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TITLE 26-INTERNAL REVENUE CODE PRIOR PROVISIONS A prior section 44 was renumbered section 45 of this title. AMENDMENTS 1976-Pub. L. 94-455 struck out "or his delegate" fol. lowing "Secretary" wherever appearing. 1975-Subsec. (e)(4). Pub. L. 94-45 substituted "does not apply" for "shall not apply" and "a written certifi- cation (which may be in any form) signed by the seller of such residence that 1-1" for "a certification by the seller, in accordance with regulations prescribed by the Secretary or his delegate, that the purchase price is the lowest price at which the residence was ever of- fered for sale" in the existing provisions and added subpars. (A) and (B) and the provisions following subpar. (B). SUITS TO RECOVER AMOUNTS OF PRICE INCREASES Section 208(b) of Pub. L. 94-12, as amended by Pub. L. 94-45, title IV, § 401(b), June 30, 1975, 89 Stat. 244, provided that: "If- "(1) any person certificates under section 44(e)(4) of the Internal Revenue Code of 1954 [subsec. (e)(4) of this section] that the price for which a residence was sold is the lowest price at which the residence was offered for sale after February 28. 1975, and "(2) the price for which the residence was sold ex- ceeded the lowest price at which the residence was offered for sale after February 28, 1975, such person shall be liable to the purchaser of such residence in an amount equal to three times the amount of such excess. The United States district courts shall have jurisdiction of suits to recover such amounts without regard to any other provision of law. In any suit brought under this subsection in which judgment is entered for the purchaser, he shall also be entitled to recover a reasonable attorney's fee." DENIAL OF DEDUCTION FOR AMOUNTS PAID OR INCURRED ON JUDGMENTS IN SUITS BROUGHT TO RECOVER PRICE INCREASES Section 208(c) of Pub. L. 94-12 provided that: "Not- withstanding the provisions of section 162 or 212 of the Internal Revenue Code of 1954 [sections 162 or 212 of this title], no deduction shall be allowed in com- puting taxable income for two-thirds of any amount paid or incurred on a Judgment entered against any person in a suit brought under subsection (b) [set out as a note above]." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 44A, 56, 6096 of this title. §44A. Expenses for household and dependent care services necessary for gainful employment (a) Allowance of credit In the case of an individual who maintains a household which includes as a member one or more qualifying individuals (as defined in sub- section (c)(1)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 20 percent of the employment-related expenses (as defined in subsection (c)(2)) paid by such individual during the taxable year. (b) 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- (1) section 33 (relating to foreign tax credit), (2) section 37 (relating to credit for the el- derly), (3) section 38 (relating to investment in cer- tain depreciable property), (4) section 40 (relating to expenses of work incentive programs), (5) section 41 (relating to contributions to candidates for public office), (6) section 42 (relating to general tax credit), and (7) section 44 (relating to purchase of new principal residence). (c) Definitions of qualifying individual and employ. ment-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 15 and with respect to whom the taxpayer is entitled to a deduc- tion under section 151(e), (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 ex- penses, but only if such expenses are in- curred to enable the taxpayer to be gainful- ly employed for any period for which there are 1 or more qualifying individuals with re- spect to the taxpayer: (I) expenses for household services, and (1i) expenses for the care of a qualifying individual. (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 a qualifying individual de- scribed in paragraph (1)(A). (d) Dollar limit on amount creditable The amount of the employment-related ex- penses incurred during any taxable year which may be taken into account under subsection (a) shall not exceed- (1) $2,000 if there is 1 qualifying Individual with respect to the taxpayer for such taxable year, or (2) $4,000 if there are 2 or more qualifying individuals with respect to the taxpayer for such taxable year. (e) Earned income limitation (1) In general Except as otherwise provided in this subsec- tion, the amount of the employment-related expenses incurred during any taxable year which may be taken into account under sub- section (a) shall not exceed- (A) in the case of an individual who is not married at the close of such year, such indi- vidual'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. § 44A Page 50