TAX CREDIT FOR PERSONAL EXEMPTIONS.

SEC. 293. TAX CREDIT FOR PERSONAL EXEMPTIONS. (a) In General.— Subpart A of part VI of subchapter A of chapter 1 (relating to credits allowable against tax) is amended by redesignating section 42 as section 43 and by inserting after section 41 the following new section: 89 STAT. 30 “SEC. 42. CREDIT FOR PERSONAL EXEMPTIONS. “(a) General Rule.— In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year $30, multiplied by each exemption for which the taxpayer is entitled for the taxable year under subsection (b) or (e) of section 151. “(b) Application With Other Credits.— The credit allowed by subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year. In determining the credits allowed under— “(1) section 33 (relating to foreign tax credit), “(2) sections? (relating to retirement income), “(3) section 38 (relating to investment in certain depreciable property). “(4) section 40 (relating to expenses of work incentive programs), and “(5) section 41 (relating to contributions to candidates for public office), the tax imposed by this chapter shall (before any other reductions) be reduced by the credit allowed by this section.” (b) Technical and Clerical Amendments.— (1) The table of sections for such subpart is amended by striking out the last item and inserting in lieu thereof the following: “Sec. 42. Credit for personal exemptions. “Sec. 43. Overpayments of tax.” (2) Section 56(a)(2) (relating to imposition of minimum tax) is amended by striking out “and” at the end of clause (iv), by striking out “; and” at I he end of clause (v) and inserting in lieu thereof “, and”, and by inserting after clause (v) the following new clause: “(vi) section 42 (relating to credit for personal exemptions); and”. (3) Section 56(c)(1) (relating to tax carryovers) is amended by striking out “and” at the end of subparagraph (D), by striking out “exceed” at the end of subparagraph (E) and inserting in lieu thereof “and”, and by inserting after subparagraph (E) the following new subparagraph: “(F) section 42 (relating to credit for personal exemptions), exceed”. (4) Section 6096(b) (relating to designation of income tax payments to Presidential Election Campaign Fund) is amended by striking out “and 41” and inserting in lieu thereof “41, and 42”.