-CITE-
26 USC PART I - TAX ON INDIVIDUALS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
PART I - TAX ON INDIVIDUALS
-MISC1-
Sec.
1. Tax imposed.
2. Definitions and special rules.
3. Tax tables for individuals having taxable income of
less than $20,000.(!1)
[4. Repealed.]
5. Cross references relating to tax on individuals.
AMENDMENTS
1976 - Pub. L. 94-455, title V, Sec. 501(c)(1), Oct. 4, 1976, 90
Stat. 1559, substituted "Tax tables for individuals having taxable
income of less than $20,000" for "Optional tax tables for
individuals" in item 3 and struck out item 4 relating to rules for
optional tax.
1969 - Pub. L. 91-172, title VIII, Sec. 803(d)(9), Dec. 30, 1969,
83 Stat. 685, substituted "Definitions and special rules" and
"Optional tax tables for individuals" for "Tax in case of joint
return or return of surviving spouse" and "Optional tax if adjusted
gross income is less than $5,000" in items 2 and 3, respectively.
-FOOTNOTE-
(!1) Section catchline amended by Pub. L. 95-30 without
corresponding amendment of analysis.
-End-
-CITE-
26 USC Sec. 1 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
Sec. 1. Tax imposed
-STATUTE-
(a) Married individuals filing joint returns and surviving spouses
There is hereby imposed on the taxable income of -
(1) every married individual (as defined in section 7703) who
makes a single return jointly with his spouse under section 6013,
and
(2) every surviving spouse (as defined in section 2(a)),
a tax determined in accordance with the following table:
If taxable income is: The tax is:
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Not over $36,900 15% of taxable income.
Over $36,900 but not over $5,535, plus 28% of the excess over
$89,150 $36,900.
Over $89,150 but not over $20,165, plus 31% of the excess
$140,000 over $89,150.
Over $140,000 but not $35,928.50, plus 36% of the excess
over $250,000 over $140,000.
Over $250,000 $75,528.50, plus 39.6% of the
excess over $250,000.
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(b) Heads of households
There is hereby imposed on the taxable income of every head of a
household (as defined in section 2(b)) a tax determined in
accordance with the following table:
If taxable income is: The tax is:
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Not over $29,600 15% of taxable income.
Over $29,600 but not over $4,440, plus 28% of the excess over
$76,400 $29,600.
Over $76,400 but not over $17,544, plus 31% of the excess
$127,500 over $76,400.
Over $127,500 but not $33,385, plus 36% of the excess
over $250,000 over $127,500.
Over $250,000 $77,485, plus 39.6% of the excess
over $250,000.
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(c) Unmarried individuals (other than surviving spouses and heads
of households)
There is hereby imposed on the taxable income of every individual
(other than a surviving spouse as defined in section 2(a) or the
head of a household as defined in section 2(b)) who is not a
married individual (as defined in section 7703) a tax determined in
accordance with the following table:
If taxable income is: The tax is:
--------------------------------------------------------------------
Not over $22,100 15% of taxable income.
Over $22,100 but not over $3,315, plus 28% of the excess over
$53,500 $22,100.
Over $53,500 but not over $12,107, plus 31% of the excess
$115,000 over $53,500.
Over $115,000 but not $31,172, plus 36% of the excess
over $250,000 over $115,000.
Over $250,000 $79,772, plus 39.6% of the excess
over $250,000.
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(d) Married individuals filing separate returns
There is hereby imposed on the taxable income of every married
individual (as defined in section 7703) who does not make a single
return jointly with his spouse under section 6013, a tax determined
in accordance with the following table:
If taxable income is: The tax is:
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Not over $18,450 15% of taxable income.
Over $18,450 but not over $2,767.50, plus 28% of the excess
$44,575 over $18,450.
Over $44,575 but not over $10,082.50, plus 31% of the excess
$70,000 over $44,575.
Over $70,000 but not over $17,964.25, plus 36% of the excess
$125,000 over $70,000.
Over $125,000 $37,764.25, plus 39.6% of the
excess over $125,000.
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(e) Estates and trusts
There is hereby imposed on the taxable income of -
(1) every estate, and
(2) every trust,
taxable under this subsection a tax determined in accordance with
the following table:
If taxable income is: The tax is:
--------------------------------------------------------------------
Not over $1,500 15% of taxable income.
Over $1,500 but not over $225, plus 28% of the excess over
$3,500 $1,500.
Over $3,500 but not over $785, plus 31% of the excess over
$5,500 $3,500.
Over $5,500 but not over $1,405, plus 36% of the excess over
$7,500 $5,500.
Over $7,500 $2,125, plus 39.6% of the excess
over $7,500.
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(f) Phaseout of marriage penalty in 15-percent bracket; adjustments
in tax tables so that inflation will not result in tax increases
(1) In general
Not later than December 15 of 1993, and each subsequent
calendar year, the Secretary shall prescribe tables which shall
apply in lieu of the tables contained in subsections (a), (b),
(c), (d), and (e) with respect to taxable years beginning in the
succeeding calendar year.
(2) Method of prescribing tables
The table which under paragraph (1) is to apply in lieu of the
table contained in subsection (a), (b), (c), (d), or (e), as the
case may be, with respect to taxable years beginning in any
calendar year shall be prescribed -
(A) except as provided in paragraph (8), by increasing the
minimum and maximum dollar amounts for each rate bracket for
which a tax is imposed under such table by the cost-of-living
adjustment for such calendar year,
(B) by not changing the rate applicable to any rate bracket
as adjusted under subparagraph (A), and
(C) by adjusting the amounts setting forth the tax to the
extent necessary to reflect the adjustments in the rate
brackets.
(3) Cost-of-living adjustment
For purposes of paragraph (2), the cost-of-living adjustment
for any calendar year is the percentage (if any) by which -
(A) the CPI for the preceding calendar year, exceeds
(B) the CPI for the calendar year 1992.
(4) CPI for any calendar year
For purposes of paragraph (3), the CPI for any calendar year is
the average of the Consumer Price Index as of the close of the
12-month period ending on August 31 of such calendar year.
(5) Consumer Price Index
For purposes of paragraph (4), the term "Consumer Price Index"
means the last Consumer Price Index for all-urban consumers
published by the Department of Labor. For purposes of the
preceding sentence, the revision of the Consumer Price Index
which is most consistent with the Consumer Price Index for
calendar year 1986 shall be used.
(6) Rounding
(A) In general
If any increase determined under paragraph (2)(A), section
63(c)(4), section 68(b)(2) or section 151(d)(4) is not a
multiple of $50, such increase shall be rounded to the next
lowest multiple of $50.
(B) Table for married individuals filing separately
In the case of a married individual filing a separate return,
subparagraph (A) (other than with respect to sections 63(c)(4)
and 151(d)(4)(A)) shall be applied by substituting "$25" for
"$50" each place it appears.
(7) Special rule for certain brackets
(A) Calendar year 1994
In prescribing the tables under paragraph (1) which apply
with respect to taxable years beginning in calendar year 1994,
the Secretary shall make no adjustment to the dollar amounts at
which the 36 percent rate bracket begins or at which the 39.6
percent rate begins under any table contained in subsection
(a), (b), (c), (d), or (e).
(B) Later calendar years
In prescribing tables under paragraph (1) which apply with
respect to taxable years beginning in a calendar year after
1994, the cost-of-living adjustment used in making adjustments
to the dollar amounts referred to in subparagraph (A) shall be
determined under paragraph (3) by substituting "1993" for
"1992".
(8) Phaseout of marriage penalty in 15-percent bracket
(A) In general
With respect to taxable years beginning after December 31,
2002, in prescribing the tables under paragraph (1) -
(i) the maximum taxable income in the 15-percent rate
bracket in the table contained in subsection (a) (and the
minimum taxable income in the next higher taxable income
bracket in such table) shall be the applicable percentage of
the maximum taxable income in the 15-percent rate bracket in
the table contained in subsection (c) (after any other
adjustment under this subsection), and
(ii) the comparable taxable income amounts in the table
contained in subsection (d) shall be 1/2 of the amounts
determined under clause (i).
(B) Applicable percentage
For purposes of subparagraph (A), the applicable percentage
shall be determined in accordance with the following table:
For taxable years beginning The applicable
in calendar year - percentage is -
2003 and 2004 200
2005 180
2006 187
2007 193
2008 and thereafter 200.
(C) Rounding
If any amount determined under subparagraph (A)(i) is not a
multiple of $50, such amount shall be rounded to the next
lowest multiple of $50.
(g) Certain unearned income of minor children taxed as if parent's
income
(1) In general
In the case of any child to whom this subsection applies, the
tax imposed by this section shall be equal to the greater of -
(A) the tax imposed by this section without regard to this
subsection, or
(B) the sum of -
(i) the tax which would be imposed by this section if the
taxable income of such child for the taxable year were
reduced by the net unearned income of such child, plus
(ii) such child's share of the allocable parental tax.
(2) Child to whom subsection applies
This subsection shall apply to any child for any taxable year
if -
(A) such child has not attained age 14 before the close of
the taxable year, and
(B) either parent of such child is alive at the close of the
taxable year.
(3) Allocable parental tax
For purposes of this subsection -
(A) In general
The term "allocable parental tax" means the excess of -
(i) the tax which would be imposed by this section on the
parent's taxable income if such income included the net
unearned income of all children of the parent to whom this
subsection applies, over
(ii) the tax imposed by this section on the parent without
regard to this subsection.
For purposes of clause (i), net unearned income of all children
of the parent shall not be taken into account in computing any
exclusion, deduction, or credit of the parent.
(B) Child's share
A child's share of any allocable parental tax of a parent
shall be equal to an amount which bears the same ratio to the
total allocable parental tax as the child's net unearned income
bears to the aggregate net unearned income of all children of
such parent to whom this subsection applies.
(C) Special rule where parent has different taxable year
Except as provided in regulations, if the parent does not
have the same taxable year as the child, the allocable parental
tax shall be determined on the basis of the taxable year of the
parent ending in the child's taxable year.
(4) Net unearned income
For purposes of this subsection -
(A) In general
The term "net unearned income" means the excess of -
(i) the portion of the adjusted gross income for the
taxable year which is not attributable to earned income (as
defined in section 911(d)(2)), over
(ii) the sum of -
(I) the amount in effect for the taxable year under
section 63(c)(5)(A) (relating to limitation on standard
deduction in the case of certain dependents), plus
(II) the greater of the amount described in subclause (I)
or, if the child itemizes his deductions for the taxable
year, the amount of the itemized deductions allowed by this
chapter for the taxable year which are directly connected
with the production of the portion of adjusted gross income
referred to in clause (i).
(B) Limitation based on taxable income
The amount of the net unearned income for any taxable year
shall not exceed the individual's taxable income for such
taxable year.
(5) Special rules for determining parent to whom subsection
applies
For purposes of this subsection, the parent whose taxable
income shall be taken into account shall be -
(A) in the case of parents who are not married (within the
meaning of section 7703), the custodial parent (within the
meaning of section 152(e)) of the child, and
(B) in the case of married individuals filing separately, the
individual with the greater taxable income.
(6) Providing of parent's TIN
The parent of any child to whom this subsection applies for any
taxable year shall provide the TIN of such parent to such child
and such child shall include such TIN on the child's return of
tax imposed by this section for such taxable year.
(7) Election to claim certain unearned income of child on
parent's return
(A) In general
If -
(i) any child to whom this subsection applies has gross
income for the taxable year only from interest and dividends
(including Alaska Permanent Fund dividends),
(ii) such gross income is more than the amount described in
paragraph (4)(A)(ii)(I) and less than 10 times the amount so
described,
(iii) no estimated tax payments for such year are made in
the name and TIN of such child, and no amount has been
deducted and withheld under section 3406, and
(iv) the parent of such child (as determined under
paragraph (5)) elects the application of subparagraph (B),
such child shall be treated (other than for purposes of this
paragraph) as having no gross income for such year and shall
not be required to file a return under section 6012.
(B) Income included on parent's return
In the case of a parent making the election under this
paragraph -
(i) the gross income of each child to whom such election
applies (to the extent the gross income of such child exceeds
twice the amount described in paragraph (4)(A)(ii)(I)) shall
be included in such parent's gross income for the taxable
year,
(ii) the tax imposed by this section for such year with
respect to such parent shall be the amount equal to the sum
of -
(I) the amount determined under this section after the
application of clause (i), plus
(II) for each such child, 10 percent of the lesser of the
amount described in paragraph (4)(A)(ii)(I) or the excess
of the gross income of such child over the amount so
described, and
(iii) any interest which is an item of tax preference under
section 57(a)(5) of the child shall be treated as an item of
tax preference of such parent (and not of such child).
(C) Regulations
The Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of this
paragraph.
(h) Maximum capital gains rate
(1) In general
If a taxpayer has a net capital gain for any taxable year, the
tax imposed by this section for such taxable year shall not
exceed the sum of -
(A) a tax computed at the rates and in the same manner as if
this subsection had not been enacted on the greater of -
(i) taxable income reduced by the net capital gain; or
(ii) the lesser of -
(I) the amount of taxable income taxed at a rate below 25
percent; or
(II) taxable income reduced by the adjusted net capital
gain;
(B) 5 percent (0 percent in the case of taxable years
beginning after 2007) of so much of the adjusted net capital
gain (or, if less, taxable income) as does not exceed the
excess (if any) of -
(i) the amount of taxable income which would (without
regard to this paragraph) be taxed at a rate below 25
percent, over
(ii) the taxable income reduced by the adjusted net capital
gain;
(C) 15 percent of the adjusted net capital gain (or, if less,
taxable income) in excess of the amount on which a tax is
determined under subparagraph (B);
(D) 25 percent of the excess (if any) of -
(i) the unrecaptured section 1250 gain (or, if less, the
net capital gain), over
(ii) the excess (if any) of -
(I) the sum of the amount on which tax is determined
under subparagraph (A) plus the net capital gain, over
(II) taxable income; and
(E) 28 percent of the amount of taxable income in excess of
the sum of the amounts on which tax is determined under the
preceding subparagraphs of this paragraph.
(2) Net capital gain taken into account as investment income
For purposes of this subsection, the net capital gain for any
taxable year shall be reduced (but not below zero) by the amount
which the taxpayer takes into account as investment income under
section 163(d)(4)(B)(iii).
(3) Adjusted net capital gain
For purposes of this subsection, the term "adjusted net capital
gain" means the sum of -
(A) net capital gain (determined without regard to paragraph
(11)) reduced (but not below zero) by the sum of -
(i) unrecaptured section 1250 gain, and
(ii) 28-percent rate gain, plus
(B) qualified dividend income (as defined in paragraph (11)).
(4) 28-percent rate gain
For purposes of this subsection, the term "28-percent rate
gain" means the excess (if any) of -
(A) the sum of -
(i) collectibles gain; and
(ii) section 1202 gain, over
(B) the sum of -
(i) collectibles loss;
(ii) the net short-term capital loss; and
(iii) the amount of long-term capital loss carried under
section 1212(b)(1)(B) to the taxable year.
(5) Collectibles gain and loss
For purposes of this subsection -
(A) In general
The terms "collectibles gain" and "collectibles loss" mean
gain or loss (respectively) from the sale or exchange of a
collectible (as defined in section 408(m) without regard to
paragraph (3) thereof) which is a capital asset held for more
than 1 year but only to the extent such gain is taken into
account in computing gross income and such loss is taken into
account in computing taxable income.
(B) Partnerships, etc.
For purposes of subparagraph (A), any gain from the sale of
an interest in a partnership, S corporation, or trust which is
attributable to unrealized appreciation in the value of
collectibles shall be treated as gain from the sale or exchange
of a collectible. Rules similar to the rules of section 751
shall apply for purposes of the preceding sentence.
(6) Unrecaptured section 1250 gain
For purposes of this subsection -
(A) In general
The term "unrecaptured section 1250 gain" means the excess
(if any) of -
(i) the amount of long-term capital gain (not otherwise
treated as ordinary income) which would be treated as
ordinary income if section 1250(b)(1) included all
depreciation and the applicable percentage under section
1250(a) were 100 percent, over
(ii) the excess (if any) of -
(I) the amount described in paragraph (5)(B); over
(II) the amount described in paragraph (5)(A).
(B) Limitation with respect to section 1231 property
The amount described in subparagraph (A)(i) from sales,
exchanges, and conversions described in section 1231(a)(3)(A)
for any taxable year shall not exceed the net section 1231 gain
(as defined in section 1231(c)(3)) for such year.
(7) Section 1202 gain
For purposes of this subsection, the term "section 1202 gain"
means the excess of -
(A) the gain which would be excluded from gross income under
section 1202 but for the percentage limitation in section
1202(a), over
(B) the gain excluded from gross income under section 1202.
(8) Coordination with recapture of net ordinary losses under
section 1231
If any amount is treated as ordinary income under section
1231(c), such amount shall be allocated among the separate
categories of net section 1231 gain (as defined in section
1231(c)(3)) in such manner as the Secretary may by forms or
regulations prescribe.
(9) Regulations
The Secretary may prescribe such regulations as are appropriate
(including regulations requiring reporting) to apply this
subsection in the case of sales and exchanges by pass-thru
entities and of interests in such entities.
(10) Pass-thru entity defined
For purposes of this subsection, the term "pass-thru entity"
means -
(A) a regulated investment company;
(B) a real estate investment trust;
(C) an S corporation;
(D) a partnership;
(E) an estate or trust;
(F) a common trust fund;
(G) a foreign investment company which is described in
section 1246(b)(1) and for which an election is in effect under
section 1247; and
(H) a qualified electing fund (as defined in section 1295).
(11) Dividends taxed as net capital gain
(A) In general
For purposes of this subsection, the term "net capital gain"
means net capital gain (determined without regard to this
paragraph) increased by qualified dividend income.
(B) Qualified dividend income
For purposes of this paragraph -
(i) In general
The term "qualified dividend income" means dividends
received during the taxable year from -
(I) domestic corporations, and
(II) qualified foreign corporations.
(ii) Certain dividends excluded
Such term shall not include -
(I) any dividend from a corporation which for the taxable
year of the corporation in which the distribution is made,
or the preceding taxable year, is a corporation exempt from
tax under section 501 or 521,
(II) any amount allowed as a deduction under section 591
(relating to deduction for dividends paid by mutual savings
banks, etc.), and
(III) any dividend described in section 404(k).
(iii) Coordination with section 246(c)
Such term shall not include any dividend on any share of
stock -
(I) with respect to which the holding period requirements
of section 246(c) are not met (determined by substituting
in section 246(c)(1) "60 days" for "45 days" each place it
appears and by substituting "120-day period" for "90-day
period"), or
(II) to the extent that the taxpayer is under an
obligation (whether pursuant to a short sale or otherwise)
to make related payments with respect to positions in
substantially similar or related property.
(C) Qualified foreign corporations
(i) In general
Except as otherwise provided in this paragraph, the term
"qualified foreign corporation" means any foreign corporation
if -
(I) such corporation is incorporated in a possession of
the United States, or
(II) such corporation is eligible for benefits of a
comprehensive income tax treaty with the United States
which the Secretary determines is satisfactory for purposes
of this paragraph and which includes an exchange of
information program.
(ii) Dividends on stock readily tradable on United States
securities market
A foreign corporation not otherwise treated as a qualified
foreign corporation under clause (i) shall be so treated with
respect to any dividend paid by such corporation if the stock
with respect to which such dividend is paid is readily
tradable on an established securities market in the United
States.
(iii) Exclusion of dividends of certain foreign corporations
Such term shall not include any foreign corporation which
for the taxable year of the corporation in which the dividend
was paid, or the preceding taxable year, is a foreign
personal holding company (as defined in section 552), a
foreign investment company (as defined in section 1246(b)),
or a passive foreign investment company (as defined in
section 1297).
(iv) Coordination with foreign tax credit limitation
Rules similar to the rules of section 904(b)(2)(B) shall
apply with respect to the dividend rate differential under
this paragraph.
(D) Special rules
(i) Amounts taken into account as investment income
Qualified dividend income shall not include any amount
which the taxpayer takes into account as investment income
under section 163(d)(4)(B).
(ii) Extraordinary dividends
If an individual receives, with respect to any share of
stock, qualified dividend income from 1 or more dividends
which are extraordinary dividends (within the meaning of
section 1059(c)), any loss on the sale or exchange of such
share shall, to the extent of such dividends, be treated as
long-term capital loss.
(iii) Treatment of dividends from regulated investment
companies and real estate investment trusts
A dividend received from a regulated investment company or
a real estate investment trust shall be subject to the
limitations prescribed in sections 854 and 857.
(i) Rate reductions after 2000
(1) 10-percent rate bracket
(A) In general
In the case of taxable years beginning after December 31,
2000 -
(i) the rate of tax under subsections (a), (b), (c), and
(d) on taxable income not over the initial bracket amount
shall be 10 percent, and
(ii) the 15 percent rate of tax shall apply only to taxable
income over the initial bracket amount but not over the
maximum dollar amount for the 15-percent rate bracket.
(B) Initial bracket amount
For purposes of this paragraph, the initial bracket amount is
-
(i) $14,000 ($12,000 in the case of taxable years beginning
after December 31, 2004, and before January 1, 2008) in the
case of subsection (a),
(ii) $10,000 in the case of subsection (b), and
(iii) 1/2 the amount applicable under clause (i) (after
adjustment, if any, under subparagraph (C)) in the case of
subsections (c) and (d).
(C) Inflation adjustment
In prescribing the tables under subsection (f) which apply
with respect to taxable years beginning in calendar years after
2000 -
(i) except as provided in clause (ii), the Secretary shall
make no adjustment to the initial bracket amounts for any
taxable year beginning before January 1, 2009,
(ii) there shall be an adjustment under subsection (f) of
such amounts which shall apply only to taxable years
beginning in 2004, and such adjustment shall be determined
under subsection (f)(3) by substituting "2002" for "1992" in
subparagraph (B) thereof,
(iii) the cost-of-living adjustment used in making
adjustments to the initial bracket amounts for any taxable
year beginning after December 31, 2008, shall be determined
under subsection (f)(3) by substituting "2007" for "1992" in
subparagraph (B) thereof, and
(iv) the adjustments under clauses (ii) and (iii) shall not
apply to the amount referred to in subparagraph (B)(iii).
If any amount after adjustment under the preceding sentence is
not a multiple of $50, such amount shall be rounded to the next
lowest multiple of $50.
(D) Coordination with acceleration of 10 percent rate bracket
benefit for 2001
This paragraph shall not apply to any taxable year to which
section 6428 applies.
(2) Reductions in rates after June 30, 2001
In the case of taxable years beginning in a calendar year after
2000, the corresponding percentage specified for such calendar
year in the following table shall be substituted for the
otherwise applicable tax rate in the tables under subsections
(a), (b), (c), (d), and (e).
The corresponding percentages shall be substituted
for
the following percentages:
28% 31% 36% 39.6%
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2001 27.5% 30.5% 35.5% 39.1%
2002 27.0% 30.0% 35.0% 38.6%
2003 and thereafter 25.0% 28.0% 33.0% 35.0%
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(3) Adjustment of tables
The Secretary shall adjust the tables prescribed under
subsection (f) to carry out this subsection.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 5; Pub. L. 88-272, title I, Sec.
111, Feb. 26, 1964, 78 Stat. 19; Pub. L. 89-809, title I, Sec.
103(a)(2), Nov. 13, 1966, 80 Stat. 1550; Pub. L. 91-172, title
VIII, Sec. 803(a), Dec. 30, 1969, 83 Stat. 678; Pub. L. 95-30,
title I, Sec. 101(a), May 23, 1977, 91 Stat. 127; Pub. L. 95-600,
title I, Sec. 101(a), Nov. 6, 1978, 92 Stat. 2767; Pub. L. 97-34,
title I, Secs. 101(a), 104(a), Aug. 13, 1981, 95 Stat. 176, 188;
Pub. L. 97-448, title I, Sec. 101(a)(3), Jan. 12, 1983, 96 Stat.
2366; Pub. L. 99-514, title I, Sec. 101(a), title III, Sec. 302(a),
title XIV, Sec. 1411(a), Oct. 22, 1986, 100 Stat. 2096, 2218, 2714;
Pub. L. 100-647, title I, Secs. 1001(a)(3), 1014(e)(1)-(3), (6),
(7), title VI, Sec. 6006(a), Nov. 10, 1988, 102 Stat. 3349, 3561,
3562, 3686; Pub. L. 101-239, title VII, Secs. 7811(j)(1), 7816(b),
7831(a), Dec. 19, 1989, 103 Stat. 2411, 2420, 2425; Pub. L.
101-508, title XI, Secs. 11101(a)-(c), (d)(1)(A), (2), 11103(c),
11104(b), Nov. 5, 1990, 104 Stat. 1388-403 to 1388-406, 1388-408;
Pub. L. 103-66, title XIII, Secs. 13201(a), (b)(3)(A), (B),
13202(a), 13206(d)(2), Aug. 10, 1993, 107 Stat. 457, 459, 461, 467;
Pub. L. 104-188, title I, Sec. 1704(m)(1), (2), Aug. 20, 1996, 110
Stat. 1882, 1883; Pub. L. 105-34, title III, Sec. 311(a), Aug. 5,
1997, 111 Stat. 831; Pub. L. 105-206, title V, Sec. 5001(a)(1)-(4),
title VI, Secs. 6005(d)(1), 6007(f)(1), July 22, 1998, 112 Stat.
787, 788, 800, 810; Pub. L. 105-277, div. J, title IV, Sec.
4002(i)(1), (3), Oct. 21, 1998, 112 Stat. 2681-907, 2681-908; Pub.
L. 106-554, Sec. 1(a)(7) [title I, Sec. 117(b)(1)], Dec. 21, 2000,
114 Stat. 2763, 2763A-604; Pub. L. 107-16, title I, Sec. 101(a),
(c)(1), (2), title III, Secs. 301(c)(1), 302(a), (b), June 7, 2001,
115 Stat. 41, 43, 54; Pub. L. 108-27, title I, Secs. 102(a),
(b)(1), 104(a), (b), 105(a), title III, Secs. 301(a)(1), (2)(A),
(b)(1), 302(a), (e)(1), May 28, 2003, 117 Stat. 754, 755, 758, 760,
763.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by sections 107 and 303 of Pub. L.
108-27, see Effective and Termination Dates of 2003 Amendment note
below.
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
TAX TABLES FOR TAXABLE YEARS BEGINNING IN 2004
Revenue Procedure 2003-85 provided:
Section 1. Purpose
This revenue procedure sets forth inflation adjusted items for
2004.
Section 2. Changes
.01 The initial bracket amounts for the 10% tax rate for married
individuals filing joint returns and surviving spouses under Sec.
1(a) of the Internal Revenue Code, and heads of households under
Sec. 1(b) are adjusted for inflation under Sec. 1(i)(1)(C)(ii).
Under Sec. 1(i)(1)(B)(iii) the initial bracket amounts for Sec.
1(c) (unmarried individuals (other than surviving spouses and heads
of households)) and Sec. 1(d) (married individuals filing separate
returns) are equal to the initial bracket amount of Sec. 1(a)
(married individuals filing joint returns and surviving spouses)
after adjustment for inflation.
.02 The amounts deemed substantiated when paid by eligible
employers in the transportation mainline pipeline construction
industry under an accountable plan to employees in accordance with
Rev. Proc. 2002-41, 2002-1 C.B. 1098, are adjusted for inflation.
(Section 3.09).
.03 The dollar amount in Sec. 179(b)(1) used to determine the
dollar limitation of the aggregate cost that may be taken into
account under Sec. 179(a) and the dollar amount in Sec. 179(b)(2)
used to calculate a reduction in the dollar limitation are adjusted
for inflation. (Section 3.17).
.04 The generation-skipping transfer tax exemption under Sec.
2631, which is allowed in determining the "inclusion ratio" defined
in Sec. 2642, is no longer adjusted for inflation and has been
deleted.
Section 3. 2004 Adjusted Items
.01 Tax Rate Tables. For taxable years beginning in 2004, the tax
rate tables under Sec. 1 are as follows:
TABLE 1 - SECTION 1(A). - MARRIED INDIVIDUALS FILING JOINT RETURNS
AND SURVIVING SPOUSES
--------------------------------------------------------------------
If Taxable Income Is: The Tax Is:
--------------------------------------------------------------------
Not Over $14,300 10% of the taxable income
Over $14,300 but not over $1,430 plus 15% of excess over
$58,100 $14,300
Over $58,100 but not over $8,000 plus 25% of excess over
$117,250 $58,100
Over $117,250 but not over $22,787.50 plus 28% of excess over
$178,650 $117,250
Over $178,650 but not over $39,979.50 plus 33% of excess over
$319,100 $178,650
Over $319,100 $86,328 plus 35% of excess over
$319,100
--------------------------------------------------------------------
TABLE 2 - SECTION 1(B). - HEADS OF HOUSEHOLDS
--------------------------------------------------------------------
If Taxable Income Is: The Tax Is:
--------------------------------------------------------------------
Not Over $10,200 10% of the taxable income
Over $10,200 but not over $1,020 plus 15% of excess over
$38,900 $10,200
Over $38,900 but not over $5,325 plus 25% of the excess over
$100,500 $38,900
Over $100,500 but not over $20,725 plus 28% of the excess
$162,700 over $100,500
Over $162,700 but not over $38,141 plus 33% of the excess
$319,100 over $162,700
Over $319,100 $89,753 plus 35% of the excess
over $319,100
--------------------------------------------------------------------
TABLE 3 - SECTION 1(C). - UNMARRIED INDIVIDUALS (OTHER THAN
SURVIVING SPOUSES AND HEADS OF HOUSEHOLDS)
--------------------------------------------------------------------
If Taxable Income Is: The Tax Is:
--------------------------------------------------------------------
Not Over $7,150 10% of the taxable income
Over $7,150 but not over $715 plus 15% of the excess over
$29,050 $7,150
Over $29,050 but not over $4,000 plus 25% of the excess over
$70,350 $29,050
Over $70,350 but not over $14,325 plus 28% of the excess
$146,750 over $70,350
Over $146,750 but not over $35,717 plus 33% of the excess
$319,100 over $146,750
Over $319,100 $92,592.50 plus 35% of the excess
over $319,100
--------------------------------------------------------------------
TABLE 4 - SECTION 1(D). - MARRIED INDIVIDUALS FILING SEPARATE
RETURNS
--------------------------------------------------------------------
If Taxable Income Is: The Tax Is:
--------------------------------------------------------------------
Not Over $7,150 10% of the taxable income
Over $7,150 but not over $715 plus 15% of the excess over
$29,050 $7,150
Over $29,050 but not over $4,000 plus 25% of the excess over
$58,625 $29,050
Over $58,625 but not over $11,393.75 plus 28% of the excess
$89,325 over $58,625
Over $89,325 but not over $19,989.75 plus 33% of the excess
$159,550 over $89,325
Over $159,550 $43,164 plus 35% of the excess
over $159,550
--------------------------------------------------------------------
TABLE 5 - SECTION 1(E). - ESTATES AND TRUSTS
--------------------------------------------------------------------
If Taxable Income Is: The Tax Is:
--------------------------------------------------------------------
Not Over $1,950 15% of the taxable income
Over $1,950 but not over $292.50 plus 25% of the excess
$4,600 over $1,950
Over $4,600 but not over $955 plus 28% of the excess over
$7,000 $4,600
Over $7,000 but not over $1,627 plus 33% of the excess over
$9,550 $7,000
Over $9,550 $2,468.50 plus 35% of the excess
over $9,550
--------------------------------------------------------------------
.02 Unearned Income of Minor Children Taxed as if Parent's Income
(the "Kiddie Tax"). For taxable years beginning in 2004, the amount
in Sec. 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned
income reported on the child's return that is subject to the
"kiddie tax," is $800. (This amount is the same as the $800
standard deduction amount provided in section 3.10(2) of this
revenue procedure.) The same $800 amount is used for purposes of
Sec. 1(g)(7) (that is, in determining whether a parent may elect to
include a child's gross income in the parent's gross income and for
calculating the "kiddie tax"). For example, one of the requirements
for the parental election is that a child's gross income is more
than the amount referenced in Sec. 1(g)(4)(A)(ii)(I) but less than
10 times such amount; thus, a child's gross income for 2004 must be
more than $800 but less than $8,000 to satisfy that requirement.
.03 Adoption Credit. For taxable years beginning in 2004, under
Sec. 23(a)(3) the maximum credit allowed for an adoption of a child
with special needs is $10,390. For taxable years beginning in 2004,
under Sec. 23(b)(1) the maximum credit allowed with regard to other
adoptions is the amount of qualified adoption expenses up to
$10,390. The available adoption credit begins to phase out under
Sec. 23(b)(2)(A) for taxpayers with modified adjusted gross income
in excess of $155,860 and is completely phased out for taxpayers
with modified adjusted gross income of $195,860. (See section 3.14
for the adjusted items relating to adoption assistance programs.)
.04 Child Tax Credit. For taxable years beginning in 2004, the
value used in Sec. 24(d)(1)(B)(i) in determining the amount of
credit under Sec. 24 that may be refundable is $10,750.
.05 Hope and Lifetime Learning Credits.
(1) For taxable years beginning in 2004, 100 percent of qualified
tuition and related expenses not in excess of $1,000 and 50 percent
of such expenses in excess of $1,000 are taken into account in
determining the amount of the Hope Scholarship Credit under Sec.
25A(b)(1).
(2) For taxable years beginning in 2004, a taxpayer's modified
adjusted gross income in excess of $42,000 ($85,000 for a joint
return) is taken into account in determining the reduction under
Sec. 25A(d)(2)(A)(ii) in the amount of the Hope Scholarship and
Lifetime Learning Credits otherwise allowable under Sec. 25A(a).
.06 Earned Income Credit.
(1) In general. For taxable years beginning in 2004, the
following amounts are used to determine the earned income credit
under Sec. 32(b). The "earned income amount" is the amount of
earned income at or above which the maximum amount of the earned
income credit is allowed. The "threshold phaseout amount" is the
amount of adjusted gross income (or, if greater, earned income)
above which the maximum amount of the credit begins to phase out.
The "completed phaseout amount" is the amount of adjusted gross
income (or if greater, earned income) at or above which no credit
is allowed.
Item Number of Qualifying Children
One Two or None
More
--------------------------------------------------------------------
Earned Income Amount $ 7,660 $10,750 $ 5,100
Maximum Amount of Credit $ 2,604 $ 4,300 $ 390
Threshold Phaseout Amount $14,040 $14,040 $ 6,390
Completed Phaseout Amount $30,338 $34,458 $11,490
Threshold Phaseout Amount $15,040 $15,040 $ 7,390
(Married Filing Jointly)
Completed Phaseout Amount $31,338 $35,458 $12,490
(Married Filing Jointly)
--------------------------------------------------------------------
The instructions for the Form 1040 series provide tables showing
the amount of the earned income credit for each type of taxpayer.
(2) Excessive investment income. For taxable years beginning in
2004, the earned income tax credit is denied under Sec. 32(i) if
the aggregate amount of certain investment income exceeds $2,650.
.07 Low-Income Housing Credit. For calendar years beginning in
2004, the amounts used under Sec. 42(h)(3)(C)(ii) to calculate the
State housing credit ceiling for the low-income housing credit is
the greater of $1.80 multiplied by the State population or
$2,075,000.
.08 Alternative Minimum Tax Exemption for a Child Subject to the
"Kiddie Tax." For taxable years beginning in 2004, for a child to
whom the Sec. 1(g) "kiddie tax" applies, the exemption amount under
Secs. 55 and 59(j) for purposes of the alternative minimum tax
under Sec. 55 may not exceed the sum of (A) such child's earned
income for the taxable year, plus (B) $5,750.
.09 Transportation Mainline Pipeline Construction Industry
Optional Expense Substantiation Rules for Payments to Employees
under Accountable Plans. For calendar years beginning in 2004, an
eligible employer may pay certain welders and heavy equipment
mechanics an amount of up to $13 per hour for rig-related expenses
that is deemed substantiated under an accountable plan when paid in
accordance with Rev. Proc. 2002-41. If the employer provides fuel
or otherwise reimburses fuel expenses, up to $8 per hour is deemed
substantiated when paid under Rev. Proc. 2002-41.
.10 Standard Deduction.
(1) In general. For taxable years beginning in 2004, the standard
deduction amounts under Sec. 63(c)(2) are as follows:
Filing Status Standard
Deduction
--------------------------------------------------------------------
Married Individuals Filing Joint Returns and $9,700
Surviving Spouses (Sec. 1(a))
Heads of Households (Sec. 1(b)) $7,150
Unmarried Individuals (other than Surviving Spouses $4,850
and Heads of Households) (Sec. 1(c))
Married Individuals Filing Separate Returns (Sec. $4,850
1(d))
--------------------------------------------------------------------
(2) Dependent. For taxable years beginning in 2004, the standard
deduction amount under Sec. 63(c)(5) for an individual who may be
claimed as a dependent by another taxpayer may not exceed the
greater of $800, or the sum of $250 and the individual's earned
income.
(3) Aged and blind. For taxable years beginning in 2004, the
additional standard deduction amounts under Sec. 63(f) for the aged
and for the blind are $950 for each. These amounts are increased to
$1,200 if the individual is also unmarried and not a surviving
spouse.
.11 Overall Limitation on Itemized Deductions. For taxable years
beginning in 2004, the "applicable amount" of adjusted gross income
under Sec. 68(b), above which the amount of otherwise allowable
itemized deductions is reduced under Sec. 68, is $142,700 (or
$71,350 for a separate return filed by a married individual).
.12 Qualified Transportation Fringe. For taxable years beginning
in 2004, the monthly limitation under Sec. 132(f)(2)(A), regarding
the aggregate fringe benefit exclusion amount for transportation in
a commuter highway vehicle and any transit pass, is $100. The
monthly limitation under Sec. 132(f)(2)(B) regarding the fringe
benefit exclusion amount for qualified parking is $195.
.13 Income from United States Savings Bonds for Taxpayers Who Pay
Qualified Higher Education Expenses. For taxable years beginning in
2004, the exclusion under Sec. 135, regarding income from United
States savings bonds for taxpayers who pay qualified higher
education expenses, begins to phase out for modified adjusted gross
income above $89,750 for joint returns and $59,850 for other
returns. This exclusion completely phases out for modified adjusted
gross income of $119,750 or more for joint returns and $74,850 or
more for other returns.
.14 Adoption Assistance Programs. For taxable years beginning in
2004, under Sec. 137(a)(2) the maximum amount that can be excluded
from an employee's gross income in connection with the adoption by
the employee of a child with special needs is $10,390. For taxable
years beginning in 2004, under Sec. 137(b)(1) the maximum amount
that can be excluded from an employee's gross income for the
amounts paid or expenses incurred by the employer for qualified
adoption expenses furnished pursuant to an adoption assistance
program in connection with other adoptions by the employee is
$10,390. The amount excludable from an employee's gross income
begins to phase out under Sec. 137(b)(2)(A) for taxpayers with
modified adjusted gross income in excess of $155,860 and is
completely phased out for taxpayers with modified adjusted gross
income of $195,860. (See section 3.03 for the adjusted items
relating to the adoption credit.)
.15 Private Activity Bonds Volume Cap. For calendar years
beginning in 2004, the amounts used under Sec. 146(d)(1) to
calculate the State ceiling for the volume cap for private activity
bonds is the greater of $80 multiplied by the State population or
$233,795,000.
.16 Personal Exemption.
(1) Exemption amount. For taxable years beginning in 2004, the
personal exemption amount under Sec. 151(d) is $3,100.
(2) Phase out. For taxable years beginning in 2004, the personal
exemption amount begins to phase out at, and is completely phased
out after, the following adjusted gross income amounts:
Filing Status AGI - AGI -
Beginning Exemption
of Phaseout Fully Phased
Out
--------------------------------------------------------------------
Married Individuals Filing $214,050 $336,550
Joint Returns and
Surviving Spouse (Sec. 1(a)
Heads of Households (Sec. $178,350 $300,850
1(b))
Unmarried Individuals $142,700 $265,200
(other than Surviving
Spouses and Heads of
Households) (Sec. 1(c))
Married Individuals Filing $107,025 $168,275
Separate Returns (Sec. 1(d)
--------------------------------------------------------------------
.17 Election to Expense Certain Depreciable Assets. For taxable
years beginning in 2004, under Sec. 179(b)(1), the aggregate cost
of any Sec. 179 property a taxpayer may elect to treat as an
expense shall not exceed $102,000. Under Sec. 179(b)(2), the
$102,000 limitation shall be reduced (but not below zero) by the
amount by which the cost of Sec. 179 property placed in service
during the 2004 taxable year exceeds $410,000.
.18 Eligible Long-Term Care Premiums. For taxable years beginning
in 2004, the limitations under Sec. 213(d)(10), regarding eligible
long-term care premiums includible in the term "medical care," are
as follows:
Attained age before the close of the taxable year Limi
tation
on
prem
iums
--------------------------------------------------------------------
40 or less $ 260
More than 40 but not more than 50 $ 490
More than 50 but not more than 60 $ 980
More than 60 but not more than 70 $2,600
More than 70 $3,250
--------------------------------------------------------------------
.19 Medical Savings Accounts.
(1) Self-only coverage. For taxable years beginning in 2004, the
term "high deductible health plan" as defined in Sec. 220(c)(2)(A)
means, for self-only coverage, a health plan that has an annual
deductible that is not less than $1,700 and not more than $2,600,
and under which the annual out-of-pocket expenses required to be
paid (other than for premiums) for covered benefits does not exceed
$3,450.
(2) Family coverage. For taxable years beginning in 2004, the
term "high deductible health plan" means, for family coverage, a
health plan that has an annual deductible that is not less than
$3,450 and not more than $5,150, and under which the annual
out-of-pocket expenses required to be paid (other than for
premiums) for covered benefits does not exceed $6,300.
.20 Interest on Education Loans. For taxable years beginning in
2004, the $2,500 maximum deduction for interest paid on qualified
education loans under Sec. 221 is reduced under Sec. 221(b)(2)(B)
when modified adjusted gross income exceeds $50,000 ($100,000 for
joint returns), and is completely eliminated when modified adjusted
gross income is $65,000 ($130,000 for joint returns).
.21 Treatment of Dues Paid to Agricultural or Horticultural
Organizations. For taxable years beginning in 2004, the limitation
under Sec. 512(d)(1), regarding the exemption of annual dues
required to be paid by a member to an agricultural or horticultural
organization, is $124.
.22 Insubstantial Benefit Limitations for Contributions
Associated with Charitable Fund-Raising Campaigns.
(1) Low cost article. For taxable years beginning in 2004, the
unrelated business income of certain exempt organizations under
Sec. 513(h)(2) does not include a "low cost article" of $8.20 or
less.
(2) Other insubstantial benefits. For taxable years beginning in
2004, the $5, $25, and $50 guidelines in section 3 of Rev. Proc.
90-12, 1990-1 C.B. 471 (as amplified and modified), for
disregarding the value of insubstantial benefits received by a
donor in return for a fully deductible charitable contribution
under Sec. 170, are $8.20, $41 and $82, respectively.
.23 Funeral Trusts. For a contract entered into during calendar
year 2004 for a "qualified funeral trust," as defined in Sec. 685,
the trust may not accept aggregate contributions by or for the
benefit of an individual in excess of $8,000.
.24 Expatriation to Avoid Tax. For calendar year 2004, the
amounts used under Sec. 877(a)(2), regarding whether an
individual's loss of United States citizenship had the avoidance of
United States taxes as one of its principal purposes, are more than
$124,000 for "average annual net income tax" and $622,000 or more
for "net worth."
.25 Valuation of Qualified Real Property in Decedent's Gross
Estate. For an estate of a decedent dying in calendar year 2004, if
the executor elects to use the special use valuation method under
Sec. 2032A for qualified real property, the aggregate decrease in
the value of qualified real property resulting from electing to use
Sec. 2032A that is taken into account for purposes of the estate
tax may not exceed $850,000.
.26 Annual Exclusion for Gifts.
(1) For calendar year 2004, the first $11,000 of gifts to any
person (other than gifts of future interests in property) are not
included in the total amount of taxable gifts under Sec. 2503 made
during that year.
(2) For calendar year 2004, the first $114,000 of gifts to a
spouse who is not a citizen of the United States (other than gifts
of future interests in property) are not included in the total
amount of taxable gifts under Secs. 2503 and 2523(i)(2) made during
that year.
.27 Passenger Air Transportation Excise Tax. For calendar year
2004, the tax under Sec. 4261(b) on the amount paid for each
domestic segment of taxable transportation by air is $3.10. For
calendar year 2004, the tax under Sec. 4261(c) on any amount paid
(whether within or without the United States) for any
transportation of any person by air, if such transportation begins
or ends in the United States, generally is $13.70. However, in the
case of a domestic segment beginning or ending in Alaska or Hawaii
as described in Sec. 4261(c)(3), the tax only applies to departures
and is at the rate of $6.90.
.28 Reporting Exception for Certain Exempt Organizations with
Nondeductible Lobbying Expenditures. For taxable years beginning in
2004, the annual per person, family, or entity dues limitation to
qualify for the reporting exception under Sec. 6033(e)(3) (and
section 5.05 of Rev. Proc. 98-19, 1998-1 C.B. 547), regarding
certain exempt organizations with nondeductible lobbying
expenditures, is $86 or less.
.29 Notice of Large Gifts Received from Foreign Persons. For
taxable years beginning in 2004, recipients of gifts from certain
foreign persons may be required to report these gifts under Sec.
6039F if the aggregate value of gifts received in a taxable year
exceeds $12,097.
.30 Persons Against Which a Federal Tax Lien Is Not Valid. For
calendar year 2004, a federal tax lien is not valid against (1)
certain purchasers under Sec. 6323(b)(4) who purchased personal
property in a casual sale for less than $1,180 or (2) a mechanic's
lienor under Sec. 6323(b)(7) that repaired or improved certain
residential property if the contract price with the owner is not
more than $5,890.
.31 Property Exempt from Levy. For calendar year 2004, the value
of property exempt from levy under Sec. 6334(a)(2) (fuel,
provisions, furniture, and other household personal effects, as
well as arms for personal use, livestock, and poultry) may not
exceed $7,040. The value of property exempt from levy under Sec.
6334(a)(3) (books and tools necessary for the trade, business, or
profession of the taxpayer) may not exceed $3,520.
.32 Interest on a Certain Portion of the Estate Tax Payable in
Installments. For an estate of a decedent dying in calendar year
2004, the dollar amount used to determine the "2-percent portion"
(for purposes of calculating interest under Sec. 6601(j)) of the
estate tax extended as provided in Sec. 6166 is $1,140,000.
.33 Attorney Fee Awards. For fees incurred in calendar year 2004,
the attorney fee award limitation under Sec. 7430(c)(1)(B)(iii) is
$150 per hour.
.34 Periodic Payments Received under Qualified Long-Term Care
Insurance Contracts or under Certain Life Insurance Contracts. For
calendar year 2004, the stated dollar amount of the per diem
limitation under Sec. 7702B(d)(4), regarding periodic payments
received under a qualified long-term care insurance contract or
periodic payments received under a life insurance contract that are
treated as paid by reason of the death of a chronically ill
individual, is $230.
Section 4. Effective Date
.01 General Rule. Except as provided in section 4.02, this
revenue procedure applies to taxable years beginning in 2004.
.02 Calendar Year Rule. This revenue procedure applies to
transactions or events occurring in calendar year 2004 for purposes
of sections 3.07 (low-income housing credit), 3.09 (pipeline
construction industry optional expense substantiation rules), 3.15
(private activity bond volume cap), 3.23 (funeral trusts), 3.24
(expatriation to avoid tax), 3.25 (valuation of qualified real
property in decedent's gross estate), 3.26 (annual exclusion for
gifts), 3.27 (passenger air transportation excise tax), 3.30
(persons against which a federal tax lien is not valid), 3.31
(property exempt from levy), 3.32 (interest on a certain portion of
the estate tax payable in installments), 3.33 (attorney fee
awards), and 3.34 (periodic payments received under qualified
long-term care insurance contracts or under certain life insurance
contracts).
Section 5. Drafting Information
[Omitted-related to author of this revenue procedure.]
TAX TABLES FOR PRIOR TAX YEARS
Inflation adjusted items for certain prior tax years were
contained in the following:
Revenue Procedure 2002-70 provided inflation adjusted items for
tax years beginning in 2003.
Revenue Procedure 2001-59 provided inflation adjusted items for
tax years beginning in 2002.
Revenue Procedure 2001-13 provided inflation adjusted items for
tax years beginning in 2001.
Revenue Procedure 99-42 provided inflation adjusted items for tax
years beginning in 2000.
Revenue Procedure 98-61 provided inflation adjusted items for tax
years beginning in 1999.
Revenue Procedure 97-57 provided inflation adjusted items for tax
years beginning in 1998.
Revenue Procedure 96-59 provided inflation adjusted items for tax
years beginning in 1997.
Revenue Procedure 95-53 provided inflation adjusted items for tax
years beginning in 1996.
Revenue Procedure 94-72 provided inflation adjusted items for tax
years beginning in 1995.
Revenue Procedure 93-49 provided inflation adjusted items for tax
years beginning in 1994.
Revenue Procedure 92-102 provided inflation adjusted items for
tax years beginning in 1993.
Revenue Procedure 91-65 provided inflation adjusted items for tax
years beginning in 1992.
Revenue Procedure 90-64 provided inflation adjusted items for tax
years beginning in 1991.
Revenue Procedure 90-7 provided inflation adjusted items for tax
years beginning in 1990.
Revenue Procedure 88-56 provided inflation adjusted items for tax
years beginning in 1989.
Revenue Procedure 85-55 provided income tax cost-of-living
adjustment (indexing) factor with respect to taxable years
beginning in 1986.
Revenue Procedure 84-79 provided income tax cost-of-living
adjustment (indexing) factor with respect to taxable years
beginning in 1985.
-REFTEXT-
REFERENCES IN TEXT
The enactment of this clause, referred to in subsec.
(h)(13)(A)(iii), means the date of enactment of Pub. L. 105-206,
which was approved July 22, 1998.
-MISC1-
AMENDMENTS
2003 - Subsec. (f)(8)(A). Pub. L. 108-27, Secs. 102(b)(1), 107,
temporarily substituted "2002" for "2004". See Effective and
Termination Dates of 2003 Amendment note below.
Subsec. (f)(8)(B). Pub. L. 108-27, Secs. 102(a), 107, temporarily
inserted table item relating to years 2003 and 2004. See Effective
and Termination Dates of 2003 Amendment note below.
Subsec. (h)(1)(B). Pub. L. 108-27, Secs. 301(a)(1), 303,
temporarily substituted "5 percent (0 percent in the case of
taxable years beginning after 2007)" for "10 percent". See
Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(1)(C). Pub. L. 108-27, Secs. 301(a)(2)(A), 303,
temporarily substituted "15 percent" for "20 percent". See
Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(2). Pub. L. 108-27, Secs. 301(b)(1)(A), (B), 303,
temporarily redesignated par. (3) as (2) and struck out heading and
text of former par. (2). Text read as follows:
"(A) Reduction in 10-percent rate. - In the case of any taxable
year beginning after December 31, 2000, the rate under paragraph
(1)(B) shall be 8 percent with respect to so much of the amount to
which the 10-percent rate would otherwise apply as does not exceed
qualified 5-year gain, and 10 percent with respect to the remainder
of such amount.
"(B) Reduction in 20-percent rate. - The rate under paragraph
(1)(C) shall be 18 percent with respect to so much of the amount to
which the 20-percent rate would otherwise apply as does not exceed
the lesser of -
"(i) the excess of qualified 5-year gain over the amount of
such gain taken into account under subparagraph (A) of this
paragraph; or
"(ii) the amount of qualified 5-year gain (determined by taking
into account only property the holding period for which begins
after December 31, 2000),
and 20 percent with respect to the remainder of such amount. For
purposes of determining under the preceding sentence whether the
holding period of property begins after December 31, 2000, the
holding period of property acquired pursuant to the exercise of an
option (or other right or obligation to acquire property) shall
include the period such option (or other right or obligation) was
held." See Effective and Termination Dates of 2003 Amendment note
below.
Subsec. (h)(3). Pub. L. 108-27, Secs. 302(e)(1), 303, temporarily
amended heading and text of par. (3) generally. Prior to amendment,
text read as follows: "For purposes of this subsection, the term
'adjusted net capital gain' means net capital gain reduced (but not
below zero) by the sum of -
"(A) unrecaptured section 1250 gain; and
"(B) 28-percent rate gain." See Effective and Termination Dates
of 2003 Amendment note below.
Pub. L. 108-27, Secs. 301(b)(1)(B), 303, temporarily redesignated
par. (4) as (3). Former par. (3) temporarily redesignated (2). See
Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(4) to (7). Pub. L. 108-27, Secs. 301(b)(1)(B), 303,
temporarily redesignated pars. (5) to (8) as (4) to (7),
respectively. Former par. (4) temporarily redesignated (3). See
Effective and Termination Dates of 2003 Amendment note below.
Subsec. (h)(8). Pub. L. 108-27, Secs. 301(b)(1)(C), 303,
temporarily redesignated par. (10) as (8). Former par. (8)
temporarily redesignated (7). See Effective and Termination Dates
of 2003 Amendment note below.
Subsec. (h)(9). Pub. L. 108-27, Secs. 301(b)(1)(A), (C), 303,
temporarily redesignated par. (11) as (9) and struck out heading
and text of former par. (9). Text read as follows: "For purposes of
this subsection, the term 'qualified 5-year gain' means the
aggregate long-term capital gain from property held for more than 5
years. The determination under the preceding sentence shall be made
without regard to collectibles gain, gain described in paragraph
(7)(A)(i), and section 1202 gain." See Effective and Termination
Dates of 2003 Amendment note below.
Subsec. (h)(10). Pub. L. 108-27, Secs. 301(b)(1)(C), 303,
temporarily redesignated par. (12) as (10). Former par. (10)
temporarily redesignated (8). See Effective and Termination Dates
of 2003 Amendment note below.
Subsec. (h)(11). Pub. L. 108-27, Secs. 302(a), 303, temporarily
added par. (11). See Effective and Termination Dates of 2003
Amendment note below.
Pub. L. 108-27, Secs. 301(b)(1)(C), 303, temporarily redesignated
par. (11) as (9). See Effective and Termination Dates of 2003
Amendment note below.
Subsec. (h)(12). Pub. L. 108-27, Secs. 301(b)(1)(C), 303,
temporarily redesignated par. (12) as (10). See Effective and
Termination Dates of 2003 Amendment note below.
Subsec. (i)(1)(B)(i). Pub. L. 108-27, Secs. 104(a), 107,
temporarily substituted "($12,000 in the case of taxable years
beginning after December 31, 2004, and before January 1, 2008)" for
"($12,000 in the case of taxable years beginning before January 1,
2008)". See Effective and Termination Dates of 2003 Amendment note
below.
Subsec. (i)(1)(C). Pub. L. 108-27, Secs. 104(b), 107, temporarily
amended heading and text of subpar. (C) generally. Text read as
follows: "In prescribing the tables under subsection (f) which
apply with respect to taxable years beginning in calendar years
after 2000 -
"(i) the Secretary shall make no adjustment to the initial
bracket amount for any taxable year beginning before January 1,
2009,
"(ii) the cost-of-living adjustment used in making adjustments
to the initial bracket amount for any taxable year beginning
after December 31, 2008, shall be determined under subsection
(f)(3) by substituting '2007' for '1992' in subparagraph (B)
thereof, and
"(iii) such adjustment shall not apply to the amount referred
to in subparagraph (B)(iii).
If any amount after adjustment under the preceding sentence is not
a multiple of $50, such amount shall be rounded to the next lowest
multiple of $50." See Effective and Termination Dates of 2003
Amendment note below.
Subsec. (i)(2). Pub. L. 108-27, Secs. 105(a), 107, temporarily
amended table generally. Prior to amendment, table read as follows:
The corresponding percentages shall be
substituted for
the following percentages:
28% 31% 36% 39.6%
--------------------------------------------------------------------
2001 27.5% 30.5% 35.5% 39.1%
2002 and 2003 27.0% 30.0% 35.0% 38.6%
2004 and 2005 26.0% 29.0% 34.0% 37.6%
2006 and thereafter 25.0% 28.0% 33.0% 35.0%"
--------------------------------------------------------------------
See Effective and Termination Dates of 2003 Amendment note below.
2001 - Subsec. (f). Pub. L. 107-16, Secs. 302(b)(2), 901,
temporarily substituted "Phaseout of marriage penalty in 15-percent
bracket; adjustments" for "Adjustments" in heading. See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (f)(2)(A). Pub. L. 107-16, Secs. 302(b)(1), 901,
temporarily inserted "except as provided in paragraph (8)," before
"by increasing". See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (f)(6)(B). Pub. L. 107-16, Secs. 301(c)(1), 901,
temporarily substituted "(other than with respect to sections
63(c)(4) and 151(d)(4)(A)) shall be applied" for "(other than with
respect to subsection (c)(4) of section 63 (as it applies to
subsections (c)(5)(A) and (f) of such section) and section
151(d)(4)(A)) shall be applied". See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (f)(8). Pub. L. 107-16, Secs. 302(a), 901, temporarily
added par. (8). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (g)(7)(B)(ii)(II). Pub. L. 107-16, Secs. 101(c)(1), 901,
which directed amendment of subcl. (II) by temporarily substituting
"10 percent." for "15 percent", was executed by temporarily
substituting "10 percent" for "15 percent", to reflect the probable
intent of Congress. See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (h)(1)(A)(ii)(I), (B)(i). Pub. L. 107-16, Secs.
101(c)(2)(A), 901, temporarily substituted "25 percent" for "28
percent". See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (h)(13). Pub. L. 107-16, Secs. 101(c)(2)(B), 901,
temporarily struck out par. (13), which set out special rules for
determination of 28-percent rate gain, unrecaptured section 1250
gain, pass-thru entities, and charitable remainder trusts. See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (i). Pub. L. 107-16, Secs. 101(a), 901, temporarily added
subsec. (i). See Effective and Termination Dates of 2001 Amendment
note below.
2000 - Subsec.(h)(8). Pub. L. 106-554 substituted "means the
excess of - " and subpars. (A) and (B) for "means an amount equal
to the gain excluded from gross income under section 1202(a)."
1998 - Subsec. (g)(3)(C), (D). Pub. L. 105-206, Sec. 6007(f)(1),
redesignated subpar. (D) as (C) and struck out heading and text of
former subpar. (C). Text read as follows: "If tax is imposed under
section 644(a)(1) with respect to the sale or exchange of any
property of which the parent was the transferor, for purposes of
applying subparagraph (A) to the taxable year of the parent in
which such sale or exchange occurs -
"(i) taxable income of the parent shall be increased by the
amount treated as included in gross income under section
644(a)(2)(A)(i), and
"(ii) the amount described in subparagraph (A)(ii) shall be
increased by the amount of the excess referred to in section
644(a)(2)(A)."
Subsec. (h). Pub. L. 105-206, Sec. 6005(d)(1), reenacted subsec.
heading without change and amended text of subsec. (h) generally,
substituting present provisions comprising pars. (1) to (13) for
former similar provisions comprising pars. (1) to (11).
Subsec. (h)(5). Pub. L. 105-206, Sec. 5001(a)(1), amended par.
(5) generally. Prior to amendment, par. (5) read as follows:
"(5) 28-percent rate gain. - For purposes of this subsection -
"(A) In general. - The term '28-percent rate gain' means the
excess (if any) of -
"(i) the sum of -
"(I) the aggregate long-term capital gain from property
held for more than 1 year but not more than 18 months;
"(II) collectibles gain; and
"(III) section 1202 gain, over
"(ii) the sum of -
"(I) the aggregate long-term capital loss (not described in
subclause (IV)) from property referred to in clause (i)(I);
"(II) collectibles loss;
"(III) the net short-term capital loss; and
"(IV) the amount of long-term capital loss carried under
section 1212(b)(1)(B) to the taxable year.
"(B) Special rules. -
"(i) Short sale gains and holding periods. - Rules similar to
the rules of section 1233(b) shall apply where the
substantially identical property has been held more than 1 year
but not more than 18 months; except that, for purposes of such
rules -
"(I) section 1233(b)(1) shall be applied by substituting
'18 months' for '1 year' each place it appears; and
"(II) the holding period of such property shall be treated
as being 1 year on the day before the earlier of the date of
the closing of the short sale or the date such property is
disposed of.
"(ii) Long-term losses. - Section 1233(d) shall be applied
separately by substituting '18 months' for '1 year' each place
it appears.
"(iii) Options. - A rule similar to the rule of section
1092(f) shall apply where the stock was held for more than 18
months.
"(iv) Section 1256 contracts. - Amounts treated as long-term
capital gain or loss under section 1256(a)(3) shall be treated
as attributable to property held for more than 18 months."
Subsec. (h)(6)(A). Pub. L. 105-206, Sec. 5001(a)(2), substituted
"1 year" for "18 months".
Subsec. (h)(7)(A)(i), (ii). Pub. L. 105-206, Sec. 5001(a)(3),
amended cls. (i) and (ii) generally. Prior to amendment, cls. (i)
and (ii) read as follows:
"(i) the amount of long-term capital gain (not otherwise treated
as ordinary income) which would be treated as ordinary income if -
"(I) section 1250(b)(1) included all depreciation and the
applicable percentage under section 1250(a) were 100 percent, and
"(II) only gain from property held for more than 18 months were
taken into account, over
"(ii) the excess (if any) of -
"(I) the amount described in paragraph (5)(A)(ii), over
"(II) the amount described in paragraph (5)(A)(i)."
Subsec. (h)(13). Pub. L. 105-206, Sec. 5001(a)(4), struck out
"for periods during 1997" after "Special rules" in par. heading and
amended headings and text of subpars. (A) and (B) generally. Prior
to amendment, subpars. (A) and (B) read as follows:
"(A) Determination of 28-percent rate gain. - In applying
paragraph (5) -
"(i) the amount determined under subclause (I) of paragraph
(5)(A)(i) shall include long-term capital gain (not otherwise
described in paragraph (5)(A)(i)) which is properly taken into
account for the portion of the taxable year before May 7, 1997;
"(ii) the amounts determined under subclause (I) of paragraph
(5)(A)(ii) shall include long-term capital loss (not otherwise
described in paragraph (5)(A)(ii)) which is properly taken into
account for the portion of the taxable year before May 7, 1997;
and
"(iii) clauses (i)(I) and (ii)(I) of paragraph (5)(A) shall be
applied by not taking into account any gain and loss on property
held for more than 1 year but not more than 18 months which is
properly taken into account for the portion of the taxable year
after May 6, 1997, and before July 29, 1997.
"(B) Other special rules. -
"(i) Determination of unrecaptured section 1250 gain not to
include pre-may 7, 1997 gain. - The amount determined under
paragraph (7)(A)(i) shall not include gain properly taken into
account for the portion of the taxable year before May 7, 1997.
"(ii) Other transitional rules for 18-month holding period. -
Paragraphs (6)(A) and (7)(A)(i)(II) shall be applied by
substituting '1 year' for '18 months' with respect to gain
properly taken into account for the portion of the taxable year
after May 6, 1997, and before July 29, 1997."
Subsec. (h)(13)(B). Pub. L. 105-277, Sec. 4002(i)(1), substituted
"paragraph (7)(A)(i)" for "paragraph (7)(A)" in introductory
provisions.
Subsec. (h)(13)(D). Pub. L. 105-277, Sec. 4002(i)(3), added
subpar. (D).
1997 - Subsec. (h). Pub. L. 105-34 amended heading and text of
subsec. (h) generally. Prior to amendment, text read as follows:
"If a taxpayer has a net capital gain for any taxable year, then
the tax imposed by this section shall not exceed the sum of -
"(1) a tax computed at the rates and in the same manner as if
this subsection had not been enacted on the greater of -
"(A) taxable income reduced by the amount of the net capital
gain, or
"(B) the amount of taxable income taxed at a rate below 28
percent, plus
"(2) a tax of 28 percent of the amount of taxable income in
excess of the amount determined under paragraph (1).
For purposes of the preceding sentence, the net capital gain for
any taxable year shall be reduced (but not below zero) by the
amount which the taxpayer elects to take into account as investment
income for the taxable year under section 163(d)(4)(B)(iii)."
1996 - Subsec. (g)(7)(A)(ii). Pub. L. 104-188, Sec. 1704(m)(1),
amended cl. (ii) generally. Prior to amendment, cl. (ii) read as
follows: "such gross income is more than $500 and less than
$5,000,".
Subsec. (g)(7)(B)(i). Pub. L. 104-188, Sec. 1704(m)(2)(A),
substituted "twice the amount described in paragraph (4)(A)(ii)(I)"
for "$1,000".
Subsec. (g)(7)(B)(ii)(II). Pub. L. 104-188, Sec. 1704(m)(2)(B),
amended subcl. (II) generally. Prior to amendment, subcl. (II) read
as follows: "for each such child, the lesser of $75 or 15 percent
of the excess of the gross income of such child over $500, and".
1993 - Subsecs. (a) to (e). Pub. L. 103-66, Secs. 13201(a),
13202(a), amended subsecs. (a) to (e) generally, substituting
five-tiered tax tables for all categories applicable to tax years
after December 31, 1992, for prior three-tiered tax tables.
Subsec. (f)(1). Pub. L. 103-66, Sec. 13201(b)(3)(A)(i),
substituted "1993" for "1990".
Subsec. (f)(3)(B). Pub. L. 103-66, Sec. 13201(b)(3)(A)(ii),
substituted "1992" for "1989".
Subsec. (f)(7). Pub. L. 103-66, Sec. 13201(b)(3)(B), added par.
(7).
Subsec. (h). Pub. L. 103-66, Sec. 13206(d)(2), inserted as
concluding provision at end "For purposes of the preceding
sentence, the net capital gain for any taxable year shall be
reduced (but not below zero) by the amount which the taxpayer
elects to take into account as investment income for the taxable
year under section 163(d)(4)(B)(iii)."
1990 - Subsecs. (a) to (e). Pub. L. 101-508, Sec. 11101(a),
amended subsecs. (a) to (e) generally, substituting three-tiered
tax tables for all categories applicable to tax years after Dec.
31, 1990, for prior two-tiered tax tables.
Subsec. (f)(1). Pub. L. 101-508, Sec. 11101(d)(1)(A)(i),
substituted "1990" for "1988".
Subsec. (f)(3)(B). Pub. L. 101-508, Sec. 11101(d)(1)(A)(ii),
substituted "1989" for "1987".
Subsec. (f)(6)(A). Pub. L. 101-508, Sec. 11104(b)(1), substituted
"section 151(d)(4)" for "section 151(d)(3)".
Pub. L. 101-508, Sec. 11103(c), inserted reference to section
68(b)(2).
Pub. L. 101-508, Sec. 11101(b)(2), struck out "subsection
(g)(4)," after "paragraph (2)(A),".
Subsec. (f)(6)(B). Pub. L. 101-508, Sec. 11104(b)(2), substituted
"section 151(d)(4)(A)" for "section 151(d)(3)".
Subsec. (g). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
subsec. (i) as (g).
Pub. L. 101-508, Sec. 11101(b)(1), struck out subsec. (g) which
provided for phaseout of 15-percent rate and personal exemptions.
Subsec. (h). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
subsec. (j) as (h) and struck out former subsec. (h) which provided
tax schedules for taxable years beginning in 1987.
Subsec. (i). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
subsec. (i) as (g).
Subsec. (j). Pub. L. 101-508, Sec. 11101(d)(2), redesignated
subsec. (j) as (h).
Pub. L. 101-508, Sec. 11101(c), amended subsec. (j) generally.
Prior to amendment, subsec. (j) read as follows:
"(1) In general. - If a taxpayer has a net capital gain for any
taxable year to which this subsection applies, then the tax imposed
by this section shall not exceed the sum of -
"(A) a tax computed at the rates and in the same manner as if
this subsection had not been enacted on the greater of -
"(i) the taxable income reduced by the amount of net capital
gain, or
"(ii) the amount of taxable income taxed at a rate below 28
percent, plus
"(B) a tax of 28 percent of the amount of taxable income in
excess of the amount determined under subparagraph (A), plus
"(C) the amount of increase determined under subsection (g).
"(2) Years to which subsection applies. - This subsection shall
apply to -
"(A) any taxable year beginning in 1987, and
"(B) any taxable year beginning after 1987 if the highest rate
of tax set forth in subsection (a), (b), (c), (d), or (e)
(whichever applies) for such taxable year exceeds 28 percent."
1989 - Subsec. (f)(6)(B). Pub. L. 101-239, Sec. 7831(a),
substituted "subsection (c)(4) of section 63 (as it applies to
subsections (c)(5)(A) and (f) of such section) and section
151(d)(3)" for "section 63(c)(4)".
Subsec. (i)(3)(C), (D). Pub. L. 101-239, Sec. 7811(j)(1),
redesignated subpar. (C), relating to special rule where parent has
different taxable year, as (D).
Subsec. (i)(7)(A). Pub. L. 101-239, Sec. 7816(b), inserted
"(other than for purposes of this paragraph)" after "shall be
treated" in concluding provisions.
1988 - Subsec. (g)(2). Pub. L. 100-647, Sec. 1001(a)(3), inserted
provision relating to application of subpar. (B) at end of last
sentence.
Subsec. (i)(3)(A). Pub. L. 100-647, Sec. 1014(e)(2), substituted
"any exclusion, deduction, or credit" for "any deduction or
credit".
Subsec. (i)(3)(C). Pub. L. 100-647, Sec. 1014(e)(7), added
subpar. (C) relating to special rule where parent has different
taxable year.
Pub. L. 100-647, Sec. 1014(e)(1), added subpar. (C) relating to
coordination with section 644.
Subsec. (i)(4)(A)(i). Pub. L. 100-647, Sec. 1014(e)(3)(A),
substituted "adjusted gross income" for "gross income" and inserted
"attributable to" after "which is not".
Subsec. (i)(4)(A)(ii)(II). Pub. L. 100-647, Sec.
1014(e)(3)(B)-(D), substituted "his deductions" for "his
deduction", "the itemized deductions allowed" for "the deductions
allowed", and "adjusted gross income" for "gross income".
Subsec. (i)(5)(A). Pub. L. 100-647, Sec. 1014(e)(6), substituted
"custodial parent (within the meaning of section 152(e))" for
"custodial parent".
Subsec. (i)(7). Pub. L. 100-647, Sec. 6006(a), added par. (7).
1986 - Subsecs. (a) to (e). Pub. L. 99-514, Sec. 101(a), in
amending subsecs. (a) to (e) generally, substituted a general tax
table for tax tables (1), (2), and (3) in each subsec. applicable
to taxable years beginning in 1982, 1983, and after 1983,
respectively.
Subsec. (f). Pub. L. 99-514, Sec. 101(a), in amending subsec. (f)
generally, in par. (1) substituted "1988," for "1984" and struck
out "paragraph (3) of" before "subsections", in par. (2) struck out
"paragraph (3) of" before "subsection" in introductory provisions,
substituted subpars. (A) to (C) for former subpars. (A) to (C)
which read as follows:
"(A) by increasing -
"(i) the maximum dollar amount on which no tax is imposed
under such table, and
"(ii) the minimum and maximum dollar amounts for each rate
bracket for which a tax is imposed under such table,
by the cost-of-living adjustment for such calendar year,
"(B) by not changing the rate applicable to any rate bracket as
adjusted under subparagraph (A)(ii), and
"(C) by adjusting the amounts setting forth the tax to the
extent necessary to reflect the adjustments in the rate
brackets.",
and struck out concluding provisions which read as follows: "If any
increase determined under subparagraph (A) is not a multiple of
$10, such increase shall be rounded to the nearest multiple of $10
(or if such increase is a multiple of $5, such increase shall be
increased to the next highest multiple of $10).", in par. (3)(B)
substituted "1987" for "1983", in par. (4) substituted "August 31"
for "September 30", in par. (5) inserted requirement that the
Consumer Price Index most consistent with such Index for calendar
year 1986 be used, and added par. (6).
Subsecs. (g), (h). Pub. L. 99-514, Sec. 101(a), in amending
section generally, added subsecs. (g) and (h).
Subsec. (i). Pub. L. 99-514, Sec. 1411(a), added subsec. (i).
Subsec. (j). Pub. L. 99-514, Sec. 302(a), added subsec. (j).
1982 - Subsecs. (d), (e). Pub. L. 97-448, Sec. 101(a)(3), set out
as a note below, provided for amendment of the tables applying to
married individuals filing separately or to estates and trusts so
as to correct any figure differing by not more than 50 cents from
the correct amount under the formula used in constructing such
table. Corrections to the tables in subsecs. (d) and (e) appeared
in Announcement 83-50 contained in Internal Revenue Bulletin No.
1983-12 of Mar. 21, 1983.
1981 - Subsecs. (a) to (e). Pub. L. 97-34, Sec. 101(a), generally
revised tax tables downward providing for cumulative
across-the-board reductions of 23 percent on a three phase schedule
under which different new rates were set for taxable years
beginning in 1982, for taxable years beginning in 1983, and for
taxable years beginning after 1983.
Subsec. (f). Pub. L. 97-34, Sec. 104(a), added subsec. (f).
1978 - Subsec. (a). Pub. L. 95-600 generally made a downward
revision of tax table for married individuals filing joint returns
and surviving spouses resulting in a table under which, among other
changes, a bottom bracket imposing no tax on taxable income of
$3,400 or less was substituted for a bottom bracket imposing no tax
on taxable income of $3,200 or less.
Subsec. (b). Pub. L. 95-600 generally made a downward revision of
tax table for heads of household resulting in a table under which,
among other changes, a bottom bracket imposing no tax on taxable
income of $2,300 or less was substituted for a bottom bracket
imposing no tax on taxable income of $2,200 or less.
Subsec. (c). Pub. L. 95-600 generally made a downward revision of
tax table for unmarried individuals other than surviving spouses
and heads of households resulting in a table under which, among
other changes, a bottom bracket imposing no tax on taxable income
of $2,300 or less was substituted for a bottom bracket imposing no
tax on taxable income of $2,200 or less.
Subsec. (d). Pub. L. 95-600 generally made a downward revision of
tax tables for married individuals filing separate returns
resulting in a table under which, among other changes, a bottom
bracket imposing no tax on taxable income of $1,700 or less was
substituted for a bottom bracket imposing no tax on taxable income
of $1,600 or less.
Subsec. (e). Pub. L. 95-600 generally made a downward revision of
tax tables for estates and trusts resulting in a table under which,
among other changes, a bottom bracket under which a tax of 14% is
imposed on taxable income of $1,050 for a bottom bracket under
which a tax of 14% was imposed on taxable income of $500 or less.
1977 - Subsec. (a). Pub. L. 95-30 generally made a downward
revision of tax table for married individuals filing joint returns
and surviving spouses resulting in a table under which, among other
changes, a bottom bracket imposing no tax on taxable income of
$3,200 or less was substituted for a bottom bracket under which a
tax of 14% had been imposed on a taxable income of $1,000 or less.
Subsec. (b). Pub. L. 95-30 generally made a downward revision of
tax table for heads of households resulting in a table under which,
among other changes, a bottom bracket imposing no tax on taxable
income of $2,200 or less was substituted for a bottom bracket under
which a tax of 14% had been imposed on a taxable income of $1,000
or less.
Subsec. (c). Pub. L. 95-30 generally made a downward revision of
tax table for unmarried individuals other than surviving spouses
and heads of households resulting in a table under which, among
other changes, a bottom bracket imposing no tax on taxable income
of $2,200 or less was substituted for a bottom bracket under which
a tax of 14% had been imposed on a taxable income of $500 or less.
Subsec. (d). Pub. L. 95-30 generally made a downward revision of
tax table for married individuals filing separate returns resulting
in a table under which, among other changes, a bottom bracket
imposing no tax on taxable income of $1,600 or less was substituted
for a bottom bracket under which a tax of 14% had been imposed on a
taxable income of $500 or less. Provisions making table applicable
to estates and trusts were struck out. See subsec. (e).
Subsec. (e). Pub. L. 95-30 added subsec. (e) consisting of table
formerly contained in subsec. (d) but without any downward revision
and limited so as to apply only to estates and trusts.
1969 - Subsec. (a). Pub. L. 91-172 substituted a table of rates
of tax for married individuals filing joint returns and surviving
spouses for the tables of rates of tax on individuals. For rates of
taxes on unmarried individuals and married persons filing separate
returns, see subsecs. (c) and (d) of this section.
Subsec. (b). Pub. L. 91-172 generally revised rates of tax of
heads of household downwards and struck out provisions defining
head of household, determination of status, and limitations. For
definition of head of household, determination of status, and
limitations, see section 2(b) of this title.
Subsec. (c). Pub. L. 91-172 substituted rates of tax on unmarried
individuals (other than surviving spouses and heads of household)
for special rules explaining the rates of tax imposed under former
subsecs. (a) and (b)(1) and prescribing a maximum limit of 87
percent of the taxable year.
Subsec. (d). Pub. L. 91-172 substituted a table of rates of tax
for married individuals filing separate returns for provision
prescribing the applicability of the rates to non-resident aliens.
For applicability of rates of tax to non-resident aliens, see
section 2(d) of this title.
Subsec. (e). Pub. L. 91-172 struck out cross reference to section
63. See section 2(e) of this title.
1966 - Subsecs. (d), (e). Pub. L. 89-809 added subsec. (d) and
redesignated former subsec. (d) as (e).
1964 - Pub. L. 88-272 amended section generally by splitting the
former first bracket which started at $2,000 into four new
brackets, the 14 percent bracket representing a 30 percent
reduction, the 15 percent bracket a 25 percent cut, and the 16
percent bracket a 20 percent cut, and reducing all other brackets
by cuts averaging about 20 percent and effectuated these cuts in
two steps, one in 1964, and one in 1965.
EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT
Pub. L. 108-27, title I, Sec. 102(c), May 28, 2003, 117 Stat.
754, provided that: "The amendments made by this section [amending
this section and provisions set out as a note under this section]
shall apply to taxable years beginning after December 31, 2002."
Pub. L. 108-27, title I, Sec. 104(c), May 28, 2003, 117 Stat.
755, provided that:
"(1) In general. - The amendments made by this section [amending
this section] shall apply to taxable years beginning after December
31, 2002.
"(2) Tables for 2003. - The Secretary of the Treasury shall
modify each table which has been prescribed under section 1(f) of
the Internal Revenue Code of 1986 for taxable years beginning in
2003 and which relates to the amendment made by subsection (a) to
reflect such amendment."
Pub. L. 108-27, title I, Sec. 105(b), May 28, 2003, 117 Stat.
755, provided that: "The amendment made by this section [amending
this section] shall apply to taxable years beginning after December
31, 2002."
Pub. L. 108-27, title I, Sec. 107, May 28, 2003, 117 Stat. 755,
provided that: "Each amendment made by this title [enacting section
6429 of this title, amending this section and sections 24, 55, and
63 of this title, and amending provisions set out as notes under
this section] shall be subject to title IX of the Economic Growth
and Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16, Sec.
901, set out as an Effective and Termination Dates of 2001
Amendment note below] to the same extent and in the same manner as
the provision of such Act to which such amendment relates."
Pub. L. 108-27, title III, Sec. 301(d), May 28, 2003, 117 Stat.
760, provided that:
"(1) In general. - Except as otherwise provided by this
subsection, the amendments made by this section [amending this
section, sections 55, 57, 1445, and 7518 of this title, and section
1177 of Title 46, Appendix, Shipping] shall apply to taxable years
ending on or after May 6, 2003.
"(2) Withholding. - The amendment made by subsection (a)(2)(C)
[amending section 1445 of this title] shall apply to amounts paid
after the date of the enactment of this Act [May 28, 2003].
"(3) Small business stock. - The amendments made by subsection
(b)(3) [amending section 57 of this title] shall apply to
dispositions on or after May 6, 2003."
Pub. L. 108-27, title III, Sec. 302(f), May 28, 2003, 117 Stat.
764, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
163, 301, 306, 338, 467, 531, 541, 584, 702, 854, 857, 1255, and
1257 of this title and repealing section 341 of this title] shall
apply to taxable years beginning after December 31, 2002.
"(2) Regulated investment companies and real estate investment
trusts. - In the case of a regulated investment company or a real
estate investment trust, the amendments made by this section shall
apply to taxable years ending after December 31, 2002; except that
dividends received by such a company or trust on or before such
date shall not be treated as qualified dividend income (as defined
in section 1(h)(11)(B) of the Internal Revenue Code of 1986, as
added by this Act)."
Pub. L. 108-27, title III, Sec. 303, May 28, 2003, 117 Stat. 764,
provided that: "All provisions of, and amendments made by, this
title [amending this section, sections 55, 57, 163, 301, 306, 338,
467, 531, 541, 584, 702, 854, 857, 1255, 1257, 1445, and 7518 of
this title, and section 1177 of Title 46, Appendix, Shipping,
repealing section 341 of this title, and enacting provisions set
out as notes under this section] shall not apply to taxable years
beginning after December 31, 2008, and the Internal Revenue Code of
1986 shall be applied and administered to such years as if such
provisions and amendments had never been enacted."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title I, Sec. 101(d), June 7, 2001, 115 Stat. 44,
provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [enacting section 6428 of this
title and amending this section and sections 15, 531, 541, 3402,
and 3406 of this title] shall apply to taxable years beginning
after December 31, 2000.
"(2) Amendments to withholding provisions. - The amendments made
by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c)
[amending sections 3402 and 3406 of this title] shall apply to
amounts paid after the 60th day after the date of the enactment of
this Act [June 7, 2001]. References to income brackets and rates of
tax in such paragraphs shall be applied without regard to section
1(i)(1)(D) of the Internal Revenue Code of 1986."
Pub. L. 107-16, title III, Sec. 301(d), June 7, 2001, 115 Stat.
54, as amended by Pub. L. 108-27, title I, Sec. 103(b), May 28,
2003, 117 Stat. 754, provided that: "The amendments made by this
section [amending this section and section 63 of this title] shall
apply to taxable years beginning after December 31, 2002."
Pub. L. 107-16, title III, Sec. 302(c), June 7, 2001, 115 Stat.
54, as amended by Pub. L. 108-27, title I, Sec. 102(b)(2), May 28,
2003, 117 Stat. 754, provided that: "The amendments made by this
section [amending this section] shall apply to taxable years
beginning after December 31, 2002."
Pub. L. 107-16, title IX, Sec. 901, June 7, 2001, 115 Stat. 150,
as amended by Pub. L. 107-358, Sec. 2, Dec. 17, 2002, 116 Stat.
3015, provided that:
"(a) In General. - All provisions of, and amendments made by,
this Act [see Tables for classification] shall not apply -
"(1) to taxable, plan, or limitation years beginning after
December 31, 2010, or
"(2) in the case of title V [see Tables for classification], to
estates of decedents dying, gifts made, or generation skipping
transfers, after December 31, 2010.
"(b) Application of Certain Laws. - The Internal Revenue Code of
1986 and the Employee Retirement Income Security Act of 1974 [29
U.S.C. 1001 et seq.] shall be applied and administered to years,
estates, gifts, and transfers described in subsection (a) as if the
provisions and amendments described in subsection (a) had never
been enacted."
"(c) Exception. - Subsection (a) shall not apply to section 803
[set out as a note preceding section 101 of this title] (relating
to no federal income tax on restitution received by victims of the
Nazi regime or their heirs or estates)."
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106-554, Sec. 1(a)(7) [title I, Sec. 117(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A-605, provided that: "The amendments
made by this section [amending this section and section 1202 of
this title] shall apply to stock acquired after the date of the
enactment of this Act [Dec. 21, 2000]."
EFFECTIVE DATE OF 1998 AMENDMENTS
Pub. L. 105-277, div. J, title IV, Sec. 4002(k), Oct. 21, 1998,
112 Stat. 2681-908, provided that: "The amendments made by this
section [amending this section and sections 408A, 6015, 6103, 6159,
7421, 7443A, and 7491 of this title and amending provisions set out
as a note under section 6601 of this title] shall take effect as if
included in the provisions of the 1998 Act [Pub. L. 105-206] to
which they relate."
Pub. L. 105-206, title V, Sec. 5001(b), July 22, 1998, 112 Stat.
788, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
1223 and 1235 of this title] shall apply to taxable years ending
after December 31, 1997.
"(2) Subsection (a)(5). - The amendments made by subsection
(a)(5) [amending sections 1223 and 1235 of this title] shall take
effect on January 1, 1998."
Pub. L. 105-206, title VI, Sec. 6024, July 22, 1998, 112 Stat.
826, provided that: "Except as otherwise provided in this title
[see Tables for classification], the amendments made by this title
shall take effect as if included in the provisions of the Taxpayer
Relief Act of 1997 [Pub. L. 105-34] to which they relate."
EFFECTIVE DATE OF 1997 AMENDMENT
Section 311(d) of Pub. L. 105-34 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section, sections
55, 57, 904, 1445, and 7518 of this title, and section 1177 of
Title 46, Appendix, Shipping] shall apply to taxable years ending
after May 6, 1997.
"(2) Withholding. - The amendment made by subsection (c)(1)
[amending section 1445 of this title] shall apply only to amounts
paid after the date of the enactment of this Act [Aug. 5, 1997]."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1704(m)(4) of Pub. L. 104-188 provided that: "The
amendments made by this subsection [amending this section and
section 59 of this title] shall apply to taxable years beginning
after December 31, 1995."
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13201(c) of Pub. L. 103-66 provided that: "The amendments
made by this section [amending this section and sections 41, 63,
68, 132, 151, 453A, 513, 531, and 541 of this title] shall apply to
taxable years beginning after December 31, 1992."
Section 13202(c) of Pub. L. 103-66 provided that: "The amendments
made by this section [amending this section and sections 531 and
541 of this title] shall apply to taxable years beginning after
December 31, 1992."
Section 13206(d)(3) of Pub. L. 103-66 provided that: "The
amendments made by this subsection [amending this section and
section 163 of this title] shall apply to taxable years beginning
after December 31, 1992."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11101(e) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section, sections
32, 41, 59, 63, 135, 151, 513, 691, 904, 6103, and 7518 of this
title, and section 1177 of Title 46, Appendix, Shipping] shall
apply to taxable years beginning after December 31, 1990."
Section 11103(e) of Pub. L. 101-508 provided that: "The
amendments made by this section [enacting section 68 of this title
and amending this section and section 56 of this title] shall apply
to taxable years beginning after December 31, 1990."
Section 11104(c) of Pub. L. 101-508 provided that: "The
amendments made by this section [amending this section and section
151 of this title] shall apply to taxable years beginning after
December 31, 1990."
EFFECTIVE DATE OF 1989 AMENDMENT
Section 7817 of Pub. L. 101-239 provided that: "Except as
otherwise provided in this part [part I (Secs. 7811-7817) of
subtitle H of title VII of Pub. L. 101-239, see Tables for
classification], any amendment made by this part shall take effect
as if included in the provision of the 1988 Act [Pub. L. 100-647]
to which such amendment relates."
Section 7831(g) of Pub. L. 101-239 provided that: "Any amendment
made by this section [amending this section and sections 42, 406,
407, and 1250 of this title and provisions set out as notes under
sections 141 and 263A of this title] shall take effect as if
included in the provision of the Tax Reform Act of 1986 [Pub. L.
99-514] to which such amendment relates."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 1019 of title I of Pub. L. 100-647 provided that:
"(a) General Rule. - Except as otherwise provided in this title,
any amendment made by this title [see Tables for classification],
shall take effect as if included in the provision of the Reform Act
[Pub. L. 99-514] to which such amendment relates.
"(b) Waiver of Estimated Tax Penalties. - No addition to tax
shall be made under section 6654 or 6655 of the 1986 Code for any
period before April 16, 1989 (March 16, 1989 in the case of a
taxpayer subject to section 6655 of the 1986 Code) with respect to
any underpayment to the extent such underpayment was created or
increased by any provision of this title or title II [see Tables
for classification]."
Section 6006(b) of Pub. L. 100-647 provided that: "The amendment
made by this section [amending this section] shall apply to taxable
years beginning after December 31, 1988."
EFFECTIVE DATE OF 1986 AMENDMENT
Section 151 of title I of Pub. L. 99-514 provided that:
"(a) General Rule. - Except as otherwise provided in this
section, the amendments made by this title [enacting section 67 of
this title, amending this section, sections 3, 5, 15, 21, 32, 62,
63, 74, 85, 86, 102, 108, 117, 129, 151, 152, 164, 170, 172, 183,
213, 265, 274, 280A, 402, 441, 443, 527, 541, 613A, 642, 667, 861,
862, 901, 904, 1398, 1441, 2032A, 3121, 3231, 3306, 3401, 3402,
3507, 4941, 4945, 6012 to 6014, 6212, 6504, 6511, and 7871 of this
title, and section 409 of Title 42, The Public Health and Welfare,
renumbering section 223 of this title as section 220 of this title,
repealing sections 24, 221, 222, and 1301 to 1305 of this title,
and enacting provisions set out as a note under section 32 of this
title] shall apply to taxable years beginning after December 31,
1986.
"(b) Unemployment Compensation. - The amendment made by section
121 [amending section 85 of this title] shall apply to amounts
received after December 31, 1986, in taxable years ending after
such date.
"(c) Prizes and Awards. - The amendments made by section 122
[amending sections 74, 102, 274, 3121, 3231, 3306, 3401, 4941, and
4945 of this title and section 409 of Title 42, The Public Health
and Welfare] shall apply to prizes and awards granted after
December 31, 1986.
"(d) Scholarships. - The amendments made by section 123 [amending
sections 74, 117, 1441, and 7871 of this title] shall apply to
taxable years beginning after December 31, 1986, but only in the
case of scholarships and fellowships granted after August 16, 1986.
"(e) Parsonage and Military Housing Allowances. - The amendment
made by section 144 [amending section 265 of this title] shall
apply to taxable years beginning before, on, or after, December 31,
1986."
Section 302(b) of Pub. L. 99-514 provided that: "The amendment
made by this section [amending this section] shall apply to taxable
years beginning after December 31, 1986."
Section 1411(c) of Pub. L. 99-514 provided that: "The amendments
made by this section [amending this section and section 6103 of
this title] shall apply to taxable years beginning after December
31, 1986."
EFFECTIVE DATE OF 1983 AMENDMENT
Section 109 of title I of Pub. L. 97-448 provided that: "Except
as otherwise provided in this title, any amendment made by this
title [see Tables for classification] shall take effect as if it
had been included in the provision of the Economic Recovery Tax Act
of 1981 [Pub. L. 97-34, Aug. 13, 1981, 95 Stat. 172] to which such
amendment relates."
EFFECTIVE DATE OF 1981 AMENDMENT
Section 101(f)(1) of Pub. L. 97-34, as amended by Pub. L. 97-448,
title I, Sec. 101(a)(1), Jan. 12, 1983, 96 Stat. 2365, provided
that: "The amendments made by subsections (a), (c), and (d)
[amending this section and sections 3, 21, 55, 541, and 1304 of
this title and repealing section 1348 of this title] shall apply to
taxable years beginning after December 31, 1981; except that the
amendment made by paragraph (3) of subsection (d) [amending section
21 of this title] shall apply to taxable years ending after
December 31, 1981."
Section 104(e) of Pub. L. 97-34 provided that: "The amendments
made by this section [amending this section and sections 63, 151,
6012, and 6013 of this title] shall apply to taxable years
beginning after December 31, 1984."
EFFECTIVE DATE OF 1978 AMENDMENT
Section 101(f)(1) of Pub. L. 95-600 provided that: "The
amendments made by subsections (a), (b), (c), and (d) [amending
sections 63, 402, 1302, and 6012 of this title] shall apply to
taxable years beginning after December 31, 1978."
EFFECTIVE DATE OF 1977 AMENDMENT
Section 106(a) of Pub. L. 95-30 provided that: "The amendments
made by sections 101, 102, and 104 [amending this section and
sections 3, 21, 42, 57, 63, 143, 161, 172, 211, 402, 441, 443, 511,
584, 613A, 641, 642, 667, 703, 861, 862, 873, 904, 911, 931, 1034,
1211, 1302, 6012, 6014, 6212, 6504, and 6654 of this title and
repealing sections 36, 141, 142, 144, and 145 of this title] shall
apply to taxable years beginning after December 31, 1976."
EFFECTIVE DATE OF 1969 AMENDMENT
Section 803(f) of Pub. L. 91-172, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
amendments made by subsections (a) [amending this section], (b)
[amending section 2 of this title], and (d) (other than paragraphs
(1) and (8)) [amending sections 5, 511, 632, 641, 1347, and 6015 of
this title] shall apply to taxable years beginning after December
31, 1970, except that section 2(c) of the Internal Revenue Code of
1986 [formerly I.R.C. 1954] [section 2(c) of this title], as
amended by subsection (b), shall also apply to taxable years
beginning after December 31, 1969. The amendments made by
subsections (c) [amending section 3 of this title], (d)(1)
[amending section 6014 of this title], and (d)(8) [amending section
1304 of this title] shall apply to taxable years beginning after
December 31, 1969".
EFFECTIVE DATE OF 1966 AMENDMENT
Section 103(n) of Pub. L. 89-809 provided that:
"(1) The amendments made by this section (other than the
amendments made by subsections (h), (i), and (k)) [enacting
section 877 of this title, amending this section and sections
116, 154, 871, 872, 873, 874, 875, 932, 6015, and 7701 of this
title, renumbering section 877 as 878, and repealing section 1493
of this title] shall apply with respect to taxable years
beginning after December 31, 1966.
"(2) The amendments made by subsection (h) [amending section
1441 of this title] shall apply with respect to payments made in
taxable years of recipients beginning after December 31, 1966.
"(3) The amendments made by subsection (i) [amending section
1461 of this title] shall apply with respect to payments
occurring after December 31, 1966.
"(4) The amendments made by subsection (k) [amending section
3401 of this title] shall apply with respect to remuneration paid
after December 31, 1966."
EFFECTIVE DATE OF 1964 AMENDMENT
Section 131 of Pub. L. 88-272, as amended by Pub. L. 99-514, Sec.
2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Except for
purposes of section 21 of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] (relating to effect of changes in rates
during a taxable year), the amendments made by parts I and II of
this title [amending this section and sections 2, 11, 37, 141, 144,
242, 821, 871, 963, 6016, 6074, 6154, 6212, 6504, and 6655 of this
title] shall apply with respect to taxable years beginning after
December 31, 1963."
SHORT TITLE OF 2003 AMENDMENTS
Pub. L. 108-121, Sec. 1(a), Nov. 11, 2003, 117 Stat. 1335,
provided that: "This Act [amending sections 5, 62, 101, 121, 132,
134, 162, 501, 530, 692, 2201, 3121, 3306, 3401, 6013, and 7508 of
this title, section 1478 of Title 10, Armed Forces, and section 58c
of Title 19, Customs Duties, and enacting provisions set out as
notes under sections 5, 62, 101, 121, 132, 134, 501, 530, 2201, and
7508 of this title and section 1478 of Title 10] may be cited as
the 'Military Family Tax Relief Act of 2003'."
Pub. L. 108-27, Sec. 1(a), May 28, 2003, 117 Stat. 752, provided
that: "This Act [enacting section 6429 of this title and section
801 of Title 42, The Public Health and Welfare, amending this
section, sections 24, 55, 57, 63, 163, 168, 179, 301, 306, 338,
467, 531, 541, 584, 702, 854, 857, 1255, 1257, 1400L, 1445, and
7518 of this title, and section 1177 of Title 46, Appendix,
Shipping, repealing section 341 of this title, enacting provisions
set out as notes under this section, sections 24, 55, 63, 168, and
179 of this title, and section 1396d of Title 42, and amending
provisions set out as notes under this section] may be cited as the
'Jobs and Growth Tax Relief Reconciliation Act of 2003'."
Pub. L. 108-26, Sec. 1, May 28, 2003, 117 Stat. 751, provided
that: "This Act [enacting and amending provisions set out as notes
under section 3304 of this title] may be cited as the 'Unemployment
Compensation Amendments of 2003'."
SHORT TITLE OF 2002 AMENDMENTS
Pub. L. 107-358, Sec. 1, Dec. 17, 2002, 116 Stat. 3015, provided
that: "This Act [amending provisions set out as a note under this
section] may be cited as the 'Holocaust Restitution Tax Fairness
Act of 2002'."
Pub. L. 107-181, Sec. 1, May 20, 2002, 116 Stat. 583, provided
that: "This Act [amending section 107 of this title and enacting
provisions set out as a note under section 107 of this title] may
be cited as the 'Clergy Housing Allowance Clarification Act of
2002'."
Pub. L. 107-147, Sec. 1(a), Mar. 9, 2002, 116 Stat. 21, provided
that: "This Act [see Tables for classification] may be cited as the
'Job Creation and Worker Assistance Act of 2002'."
Pub. L. 107-134, Sec. 1(a), Jan. 23, 2002, 115 Stat. 2427,
provided that: This Act [enacting sections 139 and 5891 of this
title and section 1148 of Title 29, Labor, amending sections 5,
101, 104, 140, 642, 692, 2011, 2053, 2201, 6013, 6081, 6103, 6105,
6161, 6404, 7213, 7508, and 7508A of this title and section 1302 of
Title 29, enacting provisions set out as notes under sections 101,
108, 139, 501, 642, 692, 2011, 5891, 6081, and 6103 of this title,
section 401 of Title 42, The Public Health and Welfare, and section
40101 of Title 49, Transportation, and amending provisions set out
as a note under section 40101 of Title 49] may be cited as the
'Victims of Terrorism Tax Relief Act of 2001'."
SHORT TITLE OF 2001 AMENDMENTS
Pub. L. 107-16, Sec. 1(a), June 7, 2001, 115 Stat. 38, provided
that: "This Act [see Tables for classification] may be cited as the
'Economic Growth and Tax Relief Reconciliation Act of 2001'."
Pub. L. 107-15, Sec. 1, June 5, 2001, 115 Stat. 37, provided
that: "This Act [amending provisions set out as a note under
section 101 of this title] may be cited as the 'Fallen Hero
Survivor Benefit Fairness Act of 2001'."
SHORT TITLE OF 2000 AMENDMENTS
Pub. L. 106-573, Sec. 1, Dec. 28, 2000, 114 Stat. 3061, provided
that: "This Act [amending section 453 of this title and enacting
provisions set out as a note under section 453 of this title] may
be cited as the 'Installment Tax Correction Act of 2000'."
Pub. L. 106-554, Sec. 1(a)(7) [Sec. 1(a)], Dec. 21, 2000, 114
Stat. 2763, 2763A-587, provided that: "This Act [H.R. 5662, as
enacted by section 1(a)(7) of Pub. L. 106-554, see Tables for
classification] may be cited as the 'Community Renewal Tax Relief
Act of 2000'."
Pub. L. 106-519, Sec. 1(a), Nov. 15, 2000, 114 Stat. 2423,
provided that: "This Act [enacting sections 114 and 941 to 943 of
this title, amending sections 56, 275, 864, 903 and 999 of this
title, and repealing sections 921 to 927 of this title] may be
cited as the 'FSC Repeal and Extraterritorial Income Exclusion Act
of 2000'."
Pub. L. 106-476, title IV, Sec. 4001, Nov. 9, 2000, 114 Stat.
2176, provided that: "This title [enacting sections 1681 to 1681b
of Title 19, Customs Duties, amending sections 5704, 5754, and 5761
of this title, and enacting provisions set out as notes under
sections 5704 and 5761 of this title and section 1681 of Title 19]
may be cited as the 'Imported Cigarette Compliance Act of 2000'."
SHORT TITLE OF 1999 AMENDMENT
Pub. L. 106-170, title V, Sec. 500, Dec. 17, 1999, 113 Stat.
1918, provided that: "This title [see Tables for classification]
may be cited as the 'Tax Relief Extension Act of 1999'."
SHORT TITLE OF 1998 AMENDMENTS
Pub. L. 105-277, div. J, Sec. 1000(a), Oct. 21, 1998, 112 Stat.
2681-886, provided that: "This division [Secs. 1000-5301, see
Tables for classification] may be cited as the 'Tax and Trade
Relief Extension Act of 1998'."
Pub. L. 105-277, div. C, title XV, Sec. 1501, Oct. 21, 1998, 112
Stat. 2681-741, provided that: "This title [amending sections 4132
and 9510 of this title and section 300aa-11 of Title 42, The Public
Health and Welfare, and enacting provisions set out as notes under
sections 4132 and 9510 of this title] may be cited as the 'Vaccine
Injury Compensation Program Modification Act'."
Pub. L. 105-206, Sec. 1(a), July 22, 1998, 112 Stat. 685,
provided that: "This Act [see Tables for classification] may be
cited as the 'Internal Revenue Service Restructuring and Reform Act
of 1998'."
Pub. L. 105-206, title III, Sec. 3000, July 22, 1998, 112 Stat.
726, provided that: "This title [see Tables for classification] may
be cited as the 'Taxpayer Bill of Rights 3'."
Pub. L. 105-206, title VI, Sec. 6001(a), July 22, 1998, 112 Stat.
790, provided that: "This title [see Tables for classification] may
be cited as the 'Tax Technical Corrections Act of 1998'."
Pub. L. 105-178, title IX, Sec. 9001(a), June 9, 1998, 112 Stat.
499, provided that: "This title [amending sections 40, 132, 4041,
4051, 4071, 4081, 4091, 4221, 4481 to 4483, 6156, 6412, 6421, 6427,
9503, and 9504 of this title and section 460l-11 of Title 16,
Conservation, repealing section 9511 of this title, enacting
provisions set out as notes under sections 40, 132, 172, 4041,
6421, and 9503 of this title, and amending provisions set out as a
note under section 172 of this title] may be cited as the 'Surface
Transportation Revenue Act of 1998'."
SHORT TITLE OF 1997 AMENDMENTS
Pub. L. 105-35, Sec. 1, Aug. 5, 1997, 111 Stat. 1104, provided
that: "This Act [enacting section 7213A of this title, amending
sections 7213 and 7431 of this title, and enacting provisions set
out as notes under sections 7213 and 7431 of this title] may be
cited as the 'Taxpayer Browsing Protection Act'."
Section 1(a) of Pub. L. 105-34 provided that: "This Act [see
Tables for classification] may be cited as the 'Taxpayer Relief Act
of 1997'."
Pub. L. 105-2, Sec. 1(a), Feb. 28, 1997, 111 Stat. 4, provided
that: "This Act [amending sections 4041, 4081, 4091, 4261, 4271,
and 9502 of this title and enacting provisions set out as notes
under sections 4041, 4081, and 4261 of this title] may be cited as
the 'Airport and Airway Trust Fund Tax Reinstatement Act of 1997'."
SHORT TITLE OF 1996 AMENDMENTS
Section 1(a) of Pub. L. 104-188 provided that: "This Act [see
Tables for classification] may be cited as the 'Small Business Job
Protection Act of 1996'."
Pub. L. 104-168, Sec. 1(a), July 30, 1996, 110 Stat. 1452,
provided that: "This Act [enacting sections 4958, 7434, 7435, and
7524 of this title, amending sections 501, 4955, 4963, 6013, 6033,
6041 to 6042, 6044, 6045, 6049, 6050B, 6050H to 6050K, 6050N, 6103,
6104, 6159, 6201, 6213, 6323, 6334, 6343, 6404, 6503, 6601, 6651,
6652, 6656, 6672, 6685, 7122, 7213, 7422, 7430, 7433, 7454, 7502,
7608, 7609, 7623, 7802, 7805, and 7811 of this title, renumbering
sections 7434 and 7435 as sections 7435 and 7436 of this title,
enacting provisions set out as notes under sections 501, 4955,
6013, 6033, 6041, 6103, 6104, 6159, 6201, 6311, 6323, 6334, 6404,
6503, 6601, 6651, 6652, 6656, 6672, 7122, 7430, 7433 to 7435, 7524,
7608, 7609, 7623, 7802, 7803, 7805, and 7811 of this title, and
amending provisions set out as a note under section 7608 of this
title] may be cited as the 'Taxpayer Bill of Rights 2'."
SHORT TITLE OF 1994 AMENDMENTS
Pub. L. 103-465, title VII, Sec. 750, Dec. 8, 1994, 108 Stat.
5012, provided that: "This subtitle [subtitle F (Secs. 750-781) of
title VII of Pub. L. 103-465, enacting sections 1310, 1311, and
1350 of Title 29, Labor, amending sections 401, 404, 411, 412, 415,
417, 4971, and 4972 of this title and sections 1053 to 1056, 1082,
1132, 1301, 1303, 1305, 1306, 1322, 1341, 1342, and 1343 of Title
29, and enacting provisions set out as notes under sections 401,
411, 412, and 4972 of this title and sections 1056, 1082, 1303,
1306, 1310, 1311, 1322, 1341, and 1342 of Title 29] may be cited as
the 'Retirement Protection Act of 1994'."
Pub. L. 103-387, Sec. 1, Oct. 22, 1994, 108 Stat. 4071, provided
that: "This Act [enacting section 3510 of this title, amending
sections 3102 and 3121 of this title, section 3701 of Title 31,
Money and Finance, and sections 401, 402, 404, 409, 410, and 1383
of Title 42, The Public Health and Welfare, and enacting provisions
set out as notes under sections 3102 and 3510 of this title,
section 3701 of Title 31, and sections 401, 402, and 1383 of Title
42] may be cited as the 'Social Security Domestic Employment Reform
Act of 1994'."
SHORT TITLE OF 1993 AMENDMENTS
Pub. L. 103-152, Sec. 1, Nov. 24, 1993, 107 Stat. 1516, provided
that: "This Act [amending sections 503, 504, 1105, 1108, and 1382j
of Title 42, The Public Health and Welfare, enacting provisions set
out as notes under section 3304 of this title and sections 503 and
1382j of Title 42, amending provisions set out as notes under
section 3304 of this title and section 352 of Title 45, Railroads,
and repealing provisions set out as a note under section 3304 of
this title] may be cited as the 'Unemployment Compensation
Amendments of 1993'."
Section 13001(a) of title XIII of Pub. L. 103-66 provided that:
"This chapter [chapter 1 (Secs. 13001-13444) of title XIII of Pub.
L. 103-66, see Tables for classification] may be cited as the
'Revenue Reconciliation Act of 1993'."
Pub. L. 103-6, Sec. 1, Mar. 4, 1993, 107 Stat. 33, provided that:
"This Act [enacting provisions set out as notes under section 3304
of this title, section 31 of Title 2, The Congress, and section 352
of Title 45, Railroads, and amending provisions set out as notes
under section 3304 of this title and section 352 of Title 45] may
be cited as the 'Emergency Unemployment Compensation Amendments of
1993'."
SHORT TITLE OF 1992 AMENDMENTS
Pub. L. 102-486, title XIX, Sec. 19141, Oct. 24, 1992, 106 Stat.
3036, provided that: "This subtitle [subtitle C (Secs. 19141-19143)
of title XIX of Pub. L. 102-486, enacting sections 9701 to 9722 of
this title, amending sections 1231 and 1232 of Title 30, Mineral
Lands and Mining, and enacting provisions set out as a note under
section 9701 of this title] may be cited as the 'Coal Industry
Retiree Health Benefit Act of 1992'."
Pub. L. 102-318, Sec. 1, July 3, 1992, 106 Stat. 290, provided
that: "This Act [enacting section 1110 of Title 42, The Public
Health and Welfare, amending sections 55, 62, 72, 151, 219, 401 to
404, 406 to 408, 411, 414, 415, 457, 691, 871, 877, 1441, 3121,
3304, 3306, 3402, 3405, 4973, 4980A, 6047, 6652, 6655, and 7701 of
this title, section 8509 of Title 5, Government Organization and
Employees, section 2291 of Title 19, Customs Duties, and sections
502, 503, 1101, 1102, 1104, and 1105 of Title 42, enacting
provisions set out as notes under sections 401, 402, 3302, 3304,
and 6655 of this title, section 8509 of Title 5, section 2291 of
Title 19, and sections 502, 666, 1102, and 1108 of Title 42, and
amending provisions set out as notes under section 3304 of this
title, sections 502 and 666 of Title 42, and section 352 of Title
45, Railroads] may be cited as the 'Unemployment Compensation
Amendments of 1992'."
SHORT TITLE OF 1991 AMENDMENTS
Pub. L. 102-240, title VIII, Sec. 8001(a), Dec. 18, 1991, 105
Stat. 2203, provided that: "This title [enacting section 9511 of
this title, amending sections 4041, 4051, 4071, 4081, 4091, 4221,
4481, 4482, 4483, 6156, 6412, 6420, 6421, 6427, 9503, and 9504 of
this title and section 460l-11 of Title 16, Conservation, and
enacting provisions set out as notes under section 9503 of this
title, section 101 of Title 23, Highways, and section 1601 of
former Title 49, Transportation] may be cited as the 'Surface
Transportation Revenue Act of 1991'."
Pub. L. 102-227, Sec. 1(a), Dec. 11, 1991, 105 Stat. 1686,
provided that: "This Act [amending sections 25, 28, 41, 42, 48, 51,
57, 120, 127, 143, 144, 162, 864, and 6655 of this title and
enacting provisions set out as notes under sections 25, 28, 42, 51,
120, 127, 143, 144, 162, 864, and 6655 of this title] may be cited
as the 'Tax Extension Act of 1991'."
SHORT TITLE OF 1990 AMENDMENT
Section 11001(a) of title XI of Pub. L. 101-508 provided that:
"This title [see Tables for classification] may be cited as the
'Revenue Reconciliation Act of 1990'."
SHORT TITLE OF 1989 AMENDMENT
Section 7001(a) of title VII of Pub. L. 101-239 provided that:
"This title [see Tables for classification] may be cited as the
'Revenue Reconciliation Act of 1989'."
Section 7701 of title VII of Pub. L. 101-239 provided that: "This
subtitle [subtitle G (Secs. 7701-7743) of title VII of Pub. L.
101-239, see Tables for classification] may be cited as the
'Improved Penalty Administration and Compliance Tax Act'."
SHORT TITLE OF 1988 AMENDMENT
Section 1(a) of Pub. L. 100-647 provided that: "This Act [see
Tables for classification] may be cited as the 'Technical and
Miscellaneous Revenue Act of 1988'."
Section 6226 of Pub. L. 100-647 provided that: "This subtitle
[subtitle J (Secs. 6226-6247) of title VI of Pub. L. 100-647,
enacting sections 6159, 6326, 6712, 7430, 7432, 7433, 7520, 7521,
and 7811 of this title, amending sections 6213, 6214, 6331, 6332,
6334, 6335, 6343, 6404, 6512, 6601, 6673, 6863, 7216, 7429, 7481,
7482, 7802, and 7805 of this title and section 504 of Title 5,
Government Organization and Employees, renumbering section 6326 as
6327, 7432 as 7433, and 7433 as 7434 of this title, and enacting
provisions set out as notes under this section and sections 6159,
6213, 6214, 6326, 6331, 6404, 6512, 6673, 6712, 6863, 7429, 7430,
7432, 7520, 7521, 7605, 7801 to 7803, 7805, and 7811 of this title]
may be cited as the 'Omnibus Taxpayer Bill of Rights'."
SHORT TITLE OF 1987 AMENDMENTS
Pub. L. 100-223, title IV, Sec. 401, Dec. 30, 1987, 101 Stat.
1532, provided that: "This title [enacting section 4283 of this
title, amending sections 4041, 4261, 4271, 6427, and 9502 of this
title, and enacting provisions set out as notes under sections 4041
and 4261 of this title] may be cited as the 'Airport and Airway
Revenue Act of 1987'."
Pub. L. 100-203, title IX, Sec. 9302(a), Dec. 22, 1987, 101 Stat.
1330-333, provided that: "This part [part II (Secs. 9302-9346) of
subtitle D of part II of Pub. L. 100-203, enacting sections 1085b
and 1371 of Title 29, Labor, amending sections 401, 404, 411, 412,
414, and 4971 of this title and sections 1021, 1023, 1024, 1054,
1082 to 1084, 1085a, 1086, 1103, 1107, 1113, 1132, 1201, 1301, 1305
to 1307, 1322, 1341, 1342, 1344, 1349, 1362, 1364, 1367, and 1368
of Title 29, repealing section 1349 of Title 29, and enacting
provisions set out as notes under sections 401, 404, 412, and 4971
of this title and sections 1054, 1107, 1132, 1301, 1305, 1322, and
1344 of Title 29] may be cited as the 'Pension Protection Act'."
Pub. L. 100-203, title X, Sec. 10000(a), Dec. 22, 1987, 101 Stat.
1330-382, provided that: "This title [see Tables for
classification] may be cited as the 'Revenue Act of 1987'."
Pub. L. 100-17, title V, Sec. 501, Apr. 2, 1987, 101 Stat. 256,
provided that: "This title [amending sections 4041, 4051, 4052,
4071, 4081, 4221, 4481, 4482, 4483, 6156, 6412, 6420, 6421, 6427,
and 9503 of this title and section 460l-11 of Title 16,
Conservation, and enacting provisions set out as notes under
sections 4052 and 4481 of this title] may be cited as the 'Highway
Revenue Act of 1987'."
SHORT TITLE OF 1986 AMENDMENTS
Pub. L. 99-662, title XIV, Sec. 1401, Nov. 17, 1986, 100 Stat.
4266, provided that: "This title [enacting sections 4461, 4462,
9505, and 9506 of this title and section 988a of Title 33,
Navigation and Navigable Waters, amending section 4042 of this
title and sections 984 and 1804 of Title 33, repealing sections
1801 and 1802 of Title 33, and enacting provisions set out as notes
under sections 4042, 4461, 9505, and 9506 of this title and
sections 984 and 988 of Title 33] may be cited as the 'Harbor
Maintenance Revenue Act of 1986'."
Section 1(a) of Pub. L. 99-514 provided that: "This Act [see
Tables for classification] may be cited as the 'Tax Reform Act of
1986'."
Pub. L. 99-499, title V, Sec. 501, Oct. 17, 1986, 100 Stat. 1760,
provided that: "This title [enacting sections 59A, 4671, 4672,
9507, and 9508 of this title, amending sections 26, 164, 275, 936,
1561, 4041, 4042, 4081, 4221, 4611, 4612, 4661, 4662, 6154, 6416,
6420, 6421, 6425, 6427, 6655, 9502, 9503, and 9506 of this title
and section 9601 of Title 42, The Public Health and Welfare,
repealing sections 4681 and 4682 of this title and sections 9631 to
9633, 9641, and 9653 of Title 42, and enacting provisions set out
as notes under this section and sections 26, 4041, 4611, 4661,
4671, 4681, 9507, and 9508 of this title] may be cited as the
'Superfund Revenue Act of 1986'."
SHORT TITLE OF 1984 AMENDMENT
Pub. L. 98-369, Sec. 1(a), July 18, 1984, 98 Stat. 494, provided
that: "This Act [see Tables for classification] may be cited as the
'Deficit Reduction Act of 1984'."
Pub. L. 98-369, div. A (Secs. 5-1082), Sec. 5(a), July 18, 1984,
98 Stat. 494, provided that: "This division [see Tables for
classification] may be cited as the 'Tax Reform Act of 1984'."
SHORT TITLE OF 1983 AMENDMENTS
Pub. L. 98-76, title II, Sec. 201, Aug. 12, 1983, 97 Stat. 419,
provided that: "This title [enacting sections 3321 to 3323 and
6050G of this title, amending sections 72, 86, 105, 3201, 3202,
3211, 3221, 3231, 6157, 6201, 6317, 6513, and 6601 of this title
and section 430 of Title 42, The Public Health and Welfare, and
enacting provisions set out as notes under sections 72, 105, 3201,
3321, and 6302 of this title and section 231n of Title 45,
Railroads] may be cited as the 'Railroad Retirement Revenue Act of
1983'."
Pub. L. 98-67, title I, Sec. 101(a), Aug. 5, 1983, 97 Stat. 369,
provided that: "This title [enacting sections 3406 and 6705 of this
title, amending sections 31, 274, 275, 643, 661, 3402, 3403, 3502,
3507, 6011, 6013, 6015, 6042, 6044, 6049, 6051, 6365, 6401, 6413,
6652, 6653, 6654, 6676, 6678, 6682, 7205, 7215, 7431, 7654, and
7701 of this title, repealing sections 3451 to 3456 of this title,
enacting provisions set out as notes under sections 31, 3451, and
6011 of this title, and repealing provisions set out as a note
under section 3451 of this title] may be cited as the 'Interest and
Dividend Tax Compliance Act of 1983'."
Pub. L. 97-473, title II, Sec. 201, Jan. 14, 1983, 96 Stat. 2607,
provided that: "This title [enacting section 7871 of this title,
amending sections 41, 103, 164, 170, 2055, 2106, 2522, 4227, 4484,
6420, 6421, 6424, 6427, and 7701 of this title, and enacting
provisions set out as a note under section 7871 of this title] may
be cited as the 'Indian Tribal Governmental Tax Status Act of
1982'."
Section 1(a) of Pub. L. 97-448 provided that: "This Act [see
Tables for classification] may be cited as the 'Technical
Corrections Act of 1982'."
Pub. L. 97-424, title V, Sec. 501(a), Jan. 6, 1983, 96 Stat.
2168, provided that: "This title [see Tables for classification]
may be cited as the 'Highway Revenue Act of 1982'."
SHORT TITLE OF 1982 AMENDMENTS
Pub. L. 97-362, Sec. 1(a), Oct. 25, 1982, 96 Stat. 1726, provided
that: "This Act [amending sections 8509 and 8521 of Title 5,
Government Organization and Employees, sections 48, 172, 4401,
4411, 6051, 7447, 7448, 7456, 7459, and 7463 of this title, and
section 601 of former Title 46, Shipping, enacting provisions set
out as notes under sections 8509 and 8521 of Title 5 and sections
48, 172, 336, 4401, 4411, 6051, 7448, and 7463 of this title, and
amending provisions set out as notes under section 2291 of Title
19, Customs Duties, and section 3306 of this title] may be cited as
the 'Miscellaneous Revenue Act of 1982'."
Pub. L. 97-354, Sec. 1(a), Oct. 19, 1982, 96 Stat. 1669, provided
that: "This Act [enacting sections 1361 to 1363, 1366 to 1368, 1371
to 1375, 1377 to 1379, and 6241 to 6245 of this title, amending
sections 29, 31, 40, 41, 46, 48, 50A, 50B, 52, 53, 55, 57, 58, 62,
108, 163, 168, 170, 172, 179, 183, 189, 194, 267, 280, 280A, 291,
447, 464, 465, 613A, 992, 1016, 1101, 1212, 1251, 1254, 1256, 3453,
3454, 4992, 4996, 6037, 6042, 6362, and 6661 of this title and
section 1108 of Title 29, Labor, omitting section 1376 of this
title, and enacting provisions set out as a note under section 1361
of this title] may be cited as the 'Subchapter S Revision Act of
1982'."
Pub. L. 97-248, Sec. 1(a), Sept. 3, 1982, 96 Stat. 324, provided
that: "This Act [see Tables for classification] may be cited as the
'Tax Equity and Fiscal Responsibility Act of 1982'."
Section 401 of title IV of Pub. L. 97-248 provided that: "This
title [enacting sections 6046A and 6221 to 6232 of this title and
section 1508 of Title 28, Judiciary and Judicial Procedure,
amending sections 702, 6031, 6213, 6216, 6422, 6501, 6504, 6511,
6512, 6515, 6679, 7422, 7451, 7456, 7459, 7482, and 7485 of this
title and section 1346 of Title 28, and enacting provisions set out
as notes under sections 6031, 6046A, 6221, and 6231 of this title]
may be cited as the 'Tax Treatment of Partnership Items Act of
1982'."
SHORT TITLE OF 1981 AMENDMENTS
Pub. L. 97-119, title I, Sec. 101(a), Dec. 29, 1981, 95 Stat.
1635, provided that: "This subtitle [subtitle A (Secs. 101-104) of
title I of Pub. L. 97-119, enacting sections 9500, 9501, 9601, and
9602 of this title, amending sections 501 and 4121 of this title
and sections 902, 925, 932, and 934 of Title 30, Mineral Lands and
Mining, repealing section 934a of Title 30, and enacting provisions
set out as notes under sections 4121 and 9501 of this title and
section 934 of Title 30] may be cited as the 'Black Lung Benefits
Revenue Act of 1981'."
Section 1(a) of Pub. L. 97-34 provided that: "This Act [see
Tables for classification] may be cited as the 'Economic Recovery
Tax Act of 1981'."
SHORT TITLE OF 1980 AMENDMENTS
Pub. L. 96-605, Sec. 1(a), Dec. 28, 1980, 94 Stat. 3521, provided
that: "This Act [enacting sections 66 and 195 of this title,
amending sections 48, 105, 125, 274, 401, 408, 409A, 410, 414, 415,
501, 513, 514, 528, 861, 871, and 2055 of this title, and enacting
provisions set out as notes under sections 48, 66, 119, 125, 195,
274, 401, 409A, 414, 415, 501, 513, 514, 528, 861, 871, 2055, 3121,
and 7701 of this title] may be cited as the 'Miscellaneous Revenue
Act of 1980'."
Pub. L. 96-589, Sec. 1(a), Dec. 24, 1980, 94 Stat. 3389, provided
that: "This Act [enacting sections 370, 1398, 1399, 6658, and 7464
of this title, redesignating former section 7464 of this title as
7465, amending sections 108, 111, 118, 128, 302, 312, 337, 351,
354, 355, 357, 368, 381, 382, 422, 443, 542, 703, 1017, 1023, 1371,
3302, 6012, 6036, 6103, 6155, 6161, 6212, 6213, 6216, 6326, 6404,
6503, 6512, 6532, 6871, 6872, 6873, 7430, and 7508 of this title,
repealing section 1018 of this title, and enacting provisions set
out as a note under section 108 of this title] may be cited as the
'Bankruptcy Tax Act of 1980'."
Pub. L. 96-510, title II, Sec. 201(a), Dec. 11, 1980, 94 Stat.
2796, provided that: "This title [enacting chapter 38 of this
title, sections 9631 to 9641 of Title 42, The Public Health and
Welfare, and provisions set out as a note under section 4611 of
this title] may be cited as the 'Hazardous Substance Response
Revenue Act of 1980'."
Pub. L. 96-499, title XI, Sec. 1100, Dec. 5, 1980, 94 Stat. 2660,
provided: "This title [enacting sections 103A, 280D, 897, 6039C,
and 6429 of this title, amending sections 103, 861, 871, 882, 3121,
3306, 4251, 6652, and 6655 of this title and section 409 of Title
42, The Public Health and Welfare, and enacting provisions set out
as notes under sections 1, 103A, 280D, 897, 3121, and 6655 of this
title] may be cited as the 'Revenue Adjustments Act of 1980'."
Pub. L. 96-499, title XI, subtitle A (Secs. 1101-1104), Sec.
1101, Dec. 5, 1980, 94 Stat. 2660, provided: "This subtitle
[enacting section 103A of this title, amending section 103 of this
title, and enacting provisions set out as a note under section 103A
of this title] may be cited as the 'Mortgage Subsidy Bond Tax Act
of 1980'."
Pub. L. 96-499, title XI, Sec. 1121, Dec. 5, 1980, 94 Stat. 2682,
provided: "This subtitle [subtitle C (Secs. 1121-1125) of title XI
of Pub. L. 96-499, enacting sections 897 and 6039C of this title,
amending sections 861, 871, 882, and 6652 of this title, and
enacting provisions set out as notes under section 897 of this
title] may be cited as the 'Foreign Investment in Real Property Tax
Act of 1980'."
Pub. L. 96-471, Sec. 1(a), Oct. 19, 1980, 94 Stat. 2247,
provided: "This Act [enacting sections 453 to 453B of this title,
amending sections 311, 336, 337, 381, former section 453, sections
453B, 481, 644, 691, 1038, 1239, and 1255 of this title, and
enacting provisions set out as notes under sections 453, 691, and
1038 of this title] may be cited as the 'Installment Sales Revision
Act of 1980'."
Pub. L. 96-283, title IV, Sec. 401, June 28, 1980, 94 Stat. 582,
provided that: "This title [enacting sections 4495 to 4498 of this
title and sections 1472, 1473 of Title 30, Mineral Lands and
Mining, and enacting provision set out as a note under section 4495
of this title] may be cited as the 'Deep Seabed Hard Mineral
Removal Tax Act of 1979'."
Pub. L. 96-223, Sec. 1(a) Apr. 2, 1980, 94 Stat. 229, provided
that: "This Act [see Tables for classification] may be cited as the
'Crude Oil Windfall Profit Tax Act of 1980'."
Pub. L. 96-222, Sec. 1(a), Apr. 1, 1980, 94 Stat. 194, provided
that: "This Act [see Tables for classification] may be cited as the
'Technical Corrections Act of 1979'."
SHORT TITLE OF 1979 AMENDMENT
Pub. L. 96-39, title VIII, Sec. 801(a), July 26, 1979, 93 Stat.
273, provided that: "This subtitle [subtitle A (Secs. 801-810) of
title VIII of Pub. L. 96-39, amending sections 5001, 5002 to 5008,
5043, 5061, 5064, 5066, 5116, 5171 to 5173, 5175 to 5178, 5180,
5181, 5201 to 5205, 5207, 5211 to 5215, 5221 to 5223, 5231, 5232,
5235, 5241, 5273, 5291, 5301, 5352, 5361 to 5363, 5365, 5381, 5391,
5551, 5601, 5604, 5610, 5612, 5615, 5663, 5681, 5682, and 5691 of
this title, repealing sections 5009, 5021 to 5026, 5081 to 5084,
5174, 5233, 5234, 5251, 5252, 5364, and 5521 to 5523 of this title,
and enacting provisions set out as notes under sections 5001, 5061,
5171, and 5173 of this title] may be cited as the 'Distilled
Spirits Tax Revision Act of 1979'."
SHORT TITLE OF 1978 AMENDMENTS
Section 1(a) of Pub. L. 95-618, Nov. 9, 1978, 92 Stat. 3174,
provided that: "This Act [enacting sections 44C, 124, and 4064 of
this title, amending sections 39, 46 to 48, 56, 57, 167, 263, 465,
613, 613A, 614, 751, 1016, 1254, 4041, 4063, 4081, 4092, 4093,
4217, 4221, 4222, 4293, 4483, 6096, 6401, 6412, 6416, 6421, 6424,
6427, 6504, and 6675 of this title, redesignating section 124 of
this title as section 125, enacting provisions set out as notes
under sections 39, 44C, 48, 124, 167, 263, 613, 613A, 4041, 4063,
4064, 4081, 4093, and 4221 of this title, and amending provisions
set out as notes under section 57 of this title and section 120 of
Title 23, Highways] may be cited as the 'Energy Tax Act of 1978'."
Pub. L. 95-615, Sec. 1, Nov. 8, 1978, 92 Stat. 3097, provided
that: "This Act [probably meaning sections 1 to 8 of Pub. L.
95-615, amending section 167 of this title, enacting provisions set
out as notes under sections 61, 62, and 911 of this title, and
amending provisions set out as notes under sections 117, 167, 382,
401, and 911 of this title] may be cited as the 'Tax Treatment
Extension Act of 1977'."
Pub. L. 95-615, Sec. 201(a), Nov. 8, 1978, 92 Stat. 3098,
provided that: "This Act [probably meaning sections 201 to 210 of
Pub. L. 95-615, enacting section 913 of this title, amending
sections 43, 62, 119, 217, 911, 1034, 1302, 1304, 1402, 3401, 6011,
6012, and 6091 of this title, and enacting provisions set out as
notes under sections 61, 401, and 911 of this title] may be cited
as the 'Foreign Earned Income Act of 1978'."
Section 1(a) of Pub. L. 95-600 provided that: "This Act [see
Tables for classification] may be cited as the 'Revenue Act of
1978'."
Pub. L. 95-502, title II, Sec. 201, Oct. 21, 1978, 92 Stat. 1696,
provided that: "This title [enacting section 4042 of this title and
sections 1801 to 1804 of Title 33, Navigation and Navigable Waters,
amending section 4293 of this title, and enacting provisions set
out as notes under section 4042 of this title] may be cited as the
'Inland Waterways Revenue Act of 1978'."
Pub. L. 95-227, Sec. 1, Feb. 10, 1978, 92 Stat. 11, provided
that: "This Act [enacting sections 192, 4121, and 4951 to 4953 of
this title and section 934a of Title 30, Mineral Lands and Mining,
amended sections 501, 4218, 4221, 4293, 4946, 6104, 6213, 6405,
6416, 6501, 6503, and 7454 of this title and section 934 of Title
30 and enacted provisions set out as notes under sections 192 and
4121 of this title and section 934 of Title 30] may be cited as the
'Black Lung Benefits Revenue Act of 1977'."
SHORT TITLE OF 1977 AMENDMENTS
Section 1(a) of Pub. L. 95-30 provided that: "This Act [see
Tables for classification] may be cited as the 'Tax Reduction and
Simplification Act of 1977'."
Pub. L. 95-19, Sec. 1, Apr. 12, 1977, 91 Stat. 39, provided that:
"This Act [amending section 3304 of this title, enacting provisions
set out as notes under sections 3302, 3304, and 3309 of this title,
and amending provisions set out as notes under sections 3302, 3304,
and 3309 of this title and sections 359 and 360 of Title 2, The
Congress] may be cited as the 'Emergency Unemployment Compensation
Extension Act of 1977'."
SHORT TITLE OF 1976 AMENDMENTS
Pub. L. 94-455, title I, Sec. 101, Oct. 4, 1976, 90 Stat. 1525,
provided that: "This Act [see Tables for classification] may be
cited as the 'Tax Reform Act of 1976'."
Section 1 of Pub. L. 94-452 provided that: "This Act [enacting
section 6158 of this title, amending sections 311, 1101, 1102,
1103, 6151, 6503, and 6601 of this title, and enacting provisions
set out as notes under sections 311, 1101, and 6158 of this title]
may be cited as the 'Bank Holding Company Tax Act of 1976'."
SHORT TITLE OF 1975 AMENDMENTS
Pub. L. 94-164, Sec. 1, Dec. 23, 1975, 89 Stat. 970, provided
that: "This Act [amending sections 11, 21, 42, 43, 103, 141, 883,
962, 1561, 3402, 6012, 6153, and 6154 of this title and provisions
set out as notes under sections 42, 43, and 3402 of this title, and
enacting provisions set out as notes under this section and
sections 3, 11, 43, 103, and 883 of this title] may be cited as the
'Revenue Adjustment Act of 1975'."
Pub. L. 94-12, Sec. 1(a), Mar. 29, 1975, 89 Stat. 26, provided
that: "This Act [enacting sections, 42, 43, 44, 613A, 907, 955, and
6428 of this title, amending sections 3, 11, 12, 21, 46, 47, 48,
50A, 50B, 56, 141, 214, 535, 613, 703, 851, 901, 902, 951, 954,
962, 993, 1034, 1561, 3304 note, 3402, 6012, 6096, 6201, and 6401
of this title, repealing sections 955 and 963 of this title, and
enacting provisions set out as notes under sections 3, 11, 43, 44,
46, 48, 50A, 214, 410, 535, 613A, 907, 955, 993, 3304, 3402, 6428,
and 6611 of this title and section 402 of Title 42, The Public
Health and Welfare] may be cited as the 'Tax Reduction Act of
1975'."
SHORT TITLE OF 1973 AMENDMENTS
Pub. L. 93-69, title I, Sec. 110, July 10, 1973, 87 Stat. 166,
provided that: "This title [amending sections 3201, 3202, 3211, and
3221 of this title and sections 228b, 228c, and 228e of Title 45,
Railroads, enacting provisions set out as notes under section 3201
of this title and sections 228b, 228c, 228f, and 228o of Title 45,
and amending provisions set out as notes under section 228c of
Title 45] may be cited as the 'Railroad Retirement Amendments of
1973'."
For short title of Pub. L. 93-17 as the "Interest Equalization
Tax Extension Act of 1973", see section 1(a) of Pub. L. 93-17, set
out as a note under section 2104 of this title.
SHORT TITLE OF 1972 AMENDMENT
Pub. L. 92-512, title II, Sec. 201, Oct. 20, 1972, 86 Stat. 936,
provided that: "This title [enacting sections 6361 to 6363 of this
title, amending sections 6405 and 7463 of this title, and enacting
provisions set out as a note under section 7463 of this title] may
be cited as the 'Federal-State Tax Collection Act of 1972'."
SHORT TITLE OF 1971 AMENDMENTS
Pub. L. 92-178, Sec. 1(a), Dec. 10, 1971, 85 Stat. 497, provided
that: "This Act [see Tables for classification] may be cited as the
'Revenue Act of 1971'."
For short title of Pub. L. 92-9 as the "Interest Equalization Tax
Extension Act of 1971", see section 1(a) of Pub. L. 92-9, set out
as a note under section 861 of this title.
SHORT TITLE OF 1970 AMENDMENT
For short title of Pub. L. 91-614 as the "Excise, Estate, and
Gift Tax Adjustment Act of 1970", see section 1 of Pub. L. 91-614,
set out as a Short Title note under section 2001 of this title.
SHORT TITLE OF 1969 AMENDMENTS
Pub. L. 91-172, Sec. 1(a), Dec. 30, 1969, 83 Stat. 487, provided
that: "This Act [see Tables for classification] may be cited as the
'Tax Reform Act of 1969'."
For short title of Pub. L. 91-128 as the "Interest Equalization
Tax Extension Act of 1969", see section 1(a) of Pub. L. 91-128, set
out as a note under section 4182 of this title.
SHORT TITLE OF 1968 AMENDMENT
Pub. L. 90-364, Sec. 1(a), June 28, 1968, 82 Stat. 251, provided
that: "This Act [enacting sections 51 and 6425 of this title,
amending sections 103, 243, 276, 501, 963, 3402, 4061, 4251, 6020,
6154, 6412, 6651, 6655, 7203, 7502, and 7701 of this title and
sections 603, 607, and 1396b of Title 42, The Public Health and
Welfare, repealing sections 6016, 6074, and 4251 to 4254 of this
title, enacting provisions set out as notes under sections 51, 103,
276, 501, 4061, 6154, and 7502 of this title, section 3101 of Title
5, Government Organization and Employees, sections 11 and 757b of
former Title 31, Money and Finance, and section 1396b of Title 42,
and amending notes under section 1396b of Title 42,] may be cited
as the 'Revenue and Expenditure Control Act of 1968'."
SHORT TITLE OF 1967 AMENDMENT
For short title of Pub. L. 90-59 as the "Interest Equalization
Tax Extension Act of 1967", see section 1(a) of Pub. L. 90-59, set
out as a note under section 6011 of this title.
SHORT TITLE OF 1966 AMENDMENTS
For short title of title I of Pub. L. 89-809 as the "Foreign
Investors Tax Act of 1966", see section 101 of Pub. L. 89-809, set
out as a note under section 861 of this title.
For short title of title III of Pub. L. 89-809 as the
"Presidential Election Campaign Fund Act of 1966", see section 301
of Pub. L. 89-809, set out as a Short Title note under section 6096
of this title.
For short title of Pub. L. 89-719 as the "Federal Tax Lien Act of
1966", see section 1(a) of Pub. L. 89-719, set out as a Short Title
note under section 6321 of this title.
SHORT TITLE OF 1965 AMENDMENT
Pub. L. 89-44, Sec. 1(a), June 21, 1965, 79 Stat. 136, provided
that: "This Act [see Tables for classification] may be cited as the
'Excise Tax Reduction Act of 1965'."
SHORT TITLE OF 1964 AMENDMENTS
Section 1 of Pub. L. 88-348 provided: "That this Act [amending
sections 165, 4061, 4251, 4261, 5001, 5022, 5041, 5051, 5063, 5701,
5707, and 6412 of this title, and provisions set out as notes under
sections 165, 4261, and 5701 of this title] may be cited as the
'Excise-Tax Rate Extension Act of 1964'."
Pub. L. 88-272, Sec. 2(a), Feb. 26, 1964, 78 Stat 19, provided
that: "This Act [see Tables for classification] may be cited as the
'Revenue Act of 1964'."
SHORT TITLE OF 1963 AMENDMENT
Pub. L. 88-52, Sec. 1, June 29, 1963, 77 Stat. 72, provided:
"That this Act [amending sections 11, 821, 4061, 4251, 4261, 5001,
5022, 5041, 5051, 5063, 5701, 5707, 6412 of this title and
provisions set out as notes under sections 4261 and 5701 of this
title] may be cited as the 'Tax Rate Extension Act of 1963'."
SHORT TITLE OF 1962 AMENDMENTS
Pub. L. 87-834, Sec. 1(a), Oct. 16, 1962, 76 Stat. 960, provided
that: "This Act [see Tables for classification] may be cited as the
'Revenue Act of 1962'."
For short title of Pub. L. 87-792 as the "Self-Employed
Individuals Tax Retirement Act of 1962", see section 1 of Pub. L.
87-792, set out as a note under section 401 of this title.
Pub. L. 87-508, Sec. 1, June 28, 1962, 76 Stat. 114, provided:
"That this Act [amending sections 11, 821, 4061, 4251 to 4253, 4261
to 4264, 5001, 5002, 5041, 5051, 5063, 5701, 6707, 6412, 6416, and
6421 of this title, enacting provisions set out as notes under
section 4261, 6416, and 6421 of this title, and amending provisions
set out as a note under section 5701 of this title] may be cited as
the 'Tax Rate Extension Act of 1962'."
SHORT TITLE OF 1961 AMENDMENT
Pub. L. 87-72, Sec. 1, June 30, 1961, 75 Stat. 193, provided:
"That this Act [amending sections 11, 821, 4061, 4251, 4261, 5001,
5022, 5041, 5051, 5063, 5701, 5707, and 6412 of this title and
provisions set out as a note under section 5701 of this title] may
be cited as the 'Tax Rate Extension Act of 1961'."
SHORT TITLE OF 1959 AMENDMENTS
Pub. L. 86-75, Sec. 1, June 30, 1959, 73 Stat. 157, provided:
"That this Act [amending sections 11, 821, 4061, 4251, 4261, 5001,
5022, 5041, 5051, 5063, 5701, 5707 and 6412 of this title and
provisions set out as a note under section 5701 of this title] may
be cited as the 'Tax Rate Extension Act of 1959'."
Section 1 of Pub. L. 86-69 provided that: "This Act [amending
former part I of subchapter L of this chapter and sections 116,
381, 841, 842, 891, 1016, 1201, 1232, 1504, 4371, and 6501 of this
title and enacting provisions set out as notes under sections 801,
6072, and 6655 of this title] may be cited as the 'Life Insurance
Company Income Tax Act of 1959'."
SHORT TITLE OF 1958 AMENDMENTS
Pub. L. 85-866, title I, Sec. 1(a), Sept. 2, 1958, 72 Stat. 1606,
provided that: "This title [see Tables for classification] may be
cited as the 'Technical Amendments Act of 1958'."
Pub. L. 85-866, title II, Sec. 201, Sept. 2, 1958, 72 Stat. 1676,
provided that: "This title [amending sections 165, 172, 179, 535,
1244, 1551, 6161, 6166, 6503, and 6601 of this title and enacting
provisions set out as notes under sections 172, 179, 535, 6161 of
this title] may be cited as the 'Small Business Tax Revision Act of
1958'."
For short title of Pub. L. 85-859 as the "Excise Tax Technical
Changes Act of 1958", see section 1(a) of Pub. L. 85-859, set out
as a Short Title note under section 5001 of this title.
Pub. L. 85-475, Sec. 1, June 30, 1958, 72 Stat. 259, provided:
"That this Act [amending sections 11, 821, 4061, 4292, 5001, 5022,
5041, 5051, 5063, 5134, 5701, 5707, 6412, 6415, 6416, 7012, and
7272 of this title and repealing sections 4271 to 4273 and 4281 to
4283 of this title] may be cited as the 'Tax Rate Extension Act of
1958'."
SHORT TITLE OF 1957 AMENDMENT
Section 1 of Pub. L. 85-12 provided: "That this Act [amending
sections 11, 821, 4061, 5001, 5022, 5041, 5051, 5063, 5134, 5701,
5707, and 6412 of this title] may be cited as the 'Tax Rate
Extension Act of 1957'."
SHORT TITLE OF 1956 AMENDMENTS
For short title of title II of act June 29, 1956 as the "Highway
Revenue Act of 1956", see section 201(a) of act June 29, 1956, set
out as a note under section 4041 of this title.
For short title of act Mar. 29, 1956 as the "Tax Rate Extension
Act of 1956", see section 1 of act Mar. 29, 1956, set out as a note
under section 4041 of this title.
Section 1 of act Mar. 13, 1956, provided: "That this Act
[enacting section 843 of this title and amending sections 316, 501,
594, 801 to 805, 811 to 813, 816 to 818, 821, 822, 832, 841, 842,
891, 1201, 1504, and 4371 of this title] be cited as the 'Life
Insurance Company Tax Act for 1955'."
SHORT TITLE OF 1955 AMENDMENT
For short title of act Mar. 30, 1955 as the "Tax Rate Extension
Act of 1955", see section 1 of act Mar. 30, 1955, set out as a note
under section 4041 of this title.
TRANSITIONAL RULES FOR TAXABLE YEARS WHICH INCLUDE MAY 6, 2003
Pub. L. 108-27, title III, Sec. 301(c), May 28, 2003, 117 Stat.
759, provided that: "For purposes of applying section 1(h) of the
Internal Revenue Code of 1986 in the case of a taxable year which
includes May 6, 2003 -
"(1) The amount of tax determined under subparagraph (B) of
section 1(h)(1) of such Code shall be the sum of -
"(A) 5 percent of the lesser of -
"(i) the net capital gain determined by taking into account
only gain or loss properly taken into account for the portion
of the taxable year on or after May 6, 2003 (determined
without regard to collectibles gain or loss, gain described
in section 1(h)(6)(A)(i) of such Code, and section 1202
gain), or
"(ii) the amount on which a tax is determined under such
subparagraph (without regard to this subsection),
"(B) 8 percent of the lesser of -
"(i) the qualified 5-year gain (as defined in section
1(h)(9) of the Internal Revenue Code of 1986, as in effect on
the day before the date of the enactment of this Act [May 28,
2003]) properly taken into account for the portion of the
taxable year before May 6, 2003, or
"(ii) the excess (if any) of -
"(I) the amount on which a tax is determined under such
subparagraph (without regard to this subsection), over
"(II) the amount on which a tax is determined under
subparagraph (A), plus
"(C) 10 percent of the excess (if any) of -
"(i) the amount on which a tax is determined under such
subparagraph (without regard to this subsection), over
"(ii) the sum of the amounts on which a tax is determined
under subparagraphs (A) and (B).
"(2) The amount of tax determined under subparagraph (C) of
section (1)(h)(1) of such Code shall be the sum of -
"(A) 15 percent of the lesser of -
"(i) the excess (if any) of the amount of net capital gain
determined under subparagraph (A)(i) of paragraph (1) of this
subsection over the amount on which a tax is determined under
subparagraph (A) of paragraph (1) of this subsection, or
"(ii) the amount on which a tax is determined under such
subparagraph (C) (without regard to this subsection), plus
"(B) 20 percent of the excess (if any) of -
"(i) the amount on which a tax is determined under such
subparagraph (C) (without regard to this subsection), over
"(ii) the amount on which a tax is determined under
subparagraph (A) of this paragraph.
"(3) For purposes of applying section 55(b)(3) of such Code,
rules similar to the rules of paragraphs (1) and (2) of this
subsection shall apply.
"(4) In applying this subsection with respect to any pass-thru
entity, the determination of when gains and losses are properly
taken into account shall be made at the entity level.
"(5) For purposes of applying section 1(h)(11) of such Code, as
added by section 302 of this Act, to this subsection, dividends
which are qualified dividend income shall be treated as gain
properly taken into account for the portion of the taxable year
on or after May 6, 2003.
"(6) Terms used in this subsection which are also used in
section 1(h) of such Code shall have the respective meanings that
such terms have in such section."
COORDINATION OF PROVISIONS IN AMENDATORY ACTS
Pub. L. 105-277, div. J, title IV, Sec. 4001(b), Oct. 21, 1998,
112 Stat. 2681-906, provided that: "For purposes of applying the
amendments made by any title of this division [Secs. 1000-5301, see
Tables for classification] other than this title [see Definitions
note set out below for classification], the provisions of this
title shall be treated as having been enacted immediately before
the provisions of such other titles."
Pub. L. 105-206, title VI, Sec. 6001(b), July 22, 1998, 112 Stat.
790, provided that: "For purposes of applying the amendments made
by any title of this Act other than this title, the provisions of
this title [see Tables for classification] shall be treated as
having been enacted immediately before the provisions of such other
titles."
Section 1600 of title XVI of Pub. L. 105-34 provided that: "For
purposes of applying the amendments made by any title of this Act
other than this title, the provisions of this title [see Tables for
classification] shall be treated as having been enacted immediately
before the provisions of such other titles."
Section 1701 of Pub. L. 104-188 provided that: "For purposes of
applying the amendments made by any subtitle [subtitle A to F
(Secs. 1111-1621) and H to J (Secs. 1801-1954) of title I of Pub.
L. 104-188, see Tables for classification] of this title other than
this subtitle [subtitle G (Secs. 1701-1704) of title I of Pub. L.
104-188, see Tables for classification], the provisions of this
subtitle shall be treated as having been enacted immediately before
the provisions of such other subtitles."
Section 11700 of Pub. L. 101-508 provided that: "For purposes of
applying the amendments made by any subtitle [subtitles A to F
(Secs. 11101-11622) and H and I (Secs. 11801-11901) of title XI of
Pub. L. 101-508, see Tables for classification] of this title other
than this subtitle [subtitle G (Secs. 11700-11704) of title XI of
Pub. L. 101-508, see Tables for classification], the provisions of
this subtitle shall be treated as having been enacted immediately
before the provisions of such other subtitles."
Section 7801(b) of Pub. L. 101-239 provided that: "For purposes
of applying the amendments made by any subtitle [subtitles A to G
(Secs. 7101-7743) of title VII of Pub. L. 101-239, see Tables for
classification] of this title other than this subtitle [subtitle H
(Secs. 7801-7894) of title VII of Pub. L. 101-239, see Tables for
classification], the provisions of this subtitle shall be treated
as having been enacted immediately before the provisions of such
other subtitles."
Section 1800 of title XVIII of Pub. L. 99-514 provided that: "For
purposes of applying the amendments made by any title of this Act
other than this title, the provisions of this title [see Tables for
classification] shall be treated as having been enacted immediately
before the provisions of such other titles."
ADJUSTMENTS FOR CONSUMER PRICE INDEX ERROR
Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec. 308], Dec. 21,
2000, 114 Stat. 2763, 2763A-636, provided that:
"(a) Determinations by OMB. - As soon as practicable after the
date of the enactment of this Act [Dec. 21, 2000], the Director of
the Office of Management and Budget shall determine with respect to
each applicable Federal benefit program whether the CPI computation
error for 1999 has or will result in a shortfall in payments to
beneficiaries under such program (as compared to payments that
would have been made if the error had not occurred). As soon as
practicable after the date of the enactment of this Act, but not
later than 60 days after such date, the Director shall direct the
head of the Federal agency which administers such program to make a
payment or payments that, insofar as the Director finds practicable
and feasible -
"(1) are targeted to the amount of the shortfall experienced by
individual beneficiaries, and
"(2) compensate for the shortfall.
"(b) Coordination with Federal Agencies. - As soon as practicable
after the date of the enactment of this Act [Dec. 21, 2000], each
Federal agency that administers an applicable Federal benefit
program shall, in accordance with such guidelines as are issued by
the Director pursuant to this section, make an initial
determination of whether, and the extent to which, the CPI
computation error for 1999 has or will result in a shortfall in
payments to beneficiaries of an applicable Federal benefit program
administered by such agency. Not later than 30 days after such
date, the head of such agency shall submit a report to the Director
and to each House of the Congress of such determination, together
with a complete description of the nature of the shortfall.
"(c) Implementation Pursuant to Agency Reports. - Upon receipt of
the report submitted by a Federal agency pursuant to subsection
(b), the Director shall review the initial determination of the
agency, the agency's description of the nature of the shortfall,
and the compensation payments proposed by the agency. Prior to
directing payment of such payments pursuant to subsection (a), the
Director shall make appropriate adjustments (if any) in the
compensation payments proposed by the agency that the Director
determines are necessary to comply with the requirements of
subsection (a) and transmit to the agency a summary report of the
review, indicating any adjustments made by the Director. The agency
shall make the compensation payments as directed by the Director
pursuant to subsection (a) in accordance with the Director's
summary report.
"(d) Income Disregard Under Federal Means-Tested Benefit
Programs. - A payment made under this section to compensate for a
shortfall in benefits shall, in accordance with guidelines issued
by the Director pursuant to this section, be disregarded in
determining income under title VIII of the Social Security Act [42
U.S.C. 1001 et seq.] or any applicable Federal benefit program that
is means-tested.
"(e) Funding. - Funds otherwise available under each applicable
Federal benefit program for making benefit payments under such
program are hereby made available for making compensation payments
under this section in connection with such program.
"(f) No Judicial Review. - No action taken pursuant to this
section shall be subject to judicial review.
"(g) Director's Report. - Not later than April 1, 2001, the
Director shall submit to each House of the Congress a report on the
activities performed by the Director pursuant to this section.
"(h) Definitions. - For purposes of this section:
"(1) Applicable federal benefit program. - The term 'applicable
Federal benefit program' means any program of the Government of
the United States providing for regular or periodic payments or
cash assistance paid directly to individual beneficiaries, as
determined by the Director of the Office of Management and
Budget.
"(2) Federal agency. - The term 'Federal agency' means a
department, agency, or instrumentality of the Government of the
United States.
"(3) CPI computation error for 1999. - The term 'CPI
computation error for 1999' means the error in the computation of
the Consumer Price Index announced by the Bureau of Labor
Statistics on September 28, 2000.
"(i) Tax Provisions. - In the case of taxable years (and other
periods) beginning after December 31, 2000, if any Consumer Price
Index (as defined in section 1(f)(5) of the Internal Revenue Code
of 1986) reflects the CPI computation error for 1999 -
"(1) the correct amount of such Index shall (in such manner and
to such extent as the Secretary of the Treasury determines to be
appropriate) be taken into account for purposes of such Code, and
"(2) tables prescribed under section 1(f) of such Code to
reflect such correct amount shall apply in lieu of any tables
that were prescribed based on the erroneous amount."
APPLICATION OF SPECIAL RULES FOR MAXIMUM CAPITAL GAINS RATE
Pub. L. 105-277, div. J, title IV, Sec. 4002(i)(2), Oct. 21,
1998, 112 Stat. 2681-907, provided that:
"(2)(A) Subparagraphs (A)(i)(II), (A)(ii)(II), and (B)(ii) of
section 1(h)(13) of the 1986 Code shall not apply to any
distribution after December 31, 1997, by a regulated investment
company or a real estate investment trust with respect to -
"(i) gains and losses recognized directly by such company or
trust, and
"(ii) amounts properly taken into account by such company or
trust by reason of holding (directly or indirectly) an interest
in another such company or trust to the extent that such
subparagraphs did not apply to such other company or trust with
respect to such amounts.
"(B) Subparagraph (A) shall not apply to any distribution which
is treated under section 852(b)(7) or 857(b)(8) of the 1986 Code as
received on December 31, 1997.
"(C) For purposes of subparagraph (A), any amount which is
includible in gross income of its shareholders under section
852(b)(3)(D) or 857(b)(3)(D) of the 1986 Code after December 31,
1997, shall be treated as distributed after such date.
"(D)(i) For purposes of subparagraph (A), in the case of a
qualified partnership with respect to which a regulated investment
company meets the holding requirement of clause (iii) -
"(I) the subparagraphs referred to in subparagraph (A) shall
not apply to gains and losses recognized directly by such
partnership for purposes of determining such company's
distributive share of such gains and losses, and
"(II) such company's distributive share of such gains and
losses (as so determined) shall be treated as recognized directly
by such company.
The preceding sentence shall apply only if the qualified
partnership provides the company with written documentation of such
distributive share as so determined.
"(ii) For purposes of clause (i), the term 'qualified
partnership' means, with respect to a regulated investment company,
any partnership if -
"(I) the partnership is an investment company registered under
the Investment Company Act of 1940 [15 U.S.C. 80a-1 et seq.],
"(II) the regulated investment company is permitted to invest
in such partnership by reason of section 12(d)(1)(E) of such Act
[15 U.S.C. 80a-12(d)(1)(E)] or an exemptive order of the
Securities and Exchange Commission under such section, and
"(III) the regulated investment company and the partnership
have the same taxable year.
"(iii) A regulated investment company meets the holding
requirement of this clause with respect to a qualified partnership
if (as of January 1, 1998) -
"(I) the value of the interests of the regulated investment
company in such partnership is 35 percent or more of the value of
such company's total assets, or
"(II) the value of the interests of the regulated investment
company in such partnership and all other qualified partnerships
is 90 percent or more of the value of such company's total
assets."
CAPITAL GAIN DISTRIBUTION BY TRUST
Pub. L. 105-277, div. J, title IV, Sec. 4003(b), Oct. 21, 1998,
112 Stat. 2681-909, as amended by Pub. L. 106-554, Sec. 1(a)(7)
[title III, Sec. 312(b)], Dec. 21, 2000, 114 Stat. 2763, 2763A-640,
provided that: "In the case of any capital gain distribution made
after 1997 by a trust to which section 664 of the 1986 Code applies
with respect to amounts properly taken into account by such trust
during 1997, paragraphs (5)(A)(i)(I), (5)(A)(ii)(I), (7)(A)(i)(II),
and (13)(A) of section 1(h) of the 1986 Code (as in effect for
taxable years ending on December 31, 1997) shall not apply."
ELECTION TO RECOGNIZE GAIN ON ASSETS HELD ON JANUARY 1, 2001
Pub. L. 105-34, title III, Sec. 311(e), Aug. 5, 1997, 111 Stat.
835, as amended by Pub. L. 106-554, Sec. 1(a)(7) [title III, Sec.
314(c)], Dec. 21, 2000, 114 Stat. 2763, 2763A-643; Pub. L. 107-147,
title IV, Sec. 414(a), Mar. 9, 2002, 116 Stat. 54, provided that:
"For purposes of the Internal Revenue Code of 1986 -
"(1) In general. - A taxpayer other than a corporation may
elect to treat -
"(A) any readily tradable stock (which is a capital asset)
held by such taxpayer on January 1, 2001, and not sold before
the next business day after such date, as having been sold on
such next business day for an amount equal to its closing
market price on such next business day (and as having been
reacquired on such next business day for an amount equal to
such closing market price), and
"(B) any other capital asset or property used in the trade or
business (as defined in section 1231(b) of the Internal Revenue
Code of 1986) held by the taxpayer on January 1, 2001, as
having been sold on such date for an amount equal to its fair
market value on such date (and as having been reacquired on
such date for an amount equal to such fair market value).
"(2) Treatment of gain or loss. -
"(A) Any gain resulting from an election under paragraph (1)
shall be treated as received or accrued on the date the asset
is treated as sold under paragraph (1) and shall be included in
gross income notwithstanding any provision of the Internal
Revenue Code of 1986.
"(B) Any loss resulting from an election under paragraph (1)
shall not be allowed for any taxable year.
"(3) Election. - An election under paragraph (1) shall be made
in such manner as the Secretary of the Treasury or his delegate
may prescribe and shall specify the assets for which such
election is made. Such an election, once made with respect to any
asset, shall be irrevocable. Such an election shall not apply to
any asset which is disposed of (in a transaction in which gain or
loss is recognized in whole or in part) before the close of the
1-year period beginning on the date that the asset would have
been treated as sold under such election.
"(4) Readily tradable stock. - For purposes of this subsection,
the term 'readily tradable stock' means any stock which, as of
January 1, 2001, is readily tradable on an established securities
market or otherwise.
"(5) Disposition of interest in passive activity. - Section
469(g)(1)(A) of the Internal Revenue Code of 1986 shall not apply
by reason of an election made under paragraph (1)."
[Pub. L. 107-147, title IV, Sec. 414(b), Mar. 9, 2002, 116 Stat.
54, provided that: "The amendments made by this section [amending
section 311(e) of Pub. L. 105-34, set out above] shall take effect
as if included in section 311 of the Taxpayer Relief Act of 1997
[Pub. L. 105-34]."]
ELECTION TO PAY ADDITIONAL 1993 TAXES IN INSTALLMENTS
Section 13201(d) of Pub. L. 103-66 provided that:
"(1) In general. - At the election of the taxpayer, the
additional 1993 taxes may be paid in 3 equal installments.
"(2) Dates for paying installments. - In the case of any tax
payable in installments by reason of paragraph (1) -
"(A) the first installment shall be paid on or before the due
date for the taxpayer's taxable year beginning in calendar year
1993,
"(B) the second installment shall be paid on or before the date
1 year after the date determined under subparagraph (A), and
"(C) the third installment shall be paid on or before the date
2 years after the date determined under subparagraph (A).
For purposes of the preceding sentence, the term 'due date' means
the date prescribed for filing the taxpayer's return determined
without regard to extensions.
"(3) Extension without interest. - For purposes of section 6601
of the Internal Revenue Code of 1986, the date prescribed for the
payment of any tax payable in installments under paragraph (1)
shall be determined with regard to the extension under paragraph
(1).
"(4) Additional 1993 taxes. -
"(A) In general. - For purposes of this subsection, the term
'additional 1993 taxes' means the excess of -
"(i) the taxpayer's net chapter 1 liability as shown on the
taxpayer's return for the taxpayer's taxable year beginning in
calendar year 1993, over
"(ii) the amount which would have been the taxpayer's net
chapter 1 liability for such taxable year if such liability had
been determined using the rates which would have been in effect
under section 1 of the Internal Revenue Code of 1986 for
taxable years beginning in calendar year 1993 but for the
amendments made by this section [amending this section and
sections 41, 63, 68, 132, 151, 453A, 513, 531, and 541 of this
title] and section 13202 [amending this section and sections
531 and 541 of this title] and such liability had otherwise
been determined on the basis of the amounts shown on the
taxpayer's return.
"(B) Net chapter 1 liability. - For purposes of subparagraph
(A), the term 'net chapter 1 liability' means the liability for
tax under chapter 1 of the Internal Revenue Code of 1986
determined -
"(i) after the application of any credit against such tax
other than the credits under sections 31 and 34, and
"(ii) before crediting any payment of estimated tax for the
taxable year.
"(5) Acceleration of payments. - If the taxpayer does not pay any
installment under this section on or before the date prescribed for
its payment or if the Secretary of the Treasury or his delegate
believes that the collection of any amount payable in installments
under this section is in jeopardy, the Secretary shall immediately
terminate the extension under paragraph (1) and the whole of the
unpaid tax shall be paid on notice and demand from the Secretary.
"(6) Election on return. - An election under paragraph (1) shall
be made on the taxpayer's return for the taxpayer's taxable year
beginning in calendar year 1993.
"(7) Exception for estates and trusts. - This subsection shall
not apply in the case of an estate or trust."
TRANSITIONAL RULE FOR MAXIMUM CAPITAL GAINS RATE
Section 302(c) of Pub. L. 99-514, which related to long-term
capital gain on rights to royalties paid under particular leases
and assignments, was repealed by Pub. L. 100-647, title I, Sec.
1003(b)(1), Nov. 10, 1988, 102 Stat. 3382.
COORDINATION WITH OTHER PROVISIONS
Pub. L. 99-509, title VIII, Sec. 8081, Oct. 21, 1986, 100 Stat.
1965, provided that: "Nothing in any provision of this Act [see
Tables for classifications] (other than this title) shall be
construed as -
"(1) imposing any tax (or exempting any person or property from
any tax),
"(2) establishing any trust fund, or
"(3) authorizing amounts to be expended from any trust fund."
[S.Con.Res. 174, agreed to Oct. 18, 1986, provided: "That, in the
enrollment of the bill (H.R. 5300) to provide for reconciliation
pursuant to section 2 of the concurrent resolution on the budget
for fiscal year 1987, the Clerk of the House of Representatives
shall insert at the end of section 8081 of the bill the following:
Paragraph (3) shall not apply to any authorization made by title IX
of this Act." As a result of clerical error, the sentence was
inserted at the end of section 8101 of the bill, and appears at the
end of section 8101 of Pub. L. 99-509, 100 Stat. 1967.]
Pub. L. 99-499, title V, Sec. 531, Oct. 17, 1986, 100 Stat. 1782,
provided that: "Notwithstanding any provision of this Act [see
Tables for classifications] not contained in this title [see Short
Title of 1986 Amendment note above], any provision of this Act (not
contained in this title) which -
"(1) imposes any tax, premium, or fee,
"(2) establishes any trust fund, or
"(3) authorizes amounts to be expended from any trust fund,
shall have no force or effect."
ELIMINATION OF 50-CENT ROUNDING ERRORS
Section 101(a)(3) of Pub. L. 97-448, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "If
any figure in any table -
"(A) which is set forth in section 1 of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] (as amended by section 101 of
the Economic Recovery Tax Act of 1981 [Pub. L. 97-34, title I,
Sec. 101, Aug. 13, 1981, 95 Stat. 176], and
"(B) which applies to married individuals filing separately or
to estates and trusts,
differs by not more than 50 cents from the correct amount under the
formula used in constructing such table, such figure is hereby
corrected to the correct amount." [See 1982 Amendment note above.]
POLICY WITH RESPECT TO ADDITIONAL TAX REDUCTIONS
Section 3 of Pub. L. 95-600 provided that: "As a matter of
national policy the rate of growth in Federal outlays, adjusted for
inflation, should not exceed 1 percent per year between fiscal year
1979 and fiscal year 1983; Federal outlays as a percentage of gross
national product should decline to below 21 percent in fiscal year
1980, 20.5 percent in fiscal year 1981, 20 percent in fiscal year
1982 and 19.5 percent in fiscal year 1983; and the Federal budget
should be balanced in fiscal years 1982 and 1983. If these
conditions are met, it is the intention that the tax-writing
committees of Congress will report legislation providing
significant tax reductions for individuals to the extent that these
tax reductions are justified in the light of prevailing and
expected economic conditions."
EFFECTIVE DATE OF CERTAIN DEFINITIONS AND DESIGNATIONS
Pub. L. 94-455, title XIX, Sec. 1908, Oct. 4, 1976, 90 Stat.
1836, provided that: "For purposes of any amendment made by any
provision of this Act [see Tables for classification] (other than
this title) -
"(1) which contains a term the meaning of which is defined in
or modified by any provision of this title, and
"(2) which has an effective date earlier than the effective
date of the provision of this title defining or modifying such
term,
that definition or modification shall be considered to take effect
as of such earlier effective date."
CONGRESSIONAL DECLARATION RELATING TO 1975 AMENDMENT
Pub. L. 94-164, Sec. 1A, Dec. 23, 1975, 89 Stat. 970, provided
that:
"(a) Congress is determined to continue the tax reduction for the
first 6 months of 1976 in order to assure continued economic
recovery.
"(b) Congress is also determined to continue to control spending
levels in order to reduce the national deficit.
"(c) Congress reaffirms its commitments to the procedures
established by the Congressional Budget and Impoundment Control Act
of 1974 [see Tables for classification of Pub. L. 93-344, July 12,
1974, 88 Stat. 297] under which it has already established a
binding spending ceiling for the fiscal year 1976.
"(d) If the Congress adopts a continuation of the tax reduction
provided by this Act [see Short Title of 1975 Amendment note above]
beyond June 30, 1976, and if economic conditions warrant doing so,
Congress shall provide, through the procedures in the Budget Act
[Pub. L. 93-344], for reductions in the level of spending in the
fiscal year 1977 below what would otherwise occur, equal to any
additional reduction in taxes (from the 1974 tax rate levels)
provided for the fiscal year 1977: Provided, however, That nothing
shall preclude the right of the Congress to pass a budget
resolution containing a higher or lower expenditure figure if the
Congress concludes that this is warranted by economic conditions or
unforeseen circumstances."
CONGRESSIONAL DECLARATION RELATING TO 1964 AMENDMENT
Pub. L. 88-272, Sec. 1, Feb. 26, 1964, 78 Stat. 19, provided
that: "It is the sense of Congress that the tax reduction provided
by this Act [see Short Title of 1964 Amendment note above] through
stimulation of the economy, will, after a brief transitional
period, raise (rather than lower) revenues and that such revenue
increases should first be used to eliminate the deficits in the
administrative budgets and then to reduce the public debt. To
further the objective of obtaining balanced budgets in the near
future, Congress by this action, recognizes the importance of
taking all reasonable means to restrain Government spending and
urges the President to declare his accord with this objective."
-CROSS-
DEFINITIONS
Pub. L. 105-277, div. J, title IV, Sec. 4001(a), Oct. 21, 1998,
112 Stat. 2681-906, provided that: "For purposes of this title
[amending this section, sections 51, 56, 67, 68, 86, 135, 137, 163,
172, 219, 221, 264, 351, 368, 408A, 469, 873, 954, 2001, 2031,
6015, 6103, 6159, 6311, 6404, 6693, 7421, 7443A, 7491, 9503, and
9510 of this title, and sections 401 and 407 of Title 42, The
Public Health and Welfare, enacting provisions set out as notes
under this section, sections 51, 67, 68, 86, 172, 833, 6103, and
9503 of this title, and section 401 of Title 42, and amending
provisions set out as notes under sections 6601 and 7508A of this
title] -
"(1) 1986 code. - The term '1986 Code' means the Internal
Revenue Code of 1986.
"(2) 1998 act. - The term '1998 Act' means the Internal Revenue
Service Restructuring and Reform Act of 1998 (Public Law 105-206)
[see Tables for classification].
"(3) 1997 act. - The term '1997 Act' means the Taxpayer Relief
Act of 1997 (Public Law 105-34) [see Tables for classification]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2, 3, 15, 23, 24, 25A,
32, 41, 42, 55, 59, 63, 68, 132, 135, 137, 146, 162, 163, 179, 213,
219, 220, 221, 223, 301, 306, 453A, 460, 468B, 511, 512, 513, 584,
641, 646, 685, 691, 702, 774, 854, 857, 871, 876, 877, 891, 904,
911, 936, 962, 1022, 1260, 1291, 1301, 1398, 1446, 2032A, 2503,
2631, 3402, 3406, 4001, 4261, 6014, 6015, 6039F, 6103, 6242, 6323,
6334, 6428, 6601, 6652, 6655, 6867, 7430, 7518, 7519 of this title;
title 7 section 940d; title 46 App. section 1177.
-End-
-CITE-
26 USC Sec. 2 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
Sec. 2. Definitions and special rules
-STATUTE-
(a) Definition of surviving spouse
(1) In general
For purposes of section 1, the term "surviving spouse" means a
taxpayer -
(A) whose spouse died during either of his two taxable years
immediately preceding the taxable year, and
(B) who maintains as his home a household which constitutes
for the taxable year the principal place of abode (as a member
of such household) of a dependent (i) who (within the meaning
of section 152) is a son, stepson, daughter, or stepdaughter of
the taxpayer, and (ii) with respect to whom the taxpayer is
entitled to a deduction for the taxable year under section 151.
For purposes of this paragraph, an individual shall be considered
as maintaining a household only if over half of the cost of
maintaining the household during the taxable year is furnished by
such individual.
(2) Limitations
Notwithstanding paragraph (1), for purposes of section 1 a
taxpayer shall not be considered to be a surviving spouse -
(A) if the taxpayer has remarried at any time before the
close of the taxable year, or
(B) unless, for the taxpayer's taxable year during which his
spouse died, a joint return could have been made under the
provisions of section 6013 (without regard to subsection (a)(3)
thereof).
(3) Special rule where deceased spouse was in missing status
If an individual was in a missing status (within the meaning of
section 6013(f)(3)) as a result of service in a combat zone (as
determined for purposes of section 112) and if such individual
remains in such status until the date referred to in subparagraph
(A) or (B), then, for purposes of paragraph (1)(A), the date on
which such individual died shall be treated as the earlier of the
date determined under subparagraph (A) or the date determined
under subparagraph (B):
(A) the date on which the determination is made under section
556 of title 37 of the United States Code or under section 5566
of title 5 of such Code (whichever is applicable) that such
individual died while in such missing status, or
(B) except in the case of the combat zone designated for
purposes of the Vietnam conflict, the date which is 2 years
after the date designated under section 112 as the date of
termination of combatant activities in that zone.
(b) Definition of head of household
(1) In general
For purposes of this subtitle, an individual shall be
considered a head of a household if, and only if, such individual
is not married at the close of his taxable year, is not a
surviving spouse (as defined in subsection (a)), and either -
(A) maintains as his home a household which constitutes for
more than one-half of such taxable year the principal place of
abode, as a member of such household, of -
(i) a son, stepson, daughter, or stepdaughter of the
taxpayer, or a descendant of a son or daughter of the
taxpayer, but if such son, stepson, daughter, stepdaughter,
or descendant is married at the close of the taxpayer's
taxable year, only if the taxpayer is entitled to a deduction
for the taxable year for such person under section 151 (or
would be so entitled but for paragraph (2) or (4) of section
152(e)), or
(ii) any other person who is a dependent of the taxpayer,
if the taxpayer is entitled to a deduction for the taxable
year for such person under section 151, or
(B) maintains a household which constitutes for such taxable
year the principal place of abode of the father or mother of
the taxpayer, if the taxpayer is entitled to a deduction for
the taxable year for such father or mother under section 151.
For purposes of this paragraph, an individual shall be considered
as maintaining a household only if over half of the cost of
maintaining the household during the taxable year is furnished by
such individual.
(2) Determination of status
For purposes of this subsection -
(A) a legally adopted child of a person shall be considered a
child of such person by blood;
(B) an individual who is legally separated from his spouse
under a decree of divorce or of separate maintenance shall not
be considered as married;
(C) a taxpayer shall be considered as not married at the
close of his taxable year if at any time during the taxable
year his spouse is a nonresident alien; and
(D) a taxpayer shall be considered as married at the close of
his taxable year if his spouse (other than a spouse described
in subparagraph (C)) died during the taxable year.
(3) Limitations
Notwithstanding paragraph (1), for purposes of this subtitle a
taxpayer shall not be considered to be a head of a household -
(A) if at any time during the taxable year he is a
nonresident alien; or
(B) by reason of an individual who would not be a dependent
for the taxable year but for -
(i) paragraph (9) of section 152(a), or
(ii) subsection (c) of section 152.
(c) Certain married individuals living apart
For purposes of this part, an individual shall be treated as not
married at the close of the taxable year if such individual is so
treated under the provisions of section 7703(b).
(d) Nonresident aliens
In the case of a nonresident alien individual, the taxes imposed
by sections 1 and 55 shall apply only as provided by section 871 or
877.
(e) Cross reference
For definition of taxable income, see section 63.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 8; Pub. L. 88-272, title I, Sec.
112(b), Feb. 26, 1964, 78 Stat. 24; Pub. L. 91-172, title VIII,
Sec. 803(b), Dec. 30, 1969, 83 Stat. 682; Pub. L. 93-597, Sec.
3(b), Jan. 2, 1975, 88 Stat. 1951; Pub. L. 94-455, title XIX, Sec.
1901(a)(1), (b)(9), Oct. 4, 1976, 90 Stat. 1764, 1795; Pub. L.
94-569, Sec. 3(a), Oct. 20, 1976, 90 Stat. 2699; Pub. L. 97-448,
title III, Sec. 307(a), Jan. 12, 1983, 96 Stat. 2407; Pub. L.
98-369, div. A, title IV, Sec. 423(c)(2), July 18, 1984, 98 Stat.
801; Pub. L. 99-514, title XIII, Sec. 1301(j)(10), title XVII, Sec.
1708(a)(1), Oct. 22, 1986, 100 Stat. 2658, 2782; Pub. L. 100-647,
title I, Sec. 1007(g)(13)(A), Nov. 10, 1988, 102 Stat. 3436.)
-MISC1-
AMENDMENTS
1988 - Subsec. (d). Pub. L. 100-647 substituted "the taxes
imposed by sections 1 and 55" for "the tax imposed by section 1".
1986 - Subsec. (a)(3)(B). Pub. L. 99-514, Sec. 1708(a)(1),
amended subpar. (B) generally. Prior to amendment, subpar. (B) read
as follows: "the date which is -
"(i) December 31, 1982, in the case of service in the combat
zone designated for purposes of the Vietnam conflict, or
"(ii) 2 years after the date designated under section 112 as
the date of termination of combatant activities in that zone, in
the case of any combat zone other than that referred to in clause
(i)."
Subsec. (c). Pub. L. 99-514, Sec. 1301(j)(10), substituted
"section 7703(b)" for "section 143(b)".
1984 - Subsec. (b)(1)(A). Pub. L. 98-369, Sec. 423(c)(2)(A),
substituted "which constitutes for more than one-half of such
taxable year" for "which constitutes for such taxable year".
Subsec. (b)(1)(A)(i). Pub. L. 98-369, Sec. 423(c)(2)(B), inserted
"(or would be so entitled but for paragraph (2) or (4) of section
152(e))".
1983 - Subsec. (a)(3)(B)(i). Pub. L. 97-448 substituted "December
31, 1982" for "January 2, 1978".
1976 - Subsec. (a)(3)(B). Pub. L. 94-569 substituted "the date
which is" for "the date which is 2 years after" in provisions
preceding cl. (i), substituted "January 2, 1978" for "the date of
the enactment of this paragraph" in cl. (i), and substituted "2
years after the date" for "the date" in cl. (ii).
Subsec. (b)(3)(B)(ii). Pub. L. 94-455, Sec. 1901(b)(9),
redesignated cl. (iii) as (ii) and struck out former cl. (ii) which
provided that an individual who was a dependent solely by reason of
par. (10) of section 152(a) would not be considered as a head of a
household.
Subsec. (c). Pub. L. 94-455, Sec. 1901(a)(1), substituted "shall
be treated as not married at the close of the taxable year" for
"shall not be considered as married".
1975 - Subsec. (a)(3). Pub. L. 93-597 added par. (3).
1969 - Subsec. (a). Pub. L. 91-172 redesignated subsec. (b) as
(a). See sec. 1(a) of this title.
Subsec. (b). Pub. L. 91-172 redesignated provisions of former
section 1(b)(2) to (4) of this title as subsec. (b). Former subsec.
(b) redesignated (a), with minor changes.
Subsec. (c). Pub. L. 91-172 added subsec. (c).
Subsec. (d). Pub. L. 91-172 redesignated as subsec. (d)
provisions of former section 1(d) with minor changes.
Subsec. (e). Pub. L. 91-172 redesignated as subsec. (e)
provisions of former section 1(e).
1964 - Subsec. (a). Pub. L. 88-272 inserted reference to section
141.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1301(j)(10) of Pub. L. 99-514 applicable to
bonds issued after Aug. 15, 1986, except as otherwise provided, see
sections 1311 to 1318 of Pub. L. 99-514, set out as an Effective
Date; Transitional Rules note under section 141 of this title.
Section 1708(b) of Pub. L. 99-514 provided that: "The amendments
made by this section [amending this section and sections 692, 6013,
and 7508 of this title] shall apply to taxable years beginning
after December 31, 1982."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 423(d) of Pub. L. 98-369 provided that: "The amendments
made by this section [amending this section and sections 43, 44A,
105, 143, 152, and 213 of this title] shall apply to taxable years
beginning after December 31, 1984."
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1901(d) of Pub. L. 94-455 provided that: "Except as
otherwise expressly provided in this section, the amendments made
by this section [see Tables for classification] shall apply with
respect to taxable years beginning after December 31, 1976. The
amendments made by subsections (a)(29) and (b)(10) shall apply with
respect to taxable years ending after the date of the enactment of
this Act [Oct. 4, 1976]."
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 93-597 applicable to taxable years ending on
or after Feb. 28, 1961, see section 3(c) of Pub. L. 93-597, set out
as a note under section 6013 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable to taxable years beginning
after Dec. 31, 1970, except that subsec. (c) is applicable to
taxable years beginning after Dec. 31, 1969, see section 803(f) of
Pub. L. 91-172, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272, except for purposes of section 21 of
this title, effective with respect to taxable years beginning after
Dec. 31, 1963, see section 131 of Pub. L. 88-272, set out as a note
under section 1 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1, 32, 63, 151, 3402,
6012, 6013 of this title; title 20 sections 1087nn, 1087oo, 1087qq;
title 38 section 1503.
-End-
-CITE-
26 USC Sec. 3 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
Sec. 3. Tax tables for individuals
-STATUTE-
(a) Imposition of tax table tax
(1) In general
In lieu of the tax imposed by section 1, there is hereby
imposed for each taxable year on the taxable income of every
individual -
(A) who does not itemize his deductions for the taxable year,
and
(B) whose taxable income for such taxable year does not
exceed the ceiling amount,
a tax determined under tables, applicable to such taxable year,
which shall be prescribed by the Secretary and which shall be in
such form as he determines appropriate. In the table so
prescribed, the amounts of the tax shall be computed on the basis
of the rates prescribed by section 1.
(2) Ceiling 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) Authority to prescribe tables for taxpayers who itemize
deductions
The Secretary may provide that this section shall apply also
for any taxable year to individuals who itemize their deductions.
Any tables prescribed under the preceding sentence shall be on
the basis of taxable income.
(b) Section inapplicable to certain individuals
This section shall not apply to -
(1) an individual making a return under section 443(a)(1) for a
period of less than 12 months on account of a change in annual
accounting period, and
(2) an estate or trust.
(c) Tax treated as imposed by section 1
For purposes of this 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 reference
For computation of tax by Secretary, see section 6014.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 8; Pub. L. 88-272, title III,
Sec. 301(a), Feb. 26, 1964, 78 Stat. 129; Pub. L. 91-172, title
VIII, Sec. 803(c), Dec. 30, 1969, 83 Stat. 684; Pub. L. 94-12,
title II, Sec. 201(c), Mar. 29, 1975, 89 Stat. 29; Pub. L. 94-455,
title V, Sec. 501(a), Oct. 4, 1976, 90 Stat. 1558; Pub. L. 95-30,
title I, Sec. 101(b), May 23, 1977, 91 Stat. 131; Pub. L. 95-600,
title IV, Sec. 401(b)(1), Nov. 6, 1978, 92 Stat. 2867; Pub. L.
95-600, title II, Sec. 202(g), as added Pub. L. 96-222, title I,
Sec. 108(a)(1)(A), Apr. 1, 1980, 94 Stat. 223; Pub. L. 96-222,
title I, Sec. 108(a)(1)(E), Apr. 1, 1980, 94 Stat. 225; Pub. L.
97-34, title I, Secs. 101(b)(2)(B), (C), (c)(2)(A), 121(c)(3), Aug.
13, 1981, 95 Stat. 183, 197; Pub. L. 99-514, title I, Secs. 102(b),
141(b)(1), Oct. 22, 1986, 100 Stat. 2102, 2117.)
-MISC1-
AMENDMENTS
1986 - Subsec. (a). Pub. L. 99-514, Sec. 102(b), substituted
subsec. (a) for former subsec. (a) which read as follows:
"(1) In general. - In lieu of the tax imposed by section 1,
there is hereby imposed for each taxable year on the tax table
income of every individual whose tax table income for such year
does not exceed the ceiling amount, a tax determined under
tables, applicable to such taxable year, which shall be
prescribed by the Secretary and which shall be in such form as he
determines appropriate. In the tables so prescribed, the amounts
of tax shall be computed on the basis of the rates prescribed by
section 1.
"(2) Ceiling 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 with large number of exemptions. - 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) Tax table income defined. - For purposes of this section,
the term 'tax table income' means adjusted gross income -
"(A) reduced by the sum of -
"(i) the excess itemized deductions, and
"(ii) the direct charitable deduction, and
"(B) increased (in the case of an individual to whom section
63(e) applies) by the unused zero bracket amount.
"(5) Section may be applied on the basis of taxable income. -
The Secretary may provide that this section shall be applied for
any taxable year on the basis of taxable income in lieu of tax
table income."
Subsec. (b). Pub. L. 99-514, Sec. 141(b)(1), struck out par. (1)
which read: "an individual to whom section 1301 (relating to income
averaging) applies for the taxable year," and redesignated pars.
(2) and (3) as (1) and (2), respectively.
1981 - Subsec. (a)(1). Pub. L. 97-34, Sec. 101(b)(2)(B), inserted
"and which shall be in such form as he determines appropriate"
after "Secretary".
Subsec. (a)(4)(A). Pub. L. 97-34, Sec. 121(c)(3), substituted
"reduced by the sum of (i) the excess itemized deductions, and (ii)
the direct charitable deduction" for "reduced by the excess
itemized deductions".
Subsec. (a)(5). Pub. L. 97-34, Sec. 101(b)(2)(C), added par. (5).
Subsec. (b)(1). Pub. L. 97-34, Sec. 101(c)(2)(A), substituted "an
individual to whom section 1301 (relating to income averaging)
applies for the taxable year" for "an individual to whom (A)
section 1301 (relating to income averaging), or (B) section 1348
(relating to maximum rate on personal service income), applies for
the taxable year".
1980 - Subsec. (b)(1). Pub. L. 96-222 redesignated subpars. (B)
and (C) as (A) and (B), respectively, and struck out former subpar.
(A) which made reference to section 911 (relating to earned income
from sources without the United States).
1978 - Subsec. (b)(1). Pub. L. 95-600 struck out subpar. (B)
which related to the alternative capital gains tax under section
1201 of this title, and redesignated subpars. (C) and (D) as (B)
and (C), respectively.
1977 - Pub. L. 95-30 struck out "having taxable income of less
than $20,000" after "individuals" in section catchline.
Subsec. (a). Pub. L. 95-30 designated existing provisions as par.
(1), substituted "tax table income" for "taxable income" and "does
not exceed the ceiling amount" for "does not exceed $20,000", and
added pars. (2) to (4).
Subsecs. (b) to (e). Pub. L. 95-30 added subsec. (b),
redesignated former subsec. (b) as (c), and added subsecs. (d) and
(e).
1976 - Pub. L. 94-455 designated existing provisions as subsec.
(a), substituted provision relating to taxable income for such year
does not exceed $20,000 for provision relating to adjusted gross
income for such year is less than $15,000 and who has elected for
such year to pay the tax imposed by this section, struck out "or
his delegate" after "Secretary", "beginning after Dec. 31, 1969"
after "each taxable year", struck out provision requiring
computation of taxable income by using standard deduction, and
added subsec. (b).
1975 - Pub. L. 94-12 substituted "$15,000" for "$10,000".
1969 - Pub. L. 91-172 raised the individual gross income limit of
$5,000 to $10,000 for exercising the option and substituted
provision that the tax has to be determined under tables to be
prescribed by the Secretary or his delegate for tables of tax rates
for single persons, heads of household, married persons filing
joint returns, married persons filing separate returns with 10 per
cent standard deduction and married persons filing separate returns
with minimum standard deduction.
1964 - Pub. L. 88-272 substituted optional tax tables covering
five categories for taxable years beginning on or after Jan. 1,
1964, and before Jan. 1, 1965, and for years beginning after Dec.
31, 1964, for a single general table.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by section 101(c)(2)(A) of Pub. L. 97-34 applicable to
taxable years beginning after Dec. 31, 1981, see section 101(f)(1)
of Pub. L. 97-34, set out as a note under section 1 of this title.
Amendment by section 121(c)(3) of Pub. L. 97-34 applicable to
contributions made after Dec. 31, 1981, in taxable years beginning
after such date, see section 121(d) of Pub. L. 97-34, set out as a
note under section 170 of this title.
EFFECTIVE DATE OF 1980 AMENDMENT
Section 108(a)(2) of Pub. L. 96-222 provided that:
"(A) In general. - Except as provided in subparagraph (B), the
amendments made by paragraph (1) [amending this section and
sections 119, 911, and 913 of this title] shall take effect as if
included in the Foreign Earned Income Act of 1978 [Pub. L. 95-615].
"(B) Paragraph (1)(E). - The amendment made by paragraph (1)(E)
[amending this section] shall apply to taxable years beginning
after December 31, 1978."
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 401(b)(1) of Pub. L. 95-600 applicable to
taxable years beginning after Dec. 31, 1978, see section 401(c) of
Pub. L. 95-600, set out as a note under section 1201 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 508 of Pub. L. 94-455 provided that: "Except as otherwise
provided, the amendments made by this title [enacting section 44A,
amending this section and sections 36, 37, 41, 42, 46, 50A, 104,
144, 213, 217, 904, 1211, 1304, 3402, 6014, and 6096, enacting
provisions set out as notes under sections 105, 8022, and repealing
sections 4 and 214 of this title] shall apply to taxable years
beginning after December 31, 1975."
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT
Section 209(a) of Pub. L. 94-12, as amended by Pub. L. 94-164,
Sec. 2(e), Dec. 23, 1975, 89 Stat. 972, provided that: "The
amendments made by sections 201, 202(a), and 203 [enacting section
42 of this title and amending this section and sections 56, 141,
6012, and 6096 of this title] shall apply to taxable years ending
after December 31, 1974. The amendments made by sections 201(a) and
202(a) [amending section 141 of this title] shall cease to apply to
taxable years ending after December 31, 1975; those made by
sections 201(b), 201(c), and 203 [enacting section 42 of this title
and amending this section and sections 56, 6012, and 6096 of this
title] shall cease to apply to taxable years ending after December
31, 1976."
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable to taxable years beginning
after Dec. 31, 1969, see section 803(f) of Pub. L. 91-172, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 301(c) of Pub. L. 88-272, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "Except for
purposes of section 21 of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] (relating to effect of changes in rates
during a taxable year), the amendments made by this section
[amending this section and sections 4 and 6014 of this title] shall
apply to taxable years beginning after December 31, 1963."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 891 of this title.
-End-
-CITE-
26 USC Sec. 4 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
[Sec. 4. Repealed. Pub. L. 94-455, title V, Sec. 501(b)(1), Oct. 4,
1976, 90 Stat. 1558]
-MISC1-
Section, acts Aug. 16, 1954, ch. 736, 68A Stat. 10; Feb. 26,
1964, Pub. L. 88-272, title II, Sec. 232(f)(1), title III, Sec.
301(b)(1), (3), 78 Stat. 111, 140; Dec. 30, 1969, Pub. L. 91-172,
title VIII, Sec. 802(c)(1)-(3), 83 Stat. 677, 678; Dec. 10, 1971,
Pub. L. 92-178, title III, Sec. 301(b), 85 Stat. 520, related to
rules for optional tax.
EFFECTIVE DATE OF REPEAL
Repeal applicable to taxable years beginning after Dec. 31, 1975,
see section 508 of Pub. L. 94-455, set out as an Effective Date of
1976 Amendment note under section 3 of this title.
-End-
-CITE-
26 USC Sec. 5 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART I - TAX ON INDIVIDUALS
-HEAD-
Sec. 5. Cross references relating to tax on individuals
-STATUTE-
(a) Other rates of tax on individuals, etc.
(1) For rates of tax on nonresident aliens, see section 871.
(2) For doubling of tax on citizens of certain foreign
countries, see section 891.
(3) For rate of withholding in the case of nonresident
aliens, see section 1441.
(4) For alternative minimum tax, see section 55.
(b) Special limitations on tax
(1) For limitation on tax in case of income of members of
Armed Forces, astronauts, and victims of certain terrorist
attacks on death, see section 692.
(2) For computation of tax where taxpayer restores
substantial amount held under claim of right, see section 1341.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 10; Pub. L. 88-272, title II,
Sec. 232(f)(2), Feb. 26, 1964, 78 Stat. 111; Pub. L. 91-172, title
III, Sec. 301(b)(2), title VIII, Sec. 803(d)(6), Dec. 30, 1969, 83
Stat. 585, 684; Pub. L. 94-455, title XIX, Secs. 1901(b)(22)(B),
1951(c)(3)(A), Oct. 4, 1976, 90 Stat. 1798, 1841; Pub. L. 95-600,
title IV, Secs. 401(b)(2), 421(e)(1), Nov. 6, 1978, 92 Stat. 2867,
2875; Pub. L. 96-222, title I, Sec. 104(a)(4)(H)(vii), Apr. 1,
1980, 94 Stat. 218; Pub. L. 97-248, title II, Sec. 201(d)(4),
formerly Sec. 201(c)(4), Sept. 3, 1982, 96 Stat. 419, renumbered
Sec. 201(d)(4), Pub. L. 97-448, title III, Sec. 306(a)(1)(A)(i),
Jan. 12, 1983, 96 Stat. 2400; Pub. L. 99-514, title I, Sec.
141(b)(2), title VII, Sec. 701(e)(4)(A), Oct. 22, 1986, 100 Stat.
2117, 2343; Pub. L. 107-134, title I, Sec. 101(b)(1), Jan. 23,
2002, 115 Stat. 2428; Pub. L. 108-121, title I, Sec. 110(a)(2)(A),
Nov. 11, 2003, 117 Stat. 1342.)
-MISC1-
AMENDMENTS
2003 - Subsec. (b)(1). Pub. L. 108-121 inserted ", astronauts,"
after "Forces".
2002 - Subsec. (b)(1). Pub. L. 107-134 inserted "and victims of
certain terrorist attacks" before "on death".
1986 - Subsec. (a)(4). Pub. L. 99-514, Sec. 701(e)(4)(A), amended
par. (4) generally, substituting "alternative minimum tax" for
"minimum tax for taxpayers other than corporations".
Subsec. (b)(2), (3). Pub. L. 99-514, Sec. 141(b)(2), struck out
par. (2) which read: "For limitation on tax where an individual
chooses the benefits of income averaging, see section 1301." and
redesignated former par. (3) as (2).
1982 - Subsec. (a)(4). Pub. L. 97-248, Sec. 201(d)(4), formerly
Sec. 201(c)(4), substituted "section 55" for "sections 55 and 56".
1980 - Subsec. (a)(4). Pub. L. 96-222 substituted "sections 55
and 56" for "section 55".
1978 - Subsec. (a)(3). Pub. L. 95-600, Sec. 401(b)(2),
redesignated par. (4) as (3). Former par. (3), relating to the
alternative tax in the case of capital gains, was struck out.
Subsec. (a)(4), (5). Pub. L. 95-600, Secs. 401(b)(2), 421(e)(1),
redesignated par. (5) as (4) and substituted "taxpayers other than
corporations, see section 55" for "preferences, see section 56".
Former par. (4) redesignated (3).
1976 - Subsec. (b). Pub. L. 94-455 redesignated pars. (2), (3),
and (4), as (1), (2), (3), respectively, and struck out former par.
(1) which referred to section 632 for limitation on tax
attributable to sales of oil or gas properties and par. (5) which
referred to section 1347 for limitation on tax attributable to
claims against the U.S. involving acquisition of property.
1969 - Subsec. (a)(5). Pub. L. 91-172, Sec. 301(b)(2), added par.
(5).
Subsec. (b). Pub. L. 91-172, Sec. 803(d)(6), substituted "tax"
for "surtax" in pars. (1) and (5).
1964 - Subsec. (b). Pub. L. 88-272 redesignated pars. (2), (3),
(4), (7) and (8) as pars. (1) to (5), respectively, substituted
"where an individual chooses the benefits of income averaging" for
"with respect to compensation for longterm services" in par. (3),
and struck out former pars. (1), (5) and (6) which referred to tax
attributable to receipt of lump sum under annuity, endowment, or
life insurance contract, to income from artistic work or
inventions, and to back pay, respectively.
EFFECTIVE DATE OF 2003 AMENDMENT
Pub. L. 108-121, title I, Sec. 110(a)(4), Nov. 11, 2003, 117
Stat. 1342, provided that: "The amendments made by this subsection
[amending this section and sections 692 and 6013 of this title]
shall apply with respect to any astronaut whose death occurs after
December 31, 2002."
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by Pub. L. 107-134 applicable to taxable years ending
before, on, or after Sept. 11, 2001, with provisions relating to
waiver of limitations, see section 101(d) of Pub. L. 107-134, set
out as a note under section 692 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 141(b)(2) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 151(a) of
Pub. L. 99-514, set out as a note under section 1 of this title.
Amendment by section 701(e)(4)(A) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 701(f) of Pub. L.
99-514, set out as an Effective Date note under section 55 of this
title.
EFFECTIVE DATE OF 1982 AMENDMENT
Section 201(e)(1) of Pub. L. 97-248 provided that: "The
amendments made by this section [amending this section and sections
46, 53, 55, 56, 57, 58, 173, 174, 511, 616, 617, 897, 901, 936,
1016, 6015, 6362, 6654, and 7701 of this title] shall apply to
taxable years beginning after December 31, 1982."
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96-222 effective, except as otherwise
provided, as if it had been included in the provisions of the
Revenue Act of 1978, Pub. L. 95-600, to which such amendment
relates, see section 201 of Pub. L. 96-222, set out as a note under
section 32 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by section 401(b)(2) of Pub. L. 95-600 applicable to
taxable years beginning after Dec. 31, 1978, see section 401(c) of
Pub. L. 95-600, set out as a note under section 1201 of this title.
Section 421(g) of Pub. L. 95-600 provided that: "The amendments
made by this section [enacting section 55 of this title and
amending this section and sections 57, 58, 443, 511, 666, 871, 877,
904, 6015, 6362, and 6654 of this title] shall apply to taxable
years beginning after December 31, 1978, except that the amendment
made by paragraph (1) of subsection (b) [amending section 57 of
this title] shall apply to sales and exchanges made after July 26,
1978, in taxable years ending after such date."
EFFECTIVE DATE OF 1969 AMENDMENT
Section 301(c) of Pub. L. 91-172, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "The
amendments made by this section [enacting sections 56 to 58 of this
title and amending this section and sections 12, 46, 51, 443, 453,
511, 901, 1373, 1375, 6015, and 6654 of this title] shall apply to
taxable years ending after December 31, 1969. In the case of a
taxable year beginning in 1969 and ending in 1970, the tax imposed
by section 56 of the Internal Revenue Code of 1986 [formerly I.R.C.
1954] (as added by subsection (a)) shall be an amount equal to the
tax imposed by such section (determined without regard to this
sentence) multiplied by a fraction -
"(1) the numerator of which is the number of days in the
taxable year occurring after December 31, 1969, and
"(2) the denominator of which is the number of days in the
entire taxable year."
Amendment by section 803(d)(6) of Pub. L. 91-172 applicable to
taxable years beginning after Dec. 31, 1970, see section 803(f) of
Pub. L. 91-172, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 232(g) of Pub. L. 88-272, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) General rule. - Except as provided in paragraph (2), the
amendments made by this section [enacting sections 1301 to 1305,
amending this section and sections 4, 72, 144, 402, 403, 6511, and
omitting former sections 1301 to 1307 of this title] shall apply
with respect to taxable years beginning after December 31, 1963.
"(2) Income from an employment. - If, in a taxable year beginning
after December 31, 1963, an individual or partnership receives or
accrues compensation from an employment (as defined by section
1301(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954]
as in effect immediately before the enactment of this Act [Feb. 26,
1964] and the employment began before February 6, 1963, the tax
attributable to such compensation may, at the election of the
taxpayer, be computed under the provisions of sections 1301 and
1307 of such Code as in effect immediately before the enactment of
this Act. If a taxpayer so elects (at such time and in such manner
as the Secretary of the Treasury or his delegate by regulations
prescribes), he may not choose for such taxable year the benefits
provided by part I of subchapter Q of chapter 1 of such Code
(relating to income averaging) as amended by this Act and (if he
elects to have subsection (e) of such section 1307 apply) section
170(b)(5) of such Code as amended by this Act shall not apply to
charitable contributions paid in such taxable year."
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(e)(4)(A) of Pub. L.
99-514 notwithstanding any treaty obligation of the United States
in effect on Oct. 22, 1986, see section 1012(aa)(2) of Pub. L.
100-647, set out as a note under section 861 of this title.
-End-
-CITE-
26 USC PART II - TAX ON CORPORATIONS 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART II - TAX ON CORPORATIONS
-HEAD-
PART II - TAX ON CORPORATIONS
-MISC1-
Sec.
11. Tax imposed.
12. Cross references relating to tax on corporations.
-End-
-CITE-
26 USC Sec. 11 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART II - TAX ON CORPORATIONS
-HEAD-
Sec. 11. Tax imposed
-STATUTE-
(a) Corporations in general
A tax is hereby imposed for each taxable year on the taxable
income of every corporation.
(b) Amount of tax
(1) In general
The amount of the tax imposed by subsection (a) shall be the
sum of -
(A) 15 percent of so much of the taxable income as does not
exceed $50,000,
(B) 25 percent of so much of the taxable income as exceeds
$50,000 but does not exceed $75,000,
(C) 34 percent of so much of the taxable income as exceeds
$75,000 but does not exceed $10,000,000, and
(D) 35 percent of so much of the taxable income as exceeds
$10,000,000.
In the case of a corporation which has taxable income in excess
of $100,000 for any taxable year, the amount of tax determined
under the preceding sentence for such taxable year shall be
increased by the lesser of (i) 5 percent of such excess, or (ii)
$11,750. In the case of a corporation which has taxable income in
excess of $15,000,000, the amount of the tax determined under the
foregoing provisions of this paragraph shall be increased by an
additional amount equal to the lesser of (i) 3 percent of such
excess, or (ii) $100,000.
(2) Certain personal service corporations not eligible for
graduated rates
Notwithstanding paragraph (1), the amount of the tax imposed by
subsection (a) on the taxable income of a qualified personal
service corporation (as defined in section 448(d)(2)) shall be
equal to 35 percent of the taxable income.
(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 taxes imposed by
subsection (a) and section 55 shall apply only as provided by
section 882.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 11; Mar. 30, 1955, ch. 18, Sec.
2, 69 Stat. 14; Mar. 29, 1956, ch. 115, Sec. 2, 70 Stat. 66; Pub.
L. 85-12, Sec. 2, Mar. 29, 1957, 71 Stat. 9; Pub. L. 85-475, Sec.
2, June 30, 1958, 72 Stat. 259; Pub. L. 86-75, Sec. 2, June 30,
1959, 73 Stat. 157; Pub. L. 86-564, title II, Sec. 201, June 30,
1960, 74 Stat. 290; Pub. L. 86-779, Sec. 10(d), Sept. 14, 1960, 74
Stat. 1009; Pub. L. 87-72, Sec. 2, June 30, 1961, 75 Stat. 193;
Pub. L. 87-508, Sec. 2, June 28, 1962, 76 Stat. 114; Pub. L. 88-52,
Sec. 2, June 29, 1963, 77 Stat. 72; Pub. L. 88-272, title I, Sec.
121, Feb. 26, 1964, 78 Stat. 25; Pub. L. 89-809, title I, Sec.
104(b)(2), Nov. 13, 1966, 80 Stat. 1557; Pub. L. 91-172, title IV,
Sec. 401(b)(2)(B), Dec. 30, 1969, 83 Stat. 602; Pub. L. 94-12,
title III, Sec. 303(a), (b), Mar. 29, 1975, 89 Stat. 44; Pub. L.
94-164, Sec. 4(a)-(c), Dec. 23, 1975, 89 Stat. 973, 974; Pub. L.
94-455, title IX, Sec. 901(a), Oct. 4, 1976, 90 Stat. 1606; Pub. L.
95-30, title II, Sec. 201(1), (2), May 23, 1977, 91 Stat. 141; Pub.
L. 95-600, title III, Sec. 301(a), Nov. 6, 1978, 92 Stat. 2820;
Pub. L. 97-34, title II, Sec. 231(a), Aug. 13, 1981, 95 Stat. 249;
Pub. L. 98-369, div. A, title I, Sec. 66(a), July 18, 1984, 98
Stat. 585; Pub. L. 99-514, title VI, Sec. 601(a), Oct. 22, 1986,
100 Stat. 2249; Pub. L. 100-203, title X, Sec. 10224(a), Dec. 22,
1987, 101 Stat. 1330-412; Pub. L. 100-647, title I, Sec.
1007(g)(13)(B), Nov. 10, 1988, 102 Stat. 3436; Pub. L. 103-66,
title XIII, Sec. 13221(a), (b), Aug. 10, 1993, 107 Stat. 477.)
-MISC1-
AMENDMENTS
1993 - Subsec. (b)(1). Pub. L. 103-66, Sec. 13221(a)(3), inserted
at end of closing provisions "In the case of a corporation which
has taxable income in excess of $15,000,000, the amount of the tax
determined under the foregoing provisions of this paragraph shall
be increased by an additional amount equal to the lesser of (i) 3
percent of such excess, or (ii) $100,000."
Subsec. (b)(1)(C), (D). Pub. L. 103-66, Sec. 13221(a)(1), (2),
added subpars. (C) and (D) and struck out former subpar. (C) which
read as follows: "34 percent of so much of the taxable income as
exceeds $75,000."
Subsec. (b)(2). Pub. L. 103-66, Sec. 13221(b), substituted "35
percent" for "34 percent".
1988 - Subsec. (d). Pub. L. 100-647 substituted "the taxes
imposed by subsection (a) and section 55" for "the tax imposed by
subsection (a)".
1987 - Subsec. (b). Pub. L. 100-203 amended subsec. (b)
generally. Prior to amendment, subsec. (b) read as follows: "The
amount of the tax imposed by subsection (a) shall be the sum of -
"(1) 15 percent of so much of the taxable income as does not
exceed $50,000,
"(2) 25 percent of so much of the taxable income as exceeds
$50,000 but does not exceed $75,000, and
"(3) 34 percent of so much of the taxable income as exceeds
$75,000.
In the case of a corporation which has taxable income in excess of
$100,000 for any taxable year, the amount of tax determined under
the preceding sentence for such taxable year shall be increased by
the lesser of (A) 5 percent of such excess, or (B) $11,750."
1986 - Subsec. (b). Pub. L. 99-514 amended subsec. (b) generally.
Prior to amendment, subsec. (b) read as follows: "The amount of the
tax imposed by subsection (a) shall be the sum of -
"(1) 15 percent (16 percent for taxable years beginning in
1982) of so much of the taxable income as does not exceed
$25,000;
"(2) 18 percent (19 percent for taxable years beginning in
1982) 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.
In the case of a corporation with taxable income in excess of
$1,000,000 for any taxable year, the amount of tax determined under
the preceding sentence for such taxable year shall be increased by
the lesser of (A) 5 percent of such excess, or (B) $20,250."
1984 - Subsec. (b). Pub. L. 98-369 inserted "In the case of a
corporation with taxable income in excess of $1,000,000 for any
taxable year, the amount of tax determined under the preceding
sentence for such taxable year shall be increased by the lesser of
(A) 5 percent of such excess, or (B) $20,250."
1981 - Subsec. (b)(1). Pub. L. 97-34, Sec. 231(a)(1), substituted
"15 percent (16 percent for taxable years beginning in 1982)" for
"17 percent".
Subsec. (b)(2). Pub. L. 97-34, Sec. 231(a)(2), substituted "18
percent (19 percent for taxable years beginning in 1982)" for "20
percent".
1978 - Pub. L. 95-600 reduced corporate tax rates by substituting
provisions imposing a five-step tax rate structure on corporate
taxable income for provisions using a normal tax and surtax
approach to the taxation of corporate taxable income.
1977 - Subsec. (b)(1). Pub. L. 95-30, Sec. 201(1), substituted
"December 31, 1978" for "December 31, 1977".
Subsec. (b)(2). Pub. L. 95-30, Sec. 201(1), substituted "January
1, 1979" for "January 1, 1978" in provisions preceding subpar. (A).
Subsec. (d)(1). Pub. L. 95-30, Sec. 201(2), substituted "December
31, 1978" for "December 31, 1977".
Subsec. (d)(2). Pub. L. 95-30, Sec. 201(2), substituted "January
1, 1979" for "January 1, 1978".
1976 - Subsec. (a). Pub. L. 94-455 reenacted subsec. (a) without
change.
Subsec. (b). Pub. L. 94-455, among other changes, substituted
"December 31, 1977, 22 percent" for "December 31, 1976, 22 percent"
and "after December 31, 1974 and before January 1, 1978" for "after
December 31, 1974 and before January 1, 1977" and struck out
provisions relating to the six-month application of the general
rule.
Subsec. (c). Pub. L. 94-455 struck out provisions relating to the
special rule for 1976 for calendar year taxpayers.
Subsec. (d). Pub. L. 94-455, among other changes, substituted
provisions relating to surtax exemption of $25,000 for a taxable
year ending Dec. 31, 1977, or $50,000 for a taxable year ending
after Dec. 31, 1974, and before Jan. 1, 1978, for provisions
relating to surtax exemption of $50,000 for any taxable year and
struck out provisions relating to six-month application of the
general rule.
1975 - Subsec. (b). Pub. L. 94-164 redesignated existing pars.
(1) and (2) as pars. (1)(A) and (1)(B), and in par. (1)(A) as so
redesignated substituted "after December 31, 1976" for "before
January 1, 1975 or after December 31, 1975", and in par. (1)(B) as
so redesignated substituted "January 1, 1977" for "January 1,
1976", and added par. (2).
Pub. L. 94-12, Sec. 303(a), reduced the normal tax for a taxable
year ending after Dec. 31, 1974, and before Jan. 1, 1976, to 20
percent of so much of the taxable income as does not exceed $25,000
plus 22 percent of so much of the taxable income as exceeds
$25,000.
Subsec. (c). Pub. L. 94-164 designated existing provisions as
par. (1), struck out special percentages for taxable years
beginning before Jan. 1, 1964, and after Dec. 31, 1963 and before
Jan. 1, 1965, and added par. (2).
Subsec. (d). Pub. L. 94-164 designated existing provisions as
par. (1), substituted "$50,000" for "$25,000", inserted reference
to section 1564 of this title, and added par. (2).
Pub. L. 94-12, Sec. 303(b), substituted "$50,000" for "$25,000".
1969 - Subsec. (d). Pub. L. 91-172 substituted "section 1561 or
1564" for "section 1561".
1966 - Subsec. (e)(4). Pub. L. 89-809, Sec. 104(b)(2)(A), struck
out par. (4) which made reference to section 881(a) (relating to
foreign corporations not engaged in business in United States).
Subsec. (f). Pub. L. 89-809, Sec. 104(b)(2)(B), added subsec.
(f).
1964 - Subsec. (b). Pub. L. 88-272 applied the 30 percent tax to
years beginning before Jan. 1, 1964 instead of July 1, 1964 in par.
(1), and in par. (2), reduced the rate from 25 percent to 22
percent, and applied it to years beginning after Dec. 31, 1963,
instead of June 30, 1964.
Subsec. (c). Pub. L. 88-272 increased the percentage from 22 to
28 for taxable years beginning after Dec. 31, 1963, and before Jan.
1, 1965, and to 26 percent for taxable years beginning after Dec.
31, 1964. The surtax exemption previously carried in subsec. (c),
is now stated in subsec. (d).
Subsecs. (d), (e). Pub. L. 88-272 added subsec. (d) and
redesignated former subsec. (d) as (e).
1963 - Subsec. (b). Pub. L. 88-52 substituted "July 1, 1964" for
"July 1, 1963" and "June 30, 1964" for "June 30, 1963" wherever
appearing.
1962 - Subsec. (b). Pub. L. 87-508 substituted "July 1, 1963" for
"July 1, 1962" and "June 30, 1963" for "June 30, 1962" wherever
appearing.
1961 - Subsec. (b). Pub. L. 87-72 substituted "July 1, 1962" for
"July 1, 1961" and "June 30, 1962" for "June 30, 1961" wherever
appearing.
1960 - Subsec. (b). Pub. L. 86-564 substituted "July 1, 1961" for
"July 1, 1960" and "June 30, 1961" for "June 30, 1960" wherever
appearing.
Subsec. (d)(3). Pub. L. 86-779 inserted "and real estate
investment trusts" after "regulated investment companies".
1959 - Subsec. (b). Pub. L. 86-75 substituted "July 1, 1960" for
"July 1, 1959" and "June 30, 1960" for "June 30, 1959" wherever
appearing.
1958 - Subsec. (b). Pub. L. 85-475 substituted "July 1, 1959" for
"July 1, 1958" and "June 30, 1959" for "June 30, 1958" wherever
appearing.
1957 - Subsec. (b). Pub. L. 85-12 substituted "July 1, 1958" for
"April 1, 1957" and "June 30, 1958" for "March 31, 1957" wherever
appearing.
1956 - Subsec. (b). Act Mar. 29, 1956, substituted "April 1,
1957" for "April 1, 1956" and "March 31, 1957" for "March 31, 1956"
wherever appearing.
1955 - Subsec. (b). Act Mar. 30, 1955, substituted "April 1,
1956" for "April 1, 1955" and "March 31, 1956" for "March 31, 1955"
wherever appearing.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13221(d) of Pub. L. 103-66 provided that: "The amendments
made by this section [amending this section and sections 852, 1201,
and 1445 of this title] shall apply to taxable years beginning on
or after January 1, 1993; except that the amendment made by
subsection (c)(3) [amending section 1445 of this title] shall take
effect on the date of the enactment of this Act [Aug. 10, 1993]."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10224(b) of Pub. L. 100-203 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1987."
EFFECTIVE DATE OF 1986 AMENDMENT
Section 601(b) of Pub. L. 99-514 provided that:
"(1) In general. - The amendment made by subsection (a) [amending
this section] shall apply to taxable years beginning on or after
July 1, 1987.
"(2) Cross reference. -
"For treatment of taxable years which include July 1, 1987,
see section 15 of the Internal Revenue Code of 1986."
EFFECTIVE DATE OF 1984 AMENDMENT
Section 66(c) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - The amendments made by this section [amending
this section and section 1561 of this title] shall apply to taxable
years beginning after December 31, 1983.
"(2) Amendments not treated as changed in rate of tax. - The
amendments made by this subsection [probably should be "section"]
shall not be treated as a change in a rate of tax for purposes of
section 21 of the Internal Revenue Code of 1986 [formerly I.R.C.
1954]."
EFFECTIVE DATE OF 1981 AMENDMENT
Section 231(c) of Pub. L. 97-34 provided that: "The amendments
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1981."
EFFECTIVE DATE OF 1978 AMENDMENT
Section 301(c) of Pub. L. 95-600 provided that: "The amendments
made by this section [amending this section and sections 12, 57,
244, 247, 511, 527, 528, 802, 821, 826, 852, 857, 882, 907, 922,
962, 1351, 1551, 1561, 6154, and 6655 of this title] shall apply to
taxable years beginning after December 31, 1978."
EFFECTIVE DATE OF 1976 AMENDMENT
Section 901(d) of Pub. L. 94-455 provided that: "The amendment
made by subsection (a) [amending this section] shall take effect on
December 23, 1975. The amendments made by subsection (b) [amending
section 821 of this title] shall apply to taxable years ending
after December 31, 1974. The amendments made by subsection (c)
[amending sections 21, 1561, and 6154 of this title] shall apply to
taxable years ending after December 31, 1975."
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENTS
Section 4(e) of Pub. L. 94-164 provided that: "The amendments
made by subsections (b), (c), and (d) [amending this section and
sections 21, 962, and 1561 of this title] apply to taxable years
beginning after December 31, 1975. The amendment made by subsection
(c) [amending this section] ceases to apply for taxable years
beginning after December 31, 1976."
Section 305(b)(1) of Pub. L. 94-12 provided that: "The amendments
made by section 303 [amending this section and sections 12, 962,
and 1561 of this title and enacting provisions set out as a note
under this section] shall apply to taxable years ending after
December 31, 1974. The amendments made by subsections (b) and (c)
of such section [amending this section and sections 12, 962, and
1561 of this title and enacting provisions set out as a note under
this section] shall cease to apply for taxable years ending after
December 31, 1975."
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable with respect to taxable
years beginning after Dec. 31, 1969, see section 401(h)(2) of Pub.
L. 91-172, set out as a note under section 1561 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Section 104(n) of Pub. L. 89-809 provided that: "The amendments
made by this section (other than subsection (k)) [enacting section
6683 to this title and amending this section and sections 245, 301,
512, 542, 543, 545, 819, 821, 822, 831, 832, 841, 842, 881, 882,
884, 952, 953, 1249, 1442, and 6016 of this title] shall apply with
respect to taxable years beginning after December 31, 1966. The
amendment made by subsection (k) [amending section 1248(d)(4) of
this title] shall apply with respect to sales or exchanges
occurring after December 31, 1966."
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272, except for purposes of section 21 of
this title, effective with respect to taxable years beginning after
Dec. 31, 1963, see section 131 of Pub. L. 88-272, set out as a note
under section 1 of this title.
EFFECTIVE DATE OF 1960 AMENDMENT
Amendment by Pub. L. 86-779 applicable with respect to taxable
years of real estate investment trusts beginning after Dec. 31,
1960, see section 10(k) of Pub. L. 86-779, set out as an Effective
Date note under section 856 of this title.
ALLOCATION OF 1975 TAXABLE INCOME AMONG COMPONENT MEMBERS OF
CONTROLLED GROUP OF CORPORATIONS
Section 303(c)(1) of Pub. L. 94-12 provided in part that: "In
applying subsection (b)(2) of section 11 [subsec. (b)(2) of this
section], the first $25,000 of taxable income and the second
$25,000 of taxable income shall each be allocated among the
component members of a controlled group of corporations in the same
manner as the surtax exemption is allocated."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 15, 59, 80, 244, 247,
280C, 453A, 460, 468B, 511, 527, 594, 774, 801, 804, 831, 835, 847,
852, 857, 860E, 860G, 860K, 882, 891, 904, 907, 954, 962, 1201,
1291, 1293, 1351, 1374, 1375, 1381, 1446, 1551, 1561, 4942, 6033,
6242, 6425, 6655, 7518, 7704 of this title; title 46 App. section
1177.
-End-
-CITE-
26 USC Sec. 12 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART II - TAX ON CORPORATIONS
-HEAD-
Sec. 12. Cross references relating to tax on corporations
-STATUTE-
(1) For tax on the unrelated business income of certain
charitable and other corporations exempt from tax under this
chapter, see section 511.
(2) For accumulated earnings tax and personal holding company
tax, see parts I and II of subchapter G (sec. 531 and
following).
(3) For doubling of tax on corporations of certain foreign
countries, see section 891.
(4) For alternative tax in case of capital gains, see section
1201(a).
(5) For rate of withholding in case of foreign corporations,
see section 1442.
(6) For limitation on benefits of graduated rate schedule
provided in section 11(b), see section 1551.
(7) For alternative minimum tax, see section 55.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 11; Pub. L. 88-272, title II,
Sec. 234(b)(4), Feb. 26, 1964, 78 Stat. 115; Pub. L. 91-172, title
III, Sec. 301(b)(3), Dec. 30, 1969, 83 Stat. 585; Pub. L. 94-12,
title III, Sec. 303(c)(2), Mar. 29, 1975, 89 Stat. 44; Pub. L.
95-600, title III, Sec. 301(b)(1), Nov. 6, 1978, 92 Stat. 2820;
Pub. L. 98-369, div. A, title I, Sec. 474(r)(29)(E), July 18, 1984,
98 Stat. 844; Pub. L. 99-514, title VII, Sec. 701(e)(4)(B), Oct.
22, 1986, 100 Stat. 2343.)
-MISC1-
AMENDMENTS
1986 - Par. (7). Pub. L. 99-514 amended par. (7) generally,
substituting "alternative minimum tax" and "55" for "minimum tax
for tax preferences" and "56", respectively.
1984 - Pars. (6) to (8). Pub. L. 98-369 redesignated pars. (7)
and (8) as (6) and (7), respectively. Former par. (6), which
referred to section 1451 for withholding of tax on tax-free
covenant bonds, was struck out.
1978 - Par. (7). Pub. L. 95-600 substituted "benefits of
graduated rate schedule provided in section 11(b)" for "the $25,000
exemption from surtax provided in section 11(c)".
1975 - Par. (7). Pub. L. 94-12 substituted "$50,000" for
"$25,000" for a limited period. See Effective and Termination Dates
of 1975 Amendment note set out below.
1969 - Par. (8). Pub. L. 91-172 added par. (8).
1964 - Par. (8). Pub. L. 88-272 struck out par. (8) which
referred to section 1503 for additional tax for corporations filing
consolidated returns.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, with certain exceptions and qualifications,
see section 701(f) of Pub. L. 99-514, set out as an Effective Date
note under section 55 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98-369 not applicable with respect to
obligations issued before Jan. 1, 1984, see section 475(b) of Pub.
L. 98-369, set out as a note under section 33 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95-600 applicable to taxable years beginning
after Dec. 31, 1978, see section 301(c) of Pub. L. 95-600, set out
as a note under section 11 of this title.
EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT
Amendment by Pub. L. 94-12 applicable to taxable years ending
after Dec. 31, 1974, but to cease to apply for taxable years ending
after Dec. 31, 1975, see section 305(b)(1) of Pub. L. 94-12, set
out as a note under section 11 of this title.
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91-172 applicable to taxable years ending
after Dec. 31, 1969, see section 301(c) of Pub. L. 91-172, set out
as a note under section 5 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by Pub. L. 88-272 applicable to taxable years beginning
after Dec. 31, 1963, see section 234(c) of Pub. L. 88-272, set out
as a note under section 1503 of this title.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUBLIC LAW 99-514 IN
RELATION TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by Pub. L. 99-514 notwithstanding
any treaty obligation of the United States in effect on Oct. 22,
1986, see section 1012(aa)(2) of Pub. L. 100-647, set out as a note
under section 861 of this title.
-End-
-CITE-
26 USC PART III - CHANGES IN RATES DURING A TAXABLE YEAR 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART III - CHANGES IN RATES DURING A TAXABLE YEAR
-HEAD-
PART III - CHANGES IN RATES DURING A TAXABLE YEAR
-MISC1-
Sec.
15. Effect of changes.
AMENDMENTS
1984 - Pub. L. 98-369, div. A, title IV, Sec. 474(b)(3), July 18,
1984, 98 Stat. 830, substituted "15. Effect of changes" for "21.
Effect of changes".
-End-
-CITE-
26 USC Sec. 15 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART III - CHANGES IN RATES DURING A TAXABLE YEAR
-HEAD-
Sec. 15. Effect of changes
-STATUTE-
(a) General rule
If any rate of tax imposed by this chapter changes, and if the
taxable year includes the effective date of the change (unless that
date is the first day of the taxable year), then -
(1) tentative taxes shall be computed by applying the rate for
the period before the effective date of the change, and the rate
for the period on and after such date, to the taxable income for
the entire taxable year; and
(2) the tax for such taxable year shall be the sum of that
proportion of each tentative tax which the number of days in each
period bears to the number of days in the entire taxable year.
(b) Repeal of tax
For purposes of subsection (a) -
(1) if a tax is repealed, the repeal shall be considered a
change of rate; and
(2) the rate for the period after the repeal shall be zero.
(c) Effective date of change
For purposes of subsections (a) and (b) -
(1) if the rate changes for taxable years "beginning after" or
"ending after" a certain date, the following day shall be
considered the effective date of the change; and
(2) if a rate changes for taxable years "beginning on or after"
a certain date, that date shall be considered the effective date
of the change.
(d) Section not to apply to inflation adjustments
This section shall not apply to any change in rates under
subsection (f) of section 1 (relating to adjustments in tax tables
so that inflation will not result in tax increases).
(e) References to highest rate
If the change referred to in subsection (a) involves a change in
the highest rate of tax imposed by section 1 or 11(b), any
reference in this chapter to such highest rate (other than in a
provision imposing a tax by reference to such rate) shall be
treated as a reference to the weighted average of the highest rates
before and after the change determined on the basis of the
respective portions of the taxable year before the date of the
change and on or after the date of the change.
(f) Rate reductions enacted by Economic Growth and Tax Relief
Reconciliation Act of 2001
This section shall not apply to any change in rates under
subsection (i) of section 1 (relating to rate reductions after
2000).
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 12, Sec. 21; Pub. L. 88-272,
title I, Sec. 132, Feb. 26, 1964, 78 Stat. 30; Pub. L. 91-172,
title VIII, Sec. 803(e), Dec. 30, 1969, 83 Stat. 685; Pub. L.
92-178, title II, Sec. 205, Dec. 10, 1971, 85 Stat. 511; Pub. L.
94-12, title III, Sec. 305(b)(2), Mar. 29, 1975, 89 Stat. 45; Pub.
L. 94-164, Sec. 4(d)(2), Dec. 23, 1975, 89 Stat. 975; Pub. L.
94-455, title IX, Sec. 901(c)(2), Oct. 4, 1976, 90 Stat. 1607; Pub.
L. 95-30, title I, Sec. 101(d)(2), May 23, 1977, 91 Stat. 133; Pub.
L. 95-600, title I, Sec. 106, Nov. 6, 1978, 92 Stat. 2776; Pub. L.
97-34, title I, Sec. 101(d)(3), Aug. 13, 1981, 95 Stat. 184;
renumbered Sec. 15, Pub. L. 98-369, div. A, title IV, Sec.
474(b)(1), July 18, 1984, 98 Stat. 830; Pub. L. 99-514, title I,
Sec. 101(b), Oct. 22, 1986, 100 Stat. 2099; Pub. L. 100-647, title
I, Sec. 1006(a), Nov. 10, 1988, 102 Stat. 3393; Pub. L. 107-16,
title I, Sec. 101(c)(3), June 7, 2001, 115 Stat. 43.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2001 - Subsec. (f). Pub. L. 107-16, Secs. 101(c)(3), 901,
temporarily added subsec. (f). See Effective and Termination Dates
of 2001 Amendment note below.
1988 - Subsec. (e). Pub. L. 100-647 added subsec. (e).
1986 - Subsec. (d). Pub. L. 99-514 amended subsec. (d) generally,
substituting "apply to inflation adjustments" for "apply to section
1 rate changes made by Economic Recovery Tax Act of 1981" in
heading and struck out "section 1 attributable to the amendments
made by section 101 of the Economic Tax Act of 1981 or" before
"subsection (f)" in text.
1984 - Pub. L. 98-369 renumbered section 21 of this title as this
section.
1981 - Subsec. (d). Pub. L. 97-34 substituted provisions that
this section shall not apply to any change in rates under section 1
attributable to the amendments made by section 101 of the Economic
Recovery Tax Act of 1981 or subsec. (f) of section 1 for provisions
that had related to the changes made by section 303(b) of the Tax
Reduction Act of 1975 in the surtax exemption.
Subsecs. (e), (f). Pub. L. 97-34 struck out subsecs. (e) and (f)
which had related, respectively, to changes made by the Tax
Reduction and Simplification Act of 1977 and to changes made by
Revenue Act of 1978.
1978 - Subsec. (f). Pub. L. 95-600 added subsec. (f).
1977 - Subsec. (d). Pub. L. 95-30, Sec. 101(d)(2)(A), (B),
redesignated subsec. (f) as (d). Former subsec. (d), which directed
that, in applying subsec. (a) to a taxable year of an individual
which was not a calendar year, each change made by the Tax Reform
Act of 1969 in part I or in the application of part IV or V of
subchapter B for purposes of the determination of taxable income
should be treated as a change in a rate of tax, was struck out.
Subsec. (e). Pub. L. 95-30, Sec. 101(d)(2)(A), (C), added subsec.
(e). Former subsec. (e), which directed that, in applying subsec.
(a) to a taxable year of an individual which was not a calendar
year, each change made by the Revenue Act of 1971 in section 141
(relating to the standard deduction) and section 151 (relating to
personal exemptions) should be treated as a change in a rate of
tax, was struck out.
Subsec. (f). Pub. L. 95-30, Sec. 101(d)(2)(B), redesignated
subsec. (f) as (d).
1976 - Subsec. (f). Pub. L. 94-455 substituted "in the surtax
exemption and any change under section 11(d) in the surtax
exemption" for "and the change made by section 3(c) of the Revenue
Adjustment Act of 1975 in section 11(d) (relating to corporate
surtax exemption)".
1975 - Subsec. (f). Pub. L. 94-164 inserted reference to change
made by section 3(c) of the Revenue Adjustment Act of 1975.
Pub. L. 94-12 added subsec. (f).
1971 - Subsec. (e). Pub. L. 92-178 added subsec. (e).
1969 - Subsec. (d). Pub. L. 91-172 substituted provisions
covering changes made by the Tax Reform Act of 1969 in case of
individuals for provisions covering changes made by Revenue Act of
1964.
1964 - Subsec. (d). Pub. L. 88-272 amended subsection generally
by substituting provisions relating to changes made by the Revenue
Act of 1964, for provisions relating to taxable years beginning
before Jan. 1, 1954, and ending after Dec. 31, 1953.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 applicable to taxable years beginning
after Dec. 31, 2000, see section 101(d)(1) of Pub. L. 107-16, set
out as a note under section 1 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100-647 effective, except as otherwise
provided, as if included in the provision of the Tax Reform Act of
1986, Pub. L. 99-514, to which such amendment relates, see section
1019(a) of Pub. L. 100-647, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to taxable years beginning
after Dec. 31, 1981, see section 101(f)(1) of Pub. L. 97-34, set
out as a note under section 1 of this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95-30 applicable to taxable years beginning
after Dec. 31, 1976, see section 106(a) of Pub. L. 95-30, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 applicable with respect to taxable
years ending after Dec. 31, 1975, see section 901(d) of Pub. L.
94-455, set out as a note under section 11 of this title.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94-164 applicable to taxable years beginning
after Dec. 31, 1975, see section 4(e) of Pub. L. 94-164, set out as
an Effective and Termination Dates of 1975 Amendments note under
section 11 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Section 132 of Pub. L. 88-272 provided that the amendment made by
that section is effective with respect to taxable years ending
after Dec. 31, 1963.
COORDINATION OF 1997 AMENDMENT WITH SECTION 15
Pub. L. 105-34, title I, Sec. 1(c), Aug. 5, 1997, 111 Stat. 788,
provided that: "No amendment made by this Act [see Tables for
classification] shall be treated as a change in a rate of tax for
purposes of section 15 of the Internal Revenue Code of 1986."
COORDINATION OF 1993 AMENDMENT WITH SECTION 15
Pub. L. 103-66, title XIII, Sec. 13001(c), Aug. 10, 1993, 107
Stat. 416, provided that: "Except in the case of the amendments
made by section 13221 [amending sections 11, 852, 1201, and 1445 of
this title] (relating to corporate rate increase), no amendment
made by this chapter [chapter 1 (Secs. 13001-13444) of title XIII
of Pub. L. 103-66, see Tables for classification] shall be treated
as a change in a rate of tax for purposes of section 15 of the
Internal Revenue Code of 1986."
COORDINATION OF 1990 AMENDMENT WITH SECTION 15
Pub. L. 101-508, title XI, Sec. 11001(c), Nov. 5, 1990, 104 Stat.
1388-400, provided that: "Except as otherwise expressly provided in
this title, no amendment made by this title [see Tables for
classification] shall be treated as a change in a rate of tax for
purposes of section 15 of the Internal Revenue Code of 1986."
COORDINATION OF 1987 AMENDMENT WITH SECTION 15
Pub. L. 100-203, title X, Sec. 10000(c), Dec. 22, 1987, 101 Stat.
1330-382, provided that: "No amendment made by this title [see
Tables for classification] shall be treated as a change in a rate
of tax for purposes [of] section 15 of the Internal Revenue Code of
1986."
COORDINATION OF 1986 AMENDMENT WITH SECTION 15
Section 3(b) of Pub. L. 99-514 provided that:
"(1) In general. - Except as provided in paragraph (2), for
purposes of section 15 of the Internal Revenue Code of 1986, no
amendment or repeal made by this Act [see Tables for
classification] shall be treated as a change in the rate of a tax
imposed by chapter 1 of such Code.
"(2) Exception. - Paragraph (1) shall not apply to the amendment
made by section 601 [amending section 11 of this title] (relating
to corporate rate reductions)."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 59A, 441, 6013 of this
title.
-End-
-CITE-
26 USC PART IV - CREDITS AGAINST TAX 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
-HEAD-
PART IV - CREDITS AGAINST TAX
-MISC1-
Subpart
A. Nonrefundable personal credits.
B. Other credits.
C. Refundable credits.
D. Business-related credits.
E. Rules for computing investment credit.
F. Rules for computing work opportunity credit.
G. Credit against regular tax for prior year minimum tax
liability.(!1)
AMENDMENTS
1996 - Pub. L. 104-188, title I, Secs. 1201(e)(3),
1601(b)(2)(F)(ii), Aug. 20, 1996, 110 Stat. 1772, 1833, substituted
"Other credits" for "Foreign tax credit, etc." in item for subpart
B and "work opportunity credit" for "targeted jobs credit" in item
for subpart F.
1990 - Pub. L. 101-508, title XI, Sec. 11813(b)(26), Nov. 5,
1990, 104 Stat. 1388-555, substituted "Rules for computing
investment credit" for "Rules for computing credit for investment
in certain depreciable property" in item for subpart E.
1984 - Pub. L. 98-369, div. A, title IV, Secs. 471(a), 474(n)(3),
July 18, 1984, 98 Stat. 825, 834, substituted "Nonrefundable
personal credits" for "Credits allowable" in item for subpart A,
"Foreign tax credit, etc" for "Rules for computing credit for
investment in certain depreciable property" in item for subpart B,
"Refundable credits" for "Rules for computing credit for expense of
work incentive programs" in item for subpart C, and
"Business-related credits" for "Rules for computing credit for
employment of certain new employees" in item for subpart D, and
added items for subparts E and F.
1977 - Pub. L. 95-30, title II, Sec. 202(d)(1)(B), May 23, 1977,
91 Stat. 147, added subpart D.
1971 - Pub. L. 92-178, title VI, Sec. 601(c)(1), Dec. 10, 1971,
85 Stat. 557, added subpart C.
-SECREF-
PART REFERRED TO IN OTHER SECTIONS
This part is referred to in sections 665, 1374, 1375, 1397E,
1398, 1503, 6096, 6425, 6428, 6429, 6654, 6655, 6682 of this title.
-FOOTNOTE-
(!1) Editorially supplied. Subpart G of part IV added by Pub. L.
99-514 without corresponding amendment of part analysis.
-End-
-CITE-
26 USC Subpart A - Nonrefundable Personal Credits 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
SUBPART A - NONREFUNDABLE PERSONAL CREDITS
-MISC1-
Sec.
21. Expenses for household and dependent care services
necessary for gainful employment.
22. Credit for the elderly and the permanently and totally
disabled.
23. Adoption expenses.
24. Child tax credit.
25. Interest on certain home mortgages.
25A. Hope and Lifetime Learning credits.
25B. Elective deferrals and IRA contributions by certain
individuals.
26. Limitation based on tax liability; definition of tax
liability.
AMENDMENTS
2001 - Pub. L. 107-16, title VI, Sec. 618(c), June 7, 2001, 115
Stat. 108, added item 25B.
1998 - Pub. L. 105-206, title VI, Sec. 6004(a)(1), July 22, 1998,
112 Stat. 792, substituted "Hope and Lifetime Learning credits" for
"Higher education tuition and related expenses" in item 25A.
1997 - Pub. L. 105-34, title I, Sec. 101(d)(3), title II, Sec.
201(e), Aug. 5, 1997, 111 Stat. 799, 806, added items 24 and 25A.
1996 - Pub. L. 104-188, title I, Sec. 1807(c)(6), Aug. 20, 1996,
110 Stat. 1902, added item 23.
1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(1), Nov. 5, 1990,
104 Stat. 1388-522, struck out item 23 "Residential energy credit".
1986 - Pub. L. 99-514, title I, Sec. 112(b)(5), Oct. 22, 1986,
100 Stat. 2109, struck out item 24 "Contributions to candidates for
public office".
1984 - Pub. L. 98-369, div. A, title IV, Secs. 471(b), 612(f),
July 18, 1984, 98 Stat. 826, 913, substituted "Nonrefundable
Personal Credits" for "Credits Allowable" as subpart A heading,
struck out analysis of sections 31 through 45 formerly comprising
subpart A, and inserted a new analysis of sections consisting of
items 21 (formerly 44A), 22 (formerly 37), 23 (formerly 44C), 24
(formerly 41), and 25 and 26 (newly enacted).
1983 - Pub. L. 98-67 repealed amendments made by Pub. L. 97-248.
See 1982 Amendment note below.
Pub. L. 98-21, title I, Sec. 122(c)(7), Apr. 20, 1983, 97 Stat.
87, inserted "and the permanently and totally disabled" to item 37.
Pub. L. 97-424, title V, Sec. 515(b)(6)(D), Jan. 6, 1983, 96
Stat. 2181, substituted "and special fuels" for ", special fuels,
and lubricating oil" after "gasoline" in item 39.
Pub. L. 97-414, Sec. 4(c)(1), Jan. 4, 1983, 96 Stat. 2056, added
item 44H.
1982 - Pub. L. 97-248, title III, Secs. 307(b)(3), 308(a), Sept.
3, 1982, 96 Stat. 590, 591, provided that, applicable to payments
of interest, dividends, and patronage dividends paid or credited
after June 30, 1983, item 31 is amended to read "Tax withheld on
wages, interest, dividends, and patronage dividends". Section
102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369,
repealed subtitle A (Secs. 301-308) of title III of Pub. L. 97-248
as of the close of June 30, 1983, and provided that the Internal
Revenue Code of 1954 [now 1986] [this title] shall be applied and
administered (subject to certain exceptions) as if such subtitle A
(and the amendments made by such subtitle A) had not been enacted.
1981 - Pub. L. 97-34, title II, Sec. 221(c)(2), title III, Sec.
331(e)(2), Aug. 13, 1981, 95 Stat. 247, 295, added items 44F and
44G.
1980 - Pub. L. 96-223, title II, Secs. 231(b)(1), 232(b)(3)(B),
Apr. 2, 1980, 94 Stat. 272, 276, added items 44D and 44E.
1978 - Pub. L. 95-618, title I, Sec. 101(b)(1), Nov. 9, 1978, 92
Stat. 3179, added item 44C.
1977 - Pub. L. 95-30, title I, Sec. 101(e)(1), title II, Sec.
202(d)(1)(A), May 23, 1977, 91 Stat. 134, 147, added item 44B and
struck out item 36 "Credit not allowed to individuals taking
standard deduction".
1976 - Pub. L. 94-455, title IV, Sec. 401(a)(2)(D), title V,
Secs. 501(c)(2), 503(b)(5), 504(a)(2), title XIX, Sec.
1901(b)(1)(Z), Oct. 4, 1976, 90 Stat. 1555, 1559, 1562, 1565, 1792,
substituted in item 42 "General tax credit" for "Taxable income
credit", struck out in item 36 "pay optional tax or", inserted in
item 33 "possession tax credit", substituted in item 37 "Credit of
the elderly" for "Retirement income", added item 44A, and struck
out item 35 "Partially tax-exempt interest received by
individuals".
1975 - Pub. L. 94-164, Sec. 3(a)(2), Dec. 23, 1975, 89 Stat. 973,
substituted "Taxable income credit" for "Credit for personal
exemptions" in item 42.
Pub. L. 94-12, title II, Secs. 203(b)(1), 204(c), 208(d)(1), Mar.
29, 1975, 89 Stat. 30, 32, 35, renumbered item 42 as 45 and added
item 42 applicable to taxable years ending after Dec. 31, 1974, but
to cease to apply to taxable years ending after Dec. 31, 1975, item
43 applicable to taxable years beginning after Dec. 31, 1974, but
before Jan. 1, 1976, and item 44.
1971 - Pub. L. 92-178, title VI, Sec. 601(c)(2), Dec. 10, 1971,
85 Stat. 557, added items 40 and 41, and redesignated former item
40 as 42.
1970 - Pub. L. 91-258, title II, Sec. 207(d)(10), May 21, 1970,
84 Stat. 249, inserted ", special fuels," after "gasoline" in item
39.
1965 - Pub. L. 89-44, title VIII, Sec. 809(d)(1), June 21, 1965,
79 Stat. 167, added item 39 and redesignated former item 39 as 40.
1964 - Pub. L. 88-272, title II, Sec. 201(d)(1), Feb. 26, 1964,
78 Stat. 32, struck out item 34.
1962 - Pub. L. 87-834, Sec. 2(g)(1), (2), Oct. 16, 1962, 76 Stat.
972, 973, added headings of subparts A and B and item 38, and
redesignated former item 38 as 39.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in sections 29, 30, 38, 53, 904,
1400C, 6401, 6428 of this title; title 12 section 1831q.
-End-
-CITE-
26 USC Sec. 21 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 21. Expenses for household and dependent care services
necessary for gainful employment
-STATUTE-
(a) Allowance of credit
(1) In general
In the case of an individual who maintains a household which
includes as a member one or more qualifying individuals (as
defined in subsection (b)(1)), there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to the applicable percentage of the
employment-related expenses (as defined in subsection (b)(2))
paid by such individual during the taxable year.
(2) Applicable percentage defined
For purposes of paragraph (1), the term "applicable percentage"
means 35 percent reduced (but not below 20 percent) by 1
percentage point for each $2,000 (or fraction thereof) by which
the taxpayer's adjusted gross income for the taxable year exceeds
$15,000.
(b) Definitions of qualifying individual and employment-related
expenses
For purposes of this section -
(1) Qualifying individual
The term "qualifying individual" means -
(A) a dependent of the taxpayer who is under the age of 13
and with respect to whom the taxpayer is entitled to a
deduction under section 151(c),
(B) a dependent of the taxpayer who is physically or mentally
incapable of caring for himself, or
(C) the spouse of the taxpayer, if he is physically or
mentally incapable of caring for himself.
(2) Employment-related expenses
(A) In general
The term "employment-related expenses" means amounts paid for
the following expenses, but only if such expenses are incurred
to enable the taxpayer to be gainfully employed for any period
for which there are 1 or more qualifying individuals with
respect to the taxpayer:
(i) expenses for household services, and
(ii) expenses for the care of a qualifying individual.
Such term shall not include any amount paid for services
outside the taxpayer's household at a camp where the qualifying
individual stays overnight.
(B) Exception
Employment-related expenses described in subparagraph (A)
which are incurred for services outside the taxpayer's
household shall be taken into account only if incurred for the
care of -
(i) a qualifying individual described in paragraph (1)(A),
or
(ii) a qualifying individual (not described in paragraph
(1)(A)) who regularly spends at least 8 hours each day in the
taxpayer's household.
(C) Dependent care centers
Employment-related expenses described in subparagraph (A)
which are incurred for services provided outside the taxpayer's
household by a dependent care center (as defined in
subparagraph (D)) shall be taken into account only if -
(i) such center complies with all applicable laws and
regulations of a State or unit of local government, and
(ii) the requirements of subparagraph (B) are met.
(D) Dependent care center defined
For purposes of this paragraph, the term "dependent care
center" means any facility which -
(i) provides care for more than six individuals (other than
individuals who reside at the facility), and
(ii) receives a fee, payment, or grant for providing
services for any of the individuals (regardless of whether
such facility is operated for profit).
(c) Dollar limit on amount creditable
The amount of the employment-related expenses incurred during any
taxable year which may be taken into account under subsection (a)
shall not exceed -
(1) $3,000 if there is 1 qualifying individual with respect to
the taxpayer for such taxable year, or
(2) $6,000 if there are 2 or more qualifying individuals with
respect to the taxpayer for such taxable year.
The amount determined under paragraph (1) or (2) (whichever is
applicable) shall be reduced by the aggregate amount excludable
from gross income under section 129 for the taxable year.
(d) Earned income limitation
(1) In general
Except as otherwise provided in this subsection, the amount of
the employment-related expenses incurred during any taxable year
which may be taken into account under subsection (a) shall not
exceed -
(A) in the case of an individual who is not married at the
close of such year, such individual's earned income for such
year, or
(B) in the case of an individual who is married at the close
of such year, the lesser of such individual's earned income or
the earned income of his spouse for such year.
(2) Special rule for spouse who is a student or incapable of
caring for himself
In the case of a spouse who is a student or a qualifying
individual described in subsection (b)(1)(C), for purposes of
paragraph (1), such spouse shall be deemed for each month during
which such spouse is a full-time student at an educational
institution, or is such a qualifying individual, to be gainfully
employed and to have earned income of not less than -
(A) $250 if subsection (c)(1) applies for the taxable year,
or
(B) $500 if subsection (c)(2) applies for the taxable year.
In the case of any husband and wife, this paragraph shall apply
with respect to only one spouse for any one month.
(e) Special rules
For purposes of this section -
(1) Maintaining household
An individual shall be treated as maintaining a household for
any period only if over half the cost of maintaining the
household for such period is furnished by such individual (or, if
such individual is married during such period, is furnished by
such individual and his spouse).
(2) Married couples must file joint return
If the taxpayer is married at the close of the taxable year,
the credit shall be allowed under subsection (a) only if the
taxpayer and his spouse file a joint return for the taxable year.
(3) Marital status
An individual legally separated from his spouse under a decree
of divorce or of separate maintenance shall not be considered as
married.
(4) Certain married individuals living apart
If -
(A) an individual who is married and who files a separate
return -
(i) maintains as his home a household which constitutes for
more than one-half of the taxable year the principal place of
abode of a qualifying individual, and
(ii) furnishes over half of the cost of maintaining such
household during the taxable year, and
(B) during the last 6 months of such taxable year such
individual's spouse is not a member of such household,
such individual shall not be considered as married.
(5) Special dependency test in case of divorced parents, etc.
If -
(A) paragraph (2) or (4) of section 152(e) applies to any
child with respect to any calendar year, and
(B) such child is under the age of 13 or is physically or
mentally incapable of caring for himself,
in the case of any taxable year beginning in such calendar year,
such child shall be treated as a qualifying individual described
in subparagraph (A) or (B) of subsection (b)(1) (whichever is
appropriate) with respect to the custodial parent (within the
meaning of section 152(e)(1)), and shall not be treated as a
qualifying individual with respect to the noncustodial parent.
(6) Payments to related individuals
No credit shall be allowed under subsection (a) for any amount
paid by the taxpayer to an individual -
(A) with respect to whom, for the taxable year, a deduction
under section 151(c) (relating to deduction for personal
exemptions for dependents) is allowable either to the taxpayer
or his spouse, or
(B) who is a child of the taxpayer (within the meaning of
section 151(c)(3)) who has not attained the age of 19 at the
close of the taxable year.
For purposes of this paragraph, the term "taxable year" means the
taxable year of the taxpayer in which the service is performed.
(7) Student
The term "student" means an individual who during each of 5
calendar months during the taxable year is a full-time student at
an educational organization.
(8) Educational organization
The term "educational organization" means an educational
organization described in section 170(b)(1)(A)(ii).
(9) Identifying information required with respect to service
provider
No credit shall be allowed under subsection (a) for any amount
paid to any person unless -
(A) the name, address, and taxpayer identification number of
such person are included on the return claiming the credit, or
(B) if such person is an organization described in section
501(c)(3) and exempt from tax under section 501(a), the name
and address of such person are included on the return claiming
the credit.
In the case of a failure to provide the information required
under the preceding sentence, the preceding sentence shall not
apply if it is shown that the taxpayer exercised due diligence in
attempting to provide the information so required.
(10) Identifying information required with respect to qualifying
individuals
No credit shall be allowed under this section with respect to
any qualifying individual unless the TIN of such individual is
included on the return claiming the credit.
(f) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this section.
-SOURCE-
(Added Pub. L. 94-455, title V, Sec. 504(a)(1), Oct. 4, 1976, 90
Stat. 1563, Sec. 44A; amended Pub. L. 95-600, title I, Sec. 121(a),
Nov. 6, 1978, 92 Stat. 2779; Pub. L. 97-34, title I Sec. 124
(a)-(d), Aug. 13, 1981, 95 Stat. 197, 198; Pub. L. 98-21, title I,
Sec. 122(c)(1), Apr. 20, 1983, 97 Stat. 87; renumbered Sec. 21 and
amended Pub. L. 98-369, div. A, title IV, Secs. 423(c)(4), 471(c),
474(c), July 18, 1984, 98 Stat. 801, 826, 830; Pub. L. 99-514,
title I, Sec. 104(b)(1), Oct. 22, 1986, 100 Stat. 2104; Pub. L.
100-203, title X, Sec. 10101(a), Dec. 22, 1987, 101 Stat. 1330-384;
Pub. L. 100-485, title VII, Sec. 703(a)-(c)(1), Oct. 13, 1988, 102
Stat. 2426, 2427; Pub. L. 104-188, title I, Sec. 1615(b), Aug. 20,
1996, 110 Stat. 1853; Pub. L. 107-16, title II, Sec. 204(a), (b),
June 7, 2001, 115 Stat. 49; Pub. L. 107-147, title IV, Sec. 418(b),
Mar. 9, 2002, 116 Stat. 57.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
PRIOR PROVISIONS
A prior section 21 was renumbered section 15 of this title.
AMENDMENTS
2002 - Subsec. (d)(2)(A). Pub. L. 107-147, Sec. 418(b)(1),
substituted "$250" for "$200".
Subsec. (d)(2)(B). Pub. L. 107-147, Sec. 418(b)(2), substituted
"$500" for "$400".
2001 - Subsec. (a)(2). Pub. L. 107-16, Secs. 204(b), 901,
temporarily substituted "35 percent" for "30 percent" and "$15,000"
for "$10,000". See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c)(1). Pub. L. 107-16, Secs. 204(a)(1), 901, temporarily
substituted "$3,000" for "$2,400". See Effective and Termination
Dates of 2001 Amendment note below.
Subsec. (c)(2). Pub. L. 107-16, Secs. 204(a)(2), 901, temporarily
substituted "$6,000" for "$4,800". See Effective and Termination
Dates of 2001 Amendment note below.
1996 - Subsec. (e)(10). Pub. L. 104-188 added par. (10).
1988 - Subsec. (b)(1)(A). Pub. L. 100-485, Sec. 703(a),
substituted "age of 13" for "age of 15".
Subsec. (c). Pub. L. 100-485, Sec. 703(b), inserted at end: "The
amount determined under paragraph (1) or (2) (whichever is
applicable) shall be reduced by the aggregate amount excludable
from gross income under section 129 for the taxable year."
Subsec. (e)(5)(B). Pub. L. 100-485, Sec. 703(a), substituted "age
of 13" for "age of 15".
Subsec. (e)(9). Pub. L. 100-485, Sec. 703(c)(1), added par. (9).
1987 - Subsec. (b)(2)(A). Pub. L. 100-203 inserted at end "Such
term shall not include any amount paid for services outside the
taxpayer's household at a camp where the qualifying individual
stays overnight."
1986 - Subsecs. (b)(1)(A), (e)(6)(A). Pub. L. 99-514, Sec.
104(b)(1)(A), substituted "section 151(c)" for "section 151(e)".
Subsec. (e)(6)(B). Pub. L. 99-514, Sec. 104(b)(1)(B), substituted
"section 151(c)(3)" for "section 151(e)(3)".
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 44A of
this title as this section.
Subsec. (a)(1). Pub. L. 98-369, Sec. 474(c)(2), (3), substituted
"subsection (b)(1)" for "subsection (c)(1)" and "subsection (b)(2)"
for "subsection (c)(2)".
Subsec. (b). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec.
(c) as (b). Former subsec. (b), which provided that the credit
allowed by subsec. (a) could not exceed the amount of the tax
imposed by this chapter for the taxable year reduced by the sum of
the credits allowable under sections 33, 37, 38, 40, 41, 42, and
44, was struck out.
Subsec. (c). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec.
(d) as (c). Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec.
(e) as (d). Former subsec. (d) redesignated (c).
Subsec. (d)(2). Pub. L. 98-369, Sec. 474(c)(4), substituted
"subsection (b)(1)(C)" for "subsection (c)(1)(C)" in introductory
provisions.
Subsec. (d)(2)(A). Pub. L. 98-369, Sec. 474(c)(5), substituted
"subsection (c)(1)" for "subsection (d)(1)".
Subsec. (d)(2)(B). Pub. L. 98-369, Sec. 474(c)(6), substituted
"subsection (c)(2)" for "subsection (d)(2).
Subsec. (e). Pub. L. 98-369, Sec. 474(c)(1), redesignated subsec.
(f) as (e). Former subsec. (e) redesignated (d).
Subsec. (e)(5). Pub. L. 98-369, Sec. 474(c)(7), substituted
"subsection (b)(1)" for "subsection (c)(1)" in provisions following
subpar. (B).
Pub. L. 98-369, Sec. 423(c)(4), amended par. (5) generally,
substituting subpars. (A) and (B) reading:
"(A) paragraph (2) or (4) of section 152(e) applies to any
child with respect to any calendar year, and
"(B) such child is under the age of 15 or is physically or
mentally incapable of caring for himself,"
for former provisions:
"(A) a child (as defined in section 151(e)(3)) who is under the
age of 15 or who is physically or mentally incapable of caring
for himself receives over half of his support during the calendar
year from his parents who are divorced or legally separated under
a decree of divorce or separate maintenance or who are separated
under a written separation agreement, and
"(B) such child is in the custody of one or both of his parents
for more than one-half of the calendar year."
and substituted in concluding text "(whichever is appropriate) with
respect to the custodial parent (within the meaning of section
152(e)(1)), and shall not be treated as a qualifying individual
with respect to the noncustodial parent" for ", as the case may be,
with respect to that parent who has custody for a longer period
during such calendar year than the other parent, and shall not be
treated as being a qualifying individual with respect to such other
parent."
Subsecs. (f), (g). Pub. L. 98-369, Sec. 474(c)(1), redesignated
subsecs. (f) and (g) as (e) and (f), respectively.
1983 - Subsec. (b)(2). Pub. L. 98-21 substituted "relating to
credit for the elderly and the permanently and totally disabled"
for "relating to credit for the elderly".
1981 - Subsec. (a). Pub. L. 97-34, Sec. 124(a), designated
existing provisions as par. (1), substituted "the applicable
percentage" for "20 percent" in par. (1) as so designated, and
added par. (2).
Subsec. (c)(2)(B). Pub. L. 97-34, Sec. 124(c), designated
existing provisions as cl. (i) and added cl. (ii).
Subsec. (c)(2)(C), (D). Pub. L. 97-34, Sec. 124(d), added
subpars. (C) and (D).
Subsec. (d)(1). Pub. L. 97-34, Sec. 124(b)(1)(A), substituted
"$2,400" for "$2,000".
Subsec. (d)(2). Pub. L. 97-34, Sec. 124(b)(1)(B), substituted
"$4,800" for "$4,000".
Subsec. (e)(2)(A). Pub. L. 97-34, Sec. 124(b)(2)(A), substituted
"$200" for "$166".
Subsec. (e)(2)(B). Pub. L. 97-34, Sec. 124(b)(2)(B), substituted
"$400" for "$333".
1978 - Subsec. (f)(6). Pub. L. 95-600 substituted provision
disallowing a credit for any amount paid by a taxpayer to an
individual with respect to whom, for the taxable year, a deduction
under section 151(e) is allowable either to the taxpayer or his
spouse or who is a child of the taxpayer who has not attained the
age of 19 at the close of the taxpayer year and defining "taxpayer
year" for provision disallowing a credit for any amount paid by the
taxpayer to an individual bearing a relationship described in
section 152(a)(1) through (8), or a dependent described in section
152(a)(9), except that a credit was allowed for an amount paid by a
taxpayer to an individual with respect to whom, for the taxable
year of the taxpayer in which the service was performed, neither
the taxpayer nor his spouse was entitled to a deduction under
section 151(e), provided the service constituted employment within
the meaning of section 3121(b).
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 418(c), Mar. 9, 2002, 116 Stat.
58, provided that: "The amendments made by this section [amending
this section and sections 23 and 137 of this title] shall take
effect as if included in the provisions of the Economic Growth and
Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to which
they relate."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title II, Sec. 204(c), June 7, 2001, 115 Stat.
50, provided that: "The amendments made by this section [amending
this section] shall apply to taxable years beginning after December
31, 2002."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1615(d) of Pub. L. 104-188 provided that:
"(1) In general. - The amendments made by this section [amending
this section and sections 151, 6109, 6213, and 6724 of this title]
shall apply with respect to returns the due date for which (without
regard to extensions) is on or after the 30th day after the date of
the enactment of this Act [Aug. 20, 1996].
"(2) Special rule for 1995 and 1996. - In the case of returns for
taxable years beginning in 1995 or 1996, a taxpayer shall not be
required by the amendments made by this section to provide a
taxpayer identification number for a child who is born after
October 31, 1995, in the case of a taxable year beginning in 1995
or November 30, 1996, in the case of a taxable year beginning in
1996."
EFFECTIVE DATE OF 1988 AMENDMENT
Section 703(d) of Pub. L. 100-485 provided that: "The amendments
made by this section [amending this section and sections 129 and
6109 of this title] shall apply to taxable years beginning after
December 31, 1988."
EFFECTIVE DATE OF 1987 AMENDMENT
Section 10101(b) of Pub. L. 100-203, as amended by Pub. L.
100-647, title II, Sec. 2004(a), Nov. 10, 1988, 102 Stat. 3598,
provided that:
"(1) In general. - The amendment made by subsection (a) [amending
this section] shall apply to expenses paid in taxable years
beginning after December 31, 1987.
"(2) Special rule for cafeteria plans. - For purposes of section
125 of the Internal Revenue Code of 1986, a plan shall not be
treated as failing to be a cafeteria plan solely because under the
plan a participant elected before January 1, 1988, to receive
reimbursement under the plan for dependent care assistance for
periods after December 31, 1987, and such assistance included
reimbursement for expenses at a camp where the dependent stays
overnight."
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to taxable years beginning
after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out
as a note under section 1 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 423(c)(4) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1984, see section 423(d) of
Pub. L. 98-369, set out as a note under section 2 of this title.
Section 475(a) of Pub. L. 98-369 provided that: "The amendments
made by this title [probably means subtitle F (Secs. 471-475) of
title IV of Pub. L. 98-369, which enacted sections 25, 38, and 39
of this title, amended this section and sections 12, 15, 22 to 24,
27 to 35, 37, 39 to 41, 44A, 44C to 44H, 45 to 48, 51, 52, 55, 56,
86, 87, 103, 108, 129, 168, 196, 213, 280C, 381, 383, 401, 404,
409, 441, 527, 642, 691, 874, 882, 901, 904, 936, 1016, 1033, 1351,
1366, 1374, 1375, 1441, 1442, 1451, 3507, 6013, 6096, 6201, 6211,
6213, 6362, 6401, 6411, 6420, 6421, 6427, 6501, 6511, 7701, 7871,
9502, and 9503 of this title, repealed sections 38, 40, 44, 44B,
50A, 50B, and 53 of this title, and enacted provisions set out as
notes under sections 30, 33, 46, and 48 of this title] shall apply
to taxable years beginning after December 31, 1983, and to
carrybacks from such years."
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 98-21 applicable to taxable years beginning
after Dec. 31, 1983, except that if an individual's annuity
starting date was deferred under section 105(d)(6) of this title as
in effect on the day before Apr. 20, 1983, such deferral shall end
on the first day of such individual's first taxable year beginning
after Dec. 31, 1983, see section 122(d) of Pub. L. 98-21, set out
as a note under section 22 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 124(f) of Pub. L. 97-34 provided that:
"(1) Except as provided in paragraph (2), the amendments made by
this section [amending this section and enacting section 129 of
this title] shall apply to taxable years beginning after December
31, 1981.
"(2) The amendments made by subsection (e)(2) [amending sections
3121, 3306, and 3401 of this title and section 409 of Title 42, The
Public Health and Welfare] shall apply to remuneration paid after
December 31, 1981."
EFFECTIVE DATE OF 1978 AMENDMENT
Section 121(b) of Pub. L. 95-600 provided that: "The amendment
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1978."
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31,
1975, see section 508 of Pub. L. 94-455, set out as an Effective
Date of 1976 Amendment note under section 3 of this title.
PROGRAM TO INCREASE PUBLIC AWARENESS
Pub. L. 101-508, title XI, Sec. 11114, Nov. 5, 1990, 104 Stat.
1388-414, provided that: "Not later than the first calendar year
following the date of the enactment of this subtitle [Nov. 5,
1990], the Secretary of the Treasury, or the Secretary's delegate,
shall establish a taxpayer awareness program to inform the
taxpaying public of the availability of the credit for dependent
care allowed under section 21 of the Internal Revenue Code of 1986
and the earned income credit and child health insurance under
section 32 of such Code. Such public awareness program shall be
designed to assure that individuals who may be eligible are
informed of the availability of such credit and filing procedures.
The Secretary shall use appropriate means of communication to carry
out the provisions of this section."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 23, 35, 129, 213, 6213 of
this title; title 7 section 2015.
-End-
-CITE-
26 USC Sec. 22 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 22. Credit for the elderly and the permanently and totally
disabled
-STATUTE-
(a) General rule
In the case of a qualified individual, there shall be allowed as
a credit against the tax imposed by this chapter for the taxable
year an amount equal to 15 percent of such individual's section 22
amount for such taxable year.
(b) Qualified individual
For purposes of this section, the term "qualified individual"
means any individual -
(1) who has attained age 65 before the close of the taxable
year, or
(2) who retired on disability before the close of the taxable
year and who, when he retired, was permanently and totally
disabled.
(c) Section 22 amount
For purposes of subsection (a) -
(1) In general
An individual's section 22 amount for the taxable year shall be
the applicable initial amount determined under paragraph (2),
reduced as provided in paragraph (3) and in subsection (d).
(2) Initial amount
(A) In general
Except as provided in subparagraph (B), the initial amount
shall be -
(i) $5,000 in the case of a single individual, or a joint
return where only one spouse is a qualified individual,
(ii) $7,500 in the case of a joint return where both
spouses are qualified individuals, or
(iii) $3,750 in the case of a married individual filing a
separate return.
(B) Limitation in case of individuals who have not attained age
65
(i) In general
In the case of a qualified individual who has not attained
age 65 before the close of the taxable year, except as
provided in clause (ii), the initial amount shall not exceed
the disability income for the taxable year.
(ii) Special rules in case of joint return
In the case of a joint return where both spouses are
qualified individuals and at least one spouse has not
attained age 65 before the close of the taxable year -
(I) if both spouses have not attained age 65 before the
close of the taxable year, the initial amount shall not
exceed the sum of such spouses' disability income, or
(II) if one spouse has attained age 65 before the close
of the taxable year, the initial amount shall not exceed
the sum of $5,000 plus the disability income for the
taxable year of the spouse who has not attained age 65
before the close of the taxable year.
(iii) Disability income
For purposes of this subparagraph, the term "disability
income" means the aggregate amount includable in the gross
income of the individual for the taxable year under section
72 or 105(a) to the extent such amount constitutes wages (or
payments in lieu of wages) for the period during which the
individual is absent from work on account of permanent and
total disability.
(3) Reduction
(A) In general
The reduction under this paragraph is an amount equal to the
sum of the amounts received by the individual (or, in the case
of a joint return, by either spouse) as a pension or annuity or
as a disability benefit -
(i) which is excluded from gross income and payable under -
(I) title II of the Social Security Act,
(II) the Railroad Retirement Act of 1974, or
(III) a law administered by the Veterans' Administration,
or
(ii) which is excluded from gross income under any
provision of law not contained in this title.
No reduction shall be made under clause (i)(III) for any amount
described in section 104(a)(4).
(B) Treatment of certain workmen's compensation benefits
For purposes of subparagraph (A), any amount treated as a
social security benefit under section 86(d)(3) shall be treated
as a disability benefit received under title II of the Social
Security Act.
(d) Adjusted gross income limitation
If the adjusted gross income of the taxpayer exceeds -
(1) $7,500 in the case of a single individual,
(2) $10,000 in the case of a joint return, or
(3) $5,000 in the case of a married individual filing a
separate return,
the section 22 amount shall be reduced by one-half of the excess of
the adjusted gross income over $7,500, $10,000, or $5,000, as the
case may be.
(e) Definitions and special rules
For purposes of this section -
(1) Married couple must file joint return
Except in the case of a husband and wife who live apart at all
times during the taxable year, if the taxpayer is married at the
close of the taxable year, the credit provided by this section
shall be allowed only if the taxpayer and his spouse file a joint
return for the taxable year.
(2) Marital status
Marital status shall be determined under section 7703.
(3) Permanent and total disability defined
An individual is permanently and totally disabled if he is
unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which
can be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12
months. An individual shall not be considered to be permanently
and totally disabled unless he furnishes proof of the existence
thereof in such form and manner, and at such times, as the
Secretary may require.
(f) Nonresident alien ineligible for credit
No credit shall be allowed under this section to any nonresident
alien.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 15, Sec. 37; Aug. 9, 1955, ch.
659, Sec. 1, 69 Stat. 591; Jan. 28, 1956, ch. 17, Sec. 1, 70 Stat.
8; Pub. L. 87-792, Sec. 7(a), Oct. 10, 1962, 76 Stat. 828; Pub. L.
87-876, Sec. 1, Oct. 24, 1962, 76 Stat. 1199; Pub. L. 88-272, title
I, Sec. 113(a), title II, Secs. 201(d)(3), 202(a), Feb. 26, 1964,
78 Stat. 24, 32, 33; Pub. L. 93-406, title II, Sec. 2002(g)(1),
Sept. 2, 1974, 88 Stat. 968; Pub. L. 94-455, title V, Sec. 503(a),
title XIX, Sec. 1901(c)(1), Oct. 4, 1976, 90 Stat. 1559, 1803; Pub.
L. 95-600, title VII, Secs. 701(a)(1)-(3), 703(j)(11), Nov. 6,
1978, 92 Stat. 2897, 2942; Pub. L. 96-222, title I, Sec.
107(a)(1)(E)(i), Apr. 1, 1980, 94 Stat. 222; Pub. L. 97-34, title
I, Sec. 111(b)(4), Aug. 13, 1981, 95 Stat. 194; Pub. L. 98-21,
title I, Sec. 122(a), Apr. 20, 1983, 97 Stat. 85; renumbered Sec.
22 and amended Pub. L. 98-369, div. A, title IV, Secs. 471(c),
474(d), July 18, 1984, 98 Stat. 826, 830; Pub. L. 99-514, title
XIII, Sec. 1301(j)(8), Oct. 22, 1986, 100 Stat. 2658.)
-REFTEXT-
REFERENCES IN TEXT
The Social Security Act, referred to in subsec. (c)(3)(A)(i)(I),
(B), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Title
II of the Social Security Act is classified generally to subchapter
II (Sec. 401 et seq.) of chapter 7 of Title 42, The Public Health
and Welfare. For complete classification of this Act to the Code,
see section 1305 of Title 42 and Tables.
The Railroad Retirement Act of 1974, referred to in subsec.
(c)(3)(A)(i)(II), is act Aug. 29, 1935, ch. 812, as amended
generally by Pub. L. 93-445, title I, Sec. 101, Oct. 16, 1974, 88
Stat. 1305, which is classified generally to subchapter IV (Sec.
231 et seq.) of chapter 9 of Title 45, Railroads. For further
details and complete classification of this Act to the Code, see
Codification note set out preceding section 231 of Title 45,
section 231t of Title 45, and Tables.
-MISC1-
AMENDMENTS
1986 - Subsec. (e)(2). Pub. L. 99-514 substituted "section 7703"
for "section 143".
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 37 of this
title as this section.
Subsec. (a). Pub. L. 98-369, Sec. 474(d)(1), substituted "section
22 amount" for "section 37 amount".
Subsec. (c). Pub. L. 98-369, Sec. 474(d)(2), substituted "Section
22 amount" for "Section 37 amount" in heading.
Subsec. (c)(1). Pub. L. 98-369, Sec. 474(d)(1), substituted
"section 22 amount" for "section 37 amount".
Subsec. (d). Pub. L. 98-369, Sec. 474(d)(3), amended subsec. (d)
generally, striking out heading "Limitations" and designation "(1)"
before "Adjusted gross income limitation" thereby making existing
par. (1) the entire subsec. (d), redesignating existing subpars.
(A), (B), and (C) as pars. (1), (2), and (3), respectively, and
striking out provisions, formerly comprising par. (2), which had
limited the amount of the credit allowed by this section for the
taxable year to the amount of the tax imposed by this chapter for
such taxable year.
1983 - Pub. L. 98-21 inserted reference to permanently and
totally disabled in section catchline.
Subsec. (a). Pub. L. 98-21 amended subsec. (a) generally,
substituting reference to a qualified individual for reference to
an individual who has attained the age of 65 before the close of
the taxable year.
Subsec. (b). Pub. L. 98-21 in amending section generally added
subsec. (b). Former subsec. (b) redesignated (c).
Subsec. (c). Pub. L. 98-21 in amending section generally,
redesignated former subsec. (b) as (c) and, in (c) as so
redesignated, added par. (2) and struck out former (2), which had
provided that the initial amount was $2,500 in the case of a single
individual, $2,500 in the case of a joint return where only one
spouse was eligible for the credit under subsection (a), $3,750 in
the case of a joint return where both spouses were eligible for the
credit under subsection (a), or $1,875 in the case of a married
individual filing a separate return, redesignated existing
provisions as par. (3)(A), inserted "benefit" after "disability"
therein, struck out former subpars. (A) to (C), which had specified
sources of amounts received under title II of the Social Security
Act, under the Railroad Retirement Act of 1935 or 1937, or
otherwise excluded from gross income, added cls. (i) and (ii),
substituted provision that no reduction would be made under cl.
(i)(III) for any amount described in section 104(a)(4) for
provision that no reduction would be made under former par. (3) for
any amount excluded from gross income under section 72 (relating to
annuities), 101 (relating to life insurance proceeds), 104
(relating to compensation for injuries or sickness), 105 (relating
to amounts received under accident and health plans), 120 (relating
to amounts received under qualified group legal services plans),
402 (relating to taxability of beneficiary of employees' trust),
403 (relating to taxation of employee annuities), or 405 (relating
to qualified bond purchase plans), and added subpar. (B). Former
subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 98-21 in amending section generally
redesignated former subsec. (c) as (d). Former subsec. (d)
redesignated (e).
Subsec. (e). Pub. L. 98-21 in amending section generally,
redesignated former subsec. (d) as (e) and struck out provision
that "joint return" meant the joint return of a husband and wife
made under section 6013 and inserted provisions defining permanent
and total disability. Former subsec. (e), which provided for an
election of prior law with respect to public retirement system
income, was struck out.
Subsec. (f). Pub. L. 98-21 reenacted subsec. (f) without change.
1981 - Subsec. (e)(9)(B). Pub. L. 97-34 substituted "section
911(d)(2)" for "section 911(b)".
1978 - Subsec. (e)(2). Pub. L. 95-600, Sec. 701(a)(1), inserted
"(and whose gross income includes income described in paragraph
(4)(B))" after "who has not attained age 65 before the close of the
taxable year".
Subsec. (e)(4)(B). Pub. L. 95-600, Sec. 701(a)(2), (3)(B), as
amended by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), inserted "and who
performed the services giving rise to the pension or annuity (or is
the spouse of the individual who performed the services)" after
"before the close of the taxable year" and substituted reference to
paragraph (9)(A) for reference to paragraph (8)(A).
Subsec. (e)(5)(B). Pub. L. 95-600, Sec. 701(a)(3)(C), as amended
by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), substituted reference to
paragraph (9)(A) for reference to paragraph (8)(A).
Subsec. (e)(8), (9). Pub. L. 95-600, Sec. 701(a)(3)(A), as
amended by Pub. L. 96-222, Sec. 107(a)(1)(E)(i), added par. (8) and
redesignated former par. (8) as (9).
1976 - Pub. L. 94-455, Sec. 503(a), among other changes,
substituted "Credits for the elderly" for "Retirement income" in
section catchline and in text substituted provisions permitting
taxpayers who have all types of income to be eligible for the tax
credit for provisions permitting taxpayers who have only retirement
income to be eligible for the tax credit, eliminated provisions
requiring taxpayers to earn $600 for the previous ten years for tax
credit eligibility and provisions relating variations in treatment
of married couples, and inserted provisions broadening coverage of
the tax credit relief to low and middle income taxpayers.
Pub. L. 94-455, Sec. 1901(c)(1), purported to amend subsec. (f)
of this section by striking out "a Territory". The amendment could
not be executed in view of the prior general amendment of this
section by section 503(a) of Pub. L. 94-455. Section 1901(c)(1) was
repealed by section 703(j)(11) of Pub. L. 95-600.
1974 - Subsec. (c)(1)(E), (F). Pub. L. 93-406 inserted reference
in subpar. (E) to retirement bonds described in section 409 and
added subpar. (F).
1964 - Subsec. (a). Pub. L. 88-272, Secs. 113(a), 201(d)(3),
substituted "an amount equal to 17 percent, in the case of a
taxable year beginning in 1964, or 15 percent, in the case of a
taxable year beginning after December 31, 1964, of the amount
received by such individual as retirement income (as defined in
subsection (c) and as limited by subsection (d));" for "an amount
equal to the amount received by such individual as retirement
income (as defined in subsection (c) and as limited by subsection
(d)), multiplied by the rate provided in section 1 for the first
$2,000 of taxable income;", and struck out "section 34 (relating to
credit for dividends received by individuals)", before "and section
35".
Subsecs. (i), (j). Pub. L. 88-272, Sec. 202(a), added subsec. (i)
and redesignated former subsec. (i) as (j).
1962 - Subsec. (c)(1). Pub. L. 87-792 inserted provisions in
subpar. (A) requiring inclusion, in the case of an individual who
is, or has been, an employee within the meaning of section
401(c)(1), distributions by a trust described in section 401(a)
which is exempt from tax under section 501(a), and added subpar.
(E).
Subsec. (d). Pub. L. 87-876 increased the limit on retirement
income from $1,200 to $1,524, lowered the age requirement in par.
(2)(A) from 65 to 62, and substituted provisions in par. (2)(B)
which reduce the amount of retirement income for individuals who
reach age 62, by one-half the amount of earned income in excess of
$1,200 but not in excess of $1,700, and by the amount received over
$1,700, for provisions which reduced such income by the amount
earned over $1,200 by persons having reached age 65, and which
defined income as in subsec. (g) of this section.
1956 - Subsec. (d)(2). Act Jan. 28, 1956, reduced from 75 to 72
the age at which there will be no limitation on earned income and
increased from $900 to $1,200 the amount that an individual over 65
can earn without reducing the $1,200 on which the retirement credit
is computed.
1955 - Subsec. (f). Act Aug. 9, 1955, extended the retirement
income tax credit to members of the Armed Forces.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by Pub. L. 99-514 applicable to bonds issued after Aug.
15, 1986, except as otherwise provided, see sections 1311 to 1318
of Pub. L. 99-514, set out as an Effective Date; Transitional Rules
note under section 141 of this title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 474(d) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
EFFECTIVE DATE OF 1983 AMENDMENT
Section 122(d) of Pub. L. 98-21, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - The amendments made by this section [amending
sections 37 [now 22], 41 [now 24], 44A [now 21], 46, 53, 85, 105,
128, 403, 415, 904, and 7871 of this title] shall apply to taxable
years beginning after December 31, 1983.
"(2) Transitional rule. - If an individual's annuity starting
date was deferred under section 105(d)(6) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] (as in effect on the day before
the date of the enactment of this section [Apr. 20, 1983]), such
deferral shall end on the first day of such individual's first
taxable year beginning after December 31, 1983."
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable with respect to taxable
years beginning after Dec. 31, 1981, see section 115 of Pub. L.
97-34, set out as a note under section 911 of this title.
EFFECTIVE DATE OF 1978 AMENDMENT
Section 701(a)(4) of Pub. L. 95-600 provided that:
"(A) The amendments made by paragraphs (1) and (2) [amending this
section] shall apply to taxable years beginning after December 31,
1975.
"(B) The amendments made by paragraph (3) [amending this section]
shall apply to taxable years beginning after December 31, 1977."
EFFECTIVE DATE OF 1976 AMENDMENT
Amendment by Pub. L. 94-455 applicable with respect to taxable
years beginning after Dec. 31, 1975, see section 508 of Pub. L.
94-455, set out as a note under section 3 of this title.
EFFECTIVE DATE OF 1974 AMENDMENT
Amendment by Pub. L. 93-406 effective Jan. 1, 1974, see section
2002(i)(2) of Pub. L. 93-406, set out as an Effective Date note
under section 4973 of this title.
EFFECTIVE DATE OF 1964 AMENDMENT
Amendment by section 113(a) of Pub. L. 88-272, except for
purposes of section 21 [now 15] of this title, effective with
respect to taxable years beginning after Dec. 31, 1963, see section
131 of Pub. L. 88-272, set out as a note under section 1 of this
title.
Section 201(e) of Pub. L. 88-272 provided that: "The amendments
made by subsection (a) [amending section 34 of this title] shall
apply with respect to taxable years ending after December 31, 1963.
The amendment made by subsection (b) [repealing section 34 of this
title] shall apply with respect to taxable years ending after
December 31, 1964. The amendment made by subsection (c) [amending
section 116 of this title] shall apply with respect to taxable
years beginning after December 31, 1963. The amendments made by
subsection (d) [amending sections 35, 37 [now 22], 46, 116, 584,
642, 702, 854, 857, 871, 1375, and 6014 of this title] shall apply
with respect to dividends received after December 31, 1964, in
taxable years ending after such date".
Section 202(b) of Pub. L. 88-272 provided that: "The amendments
made by subsection (a) [amending this section] shall apply to
taxable years beginning after December 31, 1963."
EFFECTIVE DATE OF 1962 AMENDMENTS
Section 2 of Pub. L. 87-876 provided that: "The amendment made by
the first section of this Act [amending this section] shall apply
only to taxable years ending after the date of the enactment of
this Act [Oct. 24, 1962]."
Section 8 of Pub. L. 87-792 provided that: "The amendments made
by this Act [enacting sections 405 and 6047 of this title and
amending sections 37 [now 22], 62, 72, 101, 104, 105, 172, 401 to
404, 503, 805, 1361, 2039, 2517, 3306, 3401 and 7207 of this title]
shall apply to taxable years beginning after December 31, 1962."
EFFECTIVE DATE OF 1956 AMENDMENT
Section 2 of act Jan. 28, 1956, provided that: "The amendment
made by the first section of this Act [amending this section] shall
apply only with respect to taxable years beginning after December
31, 1955."
EFFECTIVE DATE OF 1955 AMENDMENT
Section 2 of act Aug. 9, 1955, provided that: "The amendment made
by this Act [amending this section] shall be applicable to taxable
years beginning after December 31, 1954."
DETERMINATION OF RETIREMENT INCOME CREDIT UNDER PROVISIONS AS THEY
EXISTED PRIOR TO AMENDMENT BY PUB. L. 94-455 ELECTION
Pub. L. 95-30, title IV, Sec. 403, May 23, 1977, 91 Stat. 155, as
amended by Pub. L. 99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095,
provided that: "A taxpayer may elect (at such time and in such
manner as the Secretary of the Treasury or his delegate shall
prescribe) to determine the amount of his credit under section 37
[now 22] of the Internal Revenue Code of 1986 [formerly I.R.C.
1954] for his first taxable year beginning in 1976 under the
provisions of such section as they existed before the amendment
made by section 503 of the Tax Reform Act of 1976 [Pub. L.
94-455]."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 32, 86, 151, 415 of this
title.
-End-
-CITE-
26 USC Sec. 23 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 23. Adoption expenses
-STATUTE-
(a) Allowance of credit
(1) In general
In the case of an individual, there shall be allowed as a
credit against the tax imposed by this chapter the amount of the
qualified adoption expenses paid or incurred by the taxpayer.
(2) Year credit allowed
The credit under paragraph (1) with respect to any expense
shall be allowed -
(A) in the case of any expense paid or incurred before the
taxable year in which such adoption becomes final, for the
taxable year following the taxable year during which such
expense is paid or incurred, and
(B) in the case of an expense paid or incurred during or
after the taxable year in which such adoption becomes final,
for the taxable year in which such expense is paid or incurred.
(3) $10,000 credit for adoption of child with special needs
regardless of expenses
In the case of an adoption of a child with special needs which
becomes final during a taxable year, the taxpayer shall be
treated as having paid during such year qualified adoption
expenses with respect to such adoption in an amount equal to the
excess (if any) of $10,000 over the aggregate qualified adoption
expenses actually paid or incurred by the taxpayer with respect
to such adoption during such taxable year and all prior taxable
years.
(b) Limitations
(1) Dollar limitation
The aggregate amount of qualified adoption expenses which may
be taken into account under subsection (a) for all taxable years
with respect to the adoption of a child by the taxpayer shall not
exceed $10,000.
(2) Income limitation
(A) In general
The amount allowable as a credit under subsection (a) for any
taxable year (determined without regard to subsection (c))
shall be reduced (but not below zero) by an amount which bears
the same ratio to the amount so allowable (determined without
regard to this paragraph but with regard to paragraph (1)) as -
(i) the amount (if any) by which the taxpayer's adjusted
gross income exceeds $150,000, bears to
(ii) $40,000.
(B) Determination of adjusted gross income
For purposes of subparagraph (A), adjusted gross income shall
be determined without regard to sections 911, 931, and 933.
(3) Denial of double benefit
(A) In general
No credit shall be allowed under subsection (a) for any
expense for which a deduction or credit is allowed under any
other provision of this chapter.
(B) Grants
No credit shall be allowed under subsection (a) for any
expense to the extent that funds for such expense are received
under any Federal, State, or local program.
(4) Limitation based on amount of tax
The credit allowed under subsection (a) for any taxable year
shall not exceed the excess of -
(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
(B) the sum of the credits allowable under this subpart
(other than this section) and section 27 for the taxable year.
(c) Carryforwards of unused credit
If the credit allowable under subsection (a) for any taxable year
exceeds the limitation imposed by subsection (b)(4) for such
taxable year, such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection (a)
for such taxable year. No credit may be carried forward under this
subsection to any taxable year following the fifth taxable year
after the taxable year in which the credit arose. For purposes of
the preceding sentence, credits shall be treated as used on a
first-in first-out basis.
(d) Definitions
For purposes of this section -
(1) Qualified adoption expenses
The term "qualified adoption expenses" means reasonable and
necessary adoption fees, court costs, attorney fees, and other
expenses -
(A) which are directly related to, and the principal purpose
of which is for, the legal adoption of an eligible child by the
taxpayer,
(B) which are not incurred in violation of State or Federal
law or in carrying out any surrogate parenting arrangement,
(C) which are not expenses in connection with the adoption by
an individual of a child who is the child of such individual's
spouse, and
(D) which are not reimbursed under an employer program or
otherwise.
(2) Eligible child
The term "eligible child" means any individual who -
(A) has not attained age 18, or
(B) is physically or mentally incapable of caring for
himself.
(3) Child with special needs
The term "child with special needs" means any child if -
(A) a State has determined that the child cannot or should
not be returned to the home of his parents,
(B) such State has determined that there exists with respect
to the child a specific factor or condition (such as his ethnic
background, age, or membership in a minority or sibling group,
or the presence of factors such as medical conditions or
physical, mental, or emotional handicaps) because of which it
is reasonable to conclude that such child cannot be placed with
adoptive parents without providing adoption assistance, and
(C) such child is a citizen or resident of the United States
(as defined in section 217(h)(3)).
(e) Special rules for foreign adoptions
In the case of an adoption of a child who is not a citizen or
resident of the United States (as defined in section 217(h)(3)) -
(1) subsection (a) shall not apply to any qualified adoption
expense with respect to such adoption unless such adoption
becomes final, and
(2) any such expense which is paid or incurred before the
taxable year in which such adoption becomes final shall be taken
into account under this section as if such expense were paid or
incurred during such year.
(f) Filing requirements
(1) Married couples must file joint returns
Rules similar to the rules of paragraphs (2), (3), and (4) of
section 21(e) shall apply for purposes of this section.
(2) Taxpayer must include TIN
(A) In general
No credit shall be allowed under this section with respect to
any eligible child unless the taxpayer includes (if known) the
name, age, and TIN of such child on the return of tax for the
taxable year.
(B) Other methods
The Secretary may, in lieu of the information referred to in
subparagraph (A), require other information meeting the
purposes of subparagraph (A), including identification of an
agent assisting with the adoption.
(g) Basis adjustments
For purposes of this subtitle, if a credit is allowed under this
section for any expenditure with respect to any property, the
increase in the basis of such property which would (but for this
subsection) result from such expenditure shall be reduced by the
amount of the credit so allowed.
(h) Adjustments for inflation
In the case of a taxable year beginning after December 31, 2002,
each of the dollar amounts in subsection (a)(3) and paragraphs (1)
and (2)(A)(i) of subsection (b) shall be increased by an amount
equal to -
(1) such dollar amount, multiplied by
(2) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year begins,
determined by substituting "calendar year 2001" for "calendar
year 1992" in subparagraph (B) thereof.
If any amount as increased under the preceding sentence is not a
multiple of $10, such amount shall be rounded to the nearest
multiple of $10.
(i) Regulations
The Secretary shall prescribe such regulations as may be
appropriate to carry out this section and section 137, including
regulations which treat unmarried individuals who pay or incur
qualified adoption expenses with respect to the same child as 1
taxpayer for purposes of applying the dollar amounts in subsections
(a)(3) and (b)(1) of this section and in section 137(b)(1).
-SOURCE-
(Added Pub. L. 104-188, title I, Sec. 1807(a), Aug. 20, 1996, 110
Stat. 1899; amended Pub. L. 105-34, title XVI, Sec. 1601(h)(2)(A),
(B), Aug. 5, 1997, 111 Stat. 1092; Pub. L. 105-206, title VI, Secs.
6008(d)(6), 6018(f)(1), July 22, 1998, 112 Stat. 812, 823; Pub. L.
107-16, title II, Secs. 201(b)(2)(E), 202(a)(1), (b)(1)(A), (2)(A),
(c), (d)(1), (e)(1), (f)(1), (2)(A), June 7, 2001, 115 Stat. 46-49;
Pub. L. 107-147, title IV, Secs. 411(c)(1)(A)-(E), 418(a)(1), Mar.
9, 2002, 116 Stat. 45, 57.)
-STATAMEND-
ADOPTION EXPENSES CREDIT ADJUSTMENT FOR TAX YEARS BEGINNING IN 2004
For inflation adjustment of maximum credit allowed in subsection
(a)(3) of this section for an adoption of a child with special
needs, maximum credit allowed in subsection (b)(1) of this section
for other adoptions, and the income limits for phaseout of adoption
credit in subsection (b)(2)(A) of this section, see section 3.03 of
Revenue Procedure 2003-85, set out as a note under section 1 of
this title.
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
PRIOR PROVISIONS
A prior section 23, added Pub. L. 95-618, title I, Sec. 101(a),
Nov. 9, 1978, 92 Stat. 3175, Sec. 44C; amended Pub. L. 96-223,
title II, Secs. 201, 202(a)-(d), 203(a), Apr. 2, 1980, 94 Stat.
256, 258; renumbered Sec. 23 and amended Pub. L. 98-369, div. A,
title IV, Secs. 471(c), 474(e), title VI, Sec. 612(e)(2), July 18,
1984, 98 Stat. 826, 831, 912, related to residential energy credit,
prior to repeal by Pub. L. 101-508, title XI, Sec. 11801(a)(1),
Nov. 5, 1990, 104 Stat. 1388-520.
AMENDMENTS
2002 - Subsec. (a)(1). Pub. L. 107-147, Sec. 411(c)(1)(A),
reenacted heading without change and amended text of par. (1)
generally. Prior to amendment, text read as follows: "In the case
of an individual, there shall be allowed as a credit against the
tax imposed by this chapter -
"(A) in the case of an adoption of a child other than a child
with special needs, the amount of the qualified adoption expenses
paid or incurred by the taxpayer, and
"(B) in the case of an adoption of a child with special needs,
$10,000."
Subsec. (a)(2). Pub. L. 107-147, Sec. 411(c)(1)(C), struck out
concluding provisions which read as follows: "In the case of the
adoption of a child with special needs, the credit allowed under
paragraph (1) shall be allowed for the taxable year in which the
adoption becomes final."
Subsec. (a)(3). Pub. L. 107-147, Sec. 411(c)(1)(B), added par.
(3).
Subsec. (b)(1). Pub. L. 107-147, Sec. 411(c)(1)(D), substituted
"subsection (a)" for "subsection (a)(1)(A)".
Subsec. (h). Pub. L. 107-147, Sec. 418(a)(1), substituted
"subsection (a)(3)" for "subsection (a)(1)(B)" in introductory
provisions and inserted concluding provisions.
Subsec. (i). Pub. L. 107-147, Sec. 411(c)(1)(E), substituted "the
dollar amounts in subsections (a)(3) and (b)(1)" for "the dollar
limitation in subsection (b)(1)".
2001 - Subsec. (a)(1). Pub. L. 107-16, Secs. 202(a)(1), 901,
temporarily amended heading and text of par. (1) generally. Prior
to amendment, text read as follows: "In the case of an individual,
there shall be allowed as a credit against the tax imposed by this
chapter the amount of the qualified adoption expenses paid or
incurred by the taxpayer." See Effective and Termination Dates of
2001 Amendment note below.
Subsec. (a)(2). Pub. L. 107-16, Secs. 202(c), 901, temporarily
inserted concluding provisions. See Effective and Termination Dates
of 2001 Amendment note below.
Subsec. (b)(1). Pub. L. 107-16, Secs. 202(b)(1)(A), 901,
temporarily substituted "subsection (a)(1)(A)" for "subsection (a)"
and "$10,000" for "$5,000" and struck out "($6,000, in the case of
a child with special needs)" before period at end. See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (b)(2)(A)(i). Pub. L. 107-16, Secs. 202(b)(2)(A), 901,
temporarily substituted "$150,000" for "$75,000". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (b)(4). Pub. L. 107-16, Secs. 202(f)(1), 901, temporarily
added par. (4). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (c). Pub. L. 107-16, Secs. 202(f)(2)(A), 901, temporarily
substituted "subsection (b)(4)" for "section 26(a)" and struck out
"reduced by the sum of the credits allowable under this subpart
(other than this section and sections 24 and 1400C)" before ", such
excess". See Effective and Termination Dates of 2001 Amendment note
below.
Pub. L. 107-16, Secs. 201(b)(2)(E), 901, temporarily substituted
"and sections 24 and 1400C" for "and section 1400C". See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (d)(2). Pub. L. 107-16, Secs. 202(d)(1), 901, temporarily
amended heading and text of par. (2) generally. Prior to amendment,
text read as follows: "The term 'eligible child' means any
individual -
"(A) who -
"(i) has not attained age 18, or
"(ii) is physically or mentally incapable of caring for
himself, and
"(B) in the case of qualified adoption expenses paid or
incurred after December 31, 2001, who is a child with special
needs."
See Effective and Termination Dates of 2001 Amendment note below.
Subsecs. (h), (i). Pub. L. 107-16, Secs. 202(e)(1), 901,
temporarily added subsec. (h) and redesignated former subsec. (h)
as (i). See Effective and Termination Dates of 2001 Amendment note
below.
1998 - Subsec. (b)(2)(A). Pub. L. 105-206, Sec. 6018(f)(1),
inserted "(determined without regard to subsection (c))" after "for
any taxable year" in introductory provisions.
Subsec. (c). Pub. L. 105-206, Sec. 6008(d)(6), inserted "and
section 1400C" after "other than this section".
1997 - Subsec. (a)(2). Pub. L. 105-34, Sec. 1601(h)(2)(A),
amended heading and text of par. (2) generally. Prior to amendment,
text read as follows: "The credit under paragraph (1) with respect
to any expense shall be allowed -
"(A) for the taxable year following the taxable year during
which such expense is paid or incurred, or
"(B) in the case of an expense which is paid or incurred during
the taxable year in which the adoption becomes final, for such
taxable year."
Subsec. (b)(2)(B). Pub. L. 105-34, Sec. 1601(h)(2)(B),
substituted "determined without regard to sections 911, 931, and
933." for "determined -
"(i) without regard to sections 911, 931, and 933, and
"(ii) after the application of sections 86, 135, 137, 219, and
469."
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 411(c)(3), Mar. 9, 2002, 116
Stat. 46, provided that: "The amendments made by this subsection
[amending this section and section 137 of this title] shall apply
to taxable years beginning after December 31, 2002; except that the
amendments made by paragraphs (1)(C), (1)(D) [amending this
section], and (2)(B) [amending section 137 of this title] shall
apply to taxable years beginning after December 31, 2001."
Amendment by section 418(a)(1) of Pub. L. 107-147 effective as if
included in the provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment
relates, see section 418(c) of Pub. L. 107-147, set out as a note
under section 21 of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-147, title VI, Sec. 601(b)(2), Mar. 9, 2002, 116
Stat. 59, provided that: "The amendments made by sections 201(b),
202(f), and 618(b) of the Economic Growth and Tax Relief
Reconciliation Act of 2001 [Pub. L. 107-16, amending this section
and sections 24, 25, 25B, 26, 904, and 1400C of this title] shall
not apply to taxable years beginning during 2002 and 2003."
Amendment by section 201(b)(2)(E) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 201(e)(2)
of Pub. L. 107-16, set out as a note under section 24 of this
title.
Pub. L. 107-16, title II, Sec. 202(g), June 7, 2001, 115 Stat.
49, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
24, 26, 137, 904, and 1400C of this title] shall apply to taxable
years beginning after December 31, 2001.
"(2) Subsection (a). - The amendments made by subsection (a)
[amending this section and section 137 of this title] shall apply
to taxable years beginning after December 31, 2002."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105-206, title VI, Sec. 6018(h), July 22, 1998, 112 Stat.
823, provided that: "The amendments made by this section [amending
this section and sections 219, 408, 414, and 679 of this title and
amending provisions set out as notes under sections 167 and 4091 of
this title] shall take effect as if included in the provisions of
the Small Business Job Protection Act of 1996 [Pub. L. 104-188] to
which they relate."
Amendment by section 6008(d)(6) of Pub. L. 105-206 effective,
except as otherwise provided, as if included in the provisions of
the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which such
amendment relates, see section 6024 of Pub. L. 105-206, set out as
a note under section 1 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 1601(j) of Pub. L. 105-34 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section, sections
30A, 52, 55, 137, 401, 403, 404, 408, 414, 512, 529, 593, 641, 679,
860L, 956, 1361, 1374, 4001, 4041, 4092, 4261, 6039D, 6048, 6050R,
6501, 6693, 7701, and 9503 of this title, section 1055 of Title 29,
Labor, and provisions set out as notes under sections 529 and 4091
of this title] shall take effect as if included in the provisions
of the Small Business Job Protection Act of 1996 [Pub. L. 104-188]
to which they relate.
"(2) Certain administrative requirements with respect to certain
pension plans. - The amendment made by subsection (d)(2)(D)
[amending section 401 of this title] shall apply to calendar years
beginning after the date of the enactment of this Act [Aug. 5,
1997]."
EFFECTIVE DATE
Section 1807(e) of Pub. L. 104-188 provided that: "The amendments
made by this section [enacting this section and section 137 of this
title, renumbering former section 137 of this title as section 138,
and amending sections 25, 86, 135, 219, 469, and 1016 of this
title] shall apply to taxable years beginning after December 31,
1996."
EXPENSES PAID OR INCURRED BEFORE 2002
Pub. L. 107-147, title IV, Sec. 411(c)(1)(F), Mar. 9, 2002, 116
Stat. 45, provided that: "Expenses paid or incurred during any
taxable year beginning before January 1, 2002, may be taken into
account in determining the credit under section 23 of the Internal
Revenue Code of 1986 only to the extent the aggregate of such
expenses does not exceed the applicable limitation under section
23(b)(1) of such Code as in effect on the day before the date of
the enactment of the Economic Growth and Tax Relief Reconciliation
Act of 2001 [June 7, 2001]."
TAX CREDIT AND GROSS INCOME EXCLUSION STUDY AND REPORT
Section 1807(d) of Pub. L. 104-188 provided that: "The Secretary
of the Treasury shall study the effect on adoptions of the tax
credit and gross income exclusion established by the amendments
made by this section [enacting this section and section 137 of this
title, renumbering former section 137 of this title as section 138,
and amending sections 25, 86, 135, 219, 469, and 1016 of this
title] and shall submit a report regarding the study to the
Committee on Finance of the Senate and the Committee on Ways and
Means of the House of Representatives not later than January 1,
2000."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 25, 25B, 26, 137,
904, 1016, 1400C of this title.
-End-
-CITE-
26 USC Sec. 24 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 24. Child tax credit
-STATUTE-
(a) Allowance of credit
(1) In general
There shall be allowed as a credit against the tax imposed by
this chapter for the taxable year with respect to each qualifying
child of the taxpayer an amount equal to the per child amount.
(2) Per child amount
For purposes of paragraph (1), the per child amount shall be
determined as follows:
In the case of any taxable year 2The per child
beginning in - amount is -
--------------------------------------------------------------------
2003 or 2004 $1,000
2005, 2006, 2007, or 2008 700
2009 800
2010 or thereafter 1,000.
--------------------------------------------------------------------
(b) Limitations
(1) Limitation based on adjusted gross income
The amount of the credit allowable under subsection (a) shall
be reduced (but not below zero) by $50 for each $1,000 (or
fraction thereof) by which the taxpayer's modified adjusted gross
income exceeds the threshold amount. For purposes of the
preceding sentence, the term "modified adjusted gross income"
means adjusted gross income increased by any amount excluded from
gross income under section 911, 931, or 933.
(2) Threshold amount
For purposes of paragraph (1), the term "threshold amount"
means -
(A) $110,000 in the case of a joint return,
(B) $75,000 in the case of an individual who is not married,
and
(C) $55,000 in the case of a married individual filing a
separate return.
For purposes of this paragraph, marital status shall be
determined under section 7703.
(3) Limitation based on amount of tax
The credit allowed under subsection (a) for any taxable year
shall not exceed the excess of -
(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
(B) the sum of the credits allowable under this subpart
(other than this section and sections 23 and 25B) and section
27 for the taxable year.
(c) Qualifying child
For purposes of this section -
(1) In general
The term "qualifying child" means any individual if -
(A) the taxpayer is allowed a deduction under section 151
with respect to such individual for the taxable year,
(B) such individual has not attained the age of 17 as of the
close of the calendar year in which the taxable year of the
taxpayer begins, and
(C) such individual bears a relationship to the taxpayer
described in section 32(c)(3)(B).
(2) Exception for certain noncitizens
The term "qualifying child" shall not include any individual
who would not be a dependent if the first sentence of section
152(b)(3) were applied without regard to all that follows
"resident of the United States".
(d) Portion of credit refundable
(1) In general
The aggregate credits allowed to a taxpayer under subpart C
shall be increased by the lesser of -
(A) the credit which would be allowed under this section
without regard to this subsection and the limitation under
subsection (b)(3), or
(B) the amount by which the amount of credit allowed by this
section (determined without regard to this subsection) would
increase if the limitation imposed by subsection (b)(3) were
increased by the greater of -
(i) 15 percent (10 percent in the case of taxable years
beginning before January 1, 2005) of so much of the
taxpayer's earned income (within the meaning of section 32)
which is taken into account in computing taxable income for
the taxable year as exceeds $10,000, or
(ii) in the case of a taxpayer with 3 or more qualifying
children, the excess (if any) of -
(I) the taxpayer's social security taxes for the taxable
year, over
(II) the credit allowed under section 32 for the taxable
year.
The amount of the credit allowed under this subsection shall not
be treated as a credit allowed under this subpart and shall
reduce the amount of credit otherwise allowable under subsection
(a) without regard to subsection (b)(3).
(2) Social security taxes
For purposes of paragraph (1) -
(A) In general
The term "social security taxes" means, with respect to any
taxpayer for any taxable year -
(i) the amount of the taxes imposed by sections 3101 and
3201(a) on amounts received by the taxpayer during the
calendar year in which the taxable year begins,
(ii) 50 percent of the taxes imposed by section 1401 on the
self-employment income of the taxpayer for the taxable year,
and
(iii) 50 percent of the taxes imposed by section 3211(a) on
amounts received by the taxpayer during the calendar year in
which the taxable year begins.
(B) Coordination with special refund of social security taxes
The term "social security taxes" shall not include any taxes
to the extent the taxpayer is entitled to a special refund of
such taxes under section 6413(c).
(C) Special rule
Any amounts paid pursuant to an agreement under section
3121(l) (relating to agreements entered into by American
employers with respect to foreign affiliates) which are
equivalent to the taxes referred to in subparagraph (A)(i)
shall be treated as taxes referred to in such subparagraph.
(3) Inflation adjustment
In the case of any taxable year beginning in a calendar year
after 2001, the $10,000 amount contained in paragraph (1)(B)
shall be increased by an amount equal to -
(A) such dollar amount, multiplied by
(B) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year begins,
determined by substituting "calendar year 2000" for "calendar
year 1992" in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded to the nearest multiple of $50.
(e) Identification requirement
No credit shall be allowed under this section to a taxpayer with
respect to any qualifying child unless the taxpayer includes the
name and taxpayer identification number of such qualifying child on
the return of tax for the taxable year.
(f) Taxable year must be full taxable year
Except in the case of a taxable year closed by reason of the
death of the taxpayer, no credit shall be allowable under this
section in the case of a taxable year covering a period of less
than 12 months.
-SOURCE-
(Added Pub. L. 105-34, title I, Sec. 101(a), Aug. 5, 1997, 111
Stat. 796; amended Pub. L. 105-206, title VI, Sec. 6003(a), July
22, 1998, 112 Stat. 790; Pub. L. 105-277, div. J, title II, Sec.
2001(b), Oct. 21, 1998, 112 Stat. 2681-901; Pub. L. 106-170, title
V, Sec. 501(b)(1), Dec. 17, 1999, 113 Stat. 1919; Pub. L. 107-16,
title II, Secs. 201(a)-(b)(2)(C), (c)(1), (2), (d), 202(f)(2)(B),
title VI, Sec. 618(b)(2)(A), June 7, 2001, 115 Stat. 45-47, 49,
108; Pub. L. 107-90, title II, Sec. 204(e)(1), Dec. 21, 2001, 115
Stat. 893; Pub. L. 107-147, title IV, Secs. 411(b), 417(23)(A),
Mar. 9, 2002, 116 Stat. 45, 57; Pub. L. 108-27, title I, Sec.
101(a), May 28, 2003, 117 Stat. 753.)
-STATAMEND-
CHILD TAX CREDIT ADJUSTMENT FOR TAXABLE YEARS BEGINNING IN 2004
For inflation adjustment of value in subsection (d)(1)(B)(i) of
this section used in determining refundable amount for taxable
years beginning in 2004, see section 3.04 of Revenue Procedure
2003-85, set out as a note under section 1 of this title.
AMENDMENT OF SECTION
For termination of amendment by section 107 of Pub. L. 108-27,
see Effective and Termination Dates of 2003 Amendment note below.
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
PRIOR PROVISIONS
A prior section 24, added Pub. L. 92-178, title VII, Sec. 701(a),
Dec. 10, 1971, 85 Stat. 560, Sec. 41; amended Pub. L. 93-625, Secs.
11(a)-(c), (e), 12(a), Jan. 3, 1975, 88 Stat. 2119, 2120; Pub. L.
94-455, title V, Sec. 503(b)(4), title XIX, Secs. 1901(b)(1)(B),
(H)(ii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1562, 1790, 1791,
1834; Pub. L. 95-600, title I, Sec. 113(c), Nov. 6, 1978, 92 Stat.
2778; Pub. L. 97-473, title II, Sec. 202(b)(1), Jan. 14, 1983, 96
Stat. 2609; Pub. L. 98-21, title I, Sec. 122(c)(1), Apr. 20, 1983,
97 Stat. 87; renumbered Sec. 24 and amended Pub. L. 98-369, div. A,
title IV, Secs. 471(c), 474(f), July 18, 1984, 98 Stat. 826, 831,
related to contributions to candidates for public office, prior to
repeal by Pub. L. 99-514, title I, Secs. 112(a), 151(a), Oct. 22,
1986, 100 Stat. 2108, 2121, applicable to taxable years beginning
after Dec. 31, 1986.
AMENDMENTS
2003 - Subsec. (a)(2). Pub. L. 108-27, Secs. 101(a), 107,
temporarily amended table by deleting items relating to calendar
years 2001 and 2002 and increasing per child amount from $600 to
$1,000 for calendar years 2003 or 2004. See Effective and
Termination Dates of 2003 Amendment note below.
2002 - Subsec. (b)(3)(B). Pub. L. 107-147, Sec. 417(23)(A),
amended directory language of Pub. L. 107-16, Sec. 618(b)(2)(A).
See 2001 Amendment note below.
Subsec. (d)(1)(B). Pub. L. 107-147, Sec. 411(b), substituted
"aggregate amount of credits allowed by this subpart" for "amount
of credit allowed by this section" in introductory provisions.
2001 - Subsec. (a). Pub. L. 107-16, Secs. 201(a), 901,
temporarily amended heading and text of subsec. (a) generally.
Prior to amendment, text read as follows: "There shall be allowed
as a credit against the tax imposed by this chapter for the taxable
year with respect to each qualifying child of the taxpayer an
amount equal to $500 ($400 in the case of taxable years beginning
in 1998)." See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (b). Pub. L. 107-16, Secs. 201(b)(2)(A), 901, temporarily
amended heading generally, substituting "Limitations" for
"Limitation based on adjusted gross income". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (b)(1). Pub. L. 107-16, Secs. 201(b)(2)(B), 901,
temporarily amended heading generally, substituting "Limitation
based on adjusted gross income" for "In general". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (b)(3). Pub. L. 107-16, Secs. 201(b)(1), 901, temporarily
added par. (3). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (b)(3)(B). Pub. L. 107-16, Secs. 618(b)(2)(A), 901, as
amended by Pub. L. 107-147, Sec. 417(23)(A), temporarily
substituted "sections 23 and 25B" for "section 23". See Effective
and Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 202(f)(2)(B), 901, temporarily substituted
"this section and section 23" for "this section". See Effective and
Termination Dates of 2001 Amendment note below.
Subsec. (d). Pub. L. 107-16, Secs. 201(c)(1), 901, temporarily
amended subsec. heading and heading and text of par. (1) generally.
Prior to amendment, text read as follows: "In the case of a
taxpayer with three or more qualifying children for any taxable
year, the aggregate credits allowed under subpart C shall be
increased by the lesser of -
"(A) the credit which would be allowed under this section
without regard to this subsection and the limitation under
section 26(a); or
"(B) the amount by which the aggregate amount of credits
allowed by this subpart (without regard to this subsection) would
increase if the limitation imposed by section 26(a) were
increased by the excess (if any) of -
"(i) the taxpayer's Social Security taxes for the taxable
year, over
"(ii) the credit allowed under section 32 (determined without
regard to subsection (n)) for the taxable year.
The amount of the credit allowed under this subsection shall not be
treated as a credit allowed under this subpart and shall reduce the
amount of credit otherwise allowable under subsection (a) without
regard to section 26(a)."See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (d)(1). Pub. L. 107-16, Secs. 201(b)(2)(C)(i), 901,
temporarily substituted "subsection (b)(3)" for "section 26(a)"
wherever appearing in subsec. (d), as amended by Pub. L. 107-16,
Sec. 201(c). See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (d)(1)(B). Pub. L. 107-16, Secs. 201(b)(2)(C)(ii), 901,
temporarily substituted "amount of credit allowed by this section"
for "aggregate amount of credits allowed by this subpart" in
subpar. (B) as amended by Pub. L. 107-16, Sec. 201(c). See
Effective and Termination Dates of 2001 Amendment note below.
Subsec. (d)(2). Pub. L. 107-16, Secs. 201(d), 901, temporarily
redesignated par. (3) as (2) and struck out heading and text of
former par. (2). Text read as follows: "For taxable years beginning
after December 31, 2001, the credit determined under this
subsection for the taxable year shall be reduced by the excess (if
any) of -
"(A) the amount of tax imposed by section 55 (relating to
alternative minimum tax) with respect to such taxpayer for such
taxable year, over
"(B) the amount of the reduction under section 32(h) with
respect to such taxpayer for such taxable year." See Effective
and Termination Dates of 2001 Amendment note below.
Subsec. (d)(2)(A)(iii). Pub. L. 107-90, which directed the
amendment of par. (3)(A)(iii) by substituting "section 3211(a)" for
"section 3211(a)(1)", was executed to par. (2)(A)(iii), to reflect
the probable intent of Congress and the redesignation of par. (3)
as (2) by Pub. L. 107-16, Sec. 201(d)(2). See above.
Subsec. (d)(3). Pub. L. 107-16, Secs. 201(d)(2), 901, temporarily
redesignated par. (4) as (3). Former par. (3) temporarily
redesignated (2). See Effective and Termination Dates of 2001
Amendment note below.
Subsec. (d)(4). Pub. L. 107-16, Secs. 201(c)(2), 901, temporarily
added par. (4). Former par. (4) temporarily redesignated (3). See
Effective and Termination Dates of 2001 Amendment note below.
1999 - Subsec. (d)(2). Pub. L. 106-170 substituted "2001" for
"1998" in introductory provisions.
1998 - Subsec. (d)(1). Pub. L. 105-206, Sec. 6003(a)(1)(C), added
par. (1) and struck out heading and text of former par. (1). Text
read as follows: "In the case of a taxpayer with 3 or more
qualifying children for any taxable year, the amount of the credit
allowed under this section shall be equal to the greater of -
"(A) the amount of the credit allowed under this section
(without regard to this subsection and after application of the
limitation under section 26), or
"(B) the alternative credit amount determined under paragraph
(2)."
Subsec. (d)(2). Pub. L. 105-277 substituted "For taxable years
beginning after December 31, 1998, the credit" for "The credit".
Pub. L. 105-206, Sec. 6003(a)(1)(C), added par. (2) and struck
out heading and text of former par. (2). Text read as follows: "For
purposes of this subsection, the alternative credit amount is the
amount of the credit which would be allowed under this section if
the limitation under paragraph (3) were applied in lieu of the
limitation under section 26."
Subsec. (d)(3). Pub. L. 105-206, Sec. 6003(a)(1)(A), (B), (2),
redesignated par. (5) as (3), substituted "paragraph (1)" for
"paragraph (3)" in introductory provisions, and struck out heading
and text of former par. (3). Text read as follows: "The limitation
under this paragraph for any taxable year is the limitation under
section 26 (without regard to this subsection) -
"(A) increased by the taxpayer's social security taxes for such
taxable year, and
"(B) reduced by the sum of -
"(i) the credits allowed under this part other than under
subpart C or this section, and
"(ii) the credit allowed under section 32 without regard to
subsection (m) thereof."
Subsec. (d)(4). Pub. L. 105-206, Sec. 6003(a)(1)(A), struck out
heading and text of par. (4). Text read as follows: "If the amount
of the credit under paragraph (1)(B) exceeds the amount of the
credit under paragraph (1)(A), such excess shall be treated as a
credit to which subpart C applies. The rule of section 32(h) shall
apply to such excess."
Subsec. (d)(5). Pub. L. 105-206, Sec. 6003(a)(1)(B), redesignated
par. (5) as (3).
EFFECTIVE AND TERMINATION DATES OF 2003 AMENDMENT
Pub. L. 108-27, title I, Sec. 101(c), May 28, 2003, 117 Stat.
754, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [enacting section 6429 of this
title and amending this section] shall apply to taxable years
beginning after December 31, 2002.
"(2) Subsection (b). - The amendments made by subsection (b)
[enacting section 6429 of this title] shall take effect on the date
of the enactment of this Act [May 28, 2003]."
Amendments by title I of Pub. L. 108-27 subject to title IX of
the Economic Growth and Tax Relief Reconciliation Act of 2001, Pub.
L. 107-16, Sec. 901, to the same extent and in the same manner as
the provisions of such Act to which such amendments relate, see
section 107 of Pub. L. 108-27, set out as a note under section 1 of
this title.
EFFECTIVE DATE OF 2002 AMENDMENT
Amendment by section 411(b) of Pub. L. 107-147 effective as if
included in the provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001, Pub. L. 107-16, to which such amendment
relates, see section 411(x) of Pub. L. 107-147, set out as a note
under section 25B of this title.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENTS
Amendment by sections 201(b), 202(f), and 618(b) of Pub. L.
107-16 inapplicable to taxable years beginning during 2002 and
2003, see section 601(b)(2) of Pub. L. 107-147, set out as a note
under section 23 of this title.
Pub. L. 107-90, title II, Sec. 204(f), Dec. 21, 2001, 115 Stat.
893, provided that: "The amendments made by this section [enacting
subchapter E of chapter 22 of this title and amending this section
and sections 72, 3201, 3211, 3221, and 3231 of this title] shall
apply to calendar years beginning after December 31, 2001."
Pub. L. 107-16, title II, Sec. 201(e), June 7, 2001, 115 Stat.
47, provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [amending this section and sections
23, 25, 26, 32, 904, and 1400C of this title] shall apply to
taxable years beginning after December 31, 2000.
"(2) Subsection (b). - The amendments made by subsection (b)
[amending this section and sections 23, 25, 26, 904, and 1400C of
this title] shall apply to taxable years beginning after December
31, 2001."
Amendment by section 202(f)(2)(B) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 202(g)(1)
of Pub. L. 107-16, set out as a note under section 23 of this
title.
Pub. L. 107-16, title VI, Sec. 618(d), June 7, 2001, 115 Stat.
108, provided that: "The amendments made by this section [enacting
section 25B of this title and amending this section and sections
25, 25B, 26, 904, and 1400C of this title] shall apply to taxable
years beginning after December 31, 2001."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106-170, title V, Sec. 501(c), Dec. 17, 1999, 113 Stat.
1919, provided that: "The amendments made by this section [amending
this section and sections 26 and 904 of this title] shall apply to
taxable years beginning after December 31, 1998."
EFFECTIVE DATE OF 1998 AMENDMENTS
Pub. L. 105-277, div. J, title II, Sec. 2001(c), Oct. 21, 1998,
112 Stat. 2681-901, provided that: "The amendments made by this
section [amending this section and section 26 of this title] shall
apply to taxable years beginning after December 31, 1997."
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE
Section 101(e) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting this section and amending sections
32, 501, and 6213 of this title and section 1324 of Title 31, Money
and Finance] shall apply to taxable years beginning after December
31, 1997."
REFUNDS DISREGARDED IN ADMINISTRATION OF FEDERAL AND FEDERALLY
ASSISTED PROGRAMS
Pub. L. 107-16, title II, Sec. 203, June 7, 2001, 115 Stat. 49,
provided that: "Any payment considered to have been made to any
individual by reason of section 24 of the Internal Revenue Code of
1986, as amended by section 201, shall not be taken into account as
income and shall not be taken into account as resources for the
month of receipt and the following month, for purposes of
determining the eligibility of such individual or any other
individual for benefits or assistance, or the amount or extent of
benefits or assistance, under any Federal program or under any
State or local program financed in whole or in part with Federal
funds."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 25, 26, 32, 151, 501,
904, 1400C, 6211, 6213, 6429 of this title.
-End-
-CITE-
26 USC Sec. 25 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 25. Interest on certain home mortgages
-STATUTE-
(a) Allowance of credit
(1) In general
There shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the product
of -
(A) the certificate credit rate, and
(B) the interest paid or accrued by the taxpayer during the
taxable year on the remaining principal of the certified
indebtedness amount.
(2) Limitation where credit rate exceeds 20 percent
(A) In general
If the certificate credit rate exceeds 20 percent, the amount
of the credit allowed to the taxpayer under paragraph (1) for
any taxable year shall not exceed $2,000.
(B) Special rule where 2 or more persons hold interests in
residence
If 2 or more persons hold interests in any residence, the
limitation of subparagraph (A) shall be allocated among such
persons in proportion to their respective interests in the
residence.
(b) Certificate credit rate; certified indebtedness amount
For purposes of this section -
(1) Certificate credit rate
The term "certificate credit rate" means the rate of the credit
allowable by this section which is specified in the mortgage
credit certificate.
(2) Certified indebtedness amount
The term "certified indebtedness amount" means the amount of
indebtedness which is -
(A) incurred by the taxpayer -
(i) to acquire the principal residence of the taxpayer,
(ii) as a qualified home improvement loan (as defined in
section 143(k)(4)) with respect to such residence, or
(iii) as a qualified rehabilitation loan (as defined in
section 143(k)(5)) with respect to such residence, and
(B) specified in the mortgage credit certificate.
(c) Mortgage credit certificate; qualified mortgage credit
certificate program
For purposes of this section -
(1) Mortgage credit certificate
The term "mortgage credit certificate" means any certificate
which -
(A) is issued under a qualified mortgage credit certificate
program by the State or political subdivision having the
authority to issue a qualified mortgage bond to provide
financing on the principal residence of the taxpayer,
(B) is issued to the taxpayer in connection with the
acquisition, qualified rehabilitation, or qualified home
improvement of the taxpayer's principal residence,
(C) specifies -
(i) the certificate credit rate, and
(ii) the certified indebtedness amount, and
(D) is in such form as the Secretary may prescribe.
(2) Qualified mortgage credit certificate program
(A) In general
The term "qualified mortgage credit certificate program"
means any program -
(i) which is established by a State or political
subdivision thereof for any calendar year for which it is
authorized to issue qualified mortgage bonds,
(ii) under which the issuing authority elects (in such
manner and form as the Secretary may prescribe) not to issue
an amount of private activity bonds which it may otherwise
issue during such calendar year under section 146,
(iii) under which the indebtedness certified by mortgage
credit certificates meets the requirements of the following
subsections of section 143 (as modified by subparagraph (B)
of this paragraph):
(I) subsection (c) (relating to residence requirements),
(II) subsection (d) (relating to 3-year requirement),
(III) subsection (e) (relating to purchase price
requirement),
(IV) subsection (f) (relating to income requirements),
(V) subsection (h) (relating to portion of loans required
to be placed in targeted areas), and
(VI) paragraph (1) of subsection (i) (relating to other
requirements),
(iv) under which no mortgage credit certificate may be
issued with respect to any residence any of the financing of
which is provided from the proceeds of a qualified mortgage
bond or a qualified veterans' mortgage bond,
(v) except to the extent provided in regulations, which is
not limited to indebtedness incurred from particular lenders,
(vi) except to the extent provided in regulations, which
provides that a mortgage credit certificate is not
transferrable, and
(vii) if the issuing authority allocates a block of
mortgage credit certificates for use in connection with a
particular development, which requires the developer to
furnish to the issuing authority and the homebuyer a
certificate that the price for the residence is no higher
than it would be without the use of a mortgage credit
certificate.
Under regulations, rules similar to the rules of subparagraphs
(B) and (C) of section 143(a)(2) shall apply to the
requirements of this subparagraph.
(B) Modifications of section 143
Under regulations prescribed by the Secretary, in applying
section 143 for purposes of subclauses (II), (IV), and (V) of
subparagraph (A)(iii) -
(i) each qualified mortgage certificate credit program
shall be treated as a separate issue,
(ii) the product determined by multiplying -
(I) the certified indebtedness amount of each mortgage
credit certificate issued under such program, by
(II) the certificate credit rate specified in such
certificate,
shall be treated as proceeds of such issue and the sum of
such products shall be treated as the total proceeds of such
issue, and
(iii) paragraph (1) of section 143(d) shall be applied by
substituting "100 percent" for "95 percent or more".
Clause (iii) shall not apply if the issuing authority submits a
plan to the Secretary for administering the 95-percent
requirement of section 143(d)(1) and the Secretary is satisfied
that such requirement will be met under such plan.
(d) Determination of certificate credit rate
For purposes of this section -
(1) In general
The certificate credit rate specified in any mortgage credit
certificate shall not be less than 10 percent or more than 50
percent.
(2) Aggregate limit on certificate credit rates
(A) In general
In the case of each qualified mortgage credit certificate
program, the sum of the products determined by multiplying -
(i) the certified indebtedness amount of each mortgage
credit certificate issued under such program, by
(ii) the certificate credit rate with respect to such
certificate,
shall not exceed 25 percent of the nonissued bond amount.
(B) Nonissued bond amount
For purposes of subparagraph (A), the term "nonissued bond
amount" means, with respect to any qualified mortgage credit
certificate program, the amount of qualified mortgage bonds
which the issuing authority is otherwise authorized to issue
and elects not to issue under subsection (c)(2)(A)(ii).
(e) Special rules and definitions
For purposes of this section -
(1) Carryforward of unused credit
(A) In general
If the credit allowable under subsection (a) for any taxable
year exceeds the applicable tax limit for such taxable year,
such excess shall be a carryover to each of the 3 succeeding
taxable years and, subject to the limitations of subparagraph
(B), shall be added to the credit allowable by subsection (a)
for such succeeding taxable year.
(B) Limitation
The amount of the unused credit which may be taken into
account under subparagraph (A) for any taxable year shall not
exceed the amount (if any) by which the applicable tax limit
for such taxable year exceeds the sum of -
(i) the credit allowable under subsection (a) for such
taxable year determined without regard to this paragraph, and
(ii) the amounts which, by reason of this paragraph, are
carried to such taxable year and are attributable to taxable
years before the unused credit year.
(C) Applicable tax limit
For purposes of this paragraph, the term "applicable tax
limit" means the limitation imposed by section 26(a) for the
taxable year reduced by the sum of the credits allowable under
this subpart (other than this section and sections 23, 24, 25B,
and 1400C).
(2) Indebtedness not treated as certified where certain
requirements not in fact met
Subsection (a) shall not apply to any indebtedness if all the
requirements of subsection (c)(1), (d), (e), (f), and (i) of
section 143 and clauses (iv), (v), and (vii) of subsection
(c)(2)(A), were not in fact met with respect to such
indebtedness. Except to the extent provided in regulations, the
requirements described in the preceding sentence shall be treated
as met if there is a certification, under penalty of perjury,
that such requirements are met.
(3) Period for which certificate in effect
(A) In general
Except as provided in subparagraph (B), a mortgage credit
certificate shall be treated as in effect with respect to
interest attributable to the period -
(i) beginning on the date such certificate is issued, and
(ii) ending on the earlier of the date on which -
(I) the certificate is revoked by the issuing authority,
or
(II) the residence to which such certificate relates
ceases to be the principal residence of the individual to
whom the certificate relates.
(B) Certificate invalid unless indebtedness incurred within
certain period
A certificate shall not apply to any indebtedness which is
incurred after the close of the second calendar year following
the calendar year for which the issuing authority made the
applicable election under subsection (c)(2)(A)(ii).
(C) Notice to Secretary when certificate revoked
Any issuing authority which revokes any mortgage credit
certificate shall notify the Secretary of such revocation at
such time and in such manner as the Secretary shall prescribe
by regulations.
(4) Reissuance of mortgage credit certificates
The Secretary may prescribe regulations which allow the
administrator of a mortgage credit certificate program to reissue
a mortgage credit certificate specifying a certified mortgage
indebtedness that replaces the outstanding balance of the
certified mortgage indebtedness specified on the original
certificate to any taxpayer to whom the original certificate was
issued, under such terms and conditions as the Secretary
determines are necessary to ensure that the amount of the credit
allowable under subsection (a) with respect to such reissued
certificate is equal to or less than the amount of credit which
would be allowable under subsection (a) with respect to the
original certificate for any taxable year ending after such
reissuance.
(5) Public notice that certificates will be issued
At least 90 days before any mortgage credit certificate is to
be issued after a qualified mortgage credit certificate program,
the issuing authority shall provide reasonable public notice of -
(A) the eligibility requirements for such certificate,
(B) the methods by which such certificates are to be issued,
and
(C) such other information as the Secretary may require.
(6) Interest paid or accrued to related persons
No credit shall be allowed under subsection (a) for any
interest paid or accrued to a person who is a related person to
the taxpayer (within the meaning of section 144(a)(3)(A)).
(7) Principal residence
The term "principal residence" has the same meaning as when
used in section 121.
(8) Qualified rehabilitation and home improvement
(A) Qualified rehabilitation
The term "qualified rehabilitation" has the meaning given
such term by section 143(k)(5)(B).
(B) Qualified home improvement
The term "qualified home improvement" means an alteration,
repair, or improvement described in section 143(k)(4).
(9) Qualified mortgage bond
The term "qualified mortgage bond" has the meaning given such
term by section 143(a)(1).
(10) Manufactured housing
For purposes of this section, the term "single family
residence" includes any manufactured home which has a minimum of
400 square feet of living space and a minimum width in excess of
102 inches and which is of a kind customarily used at a fixed
location. Nothing in the preceding sentence shall be construed as
providing that such a home will be taken into account in making
determinations under section 143.
(f) Reduction in aggregate amount of qualified mortgage bonds which
may be issued where certain requirements not met
(1) In general
If for any calendar year any mortgage credit certificate
program which satisfies procedural requirements with respect to
volume limitations prescribed by the Secretary fails to meet the
requirements of paragraph (2) of subsection (d), such
requirements shall be treated as satisfied with respect to any
certified indebtedness of such program, but the applicable State
ceiling under subsection (d) of section 146 for the State in
which such program operates shall be reduced by 1.25 times the
correction amount with respect to such failure. Such reduction
shall be applied to such State ceiling for the calendar year
following the calendar year in which the Secretary determines the
correction amount with respect to such failure.
(2) Correction amount
(A) In general
For purposes of paragraph (1), the term "correction amount"
means an amount equal to the excess credit amount divided by
0.25.
(B) Excess credit amount
(i) In general
For purposes of subparagraph (A)(ii), the term "excess
credit amount" means the excess of -
(I) the credit amount for any mortgage credit certificate
program, over
(II) the amount which would have been the credit amount
for such program had such program met the requirements of
paragraph (2) of subsection (d).
(ii) Credit amount
For purposes of clause (i), the term "credit amount" means
the sum of the products determined under clauses (i) and (ii)
of subsection (d)(2)(A).
(3) Special rule for States having constitutional home rule
cities
In the case of a State having one or more constitutional home
rule cities (within the meaning of section 146(d)(3)(C)), the
reduction in the State ceiling by reason of paragraph (1) shall
be allocated to the constitutional home rule city, or to the
portion of the State not within such city, whichever caused the
reduction.
(4) Exception where certification program
The provisions of this subsection shall not apply in any case
in which there is a certification program which is designed to
ensure that the requirements of this section are met and which
meets such requirements as the Secretary may by regulations
prescribe.
(5) Waiver
The Secretary may waive the application of paragraph (1) in any
case in which he determines that the failure is due to reasonable
cause.
(g) Reporting requirements
Each person who makes a loan which is a certified indebtedness
amount under any mortgage credit certificate shall file a report
with the Secretary containing -
(1) the name, address, and social security account number of
the individual to which the certificate was issued,
(2) the certificate's issuer, date of issue, certified
indebtedness amount, and certificate credit rate, and
(3) such other information as the Secretary may require by
regulations.
Each person who issues a mortgage credit certificate shall file a
report showing such information as the Secretary shall by
regulations prescribe. Any such report shall be filed at such time
and in such manner as the Secretary may require by regulations.
(h) Regulations; contracts
(1) Regulations
The Secretary shall prescribe such regulations as may be
necessary to carry out the purposes of this section, including
regulations which may require recipients of mortgage credit
certificates to pay a reasonable processing fee to defray the
expenses incurred in administering the program.
(2) Contracts
The Secretary is authorized to enter into contracts with any
person to provide services in connection with the administration
of this section.
(i) Recapture of portion of Federal subsidy from use of mortgage
credit certificates
For provisions increasing the tax imposed by this chapter to
recapture a portion of the Federal subsidy from the use of
mortgage credit certificates, see section 143(m).
-SOURCE-
(Added Pub. L. 98-369, div. A, title VI, Sec. 612(a), July 18,
1984, 98 Stat. 905; amended Pub. L. 99-514, title XIII, Sec.
1301(f), title XVIII, Secs. 1862(a)-(d)(1), 1899A(1), Oct. 22,
1986, 100 Stat. 2655, 2883, 2884, 2958; Pub. L. 100-647, title I,
Sec. 1013(a)(25), (26), title IV, Sec. 4005(a)(2), (g)(7), Nov. 10,
1988, 102 Stat. 3543, 3645, 3651; Pub. L. 101-239, title VII, Sec.
7104(b), Dec. 19, 1989, 103 Stat. 2305; Pub. L. 101-508, title XI,
Sec. 11408(b), Nov. 5, 1990, 104 Stat. 1388-477; Pub. L. 102-227,
title I, Sec. 108(b), Dec. 11, 1991, 105 Stat. 1688; Pub. L.
103-66, title XIII, Sec. 13141(b), Aug. 10, 1993, 107 Stat. 436;
Pub. L. 104-188, title I, Sec. 1807(c)(1), Aug. 20, 1996, 110 Stat.
1902; Pub. L. 105-34, title III, Sec. 312(d)(1), Aug. 5, 1997, 111
Stat. 839; Pub. L. 105-206, title VI, Sec. 6008(d)(7), July 22,
1998, 112 Stat. 812; Pub. L. 107-16, title II, Sec. 201(b)(2)(F),
title VI, Sec. 618(b)(2)(B), June 7, 2001, 115 Stat. 46, 108.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
PRIOR PROVISIONS
A prior section 25 was renumbered section 26 of this title.
AMENDMENTS
2001 - Subsec. (e)(1)(C). Pub. L. 107-16, Secs. 618(b)(2)(B),
901, temporarily inserted "25B," after "24,". See Effective and
Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 201(b)(2)(F), 901, temporarily inserted ",
24," after "sections 23". See Effective and Termination Dates of
2001 Amendment note below.
1998 - Subsec. (e)(1)(C). Pub. L. 105-206 substituted "sections
23 and 1400C" for "section 23".
1997 - Subsec. (e)(7). Pub. L. 105-34 substituted "section 121"
for "section 1034".
1996 - Subsec. (e)(1)(C). Pub. L. 104-188 inserted "and section
23" after "other than this section".
1993 - Subsecs. (h) to (j). Pub. L. 103-66 redesignated subsecs.
(i) and (j) as (h) and (i), respectively, and struck out heading
and text of former subsec. (h). Text read as follows: "No election
may be made under subsection (c)(2)(A)(ii) for any period after
June 30, 1992."
1991 - Subsec. (h). Pub. L. 102-227 substituted "June 30, 1992"
for "December 31, 1991".
1990 - Subsec. (h). Pub. L. 101-508 substituted "December 31,
1991" for "September 30, 1990".
1989 - Subsec. (h). Pub. L. 101-239 substituted "for any period
after September 30, 1990" for "for any calendar year after 1989".
1988 - Subsec. (c)(2)(A)(ii). Pub. L. 100-647, Sec. 1013(a)(25),
amended Pub. L. 99-514, Sec. 1301(f)(2)(C)(ii), see 1986 Amendment
note below.
Subsec. (h). Pub. L. 100-647, Sec. 4005(a)(2), substituted "1989"
for "1988".
Pub. L. 100-647, Sec. 1013(a)(26), substituted "1988" for "1987".
Subsec. (j). Pub. L. 100-647, Sec. 4005(g)(7), added subsec. (j).
1986 - Subsec. (a)(1)(B). Pub. L. 99-514, Sec. 1862(d)(1),
substituted "paid or accrued" for "paid or incurred".
Subsec. (b)(2)(A)(ii). Pub. L. 99-514, Sec. 1301(f)(2)(A),
substituted "section 143(k)(4)" for "section 103A(l)(6)".
Subsec. (b)(2)(A)(iii). Pub. L. 99-514, Sec. 1301(f)(2)(B),
substituted "section 143(k)(5)" for "section 103A(l)(7)".
Subsec. (c)(2)(A). Pub. L. 99-514, Sec. 1301(f)(2)(E),
substituted "section 143(a)(2)" for "section 103A(c)(2)" in
provision following cl. (vii).
Pub. L. 99-514, Sec. 1862(b), inserted "Under regulations, rules
similar to the rules of subparagraphs (B) and (C) of section
103A(c)(2) shall apply to the requirements of this subparagraph."
Subsec. (c)(2)(A)(ii). Pub. L. 99-514, Sec. 1301(f)(2)(C)(ii), as
amended by Pub. L. 100-647, Sec. 1013(a)(25), substituted "private
activity bonds which it may otherwise issue during such calendar
year under section 146" for "qualified mortgage bonds which it may
otherwise issue during such calendar year under section 103A".
Subsec. (c)(2)(A)(iii). Pub. L. 99-514, Sec. 1301(f)(2)(C)(i),
substituted "section 143" for "section 103A" in introductory
provisions, added subcls. (I) to (VI), and struck out former
subcls. (I) to (V) which read as follows:
"(I) subsection (d) (relating to residence requirements),
"(II) subsection (e) (relating to 3-year requirement),
"(III) subsection (f) (relating to purchase price requirement),
"(IV) subsection (h) (relating to portion of loans required to be
placed in targeted areas), and
"(V) subsection (j), other than paragraph (2) thereof (relating
to other requirements),".
Subsec. (c)(2)(A)(iii)(V). Pub. L. 99-514, Sec. 1862(a),
substituted "subsection (j), other than paragraph (2) thereof" for
"paragraph (1) of subsection (j)".
Subsec. (c)(2)(B). Pub. L. 99-514, Sec. 1301(f)(2)(C)(i),
substituted in heading and introductory provisions "section 143"
for "section 103A".
Pub. L. 99-514, Sec. 1301(f)(2)(F), inserted in introductory
provisions reference to subcl. (V), added cl. (iii) and closing
provisions, and struck out former cl. (iii) and closing provisions
which read as follows:
"(iii) paragraph (1) of section 103A(e) shall be applied by
substituting '100 percent' for '90 percent or more'.
Clause (iii) shall not apply if the issuing authority submits a
plan to the Secretary for administering the 90-percent requirement
of section 103A(e)(1) and the Secretary is satisfied that such
requirement will be met under such plan."
Subsec. (d)(2)(A). Pub. L. 99-514, Sec. 1301(f)(1)(A),
substituted "25 percent" for "20 percent" in concluding provisions.
Subsec. (d)(3). Pub. L. 99-514, Sec. 1301(f)(2)(G), struck out
par. (3) "Additional limit in certain cases" which read as follows:
"In the case of a qualified mortgage credit certificate program in
a State which -
"(A) has a State ceiling (as defined in section 103A(g)(4)) for
the year an election is made that exceeds 20 percent of the
average annual aggregate principal amount of mortgages executed
during the immediately preceding 3 calendar years for single
family owner-occupied residences located within the jurisdiction
of such State, or
"(B) issued qualified mortgage bonds in an aggregate amount
less than $150,000,000 for calendar year 1983,
the certificate credit rate for any mortgage credit certificate
shall not exceed 20 percent unless the issuing authority submits a
plan to the Secretary to ensure that the weighted average of the
certificate credit rates in such mortgage credit certificate
program does not exceed 20 percent and the Secretary approves such
plan."
Subsec. (e)(1)(B). Pub. L. 99-514, Sec. 1862(c), amended subpar.
(B) generally. Prior to amendment, subpar. (B) "Limitations" read
as follows: "The amount of the unused credit which may be taken
into account under subparagraph (A) for any taxable year shall not
exceed the amount by which the applicable tax limit for such
taxable year exceeds the sum of the amounts which, by reason of
this paragraph, are carried to such taxable year and are
attributable to taxable years before the unused credit year."
Subsec. (e)(2). Pub. L. 99-514, Sec. 1301(f)(2)(H), substituted
"subsections (c)(1), (d), (e), (f), and (i) of section 143" for
"subsection (d)(1), (e), (f), and (j) of section 103A".
Subsec. (e)(6). Pub. L. 99-514, Sec. 1301(f)(2)(I), substituted
"section 144(a)(3)(A)" for "section 103(b)(6)(C)(i)".
Subsec. (e)(8)(A). Pub. L. 99-514, Sec. 1301(f)(2)(J),
substituted "section 143(k)(5)(B)" for "section 103A(l)(7)(B)".
Subsec. (e)(8)(B). Pub. L. 99-514, Sec. 1301(f)(2)(K),
substituted "section 143(k)(4)" for "section 103A(l)(6)".
Subsec. (e)(9). Pub. L. 99-514, Sec. 1301(f)(2)(L), substituted
"section 143(a)(1)" for "section 103A(c)(1)".
Subsec. (e)(10). Pub. L. 99-514, Sec. 1301(f)(2)(M), substituted
"section 143" for "section 103A".
Subsec. (f)(1). Pub. L. 99-514, Sec. 1301(f)(2)(N), substituted
"subsection (d) of section 146" for "paragraph (4) of section
103A(g)".
Subsec. (f)(2)(A). Pub. L. 99-514, Sec. 1301(f)(1)(B),
substituted "0.25" for "0.20".
Subsec. (f)(3). Pub. L. 99-514, Sec. 1301(f)(2)(O), substituted
"section 146(d)(3)(C)" for "section 103A(g)(5)(C)".
Subsec. (f)(4). Pub. L. 99-514, Sec. 1899A(1), substituted
"ensure" for "insure".
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Amendment by Pub. L. 107-16 inapplicable to taxable years
beginning during 2002 and 2003, see section 601(b)(2) of Pub. L.
107-147, set out as a note under section 23 of this title.
Amendment by section 201(b)(2)(F) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 201(e)(2)
of Pub. L. 107-16, set out as a note under section 24 of this
title.
Amendment by section 618(b)(2)(B) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 618(d) of
Pub. L. 107-16, set out as a note under section 24 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-206 effective, except as otherwise
provided, as if included in the provisions of the Taxpayer Relief
Act of 1997, Pub. L. 105-34, to which such amendment relates, see
section 6024 of Pub. L. 105-206, set out as a note under section 1
of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Amendment by Pub. L. 105-34 applicable to sales and exchanges
after May 6, 1997, with certain exceptions, see section 312(d) of
Pub. L. 105-34, set out as a note under section 121 of this title.
EFFECTIVE DATE OF 1996 AMENDMENT
Amendment by Pub. L. 104-188 applicable to taxable years
beginning after Dec. 31, 1996, see section 1807(e) of Pub. L.
104-188, set out as an Effective Date note under section 23 of this
title.
EFFECTIVE DATE OF 1993 AMENDMENT
Section 13141(f)(2) of Pub. L. 103-66 provided that: "The
amendment made by subsection (b) [amending this section] shall
apply to elections for periods after June 30, 1992."
EFFECTIVE DATE OF 1991 AMENDMENT
Section 108(c)(2) of Pub. L. 102-227 provided that: "The
amendment made by subsection (b) [amending this section] shall
apply to elections for periods after December 31, 1991."
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101-508 applicable to elections for periods
after Sept. 30, 1990, see section 11408(d)(2) of Pub. L. 101-508,
set out as a note under section 143 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1013(a)(25), (26) of Pub. L. 100-647
effective, except as otherwise provided, as if included in the
provision of the Tax Reform Act of 1986, Pub. L. 99-514, to which
such amendment relates, see section 1019(a) of Pub. L. 100-647, set
out as a note under section 1 of this title.
Amendment by section 4005(a)(2) of Pub. L. 100-647 applicable to
bonds issued, and nonissued bond amounts elected, after Dec. 31,
1988, see section 4005(h)(1) of Pub. L. 100-647, set out as a note
under section 143 of this title.
Amendment by section 4005(g)(7) of Pub. L. 100-647 applicable to
financing provided, and mortgage credit certificates issued, after
Dec. 31, 1990, with certain exceptions, see section 4005(h)(3) of
Pub. L. 100-647, set out as a note under section 143 of this title.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 1301(f)(1) of Pub. L. 99-514 applicable to
nonissued bond amounts elected after Aug. 15, 1986, and amendment
by section 1301(f)(2) of Pub. L. 99-514 applicable to certificates
issued with respect to nonissued bond amounts elected after Aug.
15, 1986, see section 1311(b) of Pub. L. 99-514, as amended, set
out as an Effective Date; Transitional Rules note under section 141
of this title.
Amendment by section 1862(a)-(d)(1) of Pub. L. 99-514 effective,
except as otherwise provided, as if included in the provisions of
the Tax Reform Act of 1984, Pub. L. 98-369, div. A, to which such
amendment relates, see section 1881 of Pub. L. 99-514, set out as a
note under section 48 of this title.
EFFECTIVE DATE
Section 612(g) of Pub. L. 98-369, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) In general. - Except as otherwise provided in this
subsection, the amendments made by this section [enacting this
section and section 6708 of this title, redesignating former
section 25 as 26, and amending sections 23, 28 to 30, 38, 55, 103A,
163, 168, and 901 of this title] shall apply to interest paid or
accrued after December 31, 1984, on indebtedness incurred after
December 31, 1984.
"(2) Elections. - The amendments made by this section shall apply
to elections under section 25(c)(2)(A)(ii) of the Internal Revenue
Code of 1986 [formerly I.R.C. 1954] (as added by this section) for
calendar years after 1983."
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 143, 146, 163, 6708 of
this title; title 42 section 12852.
-End-
-CITE-
26 USC Sec. 25A 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 25A. Hope and Lifetime Learning credits
-STATUTE-
(a) Allowance of credit
In the case of an individual, there shall be allowed as a credit
against the tax imposed by this chapter for the taxable year the
amount equal to the sum of -
(1) the Hope Scholarship Credit, plus
(2) the Lifetime Learning Credit.
(b) Hope Scholarship Credit
(1) Per student credit
In the case of any eligible student for whom an election is in
effect under this section for any taxable year, the Hope
Scholarship Credit is an amount equal to the sum of -
(A) 100 percent of so much of the qualified tuition and
related expenses paid by the taxpayer during the taxable year
(for education furnished to the eligible student during any
academic period beginning in such taxable year) as does not
exceed $1,000, plus
(B) 50 percent of such expenses so paid as exceeds $1,000 but
does not exceed the applicable limit.
(2) Limitations applicable to Hope Scholarship Credit
(A) Credit allowed only for 2 taxable years
An election to have this section apply with respect to any
eligible student for purposes of the Hope Scholarship Credit
under subsection (a)(1) may not be made for any taxable year if
such an election (by the taxpayer or any other individual) is
in effect with respect to such student for any 2 prior taxable
years.
(B) Credit allowed for year only if individual is at least 1/2
time student for portion of year
The Hope Scholarship Credit under subsection (a)(1) shall not
be allowed for a taxable year with respect to the qualified
tuition and related expenses of an individual unless such
individual is an eligible student for at least one academic
period which begins during such year.
(C) Credit allowed only for first 2 years of postsecondary
education
The Hope Scholarship Credit under subsection (a)(1) shall not
be allowed for a taxable year with respect to the qualified
tuition and related expenses of an eligible student if the
student has completed (before the beginning of such taxable
year) the first 2 years of postsecondary education at an
eligible educational institution.
(D) Denial of credit if student convicted of a felony drug
offense
The Hope Scholarship Credit under subsection (a)(1) shall not
be allowed for qualified tuition and related expenses for the
enrollment or attendance of a student for any academic period
if such student has been convicted of a Federal or State felony
offense consisting of the possession or distribution of a
controlled substance before the end of the taxable year with or
within which such period ends.
(3) Eligible student
For purposes of this subsection, the term "eligible student"
means, with respect to any academic period, a student who -
(A) meets the requirements of section 484(a)(1) of the Higher
Education Act of 1965 (20 U.S.C. 1091(a)(1)), as in effect on
the date of the enactment of this section, and
(B) is carrying at least 1/2 the normal full-time work load
for the course of study the student is pursuing.
(4) Applicable limit
For purposes of paragraph (1)(B), the applicable limit for any
taxable year is an amount equal to 2 times the dollar amount in
effect under paragraph (1)(A) for such taxable year.
(c) Lifetime Learning Credit
(1) Per taxpayer credit
The Lifetime Learning Credit for any taxpayer for any taxable
year is an amount equal to 20 percent of so much of the qualified
tuition and related expenses paid by the taxpayer during the
taxable year (for education furnished during any academic period
beginning in such taxable year) as does not exceed $10,000
($5,000 in the case of taxable years beginning before January 1,
2003).
(2) Special rules for determining expenses
(A) Coordination with Hope Scholarship
The qualified tuition and related expenses with respect to an
individual who is an eligible student for whom a Hope
Scholarship Credit under subsection (a)(1) is allowed for the
taxable year shall not be taken into account under this
subsection.
(B) Expenses eligible for Lifetime Learning Credit
For purposes of paragraph (1), qualified tuition and related
expenses shall include expenses described in subsection (f)(1)
with respect to any course of instruction at an eligible
educational institution to acquire or improve job skills of the
individual.
(d) Limitation based on modified adjusted gross income
(1) In general
The amount which would (but for this subsection) be taken into
account under subsection (a) for the taxable year shall be
reduced (but not below zero) by the amount determined under
paragraph (2).
(2) Amount of reduction
The amount determined under this paragraph is the amount which
bears the same ratio to the amount which would be so taken into
account as -
(A) the excess of -
(i) the taxpayer's modified adjusted gross income for such
taxable year, over
(ii) $40,000 ($80,000 in the case of a joint return), bears
to
(B) $10,000 ($20,000 in the case of a joint return).
(3) Modified adjusted gross income
The term "modified adjusted gross income" means the adjusted
gross income of the taxpayer for the taxable year increased by
any amount excluded from gross income under section 911, 931, or
933.
(e) Election not to have section apply
A taxpayer may elect not to have this section apply with respect
to the qualified tuition and related expenses of an individual for
any taxable year.
(f) Definitions
For purposes of this section -
(1) Qualified tuition and related expenses
(A) In general
The term "qualified tuition and related expenses" means
tuition and fees required for the enrollment or attendance of -
(i) the taxpayer,
(ii) the taxpayer's spouse, or
(iii) any dependent of the taxpayer with respect to whom
the taxpayer is allowed a deduction under section 151,
at an eligible educational institution for courses of
instruction of such individual at such institution.
(B) Exception for education involving sports, etc.
Such term does not include expenses with respect to any
course or other education involving sports, games, or hobbies,
unless such course or other education is part of the
individual's degree program.
(C) Exception for nonacademic fees
Such term does not include student activity fees, athletic
fees, insurance expenses, or other expenses unrelated to an
individual's academic course of instruction.
(2) Eligible educational institution
The term "eligible educational institution" means an
institution -
(A) which is described in section 481 of the Higher Education
Act of 1965 (20 U.S.C. 1088), as in effect on the date of the
enactment of this section, and
(B) which is eligible to participate in a program under title
IV of such Act.
(g) Special rules
(1) Identification requirement
No credit shall be allowed under subsection (a) to a taxpayer
with respect to the qualified tuition and related expenses of an
individual unless the taxpayer includes the name and taxpayer
identification number of such individual on the return of tax for
the taxable year.
(2) Adjustment for certain scholarships, etc.
The amount of qualified tuition and related expenses otherwise
taken into account under subsection (a) with respect to an
individual for an academic period shall be reduced (before the
application of subsections (b), (c), and (d)) by the sum of any
amounts paid for the benefit of such individual which are
allocable to such period as -
(A) a qualified scholarship which is excludable from gross
income under section 117,
(B) an educational assistance allowance under chapter 30, 31,
32, 34, or 35 of title 38, United States Code, or under chapter
1606 of title 10, United States Code, and
(C) a payment (other than a gift, bequest, devise, or
inheritance within the meaning of section 102(a)) for such
individual's educational expenses, or attributable to such
individual's enrollment at an eligible educational institution,
which is excludable from gross income under any law of the
United States.
(3) Treatment of expenses paid by dependent
If a deduction under section 151 with respect to an individual
is allowed to another taxpayer for a taxable year beginning in
the calendar year in which such individual's taxable year begins
-
(A) no credit shall be allowed under subsection (a) to such
individual for such individual's taxable year, and
(B) qualified tuition and related expenses paid by such
individual during such individual's taxable year shall be
treated for purposes of this section as paid by such other
taxpayer.
(4) Treatment of certain prepayments
If qualified tuition and related expenses are paid by the
taxpayer during a taxable year for an academic period which
begins during the first 3 months following such taxable year,
such academic period shall be treated for purposes of this
section as beginning during such taxable year.
(5) Denial of double benefit
No credit shall be allowed under this section for any expense
for which a deduction is allowed under any other provision of
this chapter.
(6) No credit for married individuals filing separate returns
If the taxpayer is a married individual (within the meaning of
section 7703), this section shall apply only if the taxpayer and
the taxpayer's spouse file a joint return for the taxable year.
(7) Nonresident aliens
If the taxpayer is a nonresident alien individual for any
portion of the taxable year, this section shall apply only if
such individual is treated as a resident alien of the United
States for purposes of this chapter by reason of an election
under subsection (g) or (h) of section 6013.
(h) Inflation adjustments
(1) Dollar limitation on amount of credit
(A) In general
In the case of a taxable year beginning after 2001, each of
the $1,000 amounts under subsection (b)(1) shall be increased
by an amount equal to -
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting "calendar year 2000" for
"calendar year 1992" in subparagraph (B) thereof.
(B) Rounding
If any amount as adjusted under subparagraph (A) is not a
multiple of $100, such amount shall be rounded to the next
lowest multiple of $100.
(2) Income limits
(A) In general
In the case of a taxable year beginning after 2001, the
$40,000 and $80,000 amounts in subsection (d)(2) shall each be
increased by an amount equal to -
(i) such dollar amount, multiplied by
(ii) the cost-of-living adjustment determined under section
1(f)(3) for the calendar year in which the taxable year
begins, determined by substituting "calendar year 2000" for
"calendar year 1992" in subparagraph (B) thereof.
(B) Rounding
If any amount as adjusted under subparagraph (A) is not a
multiple of $1,000, such amount shall be rounded to the next
lowest multiple of $1,000.
(i) Regulations
The Secretary may prescribe such regulations as may be necessary
or appropriate to carry out this section, including regulations
providing for a recapture of the credit allowed under this section
in cases where there is a refund in a subsequent taxable year of
any amount which was taken into account in determining the amount
of such credit.
-SOURCE-
(Added Pub. L. 105-34, title II, Sec. 201(a), Aug. 5, 1997, 111
Stat. 799; amended Pub. L. 107-16, title IV, Sec. 401(g)(2)(A),
June 7, 2001, 115 Stat. 59.)
-STATAMEND-
INFLATION ADJUSTED ITEMS FOR TAXABLE YEARS BEGINNING IN 2004
For inflation adjustment of amounts in subsection (b)(1) of this
section used in determining Hope Scholarship Credit and amounts in
subsection (d)(2)(A)(ii) of this section used in determining
reduction in amount of credits otherwise allowable for taxable
years beginning in 2004, see section 3.05 of Revenue Procedure
2003-85, set out as a note under section 1 of this title.
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-REFTEXT-
REFERENCES IN TEXT
The date of the enactment of this section, referred to in
subsecs. (b)(3)(A) and (f)(2)(A), is the date of enactment of Pub.
L. 105-34 which was approved Aug. 5, 1997.
The Higher Education Act of 1965, referred to in subsec.
(f)(2)(B), is Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as
amended. Title IV of the Act is classified generally to subchapter
IV (Sec. 1070 et seq.) of chapter 28 of Title 20, Education, and
part C (Sec. 2751 et seq.) of subchapter I of chapter 34 of Title
42, The Public Health and Welfare. For complete classification of
this Act to the Code, see Short Title note set out under section
1001 of Title 20 and Tables.
-MISC1-
AMENDMENTS
2001 - Subsec. (e). Pub. L. 107-16, Secs. 401(g)(2)(A), 901,
temporarily amended heading and text of subsec. (e) generally.
Prior to amendment, text read as follows:
"(1) In general. - No credit shall be allowed under subsection
(a) for a taxable year with respect to the qualified tuition and
related expenses of an individual unless the taxpayer elects to
have this section apply with respect to such individual for such
year.
"(2) Coordination with exclusions. - An election under this
subsection shall not take effect with respect to an individual for
any taxable year if any portion of any distribution during such
taxable year from an education individual retirement account is
excluded from gross income under section 530(d)(2)."
See Effective and Termination Dates of 2001 Amendment note below.
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title IV, Sec. 401(h), June 7, 2001, 115 Stat.
60, provided that: "The amendments made by this section [amending
this section and sections 135, 530, and 4973 of this title] shall
apply to taxable years beginning after December 31, 2001."
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE
Section 201(f) of Pub. L. 105-34 provided that:
"(1) In general. - The amendments made by this section [enacting
this section and section 6050S of this title and amending sections
135, 6213, and 6724 of this title] shall apply to expenses paid
after December 31, 1997 (in taxable years ending after such date),
for education furnished in academic periods beginning after such
date.
"(2) Lifetime learning credit. - Section 25A(a)(2) of the
Internal Revenue Code of 1986 shall apply to expenses paid after
June 30, 1998 (in taxable years ending after such date), for
education furnished in academic periods beginning after such
dates."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 72, 135, 221, 222, 529,
530, 6050S, 6213 of this title; title 20 sections 1087oo, 1087pp,
1087qq, 1087ss, 1087vv.
-End-
-CITE-
26 USC Sec. 25B 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 25B. Elective deferrals and IRA contributions by certain
individuals
-STATUTE-
(a) Allowance of credit
In the case of an eligible individual, there shall be allowed as
a credit against the tax imposed by this subtitle for the taxable
year an amount equal to the applicable percentage of so much of the
qualified retirement savings contributions of the eligible
individual for the taxable year as do not exceed $2,000.
(b) Applicable percentage
For purposes of this section, the applicable percentage is the
percentage determined in accordance with the following table:
Adjusted Gross Income
________________________________________________________ Applicable
Joint return Head of a All other percentage
Household cases
Over Not over Over Not over Over Not Over
-----------------------------------------------------------------------
$30,000 $22,500 $15,000 50
30,000 32,500 22,500 24,375 15,000 16,250 20
32,500 50,000 24,375 37,500 16,250 25,000 10
50,000 37,500 25,000 0
-----------------------------------------------------------------------
(c) Eligible individual
For purposes of this section -
(1) In general
The term "eligible individual" means any individual if such
individual has attained the age of 18 as of the close of the
taxable year.
(2) Dependents and full-time students not eligible
The term "eligible individual" shall not include -
(A) any individual with respect to whom a deduction under
section 151 is allowed to another taxpayer for a taxable year
beginning in the calendar year in which such individual's
taxable year begins, and
(B) any individual who is a student (as defined in section
151(c)(4)).
(d) Qualified retirement savings contributions
For purposes of this section -
(1) In general
The term "qualified retirement savings contributions" means,
with respect to any taxable year, the sum of -
(A) the amount of the qualified retirement contributions (as
defined in section 219(e)) made by the eligible individual,
(B) the amount of -
(i) any elective deferrals (as defined in section
402(g)(3)) of such individual, and
(ii) any elective deferral of compensation by such
individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described
in section 457(e)(1)(A), and
(C) the amount of voluntary employee contributions by such
individual to any qualified retirement plan (as defined in
section 4974(c)).
(2) Reduction for certain distributions
(A) In general
The qualified retirement savings contributions determined
under paragraph (1) shall be reduced (but not below zero) by
the aggregate distributions received by the individual during
the testing period from any entity of a type to which
contributions under paragraph (1) may be made. The preceding
sentence shall not apply to the portion of any distribution
which is not includible in gross income by reason of a
trustee-to-trustee transfer or a rollover distribution.
(B) Testing period
For purposes of subparagraph (A), the testing period, with
respect to a taxable year, is the period which includes -
(i) such taxable year,
(ii) the 2 preceding taxable years, and
(iii) the period after such taxable year and before the due
date (including extensions) for filing the return of tax for
such taxable year.
(C) Excepted distributions
There shall not be taken into account under subparagraph (A)
-
(i) any distribution referred to in section 72(p),
401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4), and
(ii) any distribution to which section 408A(d)(3) applies.
(D) Treatment of distributions received by spouse of individual
For purposes of determining distributions received by an
individual under subparagraph (A) for any taxable year, any
distribution received by the spouse of such individual shall be
treated as received by such individual if such individual and
spouse file a joint return for such taxable year and for the
taxable year during which the spouse receives the distribution.
(e) Adjusted gross income
For purposes of this section, adjusted gross income shall be
determined without regard to sections 911, 931, and 933.
(f) Investment in the contract
Notwithstanding any other provision of law, a qualified
retirement savings contribution shall not fail to be included in
determining the investment in the contract for purposes of section
72 by reason of the credit under this section.
(g) Limitation based on amount of tax
The credit allowed under subsection (a) for the taxable year
shall not exceed the excess of -
(1) the sum of the regular tax liability (as defined in section
26(b)) plus the tax imposed by section 55, over
(2) the sum of the credits allowable under this subpart (other
than this section and section 23) and section 27 for the taxable
year.
(h) Termination
This section shall not apply to taxable years beginning after
December 31, 2006.
-SOURCE-
(Added and amended Pub. L. 107-16, title VI, Sec. 618(a), (b)(1),
June 7, 2001, 115 Stat. 106, 108; Pub. L. 107-147, title IV, Secs.
411(m), 417(1), Mar. 9, 2002, 116 Stat. 48, 56.)
-STATAMEND-
TERMINATION OF SECTION
For termination of section by section 901 of Pub. L. 107-16, see
Effective and Termination Dates note below.
-MISC1-
AMENDMENTS
2002 - Subsec. (d)(2)(A). Pub. L. 107-147, Sec. 411(m), reenacted
heading without change and amended text of subpar. (A) generally.
Prior to amendment, text read as follows: "The qualified retirement
savings contributions determined under paragraph (1) shall be
reduced (but not below zero) by the sum of -
"(i) any distribution from a qualified retirement plan (as
defined in section 4974(c)), or from an eligible deferred
compensation plan (as defined in section 457(b)), received by the
individual during the testing period which is includible in gross
income, and
"(ii) any distribution from a Roth IRA or a Roth account
received by the individual during the testing period which is not
a qualified rollover contribution (as defined in section 408A(e))
to a Roth IRA or a rollover under section 402(c)(8)(B) to a Roth
account."
Subsecs. (g), (h). Pub. L. 107-147, Sec. 417(1), redesignated
subsec. (g), relating to termination, as (h).
2001 - Subsec. (g). Pub. L. 107-16, Secs. 618(b)(1), 901,
temporarily added subsec. (g) relating to limitation based on
amount of tax. See Effective and Termination Dates note below.
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 411(x), Mar. 9, 2002, 116 Stat.
53, provided that: "Except as provided in subsection (c) [amending
sections 23 and 137 of this title and enacting provisions set out
as a note under section 23 of this title], the amendments made by
this section [amending this section, sections 23, 24, 38, 45E, 45F,
63, 137, 401 to 404, 408, 409, 412, 414 to 417, 457, 530, 2016,
2101, 2511, 4980F, and 6428 of this title, sections 1003, 1054,
1055, 1082, and 1104 of Title 29, Labor, and provisions set out as
notes under sections 38, 415, and 4980F of this title] shall take
effect as if included in the provisions of the Economic Growth and
Tax Relief Reconciliation Act of 2001 [Pub. L. 107-16] to which
they relate."
EFFECTIVE AND TERMINATION DATES
Amendment by section 618(b)(1) of Pub. L. 107-16 inapplicable to
taxable years beginning during 2002 and 2003, see section 601(b)(2)
of Pub. L. 107-147, set out as an Effective and Termination Dates
of 2001 Amendment note under section 23 of this title.
Amendment by section 618(b)(1) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 618(d) of
Pub. L. 107-16, set out as an Effective and Termination Dates of
2001 Amendment note under section 24 of this title.
Section inapplicable to taxable, plan, or limitation years
beginning after Dec. 31, 2010, and the Internal Revenue Code of
1986 to be applied and administered to such years as if it had
never been enacted, see section 901 of Pub. L. 107-16, set out as
an Effective and Termination Dates of 2001 Amendment note under
section 1 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 25, 26, 904, 1400C of
this title.
-End-
-CITE-
26 USC Sec. 26 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart A - Nonrefundable Personal Credits
-HEAD-
Sec. 26. Limitation based on tax liability; definition of tax
liability
-STATUTE-
(a) Limitation based on amount of tax
(1) In general
The aggregate amount of credits allowed by this subpart (other
than sections 23, 24, and 25B) for the taxable year shall not
exceed the excess (if any) of -
(A) the taxpayer's regular tax liability for the taxable
year, over
(B) the tentative minimum tax for the taxable year
(determined without regard to the alternative minimum tax
foreign tax credit).
For purposes of subparagraph (B), the taxpayer's tentative
minimum tax for any taxable year beginning during 1999 shall be
treated as being zero.
(2) Special rule for 2000, 2001, 2002, and 2003
For purposes of any taxable year beginning during 2000, 2001,
2002, or 2003, the aggregate amount of credits allowed by this
subpart for the taxable year shall not exceed the sum of -
(A) the taxpayer's regular tax liability for the taxable year
reduced by the foreign tax credit allowable under section
27(a), and
(B) the tax imposed by section 55(a) for the taxable year.
(b) Regular tax liability
For purposes of this part -
(1) In general
The term "regular tax liability" means the tax imposed by this
chapter for the taxable year.
(2) Exception for certain taxes
For purposes of paragraph (1), any tax imposed by any of the
following provisions shall not be treated as tax imposed by this
chapter:
(A) section 55 (relating to minimum tax),
(B) section 59A (relating to environmental tax),
(C) subsection (m)(5)(B), (q), (t), or (v) of section 72
(relating to additional taxes on certain distributions),
(D) section 143(m) (relating to recapture of proration of
Federal subsidy from use of mortgage bonds and mortgage credit
certificates),
(E) section 530(d)(3) (relating to additional tax on certain
distributions from Coverdell education savings accounts),
(F) section 531 (relating to accumulated earnings tax),
(G) section 541 (relating to personal holding company tax),
(H) section 1351(d)(1) (relating to recoveries of foreign
expropriation losses),
(I) section 1374 (relating to tax on certain built-in gains
of S corporations),
(J) section 1375 (relating to tax imposed when passive
investment income of corporation having subchapter C earnings
and profits exceeds 25 percent of gross receipts),
(K) subparagraph (A) of section 7518(g)(6) (relating to
nonqualified withdrawals from capital construction funds taxed
at highest marginal rate),
(L) sections 871(a) and 881 (relating to certain income of
nonresident aliens and foreign corporations),
(M) section 860E(e) (relating to taxes with respect to
certain residual interests),
(N) section 884 (relating to branch profits tax),
(O) sections 453(l)(3) and 453A(c) (relating to interest on
certain deferred tax liabilities),
(P) section 860K (relating to treatment of transfers of
high-yield interests to disqualified holders),
(Q) section 220(f)(4) (relating to additional tax on Archer
MSA distributions not used for qualified medical expenses), and
(R) section 138(c)(2) (relating to penalty for distributions
from Medicare+Choice (!1) MSA not used for qualified medical
expenses if minimum balance not maintained).
(c) Tentative minimum tax
For purposes of this part, the term "tentative minimum tax" means
the amount determined under section 55(b)(1).
-SOURCE-
(Added Sec. 25, renumbered Sec. 26, Pub. L. 98-369, div. A, title
IV, Sec. 472, title VI, Sec. 612(a), July 18, 1984, 98 Stat. 827,
905; amended Pub. L. 99-499, title V, Sec. 516(b)(1)(A), Oct. 17,
1986, 100 Stat. 1770; Pub. L. 99-514, title II, Sec. 261(c), title
VI, Sec. 632(c)(1), title VII, Sec. 701(c)(1), Oct. 22, 1986, 100
Stat. 2214, 2277, 2340; Pub. L. 100-647, title I, Secs.
1006(t)(16)(C), 1007(g)(1), 1011A(c)(10), 1012(q)(8), title IV,
Sec. 4005(g)(4), title V, Sec. 5012(b)(2), Nov. 10, 1988, 102 Stat.
3425, 3434, 3476, 3524, 3650, 3662; Pub. L. 101-239, title VII,
Secs. 7811(c)(1), (2), 7821(a)(4)(A), Dec. 19, 1989, 103 Stat.
2406, 2407, 2424; Pub. L. 104-188, title I, Sec. 1621(b)(1), Aug.
20, 1996, 110 Stat. 1866; Pub. L. 105-34, title II, Sec. 213(e)(1),
title XVI, Sec. 1602(a)(1), Aug. 5, 1997, 111 Stat. 817, 1093; Pub.
L. 105-277, div. J, title II, Sec. 2001(a), Oct. 21, 1998, 112
Stat. 2681-901; Pub. L. 106-170, title V, Sec. 501(a), Dec. 17,
1999, 113 Stat. 1918; Pub. L. 106-554, Sec. 1(a)(7) [title II, Sec.
202(a)(1)], Dec. 21, 2000, 114 Stat. 2763, 2763A-628; Pub. L.
107-16, title II, Secs. 201(b)(2)(D), 202(f)(2)(C), title VI, Sec.
618(b)(2)(C), June 7, 2001, 115 Stat. 46, 49, 108; Pub. L. 107-22,
Sec. 1(b)(2)(A), July 26, 2001, 115 Stat. 197; Pub. L. 107-147,
title IV, Secs. 415(a), 417(23)(B), title VI, Sec. 601(a), Mar. 9,
2002, 116 Stat. 54, 57, 59.)
-STATAMEND-
AMENDMENT OF SECTION
For termination of amendment by section 901 of Pub. L. 107-16,
see Effective and Termination Dates of 2001 Amendment note below.
-MISC1-
AMENDMENTS
2002 - Subsec. (a)(1). Pub. L. 107-147, Sec. 417(23)(B), amended
directory language of Pub. L. 107-16, Sec. 618(b)(2)(C). See 2001
Amendment note below.
Subsec. (a)(2). Pub. L. 107-147, Sec. 601(a), substituted "rule
for 2000, 2001, 2002, and 2003" for "rule for 2000 and 2001" in
heading and "during 2000, 2001, 2002, or 2003," for "during 2000 or
2001," in introductory provisions.
Subsec. (b)(2)(P), (Q). Pub. L. 107-147, Sec. 415(a), which
directed striking "and" at end of subpar. (P) and substituting ",
and" for the period at the end of subpar. (Q), was executed to
subpars. (P) and (Q) as redesignated by Pub. L. 105-34, Sec.
213(e)(1), to reflect the probable intent of Congress. See 1997
Amendment notes below.
Subsec. (b)(2)(R). Pub. L. 107-147, Sec. 415(a), added subpar.
(R).
2001 - Subsec. (a)(1). Pub. L. 107-16, Secs. 618(b)(2)(C), 901,
as amended by Pub. L. 107-147, Sec. 417(23)(B), temporarily
substituted ", 24, and 25B" for "and 24" in introductory
provisions. See Effective and Termination Dates of 2001 Amendment
note below.
Pub. L. 107-16, Secs. 202(f)(2)(C), 901, temporarily substituted
"sections 23 and 24" for "section 24" in introductory provisions.
See Effective and Termination Dates of 2001 Amendment note below.
Pub. L. 107-16, Secs. 201(b)(2)(D), 901, temporarily inserted
"(other than section 24)" after "this subpart" in introductory
provisions. See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (b)(2)(E). Pub. L. 107-22 substituted "Coverdell
education savings" for "education individual retirement".
2000 - Subsec. (b)(2)(Q). Pub. L. 106-554 substituted "Archer
MSA" for "medical savings account".
1999 - Subsec. (a). Pub. L. 106-170 reenacted subsec. heading
without change and amended text generally. Prior to amendment, text
read as follows: "The aggregate amount of credits allowed by this
subpart for the taxable year shall not exceed the excess (if any)
of -
"(1) the taxpayer's regular tax liability for the taxable year,
over
"(2) the tentative minimum tax for the taxable year (determined
without regard to the alternative minimum tax foreign tax
credit).
For purposes of paragraph (2), the taxpayer's tentative minimum tax
for any taxable year beginning during 1998 shall be treated as
being zero."
1998 - Subsec. (a). Pub. L. 105-277 inserted concluding
provisions.
1997 - Subsec. (b)(2)(E) to (O). Pub. L. 105-34, Sec. 213(e)(1),
added subpar. (E) and redesignated former subpars. (E) to (N) as
(F) to (O), respectively. Former subpar. (O) redesignated (P).
Subsec. (b)(2)(P). Pub. L. 105-34, Sec. 213(e)(1), redesignated
subpar. (P) as (Q).
Pub. L. 105-34, Sec. 1602(a)(1), added subpar. (P).
Subsec. (b)(2)(Q). Pub. L. 105-34, Sec. 213(e)(1), redesignated
subpar. (P) as (Q).
1996 - Subsec. (b)(2)(O). Pub. L. 104-188 added subpar. (O).
1989 - Subsec. (b)(2)(C), (D). Pub. L. 101-239, Sec. 7811(c)(1),
amended subpars. (C) and (D) generally. Prior to amendment,
subpars. (C) and (D) read as follows:
"(C) subsection (m)(5)(B) (q), or (v) of section 72 (relating to
additional tax on certain distributions),
"(D) section 72(t) (relating to 10-percent additional tax on
early distributions from qualified retirement plans),".
Subsec. (b)(2)(K). Pub. L. 101-239, Sec. 7811(c)(2), added
subpar. (K) and struck out former subpar. (K) which was identical.
Subsec. (b)(2)(L), (M). Pub. L. 101-239, Sec. 7811(c)(2), added
subpars. (L) and (M) and struck out former subpars. (L) and (M)
which read as follows:
"(L) section 860E(e) (relating to taxes with respect to certain
residual interests), and
"(L) section 884 (relating to branch profits tax), and
"(M) section 143(m) (relating to recapture of portion of federal
subsidy from use of mortgage bonds and mortgage credit
certificates)."
Subsec. (b)(2)(N). Pub. L. 101-239, Sec. 7821(a)(4)(A), which
directed amendment of subsec. (b)(2) of this section "as amended by
section 11811" by adding subpar. (N), was executed as if it
directed amendment of subsec. (b)(2) of this section "as amended by
section 7811", to reflect the probable intent of Congress and the
renumbering of section 11811 of H.R. 3299 as section 7811 prior to
the enactment of H.R. 3299 into law as Pub. L. 101-239.
1988 - Subsec. (b)(2)(C). Pub. L. 100-647, Sec. 1011A(c)(10)(A),
struck out ", (o)(2)," after "subsection (m)(5)(B)".
Pub. L. 100-647, Sec. 5012(b)(2), substituted "(q), or (v)" for
"or (q)".
Subsec. (b)(2)(D). Pub. L. 100-647, Sec. 1011A(c)(10)(B),
substituted "72(t) (relating to 10-percent additional tax on early
distributions from qualified retirement plans)" for "408(f)
(relating to additional tax on income from certain retirement
accounts)".
Subsec. (b)(2)(K). Pub. L. 100-647, Sec. 1007(g)(1), substituted
"corporations)." for "corporations,".
Subsec. (b)(2)(L). Pub. L. 100-647, Sec. 1012(q)(8), added
subpar. (L) relating to branch profits tax.
Pub. L. 100-647, Sec. 1006(t)(16)(C), added subpar. (L) relating
to taxes with respect to certain residual interests.
Subsec. (b)(2)(M). Pub. L. 100-647, Sec. 4005(g)(4), added
subpar. (M).
1986 - Subsec. (a). Pub. L. 99-514, Sec. 701(c)(1)(A), amended
subsec. (a) generally. Prior to amendment, subsec. (a) read as
follows: "The aggregate amount of credits allowed by this subpart
for the taxable year shall not exceed the taxpayer's tax liability
for such taxable year."
Subsec. (b). Pub. L. 99-514, Sec. 701(c)(1)(B)(i), (v),
substituted "Regular tax liability" for "Tax liability" in heading
and "this part" for "this section" in introductory provisions.
Subsec. (b)(1). Pub. L. 99-514, Sec. 701(c)(1)(B)(ii),
substituted "regular tax liability" for "tax liability".
Subsec. (b)(2). Pub. L. 99-499 added subpar. (B) and redesignated
former subpars. (B) to (J) as (C) to (K), respectively.
Pub. L. 99-514, Sec. 701(c)(1)(B)(iii), substituted "section 55
(relating to minimum tax)" for "section 56 (relating to corporate
minimum tax)" in subpar. (A).
Pub. L. 99-514, Sec. 632(c)(1), substituted "certain built-in
gains" for "certain capital gains" in subpar. (G).
Pub. L. 99-514, Sec. 261(c), added subpar. (I).
Pub. L. 99-514, Sec. 701(c)(1)(B)(iv), added subpar. (J).
Subsec. (c). Pub. L. 99-514, Sec. 701(c)(1)(C), amended subsec.
(c) generally, substituting provisions relating to tentative
minimum tax for provisions referring to section 55(c) of this title
for similar rule for alternative minimum tax for taxpayers other
than corporations.
-CHANGE-
CHANGE OF NAME
References to Medicare+Choice deemed to refer to Medicare
Advantage or MA, subject to an appropriate transition provided by
the Secretary of Health and Human Services in the use of those
terms, see section 201 of Pub. L. 108-173, set out as a note under
section 1395w-21 of Title 42, The Public Health and Welfare.
-MISC2-
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-147, title IV, Sec. 415(b), Mar. 9, 2002, 116 Stat.
54, provided that: "The amendment made by this section [amending
this section] shall take effect as if included in section 4006 of
the Balanced Budget Act of 1997 [Pub. L. 105-33]."
Pub. L. 107-147, title VI, Sec. 601(c), Mar. 9, 2002, 116 Stat.
59, provided that: "The amendments made by this section [amending
this section and section 904 of this title] shall apply to taxable
years beginning after December 31, 2001."
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENTS
Amendment by Pub. L. 107-16 inapplicable to taxable years
beginning during 2002 and 2003, see section 601(b)(2) of Pub. L.
107-147, set out as a note under section 23 of this title.
Pub. L. 107-22, Sec. 1(c), July 26, 2001, 115 Stat. 197, provided
that: "The amendments made by this section [amending this section
and sections 72, 135, 529, 530, 4973, 4975, and 6693 of this title]
shall take effect on the date of the enactment of this Act [July
26, 2001]."
Amendment by section 201(b)(2)(D) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 201(e)(2)
of Pub. L. 107-16, set out as a note under section 24 of this
title.
Amendment by section 202(f)(2)(C) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 202(g)(1)
of Pub. L. 107-16, set out as a note under section 23 of this
title.
Amendment by section 618(b)(2)(C) of Pub. L. 107-16 applicable to
taxable years beginning after Dec. 31, 2001, see section 618(d) of
Pub. L. 107-16, set out as a note under section 24 of this title.
Amendment by Pub. L. 107-16 inapplicable to taxable, plan, or
limitation years beginning after Dec. 31, 2010, and the Internal
Revenue Code of 1986 to be applied and administered to such years
as if such amendment had never been enacted, see section 901 of
Pub. L. 107-16, set out as a note under section 1 of this title.
EFFECTIVE DATE OF 1999 AMENDMENT
Amendment by Pub. L. 106-170 applicable to taxable years
beginning after Dec. 31, 1998, see section 501(c) of Pub. L.
106-170, set out as a note under section 24 of this title.
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105-277 applicable to taxable years
beginning after Dec. 31, 1997, see section 2001(c) of Pub. L.
105-277, set out as a note under section 24 of this title.
EFFECTIVE DATE OF 1997 AMENDMENT
Section 213(f) of Pub. L. 105-34 provided that: "The amendments
made by this section [enacting section 530 of this title and
amending this section and sections 135, 4973, 4975, and 6693 of
this title] shall apply to taxable years beginning after December
31, 1997."
Section 1602(i) of Pub. L. 105-34 provided that: "The amendments
made by this section [amending this section and sections 162, 220,
264, 877, 2107, 2501, 4975, 6050Q, 6652, 6693, 6724, and 7702B of
this title, renumbering section 6039F of this title as section
6039G of this title, and amending provisions set out as a note
under section 264 of this title] shall take effect as if included
in the provisions of the Health Insurance Portability and
Accountability Act of 1996 [Pub. L. 104-191] to which such
amendments relate."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1621(d) of Pub. L. 104-188 provided that: "The amendments
made by this section [enacting sections 860H to 860L of this title
and amending this section and sections 56, 382, 582, 856, 860G,
1202, and 7701 of this title] shall take effect on September 1,
1997."
EFFECTIVE DATE OF 1989 AMENDMENT
Amendment by section 7811(c)(1), (2) of Pub. L. 101-239
effective, except as otherwise provided, as if included in the
provision of the Technical and Miscellaneous Revenue Act of 1988,
Pub. L. 100-647, to which such amendment relates, see section 7817
of Pub. L. 101-239, set out as a note under section 1 of this
title.
Section 7823 of Pub. L. 101-239 provided that: "Except as
otherwise provided in this part [part II (Secs. 7821-7823) of
subtitle H of title VII of Pub. L. 101-239, amending this section
and sections 453A, 842, 1503, 6427, 6655, 6863, 7519, 7611, 9502,
9503, and 9508 of this title and enacting provisions set out as
notes under sections 56 and 7519 of this title], any amendment made
by this part shall take effect as if included in the provision of
the 1987 Act [Pub. L. 100-203, title X] to which such amendment
relates."
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by section 1006(t)(16)(C) of Pub. L. 100-647
applicable, with certain exceptions, to transfers after Mar. 31,
1988, and to excess inclusions for periods after Mar. 31, 1988, see
section 1006(t)(16)(D)(ii)-(iv) of Pub. L. 100-647, set out as a
note under section 860E of this title.
Amendment by sections 1007(g)(1), 1011A(c)(10), and 1012(q)(8) of
Pub. L. 100-647 effective, except as otherwise provided, as if
included in the provision of the Tax Reform Act of 1986, Pub. L.
99-514, to which such amendment relates, see section 1019(a) of
Pub. L. 100-647, set out as a note under section 1 of this title.
Amendment by section 4005(g)(4) of Pub. L. 100-647 applicable,
with certain exceptions, to financing provided, and mortgage credit
certificates issued, after Dec. 31, 1990, see section 4005(h)(3) of
Pub. L. 100-647, set out as a note under section 143 of this title.
Amendment by section 5012(b)(2) of Pub. L. 100-647 applicable to
contracts entered into on or after June 21, 1988, with special rule
where death benefit increases by more than $150,000, certain other
material changes taken into account, and certain exchanges
permitted, see section 5012(e) of Pub. L. 100-647, set out as an
Effective Date note under section 7702A of this title.
EFFECTIVE DATE OF 1986 AMENDMENTS
Amendment by section 261(c) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, see section 261(g) of
Pub. L. 99-514, set out as an Effective Date note under section
7518 of this title.
Amendment by section 632(c)(1) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, but only in cases
where the return for the taxable year is filed pursuant to an S
election made after Dec. 31, 1986, see section 633(b) of Pub. L.
99-514, as amended, set out as an Effective Date note under section
336 of this title.
Amendment by section 632(c)(1) of Pub. L. 99-514 not applicable
in the case of certain transactions, see section 54(d)(3)(D) of
Pub. L. 98-369, as amended, set out as an Effective Date of 1984
Amendment note under section 311 of this title.
Amendment by section 701(c)(1) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 701(f) of Pub. L.
99-514, set out as an Effective Date note under section 55 of this
title.
Section 516(c) of Pub. L. 99-499 provided that: "The amendments
made by this section [enacting section 59A of this title and
amending this section and sections 164, 275, 936, 1561, 6154, 6425,
and 6655 of this title] shall apply to taxable years beginning
after December 31, 1986."
EFFECTIVE DATE
Section applicable to taxable years beginning after Dec. 31,
1983, and to carrybacks from such years, see section 475(a) of Pub.
L. 98-369, set out as an Effective Date of 1984 Amendment note
under section 21 of this title.
APPLICABILITY OF CERTAIN AMENDMENTS BY PUBLIC LAW 99-514 IN
RELATION TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(c)(1) of Pub. L.
99-514 notwithstanding any treaty obligation of the United States
in effect on Oct. 22, 1986, with provision that for such purposes
any amendment by title I of Pub. L. 100-647 be treated as if it had
been included in the provision of Pub. L. 99-514 to which such
amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,
set out as a note under section 861 of this title.
TREATMENT OF TAX IMPOSED UNDER FORMER SECTION 409(C)
Section 491(f)(5) of Pub. L. 98-369, as amended by Pub. L.
99-514, Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that: "For
purposes of section 26(b) of the Internal Revenue Code of 1986
[formerly I.R.C. 1954] (as amended by this Act), any tax imposed by
section 409(c) of such Code (as in effect before its repeal by this
section) shall be treated as a tax imposed by section 408(f) of
such Code."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 24, 25, 25B, 39, 55, 163,
469, 901, 1397E, 1400C, 6428, 6429 of this title.
-FOOTNOTE-
(!1) See Change of Name note below.
-End-
-CITE-
26 USC Subpart B - Other Credits 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart B - Other Credits
-HEAD-
SUBPART B - OTHER CREDITS
-MISC1-
Sec.
27. Taxes of foreign countries and possessions of the
United States; possession tax credit.
[28. Renumbered.]
29. Credit for producing fuel from a nonconventional
source.
30. Credit for qualified electric vehicles.
30A. Puerto Rico economic activity credit.
AMENDMENTS
1997 - Pub. L. 105-34, title XVI, Sec. 1601(f)(1)(B), Aug. 5,
1997, 111 Stat. 1090, substituted "Puerto Rico" for "Puerto Rican"
in item 30A.
1996 - Pub. L. 104-188, title I, Secs. 1205(a)(3)(A),
1601(b)(2)(E), (F)(i), Aug. 20, 1996, 110 Stat. 1775, 1833,
substituted "Other Credits" for "Foreign Tax Credits, Etc." in
subpart heading, struck out item 28 "Clinical testing expenses for
certain drugs for rare diseases or conditions", and added item 30A.
1992 - Pub. L. 102-486, title XIX, Sec. 1913(b)(2)(A), Oct. 24,
1992, 106 Stat. 3020, added item 30.
1986 - Pub. L. 99-514, title II, Sec. 231(d)(3)(J), Oct. 22,
1986, 100 Stat. 2180, struck out item 30 "Credit for increasing
research activities".
1984 - Pub. L. 98-369, div. A, title IV, Sec. 471(b), July 18,
1984, 98 Stat. 826, added subpart B heading and analysis of
sections for subpart B consisting of items 27 (formerly 33), 28
(formerly 44H), 29 (formerly 44D), and 30 (formerly 44F). Former
subpart B was redesignated E.
-SECREF-
SUBPART REFERRED TO IN OTHER SECTIONS
This subpart is referred to in sections 38, 53, 469, 6401 of this
title.
-End-
-CITE-
26 USC Sec. 27 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart B - Other Credits
-HEAD-
Sec. 27. Taxes of foreign countries and possessions of the United
States; possession tax credit
-STATUTE-
(a) Foreign tax credit
The amount of taxes imposed by foreign countries and possessions
of the United States shall be allowed as a credit against the tax
imposed by this chapter to the extent provided in section 901.
(b) Section 936 credit
In the case of a domestic corporation, the amount provided by
section 936 (relating to Puerto Rico and possession tax credit)
shall be allowed as a credit against the tax imposed by this
chapter.
-SOURCE-
(Aug. 16, 1954, ch. 736, 68A Stat. 13, Sec. 33; Pub. L. 94-455,
title X, Sec. 1051(a), Oct. 4, 1976, 90 Stat. 1643; renumbered Sec.
27, Pub. L. 98-369, div. A, title IV, Sec. 471(c), July 18, 1984,
98 Stat. 826.)
-MISC1-
AMENDMENTS
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 33 of this
title as this section.
1976 - Pub. L. 94-455 designated existing provisions as subsec.
(a) and added subsec. (b).
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1051(i) of Pub. L. 94-455, as amended by Pub. L. 99-514,
Sec. 2, Oct. 22, 1986, 100 Stat. 2095, provided that:
"(1) Except as provided by paragraph (2), the amendments made by
this section [enacting section 936 of this title and amending
sections 33 [now 27], 48, 116, 243, 246, 861, 901, 904, 931, 1504,
and 6091 of this title] shall apply to taxable years beginning
after December 31, 1975, except that 'qualified possession source
investment income' as defined in section 936(d)(2) of the Internal
Revenue Code of 1986 [formerly I.R.C. 1954] shall include income
from any source outside the United States if the taxpayer
establishes to the satisfaction of the Secretary of the Treasury or
his delegate that the income from such sources was earned before
October 1, 1976.
"(2) The amendment made by subsection (d)(2) [amending section
901 of this title] shall not apply to any tax imposed by a
possession of the United States with respect to the complete
liquidation occurring before January 1, 1979, of a corporation to
the extent that such tax is attributable to earnings and profits
accumulated by such corporation during periods ending before
January 1, 1976."
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 23, 24, 25B, 26, 29, 30,
55, 59, 108, 469, 691, 1351 of this title.
-End-
-CITE-
26 USC Sec. 28 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart B - Other Credits
-HEAD-
[Sec. 28. Renumbered Sec. 45C]
-STATUTE-
-End-
-CITE-
26 USC Sec. 29 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart B - Other Credits
-HEAD-
Sec. 29. Credit for producing fuel from a nonconventional source
-STATUTE-
(a) Allowance of credit
There shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to -
(1) $3, multiplied by
(2) the barrel-of-oil equivalent of qualified fuels -
(A) sold by the taxpayer to an unrelated person during the
taxable year, and
(B) the production of which is attributable to the taxpayer.
(b) Limitations and adjustments
(1) Phaseout of credit
The amount of the credit allowable under subsection (a) shall
be reduced by an amount which bears the same ratio to the amount
of the credit (determined without regard to this paragraph) as -
(A) the amount by which the reference price for the calendar
year in which the sale occurs exceeds $23.50, bears to
(B) $6.
(2) Credit and phaseout adjustment based on inflation
The $3 amount in subsection (a) and the $23.50 and $6 amounts
in paragraph (1) shall each be adjusted by multiplying such
amount by the inflation adjustment factor for the calendar year
in which the sale occurs. In the case of gas from a tight
formation, the $3 amount in subsection (a) shall not be adjusted.
(3) Credit reduced for grants, tax-exempt bonds, and subsidized
energy financing
(A) In general
The amount of the credit allowable under subsection (a) with
respect to any project for any taxable year (determined after
the application of paragraphs (1) and (2)) shall be reduced by
the amount which is the product of the amount so determined for
such year and a fraction -
(i) the numerator of which is the sum, for the taxable year
and all prior taxable years, of -
(I) grants provided by the United States, a State, or a
political subdivision of a State for use in connection with
the project,
(II) proceeds of any issue of State or local government
obligations used to provide financing for the project the
interest on which is exempt from tax under section 103, and
(III) the aggregate amount of subsidized energy financing
(within the meaning of section 48(a)(4)(C)) provided in
connection with the project, and
(ii) the denominator of which is the aggregate amount of
additions to the capital account for the project for the
taxable year and all prior taxable years.
(B) Amounts determined at close of year
The amounts under subparagraph (A) for any taxable year shall
be determined as of the close of the taxable year.
(4) Credit reduced for energy credit
The amount allowable as a credit under subsection (a) with
respect to any project for any taxable year (determined after the
application of paragraphs (1), (2), and (3)) shall be reduced by
the excess of -
(A) the aggregate amount allowed under section 38 for the
taxable year or any prior taxable year by reason of the energy
percentage with respect to property used in the project, over
(B) the aggregate amount recaptured with respect to the
amount described in subparagraph (A) -
(i) under section 49(b) or 50(a) for the taxable year or
any prior taxable year, or
(ii) under this paragraph for any prior taxable year.
The amount recaptured under section 49(b) or 50(a) with respect
to any property shall be appropriately reduced to take into
account any reduction in the credit allowed by this section by
reason of the preceding sentence.
(5) Credit reduced for enhanced oil recovery credit
The amount allowable as a credit under subsection (a) with
respect to any project for any taxable year (determined after
application of paragraphs (1), (2), (3), and (4)) shall be
reduced by the excess (if any) of -
(A) the aggregate amount allowed under section 38 for the
taxable year and any prior taxable year by reason of any
enhanced oil recovery credit determined under section 43 with
respect to such project, over
(B) the aggregate amount recaptured with respect to the
amount described in subparagraph (A) under this paragraph for
any prior taxable year.
(6) Application with other credits
The credit allowed by subsection (a) for any taxable year shall
not exceed the excess (if any) of -
(A) the regular tax for the taxable year reduced by the sum
of the credits allowable under subpart A and section 27, over
(B) the tentative minimum tax for the taxable year.
(c) Definition of qualified fuels
For purposes of this section -
(1) In general
The term "qualified fuels" means -
(A) oil produced from shale and tar sands,
(B) gas produced from -
(i) geopressured brine, Devonian shale, coal seams, or a
tight formation, or
(ii) biomass, and
(C) liquid, gaseous, or solid synthetic fuels produced from
coal (including lignite), including such fuels when used as
feedstocks.
(2) Gas from geopressured brine, etc.
(A) In general
Except as provided in subparagraph (B), the determination of
whether any gas is produced from geopressured brine, Devonian
shale, coal seams, or a tight formation shall be made in
accordance with section 503 of the Natural Gas Policy Act of
1978.
(B) Special rules for gas from tight formations
The term "gas produced from a tight formation" shall only
include gas from a tight formation -
(i) which, as of April 20, 1977, was committed or dedicated
to interstate commerce (as defined in section 2(18) of the
Natural Gas Policy Act of 1978, as in effect on the date of
the enactment of this clause), or
(ii) which is produced from a well drilled after such date
of enactment.
(3) Biomass
The term "biomass" means any organic material other than -
(A) oil and natural gas (or any product thereof), and
(B) coal (including lignite) or any product thereof.
(d) Other definitions and special rules
For purposes of this section -
(1) Only production within the United States taken into account
Sales shall be taken into account under this section only with
respect to qualified fuels the production of which is within -
(A) the United States (within the meaning of section 638(1)),
or
(B) a possession of the United States (within the meaning of
section 638(2)).
(2) Computation of inflation adjustment factor and reference
price
(A) In general
The Secretary shall, not later than April 1 of each calendar
year, determine and publish in the Federal Register the
inflation adjustment factor and the reference price for the
preceding calendar year in accordance with this paragraph.
(B) Inflation adjustment factor
The term "inflation adjustment factor" means, with respect to
a calendar year, a fraction the numerator of which is the GNP
implicit price deflator for the calendar year and the
denominator of which is the GNP implicit price deflator for
calendar year 1979. The term "GNP implicit price deflator"
means the first revision of the implicit price deflator for the
gross national product as computed and published by the
Department of Commerce.
(C) Reference price
The term "reference price" means with respect to a calendar
year the Secretary's estimate of the annual average wellhead
price per barrel for all domestic crude oil the price of which
is not subject to regulation by the United States.
(3) Production attributable to the taxpayer
In the case of a property or facility in which more than 1
person has an interest, except to the extent provided in
regulations prescribed by the Secretary, production from the
property or facility (as the case may be) shall be allocated
among such persons in proportion to their respective interests in
the gross sales from such property or facility.
(4) Gas from geopressured brine, Devonian shale, coal seams, or a
tight formation
The amount of the credit allowable under subsection (a) shall
be determined without regard to any production attributable to a
property from which gas from Devonian shale, coal seams,
geopressured brine, or a tight formation was produced in
marketable quantities before January 1, 1980.
(5) Barrel-of-oil equivalent
The term "barrel-of-oil equivalent" with respect to any fuel
means that amount of such fuel which has a Btu content of 5.8
million; except that in the case of qualified fuels described in
subparagraph (C) of subsection (c)(1), the Btu content shall be
determined without regard to any material from a source not
described in such subparagraph.
(6) Barrel defined
The term "barrel" means 42 United States gallons.
(7) Related persons
Persons shall be treated as related to each other if such
persons would be treated as a single employer under the
regulations prescribed under section 52(b). In the case of a
corporation which is a member of an affiliated group of
corporations filing a consolidated return, such corporation shall
be treated as selling qualified fuels to an unrelated person if
such fuels are sold to such a person by another member of such
group.
(8) Pass-thru in the case of estates and trusts
Under regulations prescribed by the Secretary, rules similar to
the rules of subsection (d) of section 52 shall apply.
(e) Application with the Natural Gas Policy Act of 1978
(1) No credit if section 107 of the Natural Gas Policy Act of
1978 is utilized
Subsection (a) shall apply with respect to any natural gas
described in subsection (c)(1)(B)(i) which is sold during the
taxable year only if such natural gas is sold at a lawful price
which is determined without regard to the provisions of section
107 of the Natural Gas Policy Act of 1978 and subtitle B of title
I of such Act.
(2) Treatment of this section
For purposes of section 107(d) of the Natural Gas Policy Act of
1978, this section shall not be treated as allowing any credit,
exemption, deduction, or comparable adjustment applicable to the
computation of any Federal tax.
(f) Application of section
This section shall apply with respect to qualified fuels -
(1) which are -
(A) produced from a well drilled after December 31, 1979, and
before January 1, 1993, or
(B) produced in a facility placed in service after December
31, 1979, and before January 1, 1993, and
(2) which are sold before January 1, 2003.
(g) Extension for certain facilities
(1) In general
In the case of a facility for producing qualified fuels
described in subparagraph (B)(ii) or (C) of subsection (c)(1) -
(A) for purposes of subsection (f)(1)(B), such facility shall
be treated as being placed in service before January 1, 1993,
if such facility is placed in service before July 1, 1998,
pursuant to a binding written contract in effect before January
1, 1997, and
(B) if such facility is originally placed in service after
December 31, 1992, paragraph (2) of subsection (f) shall be
applied with respect to such facility by substituting "January
1, 2008" for "January 1, 2003".
(2) Special rule
Paragraph (1) shall not apply to any facility which produces
coke or coke gas unless the original use of the facility
commences with the taxpayer.
-SOURCE-
(Added Pub. L. 96-223, title II, Sec. 231(a), Apr. 2, 1980, 94
Stat. 268, Sec. 44D; amended Pub. L. 97-34, title VI Sec. 611(a),
Aug. 13, 1981, 95 Stat. 339; Pub. L. 97-354, Sec. 5(a)(1), Oct. 19,
1982, 96 Stat. 1692; Pub. L. 97-448, title II, Sec. 202(a), Jan.
12, 1983, 96 Stat. 2396; renumbered Sec. 29 and amended Pub. L.
98-369, div. A, title IV, Secs. 471(c), 474(h), title VI, Sec.
612(e)(1), title VII, Sec. 722(d)(1), (2), July 18, 1984, 98 Stat.
826, 831, 912, 973; Pub. L. 99-514, title VII, Sec. 701(c)(3),
title XVIII, Sec. 1879(c)(1), Oct. 22, 1986, 100 Stat. 2340, 2906;
Pub. L. 100-647, title VI, Sec. 6302, Nov. 10, 1988, 102 Stat.
3755; Pub. L. 101-508, title XI, Secs. 11501(a), (b)(1), (c)(1),
11813(b)(1), 11816, Nov. 5, 1990, 104 Stat. 1388-479, 1388-550,
1388-558; Pub. L. 102-486, title XIX, Sec. 1918, Oct. 24, 1992, 106
Stat. 3025; Pub. L. 104-188, title I, Secs. 1205(d)(3), 1207(a),
Aug. 20, 1996, 110 Stat. 1776.)
-REFTEXT-
REFERENCES IN TEXT
The Natural Gas Policy Act of 1978, referred to in subsecs.
(c)(2)(A), (B)(i) and (e), is Pub. L. 95-621, Nov. 9, 1978, 92
Stat. 3350, as amended, which is classified generally to chapter 60
(Sec. 3301 et seq.) of Title 15, Commerce and Trade. Subtitle B of
title I of the Act, which was classified generally to part B of
subchapter I (Sec. 3331 et seq.) of chapter 60 of Title 15, was
repealed by Pub. L. 101-60, Sec. 2(b), July 26, 1989, 103 Stat.
158, effective Jan. 1, 1993. Section 2(18) of the Act is classified
to section 3301(18) of Title 15. Sections 107 and 503 of the Act,
which were classified to sections 3317 and 3413 of Title 15,
respectively, were repealed by Pub. L. 101-60, Secs. 2(b), 3(b)(5),
July 26, 1989, 103 Stat. 158, 159, effective Jan. 1, 1993. For
complete classification of this Act to the Code, see Short Title
note set out under section 3301 of Title 15 and Tables.
The date of the enactment of this clause, and such date of
enactment, referred to in subsec. (c)(2)(B), probably mean the date
of enactment of Pub. L. 101-508, which amended subsec. (c)(2)(B) of
this section generally, and which was approved Nov. 5, 1990.
-MISC1-
AMENDMENTS
1996 - Subsec. (b)(6)(A). Pub. L. 104-188, Sec. 1205(d)(3),
substituted "section 27" for "sections 27 and 28".
Subsec. (g)(1)(A). Pub. L. 104-188, Sec. 1207(a), substituted
"July 1, 1998" for "January 1, 1997" and "January 1, 1997" for
"January 1, 1996".
1992 - Subsec. (g). Pub. L. 102-486 added subsec. (g).
1990 - Subsec. (b)(3)(A)(i)(III). Pub. L. 101-508, Sec.
11813(b)(1)(A), substituted "section 48(a)(4)(C)" for "section
48(l)(11)(C)".
Subsec. (b)(4). Pub. L. 101-508, Sec. 11813(b)(1)(B), substituted
"section 49(b) or 50(a)" for "section 47" in two places.
Subsec. (b)(5), (6). Pub. L. 101-508, Sec. 11501(c)(1), added
par. (5) and redesignated former par. (5) as (6).
Subsec. (c)(1)(B) to (E). Pub. L. 101-508, Sec. 11816(a),
inserted "and" at end of subpar. (B), substituted a period for a
comma at end of subpar. (C), and struck out subpar. (D) which
related to qualifying processed wood fuels, and subpar. (E) which
related to steam produced from solid agricultural byproducts (not
including timber byproducts).
Subsec. (c)(2)(B). Pub. L. 101-508, Sec. 11501(b)(1), amended
subpar. (B) generally. Prior to amendment, subpar. (B) read as
follows: "The term 'gas produced from a tight formation' shall only
include -
"(i) gas the price of which is regulated by the United States,
and
"(ii) gas for which the maximum lawful price applicable under
the Natural Gas Policy Act of 1978 is at least 150 percent of the
then applicable price under section 103 of such Act."
Subsec. (c)(3). Pub. L. 101-508, Sec. 11813(b)(1)(C), amended
par. (3) generally. Prior to amendment, par. (3) read as follows:
"The term 'biomass' means any organic material which is an
alternate substance (as defined in section 48(l)(3)(B)) other than
coal (including lignite) or any product of such coal."
Subsec. (c)(4). Pub. L. 101-508, Sec. 11816(b)(1), struck out
par. (4) "Qualifying processed wood fuel" which read as follows:
"(A) In general. - The term 'qualifying processed wood fuel'
means any processed solid wood fuel (other than charcoal, fireplace
products, or a product used for ornamental or recreational
purposes) which has a Btu content per unit of volume or weight,
determined without regard to any nonwood elements, which is at
least 40 percent greater per unit of volume or weight than the Btu
content of the wood from which it is produced (determined
immediately before the processing).
"(B) Election. - A taxpayer shall elect, at such time and in such
manner as the Secretary by regulations may prescribe, as to whether
Btu content per unit shall be determined for purposes of this
paragraph on a volume or weight basis. Any such election -
"(i) shall apply to all production from a facility; and
"(ii) shall be effective for the taxable year with respect to
which it is made and for all subsequent taxable years and, once
made, may be revoked only with the consent of the Secretary."
Subsec. (c)(5). Pub. L. 101-508, Sec. 11816(b)(1), struck out
par. (5) "Agricultural byproduct steam" which read as follows:
"Steam produced from solid agricultural byproducts which is used by
the taxpayer in his trade or business shall be treated as having
been sold by the taxpayer to an unrelated person on the date on
which it is used."
Subsec. (d)(4). Pub. L. 101-508, Sec. 11816(b)(2), amended par.
(4) generally, striking out "Special rules applicable to" before
"Gas" in heading, redesignating former subpar. (A) as par. (4),
striking out subpar. (B) which related to the reference price and
application of phaseout for Devonian shale, and making minor
changes in phraseology.
Subsec. (d)(5), (6). Pub. L. 101-508, Sec. 11816(b)(3), (4),
redesignated par. (6) as (5), substituted "subparagraph (C)" for
"subparagraph (C), (D), or (E)", and struck out former par. (5)
which read as follows: "In the case of a facility for the
production of -
"(A) qualifying processed wood fuel,
or
"(B) steam from solid agricultural byproducts,
paragraph (1) of subsection (b) shall not apply with respect to the
amount of the credit allowable under subsection (a) for fuels sold
during the 3-year period beginning on the date the facility is
placed in service."
Subsec. (d)(7) to (9). Pub. L. 101-508, Sec. 11816(b)(3),
redesignated pars. (7) to (9) as (6) to (8), respectively.
Subsec. (f). Pub. L. 101-508, Sec. 11816(b)(5), amended subsec.
(f) generally, redesignating former par. (1) as subsec. (f), making
minor changes in phraseology, substituting par. (2) for former par.
(1)(B) which read as follows: "which are sold after December 31,
1979, and before January 1, 2003.", and striking out former par.
(2) which related to special rules applicable to qualified
processed wood and solid agricultural byproduct steam.
Subsec. (f)(1)(A)(i), (ii). Pub. L. 101-508, Sec. 11501(a)(1),
substituted "1993" for "1991".
Subsec. (f)(1)(B). Pub. L. 101-508, Sec. 11501(a)(2), substituted
"2003" for "2001".
1988 - Subsec. (f)(1)(A)(i), (ii). Pub. L. 100-647 substituted
"1991" for "1990".
1986 - Subsec. (b)(5). Pub. L. 99-514, Sec. 701(c)(3), amended
par. (5) generally. Prior to amendment, par. (5) read as follows:
"The credit allowed by subsection (a) for a taxable year shall not
exceed the taxpayer's tax liability for the taxable year (as
defined in section 26(b)), reduced by the sum of the credits
allowable under subpart A and sections 27 and 28."
Subsec. (d)(8). Pub. L. 99-514, Sec. 1879(c)(1), inserted
provision directing that a corporation which is a member of an
affiliated group of corporations filing a consolidated return shall
be treated as selling qualified fuels to an unrelated person if
such fuels are sold to such person by another member of such group.
1984 - Pub. L. 98-369, Sec. 471(c), renumbered section 44D of
this title as this section.
Subsec. (b)(1)(A). Pub. L. 98-369, Sec. 722(d)(1), substituted
"in which the sale occurs" for "in which the taxable year begins".
Subsec. (b)(2). Pub. L. 98-369, Sec. 722(d)(2), substituted "in
which the sale occurs" for "in which a taxable year begins".
Subsec. (b)(5). Pub. L. 98-369, Sec. 612(e)(1), substituted
"section 26(b)" for "section 25(b)".
Pub. L. 98-369, Sec. 474(h), amended par. (5) generally,
substituting "shall not exceed the taxpayer's tax liability for the
taxable year (as defined in section 25(b)), reduced by the sum of
the credits allowable under subpart A and sections 27 and 28" for
"shall not exceed the tax imposed by this chapter for such taxable
year, reduced by the sum of the credits allowable under a section
of this subpart having a lower number or letter designation than
this section, other than the credits allowable by sections 31, 39,
and 43. For purposes of the preceding sentence, the term 'tax
imposed by this chapter' shall not include any tax treated as not
imposed by this chapter under the last sentence of section 53(a)".
1983 - Subsec. (f)(1)(B), (2)(A)(i). Pub. L. 97-448 substituted
"December 31, 1979" for "December 3, 1979".
1982 - Subsec. (d)(9). Pub. L. 97-354 substituted "Pass-thru in
the case of estates and trusts" for "Pass-through in the case of
subchapter S corporations, etc." in par. heading, and substituted
provisions relating to the applicability of rules similar to rules
of subsec. (d) of section 52 for provisions relating to the
applicability of rules similar to rules of subsecs. (d) and (e) of
section 52.
1981 - Subsec. (e). Pub. L. 97-34 substituted provisions
respecting application with the Natural Gas Policy Act of 1978 for
prior provision reading "If the taxpayer makes an election under
section 107(d) of the Natural Gas Policy Act of 1978 to have
subsections (a) and (b) of section 107 of that Act, and subtitle B
of title I of that Act, apply with respect to gas described in
subsection (c)(1)(B)(i) produced from any well on a property, then
the credit allowable by subsection (a) shall not be allowed with
respect to any gas produced on that property."
EFFECTIVE DATE OF 1996 AMENDMENT
Section 1205(e) of Pub. L. 104-188 provided that: "The amendments
made by this section [amending this section and sections 30, 38,
39, 45C, 53, 55, and 280C of this title] shall apply to amounts
paid or incurred in taxable years ending after June 30, 1996."
Section 1207(b) of Pub. L. 104-188 provided that: "The amendment
made by this section [amending this section] shall take effect on
the date of the enactment of this Act [Aug. 20, 1996]."
EFFECTIVE DATE OF 1990 AMENDMENT
Section 11501(b)(2) of Pub. L. 101-508 provided that: "The
amendment made by paragraph (1) [amending this section] shall apply
to gas produced after December 31, 1990."
Section 11501(c)(2) of Pub. L. 101-508 provided that: "The
amendment made by paragraph (1) [amending this section] shall apply
to taxable years beginning after December 31, 1990."
Section 11813(c) of Pub. L. 101-508 provided that:
"(1) In general. - Except as provided in paragraph (2), the
amendments made by this section [enacting section 50 of this title
and amending this section and sections 38, 42, 46 to 49, 52, 55,
108, 145, 147, 168, 170, 179, 196, 280F, 312, 465, 469, 861, 865,
1016, 1033, 1245, 1274A, 1371, 1388 and 1503 of this title] shall
apply to property placed in service after December 31, 1990.
"(2) Exceptions. - The amendments made by this section shall not
apply to -
"(A) any transition property (as defined in section 49(e) of
the Internal Revenue Code of 1986 (as in effect on the day before
the date of the enactment of this Act [Nov. 5, 1990]),
"(B) any property with respect to which qualified progress
expenditures were previously taken into account under section
46(d) of such Code (as so in effect), and
"(C) any property described in section 46(b)(2)(C) of such Code
(as so in effect)."
Section 11821(a) of Pub. L. 101-508 provided that: "Except as
otherwise provided in this part, the amendments made by this part
[part I (Secs. 11801-11821) of subtitle H of title XI of Pub. L.
101-508, see Tables for classification] shall take effect on the
date of the enactment of this Act [Nov. 5, 1990]."
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 701(c)(3) of Pub. L. 99-514 applicable to
taxable years beginning after Dec. 31, 1986, with certain
exceptions and qualifications, see section 701(f) of Pub. L.
99-514, set out as an Effective Date note under section 55 of this
title.
Section 1879(c)(2) of Pub. L. 99-514 provided that: "The
amendment made by paragraph (1) [amending this section] shall take
effect as if included in the amendments made by section 231 of
Public Law 96-223 [see Effective Date note below]."
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 474(h) of Pub. L. 98-369 applicable to
taxable years beginning after Dec. 31, 1983, and to carrybacks from
such years, see section 475(a) of Pub. L. 98-369, set out as a note
under section 21 of this title.
Amendment by section 612(e)(1) of Pub. L. 98-369 applicable to
interest paid or accrued after Dec. 31, 1984, on indebtedness
incurred after Dec. 31, 1984, see section 612(g) of Pub. L. 98-369,
set out as an Effective Date note under section 25 of this title.
Section 722(d)(3) of Pub. L. 98-369 provided that: "The
amendments made by this subsection [amending this section] shall
apply to taxable years ending after December 31, 1979."
EFFECTIVE DATE OF 1983 AMENDMENT
Amendment by Pub. L. 97-448 effective, except as otherwise
provided, as if it had been included in the provision of the Crude
Oil Windfall Profit Tax Act of 1980, Pub. L. 96-223 to which such
amendment relates, see section 203(a) of Pub. L. 97-448, set out as
a note under section 6652 of this title.
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97-354 applicable to taxable years beginning
after Dec. 31, 1982, see section 6(a) of Pub. L. 97-354, set out as
an Effective Date note under section 1361 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Section 611(b) of Pub. L. 97-34 provided that: "The amendment
made by this section [amending this section] shall apply to taxable
years ending after December 31, 1979."
EFFECTIVE DATE
Section 231(c) of Pub. L. 96-223 provided that: "The amendments
made by this section [enacting this section and amending section
6096 of this title] shall apply to taxable years ending after
December 31, 1979."
SAVINGS PROVISION
Section 11821(b) of Pub. L. 101-508 provided that: "If -
"(1) any provision amended or repealed by this part [part I
(Secs. 11801-11821) of subtitle H of title XI of Pub. L. 101-508,
see Tables for classification] applied to -
"(A) any transaction occurring before the date of the
enactment of this Act [Nov. 5, 1990],
"(B) any property acquired before such date of enactment, or
"(C) any item of income, loss, deduction, or credit taken
into account before such date of enactment, and
"(2) the treatment of such transaction, property, or item under
such provision would (without regard to the amendments made by
this part) affect liability for tax for periods ending after such
date of enactment,
nothing in the amendments made by this part shall be construed to
affect the treatment of such transaction, property, or item for
purposes of determining liability for tax for periods ending after
such date of enactment."
APPLICABILITY OF CERTAIN AMENDMENTS BY PUB. L. 99-514 IN RELATION
TO TREATY OBLIGATIONS OF UNITED STATES
For applicability of amendment by section 701(c)(3) of Pub. L.
99-514 notwithstanding any treaty obligation of the United States
in effect on Oct. 22, 1986, with provision that for such purposes
any amendment by title I of Pub. L. 100-647 be treated as if it had
been included in the provision of Pub. L. 99-514 to which such
amendment relates, see section 1012(aa)(2), (4) of Pub. L. 100-647,
set out as a note under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL JANUARY 1, 1989
For provisions directing that if any amendments made by subtitle
A or subtitle C of title XI [Secs. 1101-1147 and 1171-1177] or
title XVIII [Secs. 1800-1899A] of Pub. L. 99-514 require an
amendment to any plan, such plan amendment shall not be required to
be made before the first plan year beginning on or after Jan. 1,
1989, see section 1140 of Pub. L. 99-514, as amended, set out as a
note under section 401 of this title.
-SECREF-
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 30, 43, 53, 55, 613A, 772
of this title; title 42 section 13317.
-End-
-CITE-
26 USC Sec. 30 01/19/04
-EXPCITE-
TITLE 26 - INTERNAL REVENUE CODE
Subtitle A - Income Taxes
CHAPTER 1 - NORMAL TAXES AND SURTAXES
Subchapter A - Determination of Tax Liability
PART IV - CREDITS AGAINST TAX
Subpart B |