1 (b) REPEAL OF CREDIT FOR DIVIDENDS RECEIVED BY 2 INDIVIDUALS.-Effective with respect to dividends received 3 after December 31, 1964, section 34 (relating to dividends 4 received by individuals) is hereby repealed. 5 (c) DOUBLING OF AMOUNT OF PARTIAL EXCLUSION 6 FROM GROSS INCOME OF DIVIDENDS RECEIVED BY INDIVID 8 gross UALS.-Section 116 (a) (relating to partial exclusion from income of dividends received by individuals) is 9 amended by striking out "$50" each place it appears and 10 inserting in lieu thereof "$100". (d) CONFORMING AMENDMENTS.— (1) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking 11 12 13 "Sec. 34. Dividends received by individuals.” (2) Section 35 (b) (1) is amended by striking out "the sum of the credits allowable under sections 33 and 34" and inserting in lieu thereof "the credit allowable under section 33". (3) Section 37 (a) is amended by striking out "section 34 (relating to credit for dividends received by individuals),". (4) Section 46 (a) (3) is amended by striking out subparagraph (B), and by redesignating subparagraphs (C) and (D) as "(B)" and "(C)", respectively. (5) Section 584 (c) (2) is amended by striking out "section 34 or". (6) (A) Section 642 (a) is amended by striking out paragraph (3); (B) Section 642 (i) is amended to read as follows: "(i) CROSS REFERENCES.— "(1) For disallowance of standard deduction in case of estates and trusts, see section 142(b)(4). "(2) For special rule for determining the time of receipt of dividends by a beneficiary under section 652 or 662, see section 116(c)(3)." (C) Section 116 (c) is amended by adding at the end thereof the following new paragraph: "(3) The amount of dividends properly allocable to a beneficiary under section 652 or 662 shall be deemed to have been received by the beneficiary ratably on the same date that the dividends were received by the estate or trust." (7) Section 702 (a) (5) is amended by striking out "a credit under section 34," and the comma after "section 116". (8) Section 854 (a) is amended by striking out "section 34 (a) (relating to credit for dividends received by individuals)," and the comma after "section 116 (relating to an exclusion for dividends received by individuals)". (9) Section 854 (b) (1) is amended by striking out 1 2 3 4 5 6 7 8 9 10 11 121 13 14 15 16 17 18 "the credit under section 34 (a)," and the comma after "section 116". (10) Section 854 (b) (2) is amended by striking out "the credit under section 34," and the comma after "section 116". (11) Section 857 (c) is amended by striking out "section 34 (a) (relating to credit for dividends received by individuals)," and the comma after "section 116 (relating to an exclusion for dividends received by individuals)". (12) Section 871 (b) is amended by striking out "the sum of the credits under sections 34 and 35" and inserting in lieu thereof "the credit under section 35". (13) Section 1375 (b) is amended by striking out "section 34," and the comma after "section 37". (14) Section 6014 (a) is amended by striking out "34 or". (e) EFFECTIVE DATES.-The amendments made by 19 subsection (a) shall apply with respect to taxable years end20 ing after December 31, 1963. The amendment made by sub21 section (b) shall apply with respect to taxable years ending 22 after December 31, 1964. The amendment made by sub23 section (c) shall apply with respect to taxable years begin24 ning after December 31, 1963. The amendments made 25 by subsection (d) shall apply with respect to dividends 1 received after December 31, 1964, in taxable years ending 2 after such date. 3 SEC. 202. LIMITATION ON RETIREMENT INCOME. 4 (a) INCREASE IN LIMITATION IN CASE OF CERTAIN 5 MARRIED COUPLES.-Section 37 (relating to retirement in6 come) is amended by redesignating subsection (i) as sub7 section (j) and inserting after subsection (h) the following new subsection: 8 9 10 11 "(i) EXCEPTIONS TO LIMITATION ON AMOUNT OF RETIREMENT INCOME IN CASE OF CERTAIN JOINT RE TURNS.-In the case of a joint return of a husband and wife 12 both of whom have attained the age of 65 before the close 13 14 15 16 17 18 of the taxable year "(1) BOTH SPOUSES HAVE RECEIVED EARNED INCOME.-If both spouses are individuals who have re ceived earned income before the beginning of the tax able year (within the meaning of subsection (b)) and if the sum of the retirement income and the amounts de19 scribed in paragraphs (1) and (2) of subsection (d) 222 20 21 received by either spouse during the taxable year is less than $762, the $1,524 amount referred to in subsection (d) shall, with respect to the other spouse, be increased by an amount equal to the amount by which such sum is less than $762. "(2) ONE SPOUSE HAS NOT RECEIVED EARNED INCOME. If either spouse is an individual who has not 1 2 3 4 5 6 7 received earned income before the beginning of the taxable year (within the meaning of subsection (b)), the $1,524 amount referred to in subsection (d) shall, with respect to the other spouse, be increased by $762, minus the sum of the amounts described in paragraphs (1) and (2) of subsection (d) received by his spouse." (b) EFFECTIVE DATE.-The amendment made by sub8 section (a) shall apply to taxable years beginning after De 9 cember 31, 1963. 10 SEC. 202 203. repeal of rEQUIREMENT THAT BASIS OF SECTION 38 PROPERTY BE REDUCED BY 7 PERCENT; OTHER PROVISIONS RELATING TO INVESTMENT CREDIT. (a) REPEAL OF REQUIREMENT THAT BASIS BE RE DUCED. (1) IN GENERAL.-Subsection (g) of section 48 (requiring that the basis of section 38 property be reduced by 7 percent of the qualified investment) is hereby repealed. (2) INCREASE IN BASIS OF PROPERTY PLACED IN SERVICE BEFORE JULY 1, 1909 JANUARY 1, 1964.— (A) The basis of any section 38 property (as defined in section 48 (a) of the Internal Revenue Code of 1954) placed in service before July 1, 1963 January 1, 1964, shall be increased, under |