) of the T a x Reduction Act of 1975. A n election by a corporation to have the provisions of this subparagraph apply shall be made a t such time, in such form, and in such manner as the Secretary or his delegate may prescribe. " (C) SEVEN PERCENT CREDIT.—Except as otherwise provided

in this paragraph, the amount of credit allowed by section 38 for the taxable year shall be an amount equal to 7 percent of the qualified investment (as determined under subsections (c) and (d)). " (D) TRANSITIONAL RULES.—The provisions of subparagraph s (A) and (B) shall apply only to— " (i) property to which subsection (d) does not apply, the construction, reconstruction, or erection of which is completed by the tax p a y e r after January 21, 1975, but only to the extent of the basis thereof attributable to the construction, reconstruction, or erection after January 21, 1975, and before January 1, 1977. " ( i i) property to which subsection (d) does not apply, acquired by the taxpayer after January 21, 1975, and before January 1, 1977, and placed in service by the taxpayer before January 1.1977, and " ( i i i) property to which subsection (d) applies, but only to the extent of the qualified investment (as determined under subsections (c) and (d)) with respect to qualified progress expenditures made after January 21, 1975, and before January 1, 1977." (b) P U B L I C U T I L I T Y PROPERTY.—

(1) DETERMINATION OF QUALIFIED INVESTMENT.—Subparagraph

26 USC 46.

(A) of section 4 6 (c)(3) (relating to determination of qualified investment in the case of public utility property) is amended to read as follows: " (A) To the extent that subsection (a)(1)(C) applies to property which is public utility property, the amount of the qualified investment shall be fj of the amount determined under paragraph (1). ".

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