DIVIDENDS RECEIVED BY INDIVIDUALS.

SEC. 201. DIVIDENDS RECEIVED BY INDIVIDUALS. (a) Reduction of 4 Percent Credit to 2 Percent Credit for Calendar Year 1964.— (1) General rule.—Section 34(a) (relating to general rule for credit for dividends received) is amended by striking out “an amount equal to 4 percent of the dividends which are received after July 31, 1954, from domestic corporations and are included in gross income” and inserting in lieu thereof: “an amount equal to the following percentage of the dividends which are received from domestic corporations and are included in gross income: “(1) 4 percent of the amount of such dividends which are received before January 1, 1964, and “(2) 2 percent of the amount of such dividends which are received during the calendar year 1964.” (2) Limitations.—Section 34(b)(2) (relating to limitations on amount of credit) is amended— (A) by inserting “, or beginning after December 31, 1963” after “1955” at the end of subparagraph (A), and (B) by inserting “, and beginning before January 1, 1964” after “1954” at the end of subparagraph (B). (b) Repeal of Credit for Dividends Received by Individuals.—Effective with respect to dividends received after December 31, 1964, 78 Stat. 32section 34 (relating to dividends received by individuals) is hereby repealed. (c) Doubling of Amount of Partial Exclusion From Gross Income of Dividends Received by Individuals.—Section 116(a) (relating to partial exclusion from gross income of dividends received by individuals) is amended by striking out “$50” each place it appears and 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 out “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 “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 subsection (a) shall apply with respect to taxable years ending after December 31, 1963. The amendment made by subsection (b) shall apply with 78 Stat. 33respect to taxable years ending after December 31, 1964. The amendment made by subsection (c) shall apply with respect to taxable years beginning after December 31, 1963. The amendments made by subsection (d) shall apply with respect to dividends received after December 31, 1964, in taxable years ending after such date.