78 STAT.]
PUBLIC LAW 8 8 - 2 7 2 - F E B. 26, 1964
33
respect to taxable years ending after December 31, 1904. The amendment made by subsection (c) shall apply with respect to taxable years beginning after December 31, 1963. The amendments made by subsection (d) shall apply with respect to dividends received after December?!d, 1964, in taxable years ending after such date. SEC. 202. RETIREMENT INCOME CREDIT OF CERTAIN MARRIED INDIVIDUALS. (a) DETERMINATION OF RETIREMENT INCOME.—Section 37 (relating
to retirement income) is amended by redesignating subsection (i) as subsection (j) and by inserting after subsection (h) the following new subsection:
68A Stat. 15. 26 USC 37.
" (i) SPECIAL RULES FOR CERTAIN MARRIED COUPLES.—
"(1) ELECTION.—A husband and wife who make a joint return for the taxable year and both of whom have attained the age> of 65 before the close of the taxable year may elect (at such time and in such manner as the Secretary or his delegate by regulations prescribes) to determine the amount of the credit allowed by subsection (a) by applying the provisions of paragraph (2). "(2) SPECIAL RULES.—If an election is made under paragraph (1) for the taxable year, for purposes of subsection (a) — " (A) if either spouse is an individual who has received earned income within the meaning of subsection (b), the othei* spouse shall be considered to be an individual who has received earned income within the metining of such subsection; and " (B) subsection (d) shall be considered as providing that the amount of the combined retirement income of both spouses shall not exceed $2,286, less the sum of the amounts specified in paragraphs (1) and (2) of subsection (d) for each spouse." (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to taxable years beginning after December 31, 1963. SEC. 203. REPEAL OF REQUIREMENT THAT BASIS OF SECTION 38 PROPERTY BE REDUCED BY 7 PERCENT; OTHER PROVISIONS RELATING TO INVESTMENT CREDIT. (a) REPEAL OF REQUIREMENT THAT BASIS BE REDICBD.—
(1) IN GENERAL.—Subsection (g) of section 48 (requiring that the basis of section 38 property be reduced by 7 percent of the qualified investment) is hereby repealed.
26 USC 48^ 26 USC as!
(2) INCREASE I N BASIS OF PROPERTY PLACED I N SERVICE BEFORE JANUARY 1, 1964. —
(A) The basis of any section 38 property (as defined in section 48(a) of the Internal Revenue Oode of 1954) placed in service l>ef()re January 1, 1964, shall be increased, under regulations prescrited by the Secretary of the Treasury or his delegate, by an amount equal to 7 percent of the qualified inA-estment with respect to such property under section 46(c) of the Internal Revenue Code of 1954. If there has been any increase with respect to such property under section 48(g)(2) of such Code, the increase under the pi'eceding sentence shall be appropriately reduced therefor. (B) If a lessor made the election proAdded by section 48(d) of ihe Internal Revenue Code of 1954 with respect to property placed in service before January 1, 1964— (i) subparagraph (A) shall not apply with respect to su<*h property, but
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