Page:United States Statutes at Large Volume 92 Part 3.djvu/188

 92 STAT. 2820

PUBLIC LAW 95-600—NOV. 6, 1978

TITLE III—PROVISIONS PRIMARILY AFFECTING BUSINESS INCOME TAX Subtitle A—Corporate Rate Reductions 26 USC 11.

26 USC 594. 26 USC 801. 26 USC 851.

26 USC 882.

SEC. 301. CORPORATE RATE REDUCTIONS. (a) IN GENERAL.—Section 11 (relating to the tax imposed on corporations) is amended to read as follows: "SEC. 11. TAX IMPOSED. "(a) CORPORATIONS IN GENERAL.—A tax is hereby imposed for each taxable year on the taxable income of every corporation. "(b) AMOUNT OF TAX.—The amount of the tax imposed by subsection (a) shall be the sum of— "(1) 17 percent of so much of the taxable income as does not exceed $25,000; "(2) 20 percent of so much of the taxable income as exceeds $25,000 but does not exceed $50,000; "(3) 30 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000; "(4) 40 percent of so much of the taxable income as exceeds $75,000 but does not exceed $100,000; plus "(5) 46 percent of so much of the taxable income as exceeds $100,000. "(c) EXCEPTIONS.—Subsection (a) shall not apply to a corporation subject to a tax imposed by— "(1) section 594 (relating to mutual savings banks conducting life insurance business), "(2) subchapter L (sec. 801 and following, relating to insurance companies), or "(3) subchapter M (sec. 851 and following, relating to regulated investment companies and real estate investment trusts), "(d) FOREIGN CORPORATIONS.—In the case of a foreign corporation, the tax imposed by subsection (a) shall apply only as provided by section 882." (b) CONFORMING AMENDMENTS.— (1) CROSS REFERENCES RELATING TO CORPORATIONS.—Paragraph

26 USC 12.

(7) of section 12 (relating to cross references relating to tax on corporations) is amended to read as follows: "(7) For limitation on benefits of graduated rate schedule provided in section 11(b), see section 1551."

26 USC 57.

(2) MINIMUM TAX.—Subparagraph (B) of section 57(a)(9) (relating to capital gains preference for corporations) is amended by striking out "the sum of the normal tax rate and the surtax rate under section 11" each place it appears and inserting in lieu thereof "the highest rate of tax specified in section 11(b)". (3) DIVIDENDS RECEIVED ON CERTAIN PREFERRED STOCK.—Sub-

26 USC 244.

paragraph (B) of section 244(a)(2) (relating to dividends received on certain preferred stock) is amended by striking out "the sum of the normal tax rate and the surtax rate for the taxable year prescribed by section 11" and inserting in lieu thereof "the highest rate of tax specified in section 11(b)". (4) DIVIDENDS PAID ON CERTAIN PREFERRED STOCK OF PUBLIC

26 USC 247.

UTILITIES.—Subparagraph (B) of section 247(a)(2) (relating to dividends paid on certain preferred stock of public utilities) is

�