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TITLE 26-INTERNAL REVENUE CODE sentence shall be treated as a disposition oc- curring less than 3 years after the property was placed in service; but, in the case of a credit allowable without regard to this sub- section, the aggregate amount which may be recaptured by reason of this sentence shall not exceed 50 percent of such credit. (5) Definitions Any term used in section 607 of the Mer- chant Marine Act, 1970, shall have the same meaning when used in this subsection. (6) No inference Nothing in this subsection shall be con- strued to infer that any property described in this subsection is or is not section 38 proper- ty, and any determination of such issue shall be made as If this subsection had not been en- acted. (Added Pub. L. 87-834, § 2(b), Oct. 16, 1962, 76 Stat. 963, and amended Pub. L. 88-272, title II, § 201(d)(4), Feb. 26, 1964, 78 Stat. 32; Pub. L, 89- 384, § 1(c)(1), Apr. 8, 1966, 80 Stat. 102; Pub. L. 89-389, § 2(b)(5), Apr. 14, 1966, 80 Stat. 114; Pub. L. 89-800, § 3, Nov. 8, 1966, 80 Stat. 1514; Pub. L. 90-225, § 2(a), Dec. 27, 1967, 81 Stat. 731; Pub. L. 91-172, title III, § 301(b)(4), title IV, § 401(e)(1), title VII, § 703(b), Dec. 30, 1969, 83 Stat. 585, 603, 666; Pub. L. 92-178, title I, §§ 102(a)(1), (b), 105(aj-(c), 106(a)-(c), 107(a)(1), 108(a), Dec. 10, 1971, 85 Stat. 499, 503, 506, 507; Pub. L. 93-406, title II, §§ 2001(g)(2)(B), 2002(g)(2), 2005(c)(4), Sept. 2, 1974, 88 Stat. 957, 968, 991; Pub. L. 94-12, title III, § 301(a), (b)(1)- (3), 302(a), (b)(1), Mar. 29, 1975, 89 Stat. 36, 37, 40, 43; Pub. L. 94-455, title V, § 503(b)(4), title VIII, §§ 802(a), (b)(1)-(5), 803(a), (b)(1), 805(a), title XVI, § 1607(b)(1)(B), title XVII, §§ 1701(b), 1703, title XIX, §§ 1901(a)(4), (b)(1)(C), 1906(b)(13)(A), title XXI, § 2112(a)(2), Oct. 4, 1976, 90 Stat. 1562, 1580-1584, 1596, 1756, 1759, 1761, 1764, 1790, 1834, 1905.) REFERENCES IN TEXT The Tax Reduction Act of 1975. referred to in sub- sees. (a)(2)(B), (f)(8), (9), is Pub. L. 94-12, Mar. 29, 1975, 89 Stat. 26. Sections 301(d) and (e) of the Tax Reduction Act of 1975 are set out as a note below. For complete classification of this Act to the Code, see Short Title of 1975 Amendment note set out under section 1 of this title and Tables volume, The date of enactment of this paragraph, referred to in subsec. (f)(3), is Dec. 10, 1971, the date of approval of Pub. L. 92-178, which enacted subsec. (e) of this sec- tion, later redesignated subsec. (f). The date of the enactment of the Tax Reduction Act of 1975, referred to in subsec. (f)(8), is the date of en- actment of Pub. L. 94-12, which was approved Mar. 29, 1975. The Tax Reform Act of 1976, referred to in subsec. (f)(8), is Pub. L. 94-455, Oct. 4, 1976, 90 Stat. 1520. Sec- tion 802(b)(2) of the Tax Reform Act of 1976 amended subsec. (b) of this section. For complete classification of this Act to the Code, see Tables volume. The Merchant Marine Act, 1970, referred to in subsec. (g)(5), is Pub. L. 91-469, Oct. 21, 1970, 84 Stat. 1018, as amended. Section 607 of the Merchant Marine Act of 1970 probably means section 607 of the Mer- chant Marine Act of 1936 which is classified to section 1177 of Title 46, Shipping. For complete classification of this Act to the Code, see Short Title of 1970 Amendment note under section 1101 of title 46, and Tables volume. AMENDMENTS 1976-Subsec. (a)(1). Pub. L. 94-455, § 802(a)(2), added subsec. (a)(1) and struck out formee- subsee. (a)(1) which related to the percentage of allowable credit under section 38. Subsec. (a)(2). Pub. L. 94-455, § 802(a)(2), added subsec. (a)(2). Former subsee. (a)(2) redesignated (a)(3). Subsec. (a)(3). Pub. L. 94-455, § 802(a)(1), redesignat- ed former subsec. (a)(2) as (a)(3). Former subsec. (a)(3) redesignated (a)(4). Subsec. (a)(4). Pub. L. 94-455, §§ 503(b)(4), 802(a)(1), (b)(1), 1901(a)(4)(A), (b)(1)(C). redesignated former subsec. (a)(3) as (a)(4), and in subsec. (a)(4) as so rede- signated, redesignated former subpar. (C) as (B) and substituted in provisions preceding subpar. (A) "para- graph (3)" for "piragraph (2)", in subpar. (B) as so re- designated "credit for the elderly" for "retirement income", and in provisions following subpar. (B) "sec- tion 408(f)" for "section 408(e)". Former subsec. (a)(4) redesignated (a)(5). Subsec. (a)(5). Pub. L. 94-455, §802(a)(1), (b)(1), re- designated former subsec. (a)(4) as (a)(5), and in subsec. (a)(5) as so redesignated, substituted "para- graph (3)" for "paragraph (2)". Former subsec. (a)(5) redesignated (a)(6). Subsec. (a)(6). Pub, L. 94-455, §§802(a)(1), (b)(1), 1906(b)(13)(A), redesignated former subsec. (a)(5) as (a)(6), and in subsec. (a)(6) as so redesignated, substi- tuted "paragraph (3)" for "paragraph (2)" and struck out "or his delegate" following "Secretary". Former subsec. (a)(6) redesignated (a)(7). Subsec. (a)(7). Pub. L. 94-455, § 802(a)(1), (b)(1), re- designated former subsec. (a)(6) as (a)(7), and in subsec. (a)(7) as so redesignated, substituted "para- graph (3)" for "paragraph (2)". Subsec. (a)(8). Pub. L. 94-455, § 1701(b), added subsec. (a)(8). Subsec. (a)(9). Pub. L. 94-455, § 1703, added subsec. (a)(9). Subsec. (b). Pub. L. 94-455, § 802(b)(2), among other changes, added requirement that tax credits carried over are applied first to the tax liability for that year, after which tax credits earned currently are then ap- plied. Subsec. (c)(3)(A). Pub. L. 94-455, § 802(b)(3). substi- tuted "subsection (a)(2)(C)" for "subsection (a)(1)(C)". Subsec. (c)(3)(B)(iii). Pub. L. 94-455, § 1901(a)(4)(B), substituted "47 U.S.C. 222(a)(5)" for "47 U.S.C., sec. 222(a)(5)". Subsec. (c)(5). Pub. L. 94-455, § 2112(a)(2), added subsec. (c)(5). Subsec. (d)(4)(D), (6). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (e)(1)(C). Pub. L. 94-455, § 802(b)(4). substi- tuted "subsection (a)(3)" for "subsection (a)(2)". Subsec. (e)(2). Pub. L. 94-455, § 1607(b)(1)(B), substi- tuted In subpar. (B) "857(b)(2)(B)" for "857(b)(2)(C)" and added in provisions following subpar. (C) refer- ence to determine without regard to any deduction for capital gains dividends (as defined in section 857(b)(3)(C)) and by excluding any net capital gain. Subsec. (f)(1)(B). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f)(2). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f)(3). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec, (f)(4)(A). Pub. L. 94-455, §803(b)(1)(A), (B), substituted "paragraphs (1), (2), and (9)" for "para- graphs (1) and (2)" and "paragraph (1), (2), or (9)" for "paragraph (1) or (2)" wherever appearing. Subsec. (f)(4)(B)(ii). Pub. L. 94-455, §803(b)(1)(C), substituted "paragraph (2) or the election described in paragraph (9)," for "paragraph (2),". Subsec. (f)(7). Pub. L. 94-455, § 1906(b)(13)(A), struck out "or his delegate" following "Secretary". Subsec. (f)(8). Pub. L. 94-455, §§ 802(b),5), 1906(b)(13)(A), inserted reference to the Tax Re'orm Page 60