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TITLE 26-INTERNAL REVENUE CODE (ii) the amount determined under sec- tion 57(a)(9)(C) for the taxable year, (B) reduced by the excess of- (i) the regular tax deduction for the taxable year (as determined under subsec- tion (c) without regard to this subsection), over (ii) the amount determined under sub- section (d) for the taxable year. (Added Pub. L. 91-172, title III, § 301(a), Dec. 30, 1969, 83 Stat. 580, and amended Pub. L. 91- 614, title V, § 501(a), Dec. 31, 1970, 84 Stat. 1846; Pub. L. 92-178, title VI, § 601(c)(4). (5), Dec. 10, 1971, 85 Stat. 558; Pub. L. 93-406, title II, §§ 2001(g)(2)(D), 2002(g)(4), 2005(c)(7), Sept. 2, 1974, 88 Stat. 957, 968, 991; Pub. L. 94-12, title II, §§ 203(b)(2), (3), 208(d)(2), (3), Mar. 29, 1975, 89 Stat. 30, 35; Pub. L. 94-455, title III, § 301(a), (b), (c)(4)(B), Oct. 4, 1976, 90 Stat. 1549, 1550, 1552.) AMENDMENTS 1976-Subsec. (a). Pub. L. 94-455, § 301(a), among other changes, raised the minimum tax rate for indi- viduals to 15% from 10% and substituted provisions re- lating to exemption of $10,000 or one-half of regular tax liability whichever is greater for provisions relat- ing to $30,000 exemption and deduction for regular taxes. Subsec. (b). Pub. L. 94-455, § 301(b)(1)(A), (B), sub- stituted in par. (1)(B) "$10,000" for "30,000" and in pars. (1) and (2) "15 percent" for "10 percent". Subsec. (c). Pub. L. 94-455, §301(b)(2), substituted provisions defining regular tax deduction for provi- sions relating to tax carryovers. Subsecs. (d), (e. Pub. L. 94-455, § 301(c)(4)(B), added subsecs. (d) and (e). 1975-Subsee. (a)(2)(A). Pub. L. 94-12, §§ 203(b)(2), 208(d)(2), added clauses (vi) and (vii). Subsec. (c)(1). Pub. L. 94-12, §§203(b)(3), 208(d)(3), added subpars. (F) and (G). 1974-Subsec. (a)(2)(A). Pub. L. 93-406 inserted ref- erences in the provisions preceding cl. (I) to the taxes imposed by sections 72(m)(5)(B), 402(e), and 408(f). Subsec. (c)(1). Pub. L. 93-406 inserted references in the provisions preceding subpar. (A) to the taxes im- posed by sections 72(m)(5)(B), 402(e), and 408(f). 1971-Subsec. (a)(2)(iv), (v). Pub. L. 92-178, § 601(c)(4), added els. (iv) and (v). Subsec. (c)(1). Pub. L. 92-178, § 601(c)(5), struck out "and" and "exceed" at end of subpars. (B) and (C) and added subpars. (D) and (E), respectively. 1970-Subsee. (a)(2). Pub. L. 91-614, § 501(a)(1), sub- stituted the sum of the taxes imposed by this chapter reduced by the sum of the credits allowable under sec- tions 33, 37, and 38 of this title plus the tax carry overs to the taxable year for the taxes imposed by this chapter reduced by the sum of the credits allowable under sections 33, 37, and 38 of this title. Subsec. (c). Pub. L. 91-614, § 501(a)(2), added subsec. (c). EFFECTIVE DATE AND APPLICABILITY OF 1976 AMENDMENT Section 301(g) of Pub. L. 94-455, as amended by Pub. L. 94-568, § 3, Oct. 20. 1976, 90 Stat. 2697, effective Oct. 4, 1976, provided that: '(1) In general.-Except as provided by paragraph (4), the amendments made by this section [to sec- tions 56, 57(a), (b), (d), 58(a), (b), (c), (hi, (I) and 443(d) of this title] shall apply to items of tax pref- erence for taxable years beginning after December 31, 1975. "(2) Tax carryover. "(A) In general.-Except as provided in subpara- graph (B), the amount of any tax carryover under section 56(c) of the Internal Revenue Code of 1954 (subsec. (c) of this section] from a taxable year be- ginning before January 1, 1976, shall not be al- lowed as a tax carryover for any taxable year be- ginning after December 31, 1975. "(B) Except as provided by paragraph (4) and in section 56(e) of the Internal Revenue Code of 1954 [subsec. (e) of this section], in the case of a corpo- ration which is not an electing small business cor- poration (as defined in section 1371(b) of such Code [section 1371(b) of this title]) or a personal holding company (as defined in section 524 of such Code [section 524 of this title), the amount of any tax carryover under section 56(c) of quch Code subsec. (c) of this section] from a taxable year be- ginning before July 1, 1976, shall not be allowed as a tax carryover for any taxable year beginning after June 30, 1976. "(3) Special rule for taxable year 1976 in the case of a corporation.-Notwithstanding any provision of the Internal Revenue Code of 1954 [this title] to the contrary, in the case of a corporation which is not an electing small business corporation or a personal holding company the tax imposed by section 56 of such Code [this section] for taxable years beginning in 1976, is an amount equal to the sum of- "(A) the amount of the tax which would have been imposed for such taxable year under such section as such section was in effect on the day before the date of the enactment of the Tax Reform Act of 1976 [Oct. 4, 1976], and "(B) one-half of the amount by which the amount of the tax which would be imposed for such taxable year under such section as amended by the Tax Reform Act of 1976 [For distribution of Pub. L. 94-455, see Tables volume] (but for this paragraph) exceeds the amount determined under subparagraph (A). " (4) Certain financial institutions.-In the case of a taxpayer which is a financial institution to which section 585 or 593 of the Internal Revenue Code of 1954 applies, the amendments made by this section shall apply only to taxable years beginning after De- cember 31, 1977, and paragraph (2) shall be applied by substituting 'January 1. 1978' for 'January 1, 1976' and by substituting 'December 31, 1977.' for 'December 31, 1975'." EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT Amendment by Pub. L. 94-12 applicable to taxable years ending after Dec. 31, 1974, and to cease to apply to taxable years ending after Dec. 31, 1975, see section 209(a) of Pub. L. 94-12, set out as an Effective and Termination Dates of 1975 Amendments note under section 42 of this title. EFFECTIVE DATE OF 1974 AMENDMENT Amendment of subsecs. (a)(2)(A) and (c)(1) of this section by section 2001(g)(2)(D) of Pub. L. 93-406. which inserted reference to section 72(m)(5)(B), appli- cable to distributions made in taxable years beginning after Dec. 31, 1975, see section 2001(i)(5) of Pub. L. 93- 406, set out as an Effective Date of 1974 Amendment note under section 72 of this title. Amendment of subsecs. (a)(2)(A) and (c)(1) of this section by section 2002(g)(4) of Pub. L. 93-406, which inserted reference to section 408(f), effective on Jan. 1, 1975, see section 2002(i)(2) of Pub. L. 93-406, set out as an Effective Date note under section 4973 of this title. Amendment of subsecs. (a)(2)(A) and (c)(1) of this section by section 2005(c)(7) of Pub. L. 93-406, which inserted reference to section 402(e), applicable only with respect to distributions or payments made after Dec. 31, 1973, in taxable years beginning after Dec. 31, 1973, see section 2005(d) of Pub. L. 93-406, set out as an Effective Date of 1974 Amendment note under sec- tion 402 of this title. EFFECTIVE DATE OF 1971 AMENDMENT Enactment of subsecs. (a)(2)(iv). (v) and (c)(1)(D). (El and amendment of subsec. (c)(1)(C) of this section Page 89