554
PUBLIC LAW 92-178-DEC. 10, 1971
[85 STAT.
"SEC. 50A. AMOUNT OF CREDIT. " (a) DETERMINATION OF AMOUNT.—• " (1) GENERAL RULE.—The amount of the credit allowed by sec-
Ante, p. 553. Post, p. 556.
^JQJ^ 40 fQj. ^he taxable year shall be equal to 20 percent of the work incentive program expenses (as defined in section 5 0 B (a)). " (2) LIMITATION BASED ON AMOUNT or TAX.—Notwithstanding
ae'usc^ 33!^* 78 Stat. 24, 33. 76 Stat. 962. Post, p. 560. 83 Stat. 5 8 0.
^ 6 8 Stat. 179, ^^A 80*Stat. 113. 80 Stat. 99.
78 Stat. 120; ^
- ^*' ^ '
Ante,
p. 553.
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 $25,000, plus " (B) 50 percent of so much of the liability for tax for the taxable year as exceeds $25,000. "(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, reduced by the sum of the credits allowable under— " ( ^) section 33 (relating to foreign tax credit), " (B) section 35 (relating to partially tax exempt interest), " (C) section 37 (relatingto retirement lucome), " (D) section 38 (relating to investment in certain depreciable property), and "(^-^ section 41 (relating to contributions to candidates for public office). For purposes of this paragraph, any tax imposed for the taxable year by section 56 (relating to minimum tax for tax preferences), section 531 (relating to accumulated 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 additional 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 $12,500 in lieu of $25,000. This paragraph shall not apply if the spouse of the taxpayer has no work incentive program expenses for, and no unused credit carryback or carryover to, the taxable year of such spouse which ends within or with the taxpayer's taxable year. "(5) CONTROLLED GROUPS.—In the case of a controlled group, the $25,000 amount specified under paragraph (2) shall be reduced for each component member of such group by apportioning $25,000 among the component members of such group in such manner as the Secretary or his delegate shall by regulations prescribe. For purposes of the preceding sentence, the term 'controlled group' has the meaning assigned to such term by section 1563(a). " (b) CARRYBACK AND CARRYOVER OF UNUSED CREDIT.— "(1) ALLOWANCE OF CREDIT.—If the amount of the credit
determined under subsection (a)(1) for any taxable year exceeds the limitation provided by subsection (a)(2) for such taxable year (hereinafter in this subsection referred to as 'unused credit year'), such excess shall be— " (A) a work incentive program credit carryback to each of the 3 taxable years preceding the unused credit year, and " (B) a work incentive program credit carryover to each of the 7 taxable years following the unused credit year, and shall be added to the amount allowable as a credit Sy section 40 for such years, except that such excess may be a carryback only to a taxable year beginning after December 31, 1971. The entire amount of the unused credit for an unused credit year shall be
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