REFUND OF 1974 INDIVIDUAL INCOME TAXES.

SEC. 101. REFUND OF 1974 INDIVIDUAL INCOME TAXES. (a) In General.— Subchapter B of chapter 65 (relating to rules of special application in the case of abatements, credits, and refunds) is amended by adding at the end thereof the following new section: “SEC. 6428. REFUND OF 1974 INDIVIDUAL INCOME TAXES. “(a) General Rule.— Except as otherwise provided in this section, each individual shall be treated as having made a payment against the tax imposed by chapter 1 for his first taxable year beginning in 1974 in an amount equal to 10 percent of the amount of his liability for tax for such taxable year. “(b) Minimum Payment.— The amount treated as paid by reason of this section shall not be less than the lesser of— “(1) the amount of the taxpayer’s liability for tax for his first taxable year beginning in 1974, or “(2) $100 ($50 in the case of a married individual filing a separate return). “(c) Maximum Payment.— “(1) In general.— The amount treated as paid by reason of this section shall not exceed $200 ($100 in the case of a married individual filing a separate return). “(2) Limitation based on adjusted gross income.— The excess (if any) of— “(A) the amount which would (but for this paragraph) be treated as paid by reason of this section, over “(B) the applicable minimum payment provided by subsection (b), shall be reduced (but not below zero) by an amount which bears the same ratio to such excess as the adjusted gross income for the taxable year in excess of $20,000 bears to $10,000. In the case of a married individual filing a separate return, the preceding sentence shall be applied by substituting ‘$10,000’ for ‘$20,000’ and by substituting ‘$5,000’ for ‘$10,000’. “(d) Liability for Tax.— For purposes of this section, the liability for tax for the taxable year shall be the sum of— “(1) the tax imposed by chapter 1 for such year, reduced by the sum of the credits allowable under— “(A) section 33 (relating to foreign tax credit), “(B) section 37 (relating to retirement income), “(C) section 38 (relating to investment in certain depreciable property), “(D) section 40 (relating to expenses of work incentive programs), and 89 STAT. 28 “(E) section 41 (relating to contributions to candidates for public office), plus “(2) the t ax on amounts described in section 3102 (c) or 3202 (c) which are required to be shown on the taxpayer’s return of the chapter 1 tax for the taxable year. “(e) Date Payment Deemed Made.— The payment provided by this section shall be deemed made on whichever of the following dates is the later: “(1) the date prescribed by law (determined without extensions) for filing the return of tax under chapter 1 for the taxable year, or “(2) the date on which the taxpayer files his return of tax under chapter 1 for the taxable year. “(f) Joint Return.— For purposes of this section, in the ease of a joint return under section 6013 both spouses shall be treated as one individual. “(g) Marital Status.— The determination of marital status for purposes of this section shall be made under section 143. “(h) Certain Persons Not Eligible.— This section shall not apply to any estate or trust, nor shall it apply to any nonresident alien individual.” (b) No Interest on Individual Income Tax Refunds for 1974 Refunded Within 60 Days After Return Is Filed.— In applying section 6611(e) of the Internal Revenue Code of 1954 (relating to income tax refund within 45 days after return is filed) in the case of any overpayment of tax imposed by subtitle A of such Code by an individual (other than an estate or trust and other than a nonresident alien individual) for a taxable year beginning in 1974, “60 days” shall be substituted for “45 days” each place it appears in such section 6611(e). (c) Clerical Amendment.— The table of sections for such subchapter B is amended by adding at the end thereof the following new item: “Sec. 6428. Refund of 1974 individual income taxes.”