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TITLE 26-INTERNAL REVENUE CODE Subsec. (a). Pub. L. 92-178, § 101(b)(1), made subsec. (a) inapplicable to property described in section 50. Subsec. (b' Pub. L. 92-178, § 101(b)(2), substituted "subpart" for "section" in Introductory text which read "For purposes of this section". Subsec. (d). Pub. L. 92-178, § 101(b)(3), repealed pro- vision which exluded from term "section 38 property" property placed in service after 1975. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 47, 50 of this title. § 50. Restoration of credit (a) General rule Section 49(a) (relating to termination of credit) shall not apply to property- (1) the construction, reconstruction, or erec- tion of which- (A) is completed by the taxpayer after August 15, 1971, or (B) is begun by the taxpayer after March 31, 1971, or (2) which is acquired by the taxpayer- (A) after August 15, 1971, or (B) after March 31, 1971, and before August 16, 1971, pursuant to an order which the taxpayer establishes was placed after March 31, 1971. (b) Transitional rule In applying section 46(c)(1)(A) in the case of property described in subsection (a)(1)(A) the construction, reconstruction, or erection of which is begun before April 1, 1971, there shall be taken into account only that portion of the basis which is properly attributable to construc- tion, reconstruction, or erection after August 15, 1971. This subsection shall not apply to pre- termination property (within the meaning of section 49(b)). (Added Pub. L. 92-178, title I, § 101(a), Dec. 10, 1971, 85 Stat. 498.) SECTION REFMsRED TO IN OTHER SECTIONS This section is referred to in sections 46, 48, 49 of this title. SUBPART C-RULES FOR COMPUTING CREDIT FOR EXPENSES OF WORK INCENTIVE PROGRAMS Sec. 50A. Amount of credit. 50B. Definitions; special rules. SUBPART REFERRED TO IN OTHER SECTIONS This subpart is referred to In section 40 of this title. § 50A. Amount of credit (a) Determination of amount (1) General rule The amount of the credit allowed by section 40 for the taxable year shall be equal to 20 percent of the work incentive program ex- penses (as defined in section 50B(a)). (2) Limitation based on amount of tax Notwithstanding paragraph (1), the credit allowed by section 40 for the taxable year shall not exceed- (A) so much of the liability for tax for the taxable year as does not exceed $50,000, plus (B) 50 percent of so much of the liability for tax for the taxable year as exceeds $50,000. The preceding sentence shall not apply to so much of the credit allowed by section 40 as is attributable to Federal welfare recipient em- ployment incentive expenses described in sub- section (a)(6)(B). (3) Liability for tax For purposes of paragraph (2). the liability for tax for the taxable year shall be the tax imposed by this chapter for such year, re- duced by the sum of the credits allowable under- (A) section 33 (relating to foreign tax credit), (B) section 37 (relating to credit for the elderly), (C) section 38 (relating to investment in certain depreciable property), and (D) section 41 (relating to contributions to candidates for public office). For purposes of this paragraph, any tax im- posed for the taxable year by section 56 (re- lating to minimum tax for tax preferences), section.72(m)(5)(B) (relating to 10 percent tax on premature distributions to owner-employ- ees), section 408(f) (relating to additional tax on income from certain retirement accounts), section 402(e) (relating to tax on lump sum distributions), section 531 (relating to accu- mulated earnings tax), section 541 (relating to personal holding company tax), or section 1378 (relating to tax on certain capital gains of subchapter S corporations), and any addi- tional tax imposed for the taxable year by section 1351(d)(1) (relating to recoveries of foreign expropriation losses), shall not be considered tax imposed by this chapter for such year. (4) Married individuals In the case of a husband or wife who files a separate return, the amount specified under subparagraphs (A) and (B) of paragraph (2) shall be $25,000 in lieu of $50,000. This para- graph shall not apply if the spouse of the tax- payer has not work incentive program ex- penses for, and no unused credit carryback or carryover to, the taxable year of such spouse which ends within or with the taxpayer's tax- able year. (5) Controlled groups In the case of a controlled group, the $50,000 amount specified under paragraph (2) shall be reduced for each component member of such group by apportioning $50,000 among the component members of such group in such manner as the Secretary shall by regula- tions prescribe. For purposes of the preceding sentence, the term "controlled group" has the meaning assigned to such term by section 1563(a). (6) Limitation with respect to certain eligible em- ployees (A) Nonbusiness eligible employees Notwithstanding paragraph (1), the credit allowed by section 40 with respect to Feder- al welfare recipient employment incentive expenses paid or incurred by the taxpayer during the taxable year to an eligible em- Page 83 § 50A