Page:United States Statutes at Large Volume 90 Part 2.djvu/143

 PUBLIC LAW 94-455—OCT. 4, 1976 (2)

90 STAT. 1611

DISALLOWANCE OF EXCLUSION FOR INCOME RECEIVED OTHER

THAN I N COUNTRY WHERE EARNED.—Section 911(c) (relating to special rules for earned income from sources without the United States) is amended by a d d i n g at the end thereof the following new paragraph: "(8)

REQUIREMENT AS

TO PLACE

OF RECEIPT.—N'o

amount

received by an individual during the taxable year which constitutes earned income (entitled to the exclusion under subsection (a)) attributable to services performed in a foreign country or countries shall be excluded under subsection (a) if such amount is received by such individual outside of the foreign country or countries where such services were performed and if one of the purposes is the avoidance of any tax imposed by such foreign country or countries on such amount." (3)

26 USC 911.

' '

INCLUSION OF EARNED INCOME I N COMPUTATION OF RATE OF

TAX.—Section 911 (relating to earned income from sources without the United States) is amended by redesignating subsection (d) as subsection- (f) and by inserting after subsection (c) the following new subsections: "(d) AMOTTNT EXCLUDED U N D E R SUBSECTION COMPUTATION OF T A X. —

(a)

INCLUDED I N

" (1) COMPUTATION OF TAX.—If for any taxable year an individual has earned income which is excluded from gross income under subsection (a), the tax imposed by section 1 or section 1201 Post, p. 1786. shall be the excess of— " (A) the tax imposed by section 1 or section 1201 (whichever is applicable) on the amount of net taxable income, over " (B) the tax imposed by section 1 or section 1201 (whichever is applicable) on the amount of net excluded earned income. " (2) DEFINITIONS. — For purposes of this subsection— " (A) the term 'net taxable income' means an amount equal to the sum of the amount of taxable income for the taxable year plus the amount of net excluded earned income of such individual for such taxable year; and " (B) the term 'net excluded earned income' means the excess of the amount of earned income excluded under subsection (a) for the taxable year over the amount of the deductions disallowed with respect to such excluded earned income for such taxable year under subsection (a). "(e)

SECTION N O T TO A P P L Y. —

" (1) IN GENERAL.—An individual entitled to the benefits of this section for a taxable year may elect, in such manner and at such time as shall be prescribed by the Secretary, not to have the provisions of this section apply^ " (2) EFFECT OF ELECTION.—An election under paragraph (1) shall apply to the taxable year for which made and to all subsequent taxable years. Such election may not be revoked except with the consent of the Secretary." (c)

ALLOWANCE OF FOREIGN T A X CREDITS TO INDIVIDUALS T A K I N G

STANDARD DEDUCTION.—Section 36 (relating to credits not allowed to 26 USC 36. individuals p a y i n g optional tax or taking standard deduction) is amended by striking out "sections 32, 33, and " and inserting in lieu thereof "sections 32 and". (d) EFFECTIVE D A T E. — The amendments made by this section shall 26 USC 911 apply to taxable years beginning after December 31, 1975. note.

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