Page:United States Statutes at Large Volume 90 Part 2.djvu/82

 90 STAT. 1550 26 USC 56.

PUBLIC LAW 94-455—OCT. 4, 1976 (2) Section 56(c) (relating to tax carryovers) is amended to read as follows: " (c) REGULAR T A X DEDUCTION D E F I N E D. — For purposes of t h i s sec-

Post, p. 1643. Post, p. 1559.

Post, p. 1563.

tion, the term 'regular tax deduction' means an amount equal to onehalf of (or in the case of a corporation, an amount equal to) the taxes imposed by this chapter for the taxable year (computed without regard to this part and without regard to the taxes imposed by sections 7 2 (m)(5)(B), 402(e), 4 0 8 (f), 531, and 541), reduced by the sum of the credits allowable under— " (1) section 33 (relating to foreign tax c r e d i t), " (9S section 37 (relating to credit for the elderly), " (3) section 38 (relating to investment c r e d i t), " (4) section 40 (relating to expenses of work incentive program), " (5) section 41 (relating to contributions to candidates for public office), "^6) section 42 (relating to general tax credit), " (7) section 44 (relating to purchase of new principal residence), and " (8) section 44A (relating to expenses for household and dependent care services necessary for gainful employment)." (c) ADDITIONAL T A X PREFERENCE I T E M S. — (1) ADDITIONAL PREFERENCE I T E M S. —

26 USC 57.

(A) Section 57(a) (relating to items of tax preference) is amended by striking out paragraph (1) and inserting in lieu thereof the following: "(1)

EXCESS ITEMIZED DEDUCTIONS.—An a m o u n t equal to the

excess itemized deductions for the taxable year (as determined under subsection (b)). " (B) Section 57(a) (relating to items of tax preference) is amended by striking out the m a t t e r following paragraph (10) and inserting in lieu thereof the following: " ( 1 1) INTANGIBLE DRILLING COSTS.—The excess of the intangible

drilling and development costs described in section 263(c) paid or incurred in connection with oil and gas wells (other than costs incurred in drilling a nonproductive well) allowable under this chapter for the taxable year over the amount which would have been allowable for the taxable year if such costs h a d been capitalized and straight line recovery of intangibles (as defined in subsection (d)) h a d been used with respect to such costs. Paragraph s (1), (3), and (11) shall not apply to a corporation." (C) Section 5 7 (a)(3) (relating to accelerated depreciation on personal property subject to a net lease) is amended to read as follows: "(3)

•'•'''

ACCELERATED DEPRECIATION ON LEASED PERSONAL PROP-

ERTY.—With respect to each item of section 1245 property (as defined in section 1 2 4 5 (a)(3)) which is subject to a lease, the amount by which— " ( - ^) the deduction allowable for the taxable year for depreciation or amortization, exceeds " (B) the deduction which would have been allowable for the taxable year h a d the taxpayer depreciated the property under the straight-line method for each taxable year of its useful life for which the taxpayer has held the property. For purposes of subparagraph (B), useful life shall be determined as if section 1 6 7 (m)(l) (relating to asset depreciation range) did not include the last sentence thereof."

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