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TITLE 26-INTERNAL REVENUE CODE (iv) no amount to which section 871(a) applies (relating to income of nonresident alien individuals not connected with United States business) shall be taken into account. (d) Married individuals In the case of an individual who is married (within the meaning of section 143), this sec- tion shall apply only if a joint return is filed for the taxable year under section 6013. (e) 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. (Added Pub. L. 94-12, title II, § 204(a), Mar. 29, 1975, 89 Stat. 30, and amended Pub. L. 94-164, § 2(c), Dec. 23, 1975, 89 Stat. 971; Pub. L. 94-455, title IV, § 401(c)(1)(B), (2), Oct. 4. 1976, 90 Stat. 1557.) PRIOR PROvISoNS A prior section 43 was renumbered section 45 of this title. AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 401(c)(1)(B), sub- stituted "is allowed" for "shall be allowed" and elimi- nated provisions relating to the application of the six- month rule. Subsec. (b). Pub. L. 94-455, § 401(c)(1)(B), eliminated provisions relating to the application of the six-month rule. Subsec. (c)(1)(A). Pub. L. 94-455, § 401(c)(2), among other changes, substituted "section 44A(f)(1)" for "section 214(b)(3)" and "if such child meets the re- quirements of section 151(e)(1)(B)" for "with respect to whom he is entitled to claim a deduction under sec- tion 151(e)(1)(B)" and added reference to a child of that individual who is disabled (within the meaning of section 72(m)(7)) and with respect to whom that indi- vidual is entitled to claim a deduction under section 151. 1975-Subsec. (a). Pub. L. 94-164 designated existing provisions as par. (1), and added par. (2). Subsec. (b) Pub. L. 94-164 designated existing provi- sions as par. (1), and added par. (2). EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable to taxable years ending after Dec. 31, 1975, and shall cease to apply to taxable years ending after Dec. 31, 1977, see section 401(e) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 42 of this title. EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT Section 2(g) of Pub. L. 94-164 as amended by Pub. L. 94-455, § 402(b), provided that: "The amendments made by this section [amending sections 43, 141, 3402, and 6012 of this title and provisions set out as notes under sections 42g and 43 of this title) (other than by subsection (d) [enacting provisions set out as a note under this section)) apply to taxable years ending after December 31, 1975, and before January 1, 1978. Subsection (d) applies to taxable years ending after December 31, 1975." Section 209(b) of Pub. L. 94-12, as amended by Pub. L. 94-164, § 2(f), and Pub. L. 94-455, § 401(c)(1)(A), pro- vided that: "The amendments made by section 204 [enacting this section and amending sections 6201 and 6401 of this title] shall apply to taxable years begin- ning after December 31, 1974, and before January 1, 1978." DISREGARD OF REFUND FOR DETERMINATION OF ELIGIBILITY FOR FEDERAL BENEFITS OR ASSISTANCE Section 2(d) of Pub. L. 94-164 as amended by Pub. L. 94-455, § 402(a), provided that: "Any refund of Federal income taxes made to any individual by reason of sec- tion 43 of the Internal Revenue Code of 1954 (relating to earned income credit) [this section] shall not be taken into account as income or receipts for purposes of determining the eligibility, for the month in which such refund is made or any month thereafter of such individual or any other individual for benefits or assis- tance, or the amount or extent of benefits or assis- tance, under any Federal program or under any State or local program financed in whole or in part with Federal funds, but only if such individual (or the family unit of which he is a member) is a recipient of benefits or assistance under such a program for the month before the month in which such refund is made." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 6153, 6201, 6401 of this title. § 44. Purchase of new principal residence (a) General rule In the case of an individual there is allowed, as a credit against the tax imposed by this chapter for the taxable year, an amount equal to 5 percent of the purchase price of a new principal residence purchased or constructed by the taxpayer. (h) Limitations (1) Maximum credit The credit allowed under subsection (a) may not exceed $2,000. (2) Limitation to one residence The credit under this section shall be al- lowed with respect to only one residence of the taxpayer. (3) Married individuals In the case of a husband and wife who file a joint return under section 6013, the amount specified under paragraph (1) shall apply to the joint return. In the case of a married indi- vidual filing a separate return, paragraph (1) shall be applied by substituting "$1,000" for "$2,000". (4) Certain other taxpayers In the case of individuals to whom para- graph (3) does not apply who together pur- chase the same new principal residence for use as their principal residence, the amount of the credit allowed under subsection (a) shall be allocated among such individuals as prescribed by the Secretary, but the sum of the amounts allowed to such individuals shall not exceed $2,000 with respect to that resi- dence. (5) Application with other credits The credit allowed by subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year, reduced by the sum of the credits allowable under sec- tions 33, 37, 38, 40, 41, and 42. (c) Definitions For purposes of this section- (1) New principal residence The term "new principal residence" means a principal residence (within the meaning of Page 48