Page:United States Statutes at Large Volume 95.djvu/293

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 267

beginning in 1982; and 0.6 percent for taxable years beginning after 1982". (2) The last sentence of paragraph (2) of section 585(b) is 26 USC 585. amended by striking out "but before 1982, the last taxable year beginning before 1976, and for taxable years beginning after 1981, the last taxable year beginning before 1982" and inserting in lieu thereof "but before 1983, the last taxable year beginning before 1976, and for taxable years beginning after 1982, the last taxable year beginning before 1983". (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 26 USC 585 apply to taxable years beginning after 1981. n°te

TITLE III—SAVINGS PROVISIONS Subtitle A—Interest Exclusion SEC. 301. EXCLUSION OF INTEREST ON CERTAIN SAVINGS CERTIFICATES. (a) GENERAL RULE.—Part III of subchapter B of chapter 1 (relating

to items specifically excluded from gross income) is amended by redesignating section 128 as section 129 and by inserting after section 127 the following new section: "SEC. 128. INTEREST ON CERTAIN SAVINGS CERTIFICATES.

"(a) IN GENERAL.—Gross income does not include any amount received b^ any individual during the taxable year as interest on a depository institution tax-exempt savings certificate, (b) MAXIMUM DOLLAR AMOUNT.—

"(1) IN GENERAL.—The aggregate amount excludable under subsection (a) for any taxable year shall not exceed the excess of— "(A) $1,000 ($2,000 in the case of a joint return under section 6013), over "(B) the aggregate amount received by the taxpayer which was excludable under subsection (a) for any prior taxable year. "(2) SPECIAL RULE.—For purposes of paragraph (I)(B), one-half of the amount excluded under subsection (a) on any joint return shall be treated as received by each spouse. "(c) DEPOSITORY INSTITUTION TAX-EXEMPT SAVINGS CERTIFICATE.—

For purposes of this section— "(1) IN GENERAL.—The term 'depository institution tax-exempt savings certificate' means any certificate— "(A) which is issued by a qualified savings institution after September 30, 1981, and before January 1, 1983, (B) which has a maturity of 1 year, "(C) which has an investment yield equal to 70 percent of the average investment yield for the most recent auction (before the week in which the certificate is issued) of United States Treasury bills with maturities of 52 weeks, and "(D) which is made available in denominations of $500. "(2) QuAUFiED INSTITUTION.—The term 'qualified institution' means— "(A)(i) a bank (as defined in section 581), "(ii) a mutual savings bank, cooperative bank, domestic building and loan association, or other savings institution chartered and supervised as a savings and loan or similar institution under Federal or State law, or

26 USC 128.

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