# Pub. L. 95-30: changes to the Internal Revenue Code 1977-05-23, 91 Stat. 127. Source: . ## Legislative history - Bill: [H.R. 3477](https://www.congress.gov/bill/95th-congress/house-bill/3477) ## § 1: Tax imposed - § 1(a): Pub. L. 95–30 generally made a downward revision of tax table for married individuals filing joint returns and surviving spouses resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $3,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $1,000 or less. - § 1(b): Pub. L. 95–30 generally made a downward revision of tax table for heads of households resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $1,000 or less. - § 1(c): Pub. L. 95–30 generally made a downward revision of tax table for unmarried individuals other than surviving spouses and heads of households resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $2,200 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $500 or less. - § 1(d): Pub. L. 95–30 generally made a downward revision of tax table for married individuals filing separate returns resulting in a table under which, among other changes, a bottom bracket imposing no tax on taxable income of $1,600 or less was substituted for a bottom bracket under which a tax of 14% had been imposed on a taxable income of $500 or less. Provisions making table applicable to estates and trusts were struck out. See subsec. (e). - § 1(e): Pub. L. 95–30 added subsec. (e) consisting of table formerly contained in subsec. (d) but without any downward revision and limited so as to apply only to estates and trusts. ## § 3: Tax tables for individuals - § 3: Pub. L. 95–30 struck out “having taxable income of less than $20,000” after “individuals” in section catchline. - § 3(a): Pub. L. 95–30 designated existing provisions as par. (1), substituted “tax table income” for “taxable income” and “does not exceed the ceiling amount” for “does not exceed $20,000”, and added pars. (2) to (4). - § 3(b), § 3(c), § 3(d), § 3(e): Pub. L. 95–30 added subsec. (b), redesignated former subsec. (b) as (c), and added subsecs. (d) and (e). ## § 11: Tax imposed - § 11(b): Pub. L. 95–30, § 201(1), substituted “December 31, 1978” for “December 31, 1977”. - § 11(b): Pub. L. 95–30, § 201(1), substituted “January 1, 1979” for “January 1, 1978” in provisions preceding subpar. (A). - § 11(d): Pub. L. 95–30, § 201(2), substituted “December 31, 1978” for “December 31, 1977”. - § 11(d): Pub. L. 95–30, § 201(2), substituted “January 1, 1979” for “January 1, 1978”. ## § 15: Effect of changes - § 15(d): Pub. L. 95–30, § 101(d)(2)(A), (B), redesignated subsec. (f) as (d). Former subsec. (d), which directed that, in applying subsec. (a) to a taxable year of an individual which was not a calendar year, each change made by the Tax Reform Act of 1969 in part I or in the application of part IV or V of subchapter B for purposes of the determination of taxable income should be treated as a change in a rate of tax, was struck out. - § 15(e): Pub. L. 95–30, § 101(d)(2)(A), (C), added subsec. (e). Former subsec. (e), which directed that, in applying subsec. (a) to a taxable year of an individual which was 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) should be treated as a change in a rate of tax, was struck out. - § 15(f): Pub. L. 95–30, § 101(d)(2)(B), redesignated subsec. (f) as (d). ## § 51: Amount of credit - Enacted 26 U.S.C. § 51. ## § 52: Special rules - Enacted 26 U.S.C. § 52. ## § 63: Taxable income defined - § 63: Pub. L. 95–30 completely revised definition of taxable income from one using the concept of a standard deduction and consisting of subsecs. (a) and (b) entitled, respectively, “General rule” and “Individuals electing standard deduction” to definition using the concepts of zero bracket amounts and excess itemized deductions and consisting of subsecs. (a) to (h) entitled, respectively, “Corporations”, “Individuals”, “Excess itemized deductions”, “Zero bracket amount”, “Unused zero bracket amount”, “Itemized deductions”, “Election to itemize”, and “Marital status”. ## § 161: Allowance of deductions - § 161: Pub. L. 95–30 substituted “section 63” for “section 63(a)”. ## § 170: Charitable, etc., contributions and gifts - § 170(f)(3)(B)(iii): Pub. L. 95–30 substituted “real property granted in perpetuity to an organization” for “real property of not less than 30 years’ duration granted to an organization”. ## § 172: Net operating loss deduction - § 172(d)(8): Pub. L. 95–30 added par. (8). ## § 211: Allowance of deductions - § 211: Pub. L. 95–30 substituted “section 63” for “section 63(a)”. ## § 280A: Disallowance of certain expenses in connection with business use of home, rental of vacation homes, etc. - § 280A(c)(4), § 280A(c)(5): Pub. L. 95–30 added par. (4), redesignated former par. (4) as (5) and substituted “paragraph (1), (2), or (4)” for “paragraph (1) or (2)” in introductory provisions. ## § 280C: Certain expenses for which credits are allowable - Enacted 26 U.S.C. § 280C. ## § 381: Carryovers in certain corporate acquisitions - § 381(c)(26): Pub. L. 95–30 added par. (26). ## § 383: Special limitations on certain excess credits, etc. - § 383: Pub. L. 95–30, § 202(d)(3)(C), in section 383, as in effect prior to amendment by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused new employee credit of the corporation which could otherwise be carried forward under section 53(c)” in text and “new employee credits,” in catchline. - § 383: Pub. L. 95–30, § 202(d)(3)(B), in section 383, as amended by Pub. L. 94–455, § 806(f)(2), as related to section 382(a) of this title, inserted “to any unused new employee credit of the corporation under section 53(c)” in text and “new employee credits,” in section catchline. ## § 402: Taxability of beneficiary of employees’ trust - § 402(e)(1): Pub. L. 95–30 substituted “amount equal to $2,200 plus one-tenth of the excess of” for “amount equal to one-tenth of the excess of” in provisions preceding cl. (i). ## § 441: Period for computation of taxable income - § 441(f)(2)(B)(iii): Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions as described in section 443(c)) by 365, by dividing the result by the number of days in the short period, and by adding the zero bracket amount” for “multiplying such income by 365 and dividing the result by the number of days in the short period”. ## § 443: Returns for a period of less than 12 months - § 443(b)(1): Pub. L. 95–30 substituted “multiplying the gross income for such short period (minus the deductions allowed by this chapter for the short period, but only the adjusted amount of the deductions for personal exemptions) by 12, dividing the result by the number of months in the short period, and adding the zero bracket amount” for “multiplying such income by 12, and dividing the result by the number of months in the short period”. ## § 511: Imposition of tax on unrelated business income of charitable, etc., organizations - § 511(b)(1): Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)”. ## § 584: Common trust funds - § 584(d): Pub. L. 95–30 struck out par. (4) relating to standard deduction. ## § 613A: Limitations on percentage depletion in case of oil and gas wells - § 613A(d)(1): Pub. L. 95–30 inserted “(reduced in the case of an individual by the zero bracket amount)” after “the taxpayer’s taxable income” in introductory provisions. ## § 641: Imposition of tax - § 641(a): Pub. L. 95–30 substituted “section 1(e)” for “section 1(d)” in introductory provisions. ## § 642: Special rules for credits and deductions - § 642: Pub. L. 95–30 struck out par. (1) which made a cross reference to section 142(b)(4) for disallowance of the standard deduction in the case of estates and trusts and struck out “(2)” at beginning of single remaining cross reference. ## § 667: Treatment of amounts deemed distributed by trust in preceding years - § 667(b)(2): Pub. L. 95–30 substituted “not less than (A) in the case of a beneficiary who is an individual, the zero bracket amount for such year, or (B) in the case of a beneficiary who is a corporation, zero” for “not less than zero”. ## § 703: Partnership computations - § 703(a)(2): Pub. L. 95–30 struck out subpar. (A) which made reference to the standard deduction provided in section 141, and redesignated subpars. (B) to (G) as (A) to (F), respectively. ## § 861: Income from sources within the United States - § 861(b): Pub. L. 95–30 provided that, in the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income. ## § 862: Income from sources without the United States - § 862(b): Pub. L. 95–30 provided that, in the case of an individual who does not itemize deductions, an amount equal to the zero bracket amount shall be considered a deduction which cannot definitely be allocated to some item or class of gross income. ## § 873: Deductions - § 873(c): Pub. L. 95–30 struck out par. (1) which made a cross reference to section 142(b)(1) for disallowance of the standard deduction and struck out “(2)” at beginning of single remaining cross reference. ## § 904: Limitation on credit - § 904(a): Pub. L. 95–30 provided that, for purposes of determining the maximum total amount of the credit taken under section 901(a), in the case of an individual, the entire taxable income shall be reduced by an amount equal to the zero bracket amount. ## § 911: Citizens or residents of the United States living abroad - § 911(d)(1)(B): Pub. L. 95–30 substituted “on the sum of (i) the amount of net excluded earned income, and (ii) the zero bracket amount” for “on the amount of net excluded earned income”. ## § 931: Income from sources within Guam, American Samoa, or the Northern Mariana Islands - § 931(d): Pub. L. 95–30 struck out par. (3) which made a cross reference to section 142(b)(2) for disallowance of the standard deduction. ## § 1211: Limitation on capital losses - § 1211(b)(1): Pub. L. 95–30 inserted “reduced (but not below zero) by the zero bracket amount” after “taxable year”. ## § 3402: Income tax collected at source - § 3402(a): Pub. L. 95–30, § 105(a), substituted “With respect to wages paid after May 31, 1977, and before January 1, 1979, the tables so prescribed shall be the same as the tables prescribed under this subsection which were in effect on January 1, 1976; except that such tables shall be modified to the extent necessary so that, had they been in effect for all of 1977, they would reflect the full year effect of the amendments made by sections 101 and 102 of the Tax Reduction and Simplification Act of 1977. With respect to wages paid after December 31, 1978, the tables so prescribed shall be the same as the tables prescribed under this subsection which were in effect on January 1, 1975, except that such tables shall be modified to the extent necessary to reflect the amendments made by sections 101 and 102 of the Tax Reduction and Simplification Act of 1977” for “With respect to wages paid prior to January 1, 1978, the tables so prescribed shall be the same as the tables prescribed under this section which were in effect on January 1, 1976. With respect to wages paid after December 31, 1977, the Secretary shall prescribe new tables which shall be the same as the tables prescribed under this subsection which were in effect on January 1, 1975, except that such tables shall be modified to the extent necessary to reflect the amendments made to subsections (b) and (c) of section 141 by the Tax Reform Act of 1976”. - § 3402(f)(1): Pub. L. 95–30, § 105(b)(1), substituted “zero bracket” for “standard deduction” in subpar. (G) and in provisions following subpar. (G). - § 3402(m)(1): Pub. L. 95–30, § 105(b)(2), substituted “an amount equal to $3,200 ($2,200” for “an amount equal to the lesser of (i) 16 percent of his estimated wages, or (ii) $2,800 ($2,400”. - § 3402(m)(2): Pub. L. 95–30, § 105(b)(3)(A), (B), substituted “section 151” for “sections 141 and 151” and “(or the zero bracket amount (within the meaning of section 63(d)))” for “(or the amount of the standard deduction)”. - § 3402(m)(2): Pub. L. 95–30, § 105(b)(3)(C), substituted “(or the zero bracket amount)” for “(or the standard deduction)”. - § 3402(q)(3)(C): Pub. L. 95–30, § 405(a), inserted reference to certain parimutuel pools and jai alai in heading and, in text, designated existing provisions as cl. (i) and added cl. (ii). ## § 6012: Persons required to make returns of income - § 6012(a)(1)(A): Pub. L. 95–30 substituted “(other than an individual described in subparagraph (C))” for “(other than an individual referred to in section 142(b))” in provisions preceding cl. (i), “$2,950” for “$2,450” in cl. (i), “$3,950” for “$2,850” in cl. (ii), and “$4,700” for “$3,600” in cl. (iii). - § 6012(a)(1)(B): Pub. L. 95–30 reenacted subpar. (B) without change. - § 6012(a)(1)(C): Pub. L. 95–30 substituted provisions that the exception under subparagraph (A) shall not apply to a nonresident alien individual, a citizen of the United States entitled to the benefits of section 931, 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 annual accounting period, an individual who has income (other than earned income) of $750 or more and who is described in section 63(e)(1)(D), or an estate or trust, for provisions requiring that a return with respect to income taxes under subtitle A be made by every individual having for the taxable year a gross income of $750 or more and to whom section 141(e) (relating to limitations in case of certain dependent taxpayers) applied. ## § 6014: Income tax return—tax not computed by taxpayer - § 6014(a): Pub. L. 95–30, § 101(d)(13), substituted “An individual who does not itemize his deductions and who does not have an unused zero bracket amount (determined under section 63(e)), whose gross income” for “An individual entitled to take the standard deduction provided by section 141 (other than an individual described in section 141(e)) whose gross income” and struck out “and shall constitute an election to take the standard deduction” after “Such election shall be made by using the form prescribed for purposes of this section”. - § 6014(b)(4): Pub. L. 95–30, § 101(d)(14), substituted “itemizes his deductions or has an unused zero bracket amount” for “does not elect the standard deduction or where the taxpayer elects the standard deduction but is subject to the provision of section 141(e) (relating to limitations in case of certain dependent taxpayers)”. ## § 6096: Designation by individuals - § 6096(b): Pub. L. 95–30 inserted reference to section 44B. ## § 6212: Notice of deficiency - § 6212(c)(2)(A): Pub. L. 95–30 substituted “change of treatment with respect to itemized deductions and zero bracket amount, see section 63(g)(5)” for “change of election with respect to the standard deduction where taxpayer and his spouse made separate returns, see section 144(b)”. ## § 6411: Tentative carryback and refund adjustments - § 6411(a): Pub. L. 95–30, § 202(d)(5)(A)(i) to (iv), inserted references to unused new employee credits and to new employee credit carrybacks in provisions preceding par. (1) and in par. (1). - § 6411(b), § 6411(c): Pub. L. 95–30, § 202(d)(5)(A)(i), inserted references to unused new employee credits. ## § 6501: Limitations on assessment and collection - § 6501(m): Pub. L. 95–30, § 202(d)(5)(B), inserted references to new employee credit carrybacks and to subsec. (p). - § 6501(p): Pub. L. 95–30, § 202(d)(4)(A), added subsec. (p). ## § 6504: Cross references - § 6504(2): Pub. L. 95–30 substituted “treatment with respect to itemized deductions and zero bracket amount where taxpayer and his spouse make separate returns, see section 63(g)(5)” for “election with respect to the standard deduction where taxpayer and his spouse make separate returns, see section 144(b)”. ## § 6511: Limitations on credit or refund - § 6511(d): Pub. L. 95–30 added par. (9). ## § 6601: Interest on underpayment, nonpayment, or extensions of time for payment, of tax - § 6601(d): Pub. L. 95–30 added par. (5). ## § 6611: Interest on overpayments - § 6611(f): Pub. L. 95–30 added par. (5). ## § 6654: Failure by individual to pay estimated income tax - § 6654(d)(2)(A): Pub. L. 95–30 substituted provisions directing that the placement of taxable income on an annualized basis be accomplished under regulations prescribed by the Secretary for provisions which had spelled out in detail the formula under which taxable income would be placed on an annualized basis.