# Pub. L. 94-12: changes to the Internal Revenue Code 1975-03-29, 89 Stat. 29. Source: . ## Legislative history - Bill: [H.R. 2166](https://www.congress.gov/bill/94th-congress/house-bill/2166) ## § 3: Tax tables for individuals - § 3: Pub. L. 94–12 substituted “$15,000” for “$10,000”. ## § 11: Tax imposed - § 11(b): 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. - § 11(d): Pub. L. 94–12, § 303(b), substituted “$50,000” for “$25,000”. ## § 12: Cross references relating to tax on corporations - § 12: Pub. L. 94–12 substituted “$50,000” for “$25,000” for a limited period. See Effective and Termination Dates of 1975 Amendment note set out below. ## § 15: Effect of changes - § 15(f): Pub. L. 94–12 added subsec. (f). ## § 32: Earned income - Enacted 26 U.S.C. § 32. ## § 37: Overpayments of tax ## § 46: Amount of credit - § 46: Pub. L. 94–12, § 301(a), designated existing provisions as subpar. (A), substituted “Except as otherwise provided in this paragraph, in the case of a property described in subparagraph (D), the” for “The”, “10 percent” for “7 percent”, and “(as determined under subsections (c) and (d))” for “(as defined in subsection (c))” in subpar. (A) as so designated, and added subpars. (B), (C), and (D). - § 46: Pub. L. 94–12, § 301(b)(2), added par. (6). - § 46: Pub. L. 94–12, § 301(b)(1), substituted “To the extent that subsection (a)(1)(C) applies to property which is public utility property, the” for “In the case of section 38 property which is public utility property, the”. - § 46: Pub. L. 94–12, § 302(b)(1), added par. (4). - § 46: Pub. L. 94–12, § 302(a), added subsec. (d) and redesignated former subsec. (d) as (e). Former subsec. (e) redesignated (f) and amended. - § 46: Pub. L. 94–12, §§ 301(b)(3), 302(a), redesignated former subsec. (e) as (f) and in subsec. (f) as so redesignated added par. (8). ## § 47: Rehabilitation credit - § 47(a): Pub. L. 94–12, § 302(b)(2)(A), (c)(1), added par. (3), redesignated former par. (3) as (4) and substituted “paragraph (1) or (3)” for “paragraph (1)”. A former par. (4), relating to increase or adjustment of tax where property is destroyed by casualty, etc., was repealed by Pub. L. 92–178. - § 47(a): Pub. L. 94–12, § 302(c)(2), substituted “paragraph (4)” for “paragraph (3)”. ## § 48: Energy credit - § 48(a)(2)(B): Pub. L. 94–12, § 604(a), substituted “territorial waters within the northern portion of the Western Hemisphere” for “territorial waters” in cl. (x) and inserted definition of “northern portion of the Western Hemisphere” following cl. (x). - § 48(c)(2)(A): Pub. L. 94–12 § 301(c)(1)(A), substituted “$100,000” for “$50,000”. - § 48(c)(2)(B): Pub. L. 94–12, § 301(c)(1)(A), (B), substituted “$50,000” for “$25,000” and “$100,000” for “$50,000”. - § 48(c)(2)(C): Pub. L. 94–12, § 301(c)(1)(A), substituted “$100,000” for “$50,000”. - § 48(d)(1), § 48(d)(2)(A): Pub. L. 94–12, § 302(c)(3), substituted “section 46(e)(1)” for “section 46(d)(1)”. ## § 243: Dividends received by corporations - § 243(b)(3)(C): Pub. L. 94–12 substituted “$150,000” for “$100,000”. ## § 535: Accumulated taxable income - § 535(c)(2), § 535(c)(3): Pub. L. 94–12 substituted “$150,000” for “$100,000”. ## § 613: Percentage depletion - § 613(b)(1): Pub. L. 94–12, § 501(b)(2)(A), struck out subpar. (A) “oil and gas wells” and redesignated former subpars. (B) and (C) as (A) and (B), respectively. - § 613(b)(3), § 613(b)(4): Pub. L. 94–12, § 501(b)(2)(B), substituted “(1)(B)” for “(1)(C)” wherever appearing. - § 613(b)(7): Pub. L. 94–12, § 501(b)(2) (B), (C), substituted “(1)(B)” for “(1)(C)” in provisions preceding subpar. (A) and added subpar. (C). - § 613(d): Pub. L. 94–12, § 501(b)(1), substituted provisions denying the percentage depletion allowance in the case of oil and gas wells except as provided in section 613A for provisions governing the application of percentage depletion rates to certain taxable years ending in 1954. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - Enacted 26 U.S.C. § 613A. ## § 703: Partnership computations - § 703(a)(2): Pub. L. 94–12 added subpar. (G). ## § 851: Definition of regulated investment company - § 851(b): Pub. L. 94–12 inserted provisions directing that, for purposes of par. (2), there shall be treated as dividends amounts included in gross income under section 951(a)(1)(A)(i) for the taxable year to the extent that, under section 959(a)(1), there is a distribution out of earnings and profits of the taxable year which are attributable to the amounts so included. ## § 901: Taxes of foreign countries and of possessions of United States - § 901(f), § 901(g): Pub. L. 94–12 added subsec. (f) and redesignated former subsec. (f) as (g). ## § 907: Special rules in case of foreign oil and gas income - Enacted 26 U.S.C. § 907. ## § 951: Amounts included in gross income of United States shareholders - § 951(a)(1)(A): Pub. L. 94–12, § 602(a)(3)(B), struck out “except as provided in section 963,” before “his pro rata share”. - § 951(a)(1)(A): Pub. L. 94–12, § 602(c)(3), substituted “(determined under section 955(a)(3) as in effect before the enactment of the Tax Reduction Act of 1975)” for “(determined under section 955(a)(3))”. - § 951(a)(1)(A): Pub. L. 94–12, § 602(d)(2)(A), added cl. (iii). - § 951(a)(3): Pub. L. 94–12, § 602(c)(4), (d)(2)(B), substituted “paragraph (i)(A)(iii)” for “paragraph (1)(A)(ii)” and “foreign base company shipping operations” for “less developed countries”. ## § 954: Foreign base company income - § 954(a): Pub. L. 94–12, § 602(d)(1)(A), added par. (4). - § 954(b)(1): Pub. L. 94–12, § 602(c)(1), struck out subsec. (b)(1) which related to the exclusion of certain dividends, interest, and gains from qualified investments in less developed countries. - § 954(b)(2): Pub. L. 94–12, § 602(d)(1)(B), substituted “foreign base company shipping income to the extent that the amount of such income does not exceed the increase for the taxable year in qualified investments in foreign base company shipping operations of the controlled foreign corporation (as determined under subsection (g))” for “income derived from, or in connection with, the use (or hiring or leasing for use) of any aircraft or vessel in foreign commerce, or the performance of services directly related to the use of any such aircraft or vessel” in text and “Exclusion for reinvested shipping income” for “Exclusion of certain shipping income” in heading. - § 954(b)(3): Pub. L. 94–12, § 602(d)(1)(C), (D), (e), substituted “10 percent” for “30 percent” in heading, substituted “paragraphs (2) and (5)” for “paragraphs (1) and (5)” and “10 percent” for “30 percent” in subpar. (A), and substituted “paragraphs (2) and (5)” for “paragraphs (1) and (5)” and “paragraphs (2), (4), and (5)” for “paragraphs (1), (2), (4), and (5)” in subpar. (B). - § 954(b)(5): Pub. L. 94–12, § 602(d)(1)(E), substituted “the foreign base company services income, and the foreign base company shipping income” for “and the foreign base company services income”. - § 954(b): Pub. L. 94–12, § 602(d)(1)(F), added par. (6). - § 954(d)(1): Pub. L. 94–12, § 602(b), provided that for purposes of subsec. (d) personal property does not include agricultural commodities which are not grown in the United States in commercially marketable quantities. - § 954(f), § 954(g): Pub. L. 94–12, § 602(c)(2), (d)(1)(G), added subsecs. (f) and (g). ## § 962: Election by individuals to be subject to tax at corporate rates - § 962(c): Pub. L. 94–12 substituted “$50,000” for “$25,000”. ## § 993: Definitions and special rules - § 993(c)(2): Pub. L. 94–12 added subpars. (C) and (D) and provisions following subpar. (D). ## § 1561: Limitation on accumulated earnings credit in the case of certain controlled corporations - § 1561(a): Pub. L. 94–12, § 303(c)(1), substituted “$50,000” for “$25,000”. - § 1561(a): Pub. L. 94–12, § 304(b), substituted “$150,000” for “$100,000”. ## § 3402: Income tax collected at source - § 3402(a): Pub. L. 94–12, § 205(a), substituted provisions directing the Secretary to prescribe new withholding tables setting changed withholding rates for wages paid during the period May 1, 1975, to Dec. 31, 1975, so as to reflect the full calendar year effect for 1975 of the amendments to the minimum standard deduction, the percentage standard deduction, the earned income credit, and the additional tax credit by sections 201, 202, 203, and 204 of the Tax Reduction Act of 1975, Pub. L. 94–12, for provisions setting out 8 tables to be followed by employers in withholding taxes on wages paid. - § 3402(c)(6): Pub. L. 94–12, § 205(b), substituted “the table for an annual payroll period prescribed pursuant to subsection (a)” for “table 7 contained in subsection (a)”. See 1976 Amendment note set out above. - § 3402(m)(1): Pub. L. 94–12, § 202(b), substituted “the lesser of (i) 16 percent of his estimated wages, or (ii) $2,600 ($2,300 in the case of an individual who is not married (within the meaning of section 143) and who is not a surviving spouse (as defined in section 2(a)))” for “the lesser of (i) $2,000 or (ii) 15 percent of his estimated wages”. ## § 6012: Persons required to make returns of income - § 6012(a)(1)(A): Pub. L. 94–12 substituted “(determined by applying section 143), is not a surviving spouse (as defined in section 2(a)), and for the taxable year has a gross income of less than $2,350” for “determined by applying section 143(a)) and for the taxable year has a gross income of less than $2,050, or” in cl. (i), added cl. (ii), redesignated existing cl. (ii) as (iii), in cl. (iii) as so redesignated substituted “$3,400” for “$2,800”, and in provisions following cl. (iii) substituted “Clause (iii)” for “Clause (ii)”. - § 6012(a)(1)(B): Pub. L. 94–12 substituted “The amount specified in clause (i) or (ii) of subparagraph (A) shall be increased by $750” for “The $2,050 amount specified in subparagraph (A)(i) shall be increased to $2,800” and “the amount specified in clause (iii) of subparagraph (A) shall be increased by $750” for “the $2,800 amount specified in subparagraph (A)(ii) shall be increased by $750”. ## § 6096: Designation by individuals - § 6096(b): Pub. L. 94–12 inserted reference to sections 42 and 44. ## § 6201: Assessment authority - § 6201(a)(4): Pub. L. 94–12 inserted reference to section 43 in heading and substituted “oil) or section 43 (relating to earned income),” for “oil),” in text. ## § 6401: Amounts treated as overpayments - § 6401(b): Pub. L. 94–12 inserted “43 (relating to earned income credit),” before “and 667(b)” and substituted “, 39, and 43” for “and 39”.