PUBLIC LAW 94-12—MAR. 29, 1975
89 STAT, 45
(3) Section 962(c) (relating to surtax exemj^tion for individuals electing to be subject to tax at corporate rates) is amended by striking out "$25,000" and inserting in lieu thereof "$50,000". SEC. 304. INCREASE IN MINIMUM ACCUMULATED EARNINGS CREDIT FROM $100,000 TO $150,000. (a) INCREASE.—Paragraphs (2) and (3) of section 535(c) (relating to accumulated earnings credit) are each amended by striking out "$100,000" and inserting in lieu thereof "$150,000". (b) CONFORMING AMENDMENTS.—Sections 243(b)(3)(C)(i) (relating to qualifying dividends for purposes of the dividends received deduction), 1551 (a) (relating to disallowance of surtax exemption and accumulated earnings credit) and 1561(a)(2) (relating to limitations on certain multiple tax benefits in the case of certain controlled corporations) are each amended by striking out "$100,000" and inserting in lieu thereof "$150,000". SEC. 305. EFFECTIVE DATES. (a) SECTION 302.—The amendments made by section 302 shall apply to taxable years ending after December 31.1974.
26 USC 962.
26 USC 535. 26 USC 243. 26 USC 1551 26 USC 1561.
26 USC 46 note.
(b) SECTION 303.—
(1) IN GENERAL.—The amendments made by section 303 shall 26 USC 11 note. apply to taxable years ending after December 31, 1974. The amendments made by subsections (b) and (c) of such section shall cease to a p p l y for taxable years ending after December 31, 1975. (2) CHANGES TOEATED AS CHANGES I N TAX RATE.—Section 21 26 USC 21. (relating to change in rates during taxable year) is amended by a d d i n g at the end thereof the following new subsection: " (f) INCREASE I N SURTAX E X E M P T I O N. — I n a p p l y i n g subsection (a)
to a taxable year of a taxpayer which is not a calendar year, the change made by section 303(b) of the T a x Reduction Act of 1975 in section 11(d) (relating to corporate surtax exemption) shall be treated as a Ante, p. 44. change in a rate of tax. " (c) SECTION 304.—The amendments made by section 304 apply to 26 USC 535 note. taxable years beginning after December 31, 1974.
TITLE IV—CHANGES AFFECTING INDIVIDUALS AND BUSINESSES SEC. 401. FEDERAL WELFARE RECIPIENT EMPLOYMENT INCENTIVE TAX CREDIT. (a)
IN GENERAL.—
(1) Section 50A (a) (relating to determination of amount of credit) is amended by a d d i n g at the end thereof the following new paragraph: "(6)
LIMITATION
WITH
RESPECT
TO NONBUSINESS
26 USC 50A.
ELIGIBLE
EMPLOYEES.—Notwithstanding paragraph (1), the credit allowed by section 40 with respect to Federal welfare recipient employment 26 USC 40. incentive expenses paid or incurred by the taxpayer during the taxable year to an eligible employee whose services are not performed in connection with a trade or business of the taxpayer shall not exceed $1,000." (2) Section 50A (c)(2)(A) (relating to amount of credit) is amended—• (A) by striking out " o r " at the end of clause ( i i), (B) by striking out the period a t the end of clause (iii) and inserting in lieu thereof a comma and "or", and
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