subchapter. (Pub. L. 93-262, title IV, § 403, Apr. 12, 1974, 88 Stat. 83.)

§ 1524. Rules and regulations.

The Secretary of the Interior is authorized to prescribe such rules and regulations as may be necessary to carry out the purposes of this chapter. (Pub. L. 93-262, title IV, § 404, Apr. 12, 1974, 88 Stat. 83.)

SUBCHAPTER V.-MISCELLANEOUS

PROVISIONS

§ 1541. Competent management and technical assistance for economic enterprises.

Concurrent with the making or guaranteeing of any loan under subchapters I and II of this chapter and with the making of a grant under subchapter IV of this chapter, the purpose of which is to fund the development of an economic enterprise, the Secretary shall insure that the loan or grant applicant shall be provided competent management and technical assistance consistent with the nature of the enterprise being funded. (Pub. L. 93-262, title V, § 501, Apr. 12, 1974, 88 Stat. 83.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1542 of this title.

§ 1542. Agency cooperation; private contracts for management services and technical assistance. For the purpose of providing the assistance required under section 1541 of this title, the Secretary is authorized to cooperate with the Small Business Administration and ACTION and other Federal agencies in the use of existing programs of this character in those agencies. In addition, the Secretary is authorized to enter into contracts with private organizations for providing such services and assistance. (Pub. L. 93-262, title V, § 502, Apr. 12, 1974, 88 Stat. 83.)

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 1543 of this title. § 1543. Funds limitation for private contracts.

For the purpose of entering into contracts pursuant to section 1542 of this title, the Secretary is authorized to use not to exceed 5 per centum of any funds appropriated for any fiscal year pursuant to section 1512 of this title. (Pub. L. 93-262, title V, § 503, Apr. 12, 1974, 88 Stat. 83.)

Section 1 of Pub. L. 94-164, Dec. 23, 1975, 89 Stat. 970, provided that: "This Act [amending sections 11, 21, 42, 43, 103, 141, 883, 962, 1561, 3402, 6012, 6153, and 6154 of this title and provisions set out as notes under sections 42, 43, and 3402 of this title, and enacting provisions set out as notes under this section and sections 11, 42, 43, 103, and 883 of this title] may be cited as the 'Revenue Adjustment Act of 1975'."

Pub. L. 94-12, § 1(a), Mar. 29, 1975, 89 Stat. 26, provided that: "This Act [enacting sections, 42, 43, 44 613A, 907, 955, and 6428 of this title, amending sections 3, 11, 12, 21, 46, 47, 48, 50A, 50B, 56, 141, 214, 535, 613, 703, 851, 901, 902, 951, 954, 962, 993, 1034, 1561, 3304 note, 3402, 6012, 6096, 6201, and 6401 of this ttile, repealing sections 955 and 963 of this title, and enacting provisions set out as notes under sections 11, 42, 43, 44, 46, 48, 50A, 214, 410, 535, 613A, 907, 955, 993, 3304, 3402, 6428, and 6611 of this title and section 402 of Title 42, The Public Health and Welfare] may be cited as the "Tax Reduction Act of 1975'."

Section 1(a) of Pub. L. 92-178, Dec. 10, 1971, 85 Stat. 497, provided that: "This Act [which enacted sections 40, 41, 50, 50A, 50B, 188, 991-997, 218, 383, 4464, 6686, 7216, 9001-9013, and 9021 of this title and also sections 4 (d) (5), 21(e), 48(a) (2) (B) (viii)–(x), (3) (C), (7)-(9), 46(b) (3), (c) (3) (C), (d) (3), (e), 56(a) (2) (iv), (v), 57(a) (10), 103 (c) (4) (G), 141(e), 144 (a) (4), 163 (d) (7), (m), 183 (e), 246(d), 263 (f), 301(b) (1) (D), (d) (3), 381 (c) (24), 642 (a) (3), (1), 861(a) (2) (D), (e), 862 (c), 904(f) (5), 971(a)(3), 1014(d), 1441 (c) (8), 1504 (b) (7), 3402(f) (1) (G), (7), 4063 (a) (6), (7), 4071(e), 6011(e), 6331(d), 6416(b) (2) (S), 6501(g) (3), (o), 6511(d) (7), 6601(e) (4), and 6611(f) (4) of this title; amended sections 46(b) (1), (5), (6), (c) (2),

(3) (A), (B), 47(a) (6) (A), 48(a)(1), (a) (1) (B) (ii), (iii), (5), (6), (d), 49(a), (b), (d), 56(c) (1), 57(b) (1), (2) (C), (c), 58(g) (2), 103 (c) (4), (E), (F), (c) (6) (F) (111), 141(b), (c), 144(a) (1) (2), 151, 162(c), (c) (2), (3), 163(d) (1) (B), (3) (C), (4) (A) (1), 214, 263 (e), 301(b) (1) (B), (d) (2), 642 (f), 665 (g), 703(b), 871(a)(1)(A), (C), 881(a)(1), (3), 901(d), 904(f), (f)(1), (3), 922, 931(a), 1082(a) (2) (B), 1245 (a) (2), (3) (B) (11), (iii), (D), 1250 (b) (3), 1251(b) (2) (B), 1441(b), 1442, 3402(a), (b)(1)(c)(6), (m) (1) (B), (2) (A), (D), (3), 4061(a), (b)(2), 4221(c). 4222(d), 6012 (a)(1), 6013(b) (3) (A), (c) (6), 6015(a), 6072(b), 6096(a), 6411, 6416(b) (2) (R), (g), 6501(n), and 7422(f) (1) of this title; renumbered as sections 42 and 219 former sections 40 and 218 of this title; enacted provisions set out as notes under sections 4, 38, 41, 46-48, 50A, 57, 58, 103, 141, 144, 151, 162, 167, 183, 188, 214, 263, 301, 383, 665, 861, 871, 921, 970, 991, 1251, 3402 4061, 4464, 3402, 4061, 6012, 6013, 6015, 6096, 6331, 6654, 7216, 7422, and 9001 of this title and section 1232a of Title 15; repealed sections 46 (c) (4), 47 (a) (4), (5), 169 (h), and 6412(a)(1) of this title and sections 1232a of Title 15, and 971-973 of Title 31; and repealed provisions set out as notes under sections 141, 151, 3402, 6012, and 6013 of this title] may be cited as the 'Revenue Act of 1971'."

CONGRESSIONAL DECLARATION RELATING TO 1975 AMENDMENT Section 1A of Pub. L. 94–164, Dec. 23, 1975, 89 Stat. 970, provided that:

"(a) Congress is determined to continue the tax reduction for the first 6 months of 1976 in order to assure continued economic recovery.

"(b) Congress is also determined to continue to control spending levels in order to reduce the national deficit.

"(c) Congress reaffirms its commitments to the procedures established by the Congressional Budget and Impoundment Control Act of 1974 [Pub. L. 93-344], under which it has already established a binding spending ceiling for the fiscal year 1976.

"(d) If the Congress adopts a continuation of the tax reduction provided by this Act [see Short Title note hereunder] beyond June 30, 1976, and if economic conditions warrant doing so, Congress shall provide, through the procedures in the Budget Act [Pub. L. 93-344], for reductions in the level of spending in the fiscal year 1977 below what would otherwise occur, equal to any additional reduction in taxes (from the 1974 tax rate levels) provided for the fiscal year 1977: Provided, however, That nothing shall preclude the right of the Congress to pass a budget resolution containing a higher or lower expenditure figure if the Congress concludes that this is warranted by economic conditions or unforeseen circumstances."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2, 3, 51, 72, 142, 511, 532, 541, 871, 876, 877, 891, 1201, 1347, 1348, 6361 of this title.

§ 2. Definitions and special rules.
(a) Definition of surviving spouse.

(3) Special rule where deceased spouse was in missing status.

If an individual was in a missing status (within the meaning of section 6013(f) (3)) as a result of service in a combat zone (as determined for purposes of section 112) and if such individual remains in such status until the date referred to in subparagraph (A) or (B), then, for purposes of paragraph (1) (A), the date on which such individual died shall be treated as the earlier of the date determined under subparagraph (A) or the date determined under subparagraph (B):

(A) the date on which the determination is made under section 556 of title 37 of the United States Code or under section 5566 of title 5 of such Code (whichever is applicable) that such individual died while in such missing status, or (B) the date which is 2 years after

(i) the date of the enactment of this paragraph, in the case of service in the combat zone designated for purposes of the Vietnam conflict, or

(ii) the date designated under section 112 as the date of termination of combatant activities in that zone, in the case of any combat zone other than that referred to in clause (i).

(As amended Jan. 2, 1975, Pub. L. 93-597, § 3(b), 88 Stat. 1951.)

REFERENCES IN TEXT

The date of enactment of this paragraph, referred to in subsec. (a) (3) (B) (1), is the date of enactment of Pub. L. 93-597, which was approved Jan. 2, 1975.

AMENDMENTS

1975 Subsec. (a) (3). Pub. L. 93-597 added subsec. (a) (3).

EFFECTIVE DATE OF 1975 AMENDMENT

Amendment by Pub. L. 93-597 applicable to taxable years ending on or after Feb. 28, 1961, see section 3(c) of Pub. L. 93-597, set out as a note under section 6013 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1, 141, 1304, 3402, 6015 of this title.

§3. Optional tax tables for individuals.

In lieu of the tax imposed by section 1, there is hereby imposed for each taxable year beginning after December 31, 1969, on the taxable income of every individual whose adjusted gross income for such year is less than $15,000 and who has elected for such year to pay the tax imposed by this section, a tax determined under tables, applicable to such taxable year, which shall be prescribed by the Secretary of his delegate. In the tables so prescribed, the amounts of tax shall be computed on the basis of the taxable income computed by taking the standard deduction and on the basis of the rates prescribed by section 1. (As amended Mar. 29, 1975, Pub. L. 9412, title II, § 201 (c), 89 Stat. 29.)

AMENDMENTS

1975-Pub. L. 94-12 substituted "$15,000" for "$10,000".

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 a note under section 42 of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 4, 36, 72, 144, 891, 1304, 6012, 6014 of this title.

§4. Rules for optional tax.

(d) Certain other taxpayers ineligible. Section 3 shall not apply to

(1) a nonresident alien individual;

(2) a citizen of the United States entitled to the benefits of section 931 (relating to income from sources within possessions of the United States);

(3) an individual making a return under section 443 (a) (1) for a period of less than 12 months on account of a change in his accounting period; (4) an estate or trust; or

(5) an individual if the amount of the standard deduction otherwise allowable to such individual is reduced under section 141(e).

(As amended Dec. 10, 1971, Pub. L. 92-178, title III, § 301(b), 85 Stat. 520.)

AMENDMENTS

1971-Subsec. (d) (5). Pub. L. 92-178 added par. (5). EFFECTIVE DATE OF 1971 AMENDMENT

Section 301(d) of Pub. L. 92-178 provided that: "The amendments made by this section [enacting subsec. (d) (5) of this section and sections 141 (e) and 144(a) (4) of this title] shall apply to taxable years beginning after December 31, 1971."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 144 of this title. PART II.-TAX ON CORPORATIONS

(b) Normal tax.

(1) General rule.

The normal tax is equal to

(A) in the case of a taxable year ending after December 31, 1976, 22 percent of the taxable income, and

(B) in the case of a taxable year ending after December 31, 1974, and before January 1, 1977, the sum of

(i) 20 percent of so much of the taxable income as does not exceed $25,000, plus

(ii) 22 percent of so much of the taxable income as exceeds $25,000.

(2) Six-month application of general rule. (A) Calendar year taxpayers.

Notwithstanding the provisions of paragraph (1), in the case of a taxpayer, who has as his taxable year the calendar year 1976, the normal tax for such taxable year is equal to the sum of(i) 21 percent of so much of the taxable income as does not exceed $25,000, plus

(ii) 22 percent of so much of the taxable income as exceeds $25,000.

(B) Fiscal year taxpayers.

Notwithstanding the provisions of paragraph (1), in the case of a taxpayer whose taxable year is not the calendar year, effective on July 1, 1976, paragraph (1) shall cease to apply and the normal tax shall be 22 percent.

(c) Surtax.

(1) General rule.

The surtax is 26 percent of the amount by which the taxable income exceeds the surtax exemption for the taxable year.

(2) Special rule for 1976 for calendar year taxpayers.

Notwithstanding the provisions of paragraph (1), in the case of a taxpayer who has as his taxable year the calendar year 1976, the surtax for such taxable year is

(A) 13 percent of the amount by which the taxable income exceeds the $25,000 surtax exemption (as in effect under subsection (a) (2)) but does not exceed $50,000, plus

(B) 26 percent of the amount by which the taxable income exceeds $50,000.

(d) Surtax exemption.

(1) General rule.

For purposes of this subtitle, the surtax exemption for any taxable year is $50,000, except that, with respect to a corporation to which section 1561 or 1564 (relating to surtax exemptions in case of certain controlled corporations) applies for the taxable year, the surtax exemption for the taxable year is the amount determined under such section. (2) Six-month application of general rule.

Notwithstanding the provisions of paragraph

(1)

(A) Calendar year taxpayers.

In the case of a taxpayer who has as his taxable year the calendar year 1976, the provisions of paragraph (1) shall be applied for such taxable year by substituting the amount "$25,000” for the amount "$50,000" appearing therein.. (B) Fiscal year taxpayers.

In the case of a taxpayer whose taxable year is not the calendar year, effective on July 1, 1976, paragraph (1) shall be applied by substituting the amount "$25,000" for the amount "$50,000" appearing therein, and such substitution shall be treated, for purposes of section 21, as a change in a rate of tax.

(As amended Mar. 29, 1975, Pub. L. 94–12, title III, § 303 (a), (b), 89 Stat. 44; Dec. 23, 1975, Pub. L. 94164, § 4(a)-(c), 89 Stat. 973, 974.)

AMENDMENTS

1975-Subsec. (b). Pub. L. 94-164 redesignated existing pars. (1) and (2) as pars. (1) (A) and (1) (B), and in par. (1)(A) as so redesignated substituted "after December 31, 1976" for "before January 1, 1975 or after December 31, 1975", and in par. (1) (B) as so redesignated substituted "January 1, 1977" for "January 1, 1976", and added par. (2).

Pub. L. 94-12, § 303 (a), reduced the normal tax for a taxable year ending after Dec. 31, 1974, and before Jan. 1, 1976, to 20 percent of so much of the taxable income as does not exceed $25,000 plus 22 percent of so much of the taxable income as exceeds $25,000.

Subsec. (c). Pub. L. 94-164 designated existing provisions as par. (1) and in par. (1) as so designated struck out special percentages for taxable years beginning before Jan. 1, 1964, and after Dec. 31, 1963 and before Jan. 1, 1965, and added par. (2).

Subsec. (d). Pub. L. 94-164 designated existing provisions as par. (1), and in par. (1) as so designated, substituted "850,000" for "$25,000", added reference to section 1564 of this title, and added par. (2).

Pub. L. 94-12, § 303 (b), substituted "$50,000" for "$25,000".

EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENTS Section 4(e) of Pub. L. 94-164 provided that: "The amendments made by subsections (b), (c), and (d) [amending subsecs. (c) and (d) of this section and sections 21, 962, and 1561 of this title] apply to taxable years beginning after December 31, 1975. The amendment made by subsection (c) [amending subsec. (d) of this section] ceases to apply for taxable years beginning after December 31, 1976."

Section 305(b)(1) of Pub. L. 94-12 provided that: "the amendments made by section 303 [amending subsecs. (b) and (d) of this section and sections 12(7), 962 (c), and 1561(a)(1) of this title and enacting provisions set out as a note under this section] shall apply to taxable years ending after December 31, 1974. The amendments made

by subsections (b) and (c) of such section [amending subsec. (d) of this section and sections 12(7), 962(c), and 1561 (a) (1) of this title and enacting provisions set out as a note under this section] shall cease to apply for taxable years ending after December 31, 1975." ALLOCATION OF 1975 TAXABLE INCOME AMONG COMPONENT MEMBERS OF CONTROLLED GROUP OF CORPORATIONS Section 303 (c) (1) of Pub. L. 94-12 provided in part that: "in applying subsection (b) (2) of section 11 [subsec. (b) (2) of this section], the first $25,000 of taxable income and the second $25,000 of taxable income shall each be allocated among the component members of a controlled group of corporations in the same manner as the surtax exemption is allocated."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 21, 57, 80, 511, 527, 594, 802, 804, 821, 826, 831, 852, 857, 882, 891, 907, 922, 962, 1201, 1351, 1378, 1381, 1551, 1561, 1562, 4942, 6016, 6154, 6425, 6655 of this title.

§ 12. Cross references relating to tax on corporations.

(7) For limitation on the $50,000 exemption from surtax provided in section 11 (c), see section 1551.

(As amended Mar. 29, 1975, Pub. L. 94-12, title III, § 303 (c) (2), 89 Stat. 44.)

AMENDMENTS

1975-Par. (7). Pub. L. 94-12 substituted "$50,000" for "$25,000".

EFFECTIVE AND TERMINATION DATES OF 1975 AMENDMENT Amendment by Pub. L. 94-12 applicable to taxable years ending after Dec. 31, 1974, but to cease to apply for taxable years ending after Dec. 31, 1975, see section 305(b) (1) of Pub. L. 94-12, set out as a note under section 11 of this title.

PART III.-CHANGES IN RATES DURING A TAXABLE YEAR

§ 21. Effect of changes.

(e) Changes made by Revenue Act of 1971.

In applying subsection (a) to a taxable year of an individual which is not a calendar year, each change made by the Revenue Act of 1971 in section 141 (relating to the standard deduction) and section 151 (relating to personal exemptions) shall be treated as a change in a rate of tax.

(f) Change in surtax exemption.

In applying subsection (a) to a taxable year of a taxpayer which is not a calendar year, the change made by section 303(b) of the Tax Reduction Act of 1975 and the change made by section 3(c) of the Revenue Adjustment Act of 19751 in section 11(d) (relating to corporate surtax exemption) shall be treated as a change in a rate of tax. (As amended Dec. 10, 1971, Pub. L. 92-178, title II, § 205, 85 Stat. 511; Mar. 29, 1975, Pub. L. 94-12, title III, § 305 (b) (2), 89 Stat. 45; Dec. 23, 1975, Pub. L. 94–164, § 4(d) (2), 89 Stat. 975.)

REFERENCE IN TEXT

The change made by section 303 (b) of the Tax Reduction Act of 1975, referred to in subsec. (f), means the

1 Reference to section 3 (c) of the Revenue Adjustment Act of 1975 was probably meant to be a reference to section 4 (c) of the Revenue Adjustment Act of 1975 (Pub. L. 94-164) which amended section 11(d) of this title.