Page:United States Statutes at Large Volume 91.djvu/166

 91 STAT. 132

PUBLIC LAW 95-30—MAY 23, 1977 the Secretary. I n the tables so prescribed, the amounts of tax shall be computed on the basis of the rates prescribed by section 1.

Ante, p. 127.

"(2)

C E I L I N G AMOUNT DEFINED.—For purposes of

paragraph

(1), the term 'ceiling amount' means, with respect to any taxpayer, the amount (not less than $20,000) determined by the Secretary for the tax rate category in which such taxpayer falls. " (3) CERTAIN TAXPAYERS W I T H LARGE NUMBER OF EXEMPTIONS.—

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The Secretary may exclude from the application of this section taxpayers in any tax rate category having more than the number of exemptions for that category determined by the Secretary. "(4)

Post, p. 135.

T A X TABLE INCOME DEFINED.—For purposes of t h i s sec-

tion, the term 'tax table income' means adjusted gross income— • " (A) reduced by the excess itemized deductions, and " (B) increased (in the case of a n individual to whom section 63(e) applies) by the unused zero bracket amount. " (b) SECTION INAPPLICABLE TO CERTAIN INDIVIDUALS.—This section

shall not apply to— " (1) an individual to whom— " (A) section 911 (relating to earned income from sources without the United States), " (B) section 1201 (relating to alternative capital gains tax), " (C) section 1301 (relating to income a v e r a g i n g), or " (D) section 1348 (relating to maximum rate on personal service income), applies for the taxable year, " (2) an individual making a r e t u r n under section 4 4 3 (a)(1) for a period of less than 12 months on account of a change i n annual accounting period, and " (3) an estate or trust.

)

" (c) T A X TREATED AS IMPOSED BY SECTION 1.—For purposes of t h i s

title, the tax imposed by this section shall be treated as tax imposed by section 1. "(d)

TAXABLE INCOME.—Whenever it is necessary to determine the

taxable income of an individual to whom this section applies, the taxable income shall be determined under section 63. "(e)

CROSS R E F E R E N C E. —

"For computation of tax by Secretary, see section 6014." (c) CHANGES IN GENERAL T A X CREDIT.—

26 USC 42.

(1) Subsection (a) of section 42 (relating to allowance of general tax credit) is amended to read as follows: "(a)

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ALLOWANCE OF C R E D I T. — I n the case of an i n d i v i d u a l, the r e

shall be allowed as a credit against the tax imposed by section 1, or against the tax imposed in lieu of the tax imposed by section 1, for the taxable year an amount equal to the greater of— " (1) 2 percent of so much of the taxpayer's taxable income for the taxable year (reduced by the zero bracket amount) as does not exceed $9,000; o r " (2) $35 multiplied by each exemption for which the taxpayer is entitled to a deduction for the taxable year under section 151." (2) Section 42 is amended by a d d i n g a t the end thereof the following new subsection:

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