26 U.S.C. § 1: Tax imposed

every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and every surviving spouse (as defined in section 2(a)), There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is: The tax is: Not over $29,600 15% of taxable income. Over $29,600 but not over $76,400 $4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500 $17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000 $33,385, plus 36% of the excess over $127,500. Over $250,000 $77,485, plus 39.6% of the excess over $250,000. There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is: The tax is: Not over $22,100 15% of taxable income. Over $22,100 but not over $53,500 $3,315, plus 28% of the excess over $22,100. Over $53,500 but not over $115,000 $12,107, plus 31% of the excess over $53,500. Over $115,000 but not over $250,000 $31,172, plus 36% of the excess over $115,000. Over $250,000 $79,772, plus 39.6% of the excess over $250,000. There is hereby imposed on the taxable income of every married individual (as defined in section 7703) who does not make a single return jointly with his spouse under section 6013, a tax determined in accordance with the following table: If taxable income is: The tax is: Not over $18,450 15% of taxable income. Over $18,450 but not over $44,575 $2,767.50, plus 28% of the excess over $18,450. Over $44,575 but not over $70,000 $10,082.50, plus 31% of the excess over $44,575. Over $70,000 but not over $125,000 $17,964.25, plus 36% of the excess over $70,000. Over $125,000 $37,764.25, plus 39.6% of the excess over $125,000. every estate, and every trust, Not later than December 15 of 1993, and each subsequent calendar year, the Secretary shall prescribe tables which shall apply in lieu of the tables contained in subsections (a), (b), (c), (d), and (e) with respect to taxable years beginning in the succeeding calendar year. except as provided in clause (ii), by substituting “1992” for “2016” in paragraph (3)(A)(ii), and in the case of adjustments to the dollar amounts at which the 36 percent rate bracket begins or at which the 39.6 percent rate bracket begins, by substituting “1993” for “2016” in paragraph (3)(A)(ii), by not changing the rate applicable to any rate bracket as adjusted under subparagraph (A), and by adjusting the amounts setting forth the tax to the extent necessary to reflect the adjustments in the rate brackets. the C-CPI-U for the preceding calendar year, exceeds the CPI for calendar year 2016, multiplied by the amount determined under subparagraph (B). the C-CPI-U for calendar year 2016, by the CPI for calendar year 2016. For purposes of any provision of this title which provides for the substitution of a year after 2016 for “2016” in subparagraph (A)(ii), subparagraph (A) shall be applied by substituting “the C-CPI-U for calendar year 2016” for “the CPI for calendar year 2016” and all that follows in clause (ii) thereof. For purposes of paragraph (3), the CPI for any calendar year is the average of the Consumer Price Index as of the close of the 12-month period ending on August 31 of such calendar year. For purposes of paragraph (4), the term “Consumer Price Index” means the last Consumer Price Index for all-urban consumers published by the Department of Labor. For purposes of the preceding sentence, the revision of the Consumer Price Index which is most consistent with the Consumer Price Index for calendar year 1986 shall be used. The term “C-CPI-U” means the Chained Consumer Price Index for All Urban Consumers (as published by the Bureau of Labor Statistics of the Department of Labor). The values of the Chained Consumer Price Index for All Urban Consumers taken into account for purposes of determining the cost-of-living adjustment for any calendar year under this subsection shall be the latest values so published as of the date on which such Bureau publishes the initial value of the Chained Consumer Price Index for All Urban Consumers for the month of August for the preceding calendar year. The C-CPI-U for any calendar year is the average of the C-CPI-U as of the close of the 12-month period ending on August 31 of such calendar year. If any increase determined under paragraph (2)(A), section 63(c)(4), section 68(b)(2) 1 or section 151(d)(4) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. 1 See References in Text note below. In the case of a married individual filing a separate return, subparagraph (A) (other than with respect to sections 63(c)(4) and 151(d)(4)(A)) shall be applied by substituting “$25” for “$50” each place it appears. the maximum taxable income in the 15-percent rate bracket in the table contained in subsection (a) (and the minimum taxable income in the next higher taxable income bracket in such table) shall be 200 percent of the maximum taxable income in the 15-percent rate bracket in the table contained in subsection (c) (after any other adjustment under this subsection), and the comparable taxable income amounts in the table contained in subsection (d) shall be ½ of the amounts determined under subparagraph (A). the tax imposed by this section without regard to this subsection, or the tax which would be imposed by this section if the taxable income of such child for the taxable year were reduced by the net unearned income of such child, plus such child’s share of the allocable parental tax. has not attained age 18 before the close of the taxable year, or has attained age 18 before the close of the taxable year and meets the age requirements of section 152(c)(3) (determined without regard to subparagraph (B) thereof), and whose earned income (as defined in section 911(d)(2)) for such taxable year does not exceed one-half of the amount of the individual’s support (within the meaning of section 152(c)(1)(D) after the application of section 152(f)(5) (without regard to subparagraph (A) thereof)) for such taxable year, either parent of such child is alive at the close of the taxable year, and such child does not file a joint return for the taxable year. the tax which would be imposed by this section on the parent’s taxable income if such income included the net unearned income of all children of the parent to whom this subsection applies, over the tax imposed by this section on the parent without regard to this subsection. A child’s share of any allocable parental tax of a parent shall be equal to an amount which bears the same ratio to the total allocable parental tax as the child’s net unearned income bears to the aggregate net unearned income of all children of such parent to whom this subsection applies. Except as provided in regulations, if the parent does not have the same taxable year as the child, the allocable parental tax shall be determined on the basis of the taxable year of the parent ending in the child’s taxable year. the portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over the amount in effect for the taxable year under section 63(c)(5)(A) (relating to limitation on standard deduction in the case of certain dependents), plus the greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i). The amount of the net unearned income for any taxable year shall not exceed the individual’s taxable income for such taxable year. For purposes of this subsection, in the case of any child who is a beneficiary of a qualified disability trust (as defined in section 642(b)(2)(C)(ii)), any amount included in the income of such child under sections 652 and 662 during a taxable year shall be considered earned income of such child for such taxable year. in the case of parents who are not married (within the meaning of section 7703), the custodial parent (within the meaning of section 152(e)) of the child, and in the case of married individuals filing separately, the individual with the greater taxable income. The parent of any child to whom this subsection applies for any taxable year shall provide the TIN of such parent to such child and such child shall include such TIN on the child’s return of tax imposed by this section for such taxable year. any child to whom this subsection applies has gross income for the taxable year only from interest and dividends (including Alaska Permanent Fund dividends), such gross income is more than the amount described in paragraph (4)(A)(ii)(I) and less than 10 times the amount so described, no estimated tax payments for such year are made in the name and TIN of such child, and no amount has been deducted and withheld under section 3406, and the parent of such child (as determined under paragraph (5)) elects the application of subparagraph (B), the gross income of each child to whom such election applies (to the extent the gross income of such child exceeds twice the amount described in paragraph (4)(A)(ii)(I)) shall be included in such parent’s gross income for the taxable year, the amount determined under this section after the application of clause (i), plus for each such child, 10 percent of the lesser of the amount described in paragraph (4)(A)(ii)(I) or the excess of the gross income of such child over the amount so described, and any interest which is an item of tax preference under section 57(a)(5) of the child shall be treated as an item of tax preference of such parent (and not of such child). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this paragraph. taxable income reduced by the net capital gain; or the amount of taxable income taxed at a rate below 25 percent; or taxable income reduced by the adjusted net capital gain; the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 25 percent, over the taxable income reduced by the adjusted net capital gain; so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the amount on which a tax is determined under subparagraph (B), or the amount of taxable income which would (without regard to this paragraph) be taxed at a rate below 39.6 percent, over the sum of the amounts on which a tax is determined under subparagraphs (A) and (B), 20 percent of the adjusted net capital gain (or, if less, taxable income) in excess of the sum of the amounts on which tax is determined under subparagraphs (B) and (C), the unrecaptured section 1250 gain (or, if less, the net capital gain (determined without regard to paragraph (11))), over the sum of the amount on which tax is determined under subparagraph (A) plus the net capital gain, over taxable income; and 28 percent of the amount of taxable income in excess of the sum of the amounts on which tax is determined under the preceding subparagraphs of this paragraph. For purposes of this subsection, the net capital gain for any taxable year shall be reduced (but not below zero) by the amount which the taxpayer takes into account as investment income under section 163(d)(4)(B)(iii). unrecaptured section 1250 gain, and 28-percent rate gain, plus qualified dividend income (as defined in paragraph (11)). collectibles gain; and section 1202 gain, over collectibles loss; the net short-term capital loss; and the amount of long-term capital loss carried under section 1212(b)(1)(B) to the taxable year. The terms “collectibles gain” and “collectibles loss” mean gain or loss (respectively) from the sale or exchange of a collectible (as defined in section 408(m) without regard to paragraph (3) thereof) which is a capital asset held for more than 1 year but only to the extent such gain is taken into account in computing gross income and such loss is taken into account in computing taxable income. For purposes of subparagraph (A), any gain from the sale of an interest in a partnership, S corporation, or trust which is attributable to unrealized appreciation in the value of collectibles shall be treated as gain from the sale or exchange of a collectible. Rules similar to the rules of section 751 shall apply for purposes of the preceding sentence. the amount of long-term capital gain (not otherwise treated as ordinary income) which would be treated as ordinary income if section 1250(b)(1) included all depreciation and the applicable percentage under section 1250(a) were 100 percent, over the amount described in paragraph (4)(B); over the amount described in paragraph (4)(A). The amount described in subparagraph (A)(i) from sales, exchanges, and conversions described in section 1231(a)(3)(A) for any taxable year shall not exceed the net section 1231 gain (as defined in section 1231(c)(3)) for such year. the gain which would be excluded from gross income under section 1202 but for the percentage limitation in section 1202(a), over the gain excluded from gross income under section 1202. If any amount is treated as ordinary income under section 1231(c), such amount shall be allocated among the separate categories of net section 1231 gain (as defined in section 1231(c)(3)) in such manner as the Secretary may by forms or regulations prescribe. The Secretary may prescribe such regulations as are appropriate (including regulations requiring reporting) to apply this subsection in the case of sales and exchanges by pass-thru entities and of interests in such entities. a regulated investment company; a real estate investment trust; an S corporation; a partnership; an estate or trust; a common trust fund; and a qualified electing fund (as defined in section 1295). For purposes of this subsection, the term “net capital gain” means net capital gain (determined without regard to this paragraph) increased by qualified dividend income. domestic corporations, and qualified foreign corporations. any dividend from a corporation which for the taxable year of the corporation in which the distribution is made, or the preceding taxable year, is a corporation exempt from tax under section 501 or 521, any amount allowed as a deduction under section 591 (relating to deduction for dividends paid by mutual savings banks, etc.), and any dividend described in section 404(k). with respect to which the holding period requirements of section 246(c) are not met (determined by substituting in section 246(c) “60 days” for “45 days” each place it appears and by substituting “121-day period” for “91-day period”), or to the extent that the taxpayer is under an obligation (whether pursuant to a short sale or otherwise) to make related payments with respect to positions in substantially similar or related property. such corporation is incorporated in a possession of the United States, or such corporation is eligible for benefits of a comprehensive income tax treaty with the United States which the Secretary determines is satisfactory for purposes of this paragraph and which includes an exchange of information program. A foreign corporation not otherwise treated as a qualified foreign corporation under clause (i) shall be so treated with respect to any dividend paid by such corporation if the stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States. any foreign corporation which for the taxable year of the corporation in which the dividend was paid, or the preceding taxable year, is a passive foreign investment company (as defined in section 1297), and any corporation which first becomes a surrogate foreign corporation (as defined in section 7874(a)(2)(B)) after the date of the enactment of this subclause, other than a foreign corporation which is treated as a domestic corporation under section 7874(b). Rules similar to the rules of section 904(b)(2)(B) shall apply with respect to the dividend rate differential under this paragraph. Qualified dividend income shall not include any amount which the taxpayer takes into account as investment income under section 163(d)(4)(B). If a taxpayer to whom this section applies receives, with respect to any share of stock, qualified dividend income from 1 or more dividends which are extraordinary dividends (within the meaning of section 1059(c)), any loss on the sale or exchange of such share shall, to the extent of such dividends, be treated as long-term capital loss. A dividend received from a regulated investment company or a real estate investment trust shall be subject to the limitations prescribed in sections 854 and 857. the rate of tax under subsections (a), (b), (c), and (d) on taxable income not over the initial bracket amount shall be 10 percent, and the 15 percent rate of tax shall apply only to taxable income over the initial bracket amount but not over the maximum dollar amount for the 15-percent rate bracket. $14,000 in the case of subsection (a), $10,000 in the case of subsection (b), and ½ the amount applicable under clause (i) (after adjustment, if any, under subparagraph (C)) in the case of subsections (c) and (d). the cost-of-living adjustment shall be determined under subsection (f)(3) by substituting “2002” for “2016” in subparagraph (A)(ii) thereof, and the adjustments under clause (i) shall not apply to the amount referred to in subparagraph (B)(iii). by substituting “25%” for “28%” each place it appears (before the application of subparagraph (B)), by substituting “28%” for “31%” each place it appears, and by substituting “33%” for “36%” each place it appears. the applicable threshold, over the dollar amount at which such bracket begins, and the 39.6 percent rate of tax under such subsections shall apply only to the taxpayer’s taxable income in such bracket in excess of the amount to which clause (i) applies. $450,000 in the case of subsection (a), $425,000 in the case of subsection (b), $400,000 in the case of subsection (c), and ½ the amount applicable under clause (i) (after adjustment, if any, under subparagraph (C)) in the case of subsection (d). For purposes of this paragraph, with respect to taxable years beginning in calendar years after 2013, each of the dollar amounts under clauses (i), (ii), and (iii) of subparagraph (B) shall be adjusted in the same manner as under paragraph (1)(C)(i), except that subsection (f)(3)(A)(ii) shall be applied by substituting “2012” for “2016”. The Secretary shall adjust the tables prescribed under subsection (f) to carry out this subsection. subsection (i) shall not apply, and this section (other than subsection (i)) shall be applied as provided in paragraphs (2) through (6). The following table shall be applied in lieu of the table contained in subsection (a): If taxable income is: The tax is: Not over $19,050 10% of taxable income. Over $19,050 but not over $77,400 $1,905, plus 12% of the excess over $19,050. Over $77,400 but not over $165,000 $8,907, plus 22% of the excess over $77,400. Over $165,000 but not over $315,000 $28,179, plus 24% of the excess over $165,000. Over $315,000 but not over $400,000 $64,179, plus 32% of the excess over $315,000. Over $400,000 but not over $600,000 $91,379, plus 35% of the excess over $400,000. Over $600,000 $161,379, plus 37% of the excess over $600,000. The following table shall be applied in lieu of the table contained in subsection (b): If taxable income is: The tax is: Not over $13,600 10% of taxable income. Over $13,600 but not over $51,800 $1,360, plus 12% of the excess over $13,600. Over $51,800 but not over $82,500 $5,944, plus 22% of the excess over $51,800. Over $82,500 but not over $157,500 $12,698, plus 24% of the excess over $82,500. Over $157,500 but not over $200,000 $30,698, plus 32% of the excess over $157,500. Over $200,000 but not over $500,000 $44,298, plus 35% of the excess over $200,000. Over $500,000 $149,298, plus 37% of the excess over $500,000. The following table shall be applied in lieu of the table contained in subsection (c): If taxable income is: The tax is: Not over $9,525 10% of taxable income. Over $9,525 but not over $38,700 $952.50, plus 12% of the excess over $9,525. Over $38,700 but not over $82,500 $4,453.50, plus 22% of the excess over $38,700. Over $82,500 but not over $157,500 $14,089.50, plus 24% of the excess over $82,500. Over $157,500 but not over $200,000 $32,089.50, plus 32% of the excess over $157,500. Over $200,000 but not over $500,000 $45,689.50, plus 35% of the excess over $200,000. Over $500,000 $150,689.50, plus 37% of the excess over $500,000. The following table shall be applied in lieu of the table contained in subsection (d): If taxable income is: The tax is: Not over $9,525 10% of taxable income. Over $9,525 but not over $38,700 $952.50, plus 12% of the excess over $9,525. Over $38,700 but not over $82,500 $4,453.50, plus 22% of the excess over $38,700. Over $82,500 but not over $157,500 $14,089.50, plus 24% of the excess over $82,500. Over $157,500 but not over $200,000 $32,089.50, plus 32% of the excess over $157,500. Over $200,000 but not over $300,000 $45,689.50, plus 35% of the excess over $200,000. Over $300,000 $80,689.50, plus 37% of the excess over $300,000. The following table shall be applied in lieu of the table contained in subsection (e): If taxable income is: The tax is: Not over $2,550 10% of taxable income. Over $2,550 but not over $9,150 $255, plus 24% of the excess over $2,550. Over $9,150 but not over $12,500 $1,839, plus 35% of the excess over $9,150. Over $12,500 $3,011.50, plus 37% of the excess over $12,500. Any reference in this title to a rate of tax under subsection (c) shall be treated as a reference to the corresponding rate bracket under subparagraph (C) of this paragraph, except that the reference in section 3402(q)(1) to the third lowest rate of tax applicable under subsection (c) shall be treated as a reference to the fourth lowest rate of tax under subparagraph (C). The tables contained in paragraph (2) shall apply without adjustment for taxable years beginning after December 31, 2017 , and before January 1, 2019 . solely for purposes of determining the dollar amounts at which any rate bracket higher than 12 percent ends and at which any rate bracket higher than 22 percent begins, subsection (f)(3) shall be applied by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof, subsection (f)(7)(B) shall apply to any unmarried individual other than a surviving spouse or head of household, and subsection (f)(8) shall not apply. by substituting “below the maximum zero rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 25 percent” in subparagraph (B)(i), and by substituting “below the maximum 15-percent rate amount” for “which would (without regard to this paragraph) be taxed at a rate below 39.6 percent” in subparagraph (C)(ii)(I). in the case of a joint return or surviving spouse, $77,200, in the case of an individual who is a head of household (as defined in section 2(b)), $51,700, in the case of any other individual (other than an estate or trust), an amount equal to ½ of the amount in effect for the taxable year under subclause (I), and in the case of an estate or trust, $2,600. in the case of a joint return or surviving spouse, $479,000 (½ such amount in the case of a married individual filing a separate return), in the case of an individual who is the head of a household (as defined in section 2(b)), $452,400, in the case of any other individual (other than an estate or trust), $425,800, and in the case of an estate or trust, $12,700. such dollar amount, multiplied by the cost-of-living adjustment determined under subsection (f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof. Section 15 shall not apply to any change in a rate of tax by reason of this subsection. Except as otherwise provided in this subsection, the amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 2019 . The amendment made by subsection (b) [amending section 55 of this title ] shall apply to taxable years beginning after December 31, 2017 . A taxpayer may elect (at such time and in such manner as the Secretary of the Treasury (or the Secretary’s designee) may provide) for the amendment made by subsection (a) to also apply to taxable years of the taxpayer which begin in 2018, 2019, or both (as specified by the taxpayer in such election).” Except as otherwise provided in subsection (a) [see Tables for classification] or paragraph (2) of this subsection, the amendments made by this section [see Tables for classification] shall take effect on the date of enactment of this Act [ Dec. 19, 2014 ]. any transaction occurring before the date of the enactment of this Act, any property acquired before such date of enactment, or any item of income, loss, deduction, or credit taken into account before such date of enactment, and the treatment of such transaction, property, or item under such provision would (without regard to the amendments or repeals made by this section) affect the liability for tax for periods ending after [such] date of enactment, nothing in the amendments or repeals made by this section shall be construed to affect the treatment of such transaction, property, or item for purposes of determining liability for tax for periods ending after such date of enactment.” Except as otherwise provided, the amendments made by subsections (b) and (c) [amending this section, sections 55, 531, 541, 1445, and 7518 of this title, and section 53511 of Title 46 , Shipping] shall apply to taxable years beginning after December 31, 2012 . The amendments made by paragraphs (1)(C) and (3) of subsection (c) [amending section 1445 of this title ] shall apply to amounts paid on or after January 1, 2013 .” Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 170, 171, 245, 312, 443, 465, 508, 542, 543, 562, 563, 751, 864, 898, 904, 951, 954, 989, 1014, 1016, 1212, 1223, 1248, 1260, 1291, 1294, 4947, 4948, 6103, 6501, and 6679 of this title and repealing sections 551 to 558, 1246, 1247, and 6035 of this title] shall apply to taxable years of foreign corporations beginning after December 31, 2004 , and to taxable years of United States shareholders with or within which such taxable years of foreign corporations end. The amendments made by subsection (c)(27) [amending section 6103 of this title ] shall apply to disclosures of return or return information with respect to taxable years beginning after December 31, 2004 .” The amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2002 . The Secretary of the Treasury shall modify each table which has been prescribed under section 1(f) of the Internal Revenue Code of 1986 for taxable years beginning in 2003 and which relates to the amendment made by subsection (a) to reflect such amendment.” Except as otherwise provided by this subsection, the amendments made by this section [amending this section, sections 55, 57, 1445, and 7518 of this title, and section 1177 of Title 46 , Appendix, Shipping] shall apply to taxable years ending on or after May 6, 2003 . The amendment made by subsection (a)(2)(C) [amending section 1445 of this title ] shall apply to amounts paid after the date of the enactment of this Act [ May 28, 2003 ]. The amendments made by subsection (b)(3) [amending section 57 of this title ] shall apply to dispositions on or after May 6, 2003 .” Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 163, 301, 306, 338, 467, 531, 541, 584, 702, 854, 857, 1255, and 1257 of this title and repealing section 341 of this title ] shall apply to taxable years beginning after December 31, 2002 . In the case of a pass-thru entity described in subparagraph (A), (B), (C), (D), (E), or (F) of section 1(h)(10) of the Internal Revenue Code of 1986, as amended by this Act, the amendments made by this section shall apply to taxable years ending after December 31, 2002 ; except that dividends received by such an entity on or before such date shall not be treated as qualified dividend income (as defined in section 1(h)(11)(B) of such Code, as added by this Act).” Except as provided in paragraph (2), the amendments made by this section [enacting section 6428 of this title and amending this section and sections 15, 531, 541, 3402, and 3406 of this title] shall apply to taxable years beginning after December 31, 2000 . The amendments made by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c) [amending sections 3402 and 3406 of this title] shall apply to amounts paid after the 60th day after the date of the enactment of this Act [ June 7, 2001 ]. References to income brackets and rates of tax in such paragraphs shall be applied without regard to [former] section 1(i)(1)(D) of the Internal Revenue Code of 1986.” Except as provided in paragraph (2), the amendments made by this section [amending this section and sections 1223 and 1235 of this title] shall apply to taxable years ending after December 31, 1997 . The amendments made by subsection (a)(5) [amending sections 1223 and 1235 of this title] shall take effect on January 1, 1998 .” Except as provided in paragraph (2), the amendments made by this section [amending this section, sections 55, 57, 904, 1445, and 7518 of this title, and section 1177 of Title 46 , Appendix, Shipping] shall apply to taxable years ending after May 6, 1997 . The amendment made by subsection (c)(1) [amending section 1445 of this title ] shall apply only to amounts paid after the date of the enactment of this Act [ Aug. 5, 1997 ].” Except as otherwise provided in this title, any amendment made by this title [see Tables for classification], shall take effect as if included in the provision of the Reform Act [ Pub. L. 99–514 ] to which such amendment relates. No addition to tax shall be made under section 6654 or 6655 of the 1986 Code for any period before April 16, 1989 ( March 16, 1989 in the case of a taxpayer subject to section 6655 of the 1986 Code) with respect to any underpayment to the extent such underpayment was created or increased by any provision of this title or title II [see Tables for classification].” Except as otherwise provided in this section, the amendments made by this title [enacting section 67 of this title , amending this section, sections 3, 5, 15, 21, 32, 62, 63, 74, 85, 86, 102, 108, 117, 129, 151, 152, 164, 170, 172, 183, 213, 265, 274, 280A, 402, 441, 443, 527, 541, 613A, 642, 667, 861, 862, 901, 904, 1398, 1441, 2032A, 3121, 3231, 3306, 3401, 3402, 3507, 4941, 4945, 6012 to 6014, 6212, 6504, 6511, and 7871 of this title, and section 409 of Title 42 , The Public Health and Welfare, renumbering section 223 of this title as section 220 of this title , repealing sections 24, 221, 222, and 1301 to 1305 of this title, and enacting provisions set out as a note under section 32 of this title ] shall apply to taxable years beginning after December 31, 1986 . The amendment made by section 121 [amending section 85 of this title ] shall apply to amounts received after December 31, 1986 , in taxable years ending after such date. The amendments made by section 122 [amending sections 74, 102, 274, 3121, 3231, 3306, 3401, 4941, and 4945 of this title and section 409 of Title 42 , The Public Health and Welfare] shall apply to prizes and awards granted after December 31, 1986 . The amendments made by section 123 [amending sections 74, 117, 1441, and 7871 of this title] shall apply to taxable years beginning after December 31, 1986 , but only in the case of scholarships and fellowships granted after August 16, 1986 . The amendment made by section 144 [amending section 265 of this title ] shall apply to taxable years beginning before, on, or after, December 31, 1986 .” The amendments made by this section (other than the amendments made by subsections (h), (i), and (k)) [enacting section 877 of this title , amending this section and sections 116, 154, 871, 872, 873, 874, 875, 932, 6015, and 7701 of this title, renumbering section 877 as 878, and repealing section 1493 of this title ] shall apply with respect to taxable years beginning after December 31, 1966 . The amendments made by subsection (h) [amending section 1441 of this title ] shall apply with respect to payments made in taxable years of recipients beginning after December 31, 1966 . The amendments made by subsection (i) [amending section 1461 of this title ] shall apply with respect to payments occurring after December 31, 1966 . The amendments made by subsection (k) [amending section 3401 of this title ] shall apply with respect to remuneration paid after December 31, 1966 .” To preserve and create jobs and promote economic recovery. To assist those most impacted by the recession. To provide investments needed to increase economic efficiency by spurring technological advances in science and health. To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits. To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases. The President and the heads of Federal departments and agencies shall manage and expend the funds made available in this Act so as to achieve the purposes specified in subsection (a), including commencing expenditures and activities as quickly as possible consistent with prudent management.” the net capital gain determined by taking into account only gain or loss properly taken into account for the portion of the taxable year on or after May 6, 2003 (determined without regard to collectibles gain or loss, gain described in section 1(h)(6)(A)(i) of such Code, and section 1202 gain), or the amount on which a tax is determined under such subparagraph (without regard to this subsection), the qualified 5-year gain (as defined in section 1(h)(9) of the Internal Revenue Code of 1986, as in effect on the day before the date of the enactment of this Act [ May 28, 2003 ]) properly taken into account for the portion of the taxable year before May 6, 2003 , or the amount on which a tax is determined under such subparagraph (without regard to this subsection), over the amount on which a tax is determined under subparagraph (A), plus the amount on which a tax is determined under such subparagraph (without regard to this subsection), over the sum of the amounts on which a tax is determined under subparagraphs (A) and (B). the excess (if any) of the amount of net capital gain determined under subparagraph (A)(i) of paragraph (1) of this subsection over the amount on which a tax is determined under subparagraph (A) of paragraph (1) of this subsection, or the amount on which a tax is determined under such subparagraph (C) (without regard to this subsection), plus the amount on which a tax is determined under such subparagraph (C) (without regard to this subsection), over the amount on which a tax is determined under subparagraph (A) of this paragraph. For purposes of applying section 55(b)(3) of such Code, rules similar to the rules of paragraphs (1) and (2) of this subsection shall apply. In applying this subsection with respect to any pass-thru entity, the determination of when gains and losses are properly taken into account shall be made at the entity level. For purposes of applying section 1(h)(11) of such Code, as added by section 302 of this Act, to this subsection, dividends which are qualified dividend income shall be treated as gain properly taken into account for the portion of the taxable year on or after May 6, 2003 . Terms used in this subsection which are also used in section 1(h) of such Code shall have the respective meanings that such terms have in such section.” are targeted to the amount of the shortfall experienced by individual beneficiaries, and compensate for the shortfall. As soon as practicable after the date of the enactment of this Act [ Dec. 21, 2000 ], each Federal agency that administers an applicable Federal benefit program shall, in accordance with such guidelines as are issued by the Director pursuant to this section, make an initial determination of whether, and the extent to which, the CPI computation error for 1999 has or will result in a shortfall in payments to beneficiaries of an applicable Federal benefit program administered by such agency. Not later than 30 days after such date, the head of such agency shall submit a report to the Director and to each House of the Congress of such determination, together with a complete description of the nature of the shortfall. Upon receipt of the report submitted by a Federal agency pursuant to subsection (b), the Director shall review the initial determination of the agency, the agency’s description of the nature of the shortfall, and the compensation payments proposed by the agency. Prior to directing payment of such payments pursuant to subsection (a), the Director shall make appropriate adjustments (if any) in the compensation payments proposed by the agency that the Director determines are necessary to comply with the requirements of subsection (a) and transmit to the agency a summary report of the review, indicating any adjustments made by the Director. The agency shall make the compensation payments as directed by the Director pursuant to subsection (a) in accordance with the Director’s summary report. A payment made under this section to compensate for a shortfall in benefits shall, in accordance with guidelines issued by the Director pursuant to this section, be disregarded in determining income under title VIII of the Social Security Act [ 42 U.S.C. 1001 et seq.] or any applicable Federal benefit program that is means-tested. Funds otherwise available under each applicable Federal benefit program for making benefit payments under such program are hereby made available for making compensation payments under this section in connection with such program. No action taken pursuant to this section shall be subject to judicial review. Not later than April 1, 2001 , the Director shall submit to each House of the Congress a report on the activities performed by the Director pursuant to this section. The term ‘applicable Federal benefit program’ means any program of the Government of the United States providing for regular or periodic payments or cash assistance paid directly to individual beneficiaries, as determined by the Director of the Office of Management and Budget. The term ‘Federal agency’ means a department, agency, or instrumentality of the Government of the United States. The term ‘CPI computation error for 1999’ means the error in the computation of the Consumer Price Index announced by the Bureau of Labor Statistics on September 28, 2000 . the correct amount of such Index shall (in such manner and to such extent as the Secretary of the Treasury determines to be appropriate) be taken into account for purposes of such Code, and tables prescribed under section 1(f) of such Code to reflect such correct amount shall apply in lieu of any tables that were prescribed based on the erroneous amount.” gains and losses recognized directly by such company or trust, and amounts properly taken into account by such company or trust by reason of holding (directly or indirectly) an interest in another such company or trust to the extent that such subparagraphs did not apply to such other company or trust with respect to such amounts. Subparagraph (A) shall not apply to any distribution which is treated under section 852(b)(7) or 857(b)(8) of the 1986 Code as received on December 31, 1997 . For purposes of subparagraph (A), any amount which is includible in gross income of its shareholders under section 852(b)(3)(D) or 857(b)(3)(D) of the 1986 Code after December 31, 1997 , shall be treated as distributed after such date. the subparagraphs referred to in subparagraph (A) shall not apply to gains and losses recognized directly by such partnership for purposes of determining such company’s distributive share of such gains and losses, and such company’s distributive share of such gains and losses (as so determined) shall be treated as recognized directly by such company. the partnership is an investment company registered under the Investment Company Act of 1940 [ 15 U.S.C. 80a–1 et seq.], the regulated investment company is permitted to invest in such partnership by reason of section 12(d)(1)(E) of such Act [ 15 U.S.C. 80a–12(d)(1)(E) ] or an exemptive order of the Securities and Exchange Commission under such section, and the regulated investment company and the partnership have the same taxable year. the value of the interests of the regulated investment company in such partnership is 35 percent or more of the value of such company’s total assets, or the value of the interests of the regulated investment company in such partnership and all other qualified partnerships is 90 percent or more of the value of such company’s total assets.” any readily tradable stock (which is a capital asset) held by such taxpayer on January 1, 2001 , and not sold before the next business day after such date, as having been sold on such next business day for an amount equal to its closing market price on such next business day (and as having been reacquired on such next business day for an amount equal to such closing market price), and any other capital asset or property used in the trade or business (as defined in section 1231(b) of the Internal Revenue Code of 1986) held by the taxpayer on January 1, 2001 , as having been sold on such date for an amount equal to its fair market value on such date (and as having been reacquired on such date for an amount equal to such fair market value). Any gain resulting from an election under paragraph (1) shall be treated as received or accrued on the date the asset is treated as sold under paragraph (1) and shall be included in gross income notwithstanding any provision of the Internal Revenue Code of 1986. Any loss resulting from an election under paragraph (1) shall not be allowed for any taxable year. An election under paragraph (1) shall be made in such manner as the Secretary of the Treasury or his delegate may prescribe and shall specify the assets for which such election is made. Such an election, once made with respect to any asset, shall be irrevocable. Such an election shall not apply to any asset which is disposed of (in a transaction in which gain or loss is recognized in whole or in part) before the close of the 1-year period beginning on the date that the asset would have been treated as sold under such election. For purposes of this subsection, the term ‘readily tradable stock’ means any stock which, as of January 1, 2001 , is readily tradable on an established securities market or otherwise. Section 469(g)(1)(A) of the Internal Revenue Code of 1986 shall not apply by reason of an election made under paragraph (1).” At the election of the taxpayer, the additional 1993 taxes may be paid in 3 equal installments. the first installment shall be paid on or before the due date for the taxpayer’s taxable year beginning in calendar year 1993, the second installment shall be paid on or before the date 1 year after the date determined under subparagraph (A), and the third installment shall be paid on or before the date 2 years after the date determined under subparagraph (A). For purposes of section 6601 of the Internal Revenue Code of 1986, the date prescribed for the payment of any tax payable in installments under paragraph (1) shall be determined with regard to the extension under paragraph (1). the taxpayer’s net chapter 1 liability as shown on the taxpayer’s return for the taxpayer’s taxable year beginning in calendar year 1993, over the amount which would have been the taxpayer’s net chapter 1 liability for such taxable year if such liability had been determined using the rates which would have been in effect under section 1 of the Internal Revenue Code of 1986 for taxable years beginning in calendar year 1993 but for the amendments made by this section [amending this section and sections 41, 63, 68, 132, 151, 453A, 513, 531, and 541 of this title] and section 13202 [amending this section and sections 531 and 541 of this title] and such liability had otherwise been determined on the basis of the amounts shown on the taxpayer’s return. after the application of any credit against such tax other than the credits under sections 31 and 34, and before crediting any payment of estimated tax for the taxable year. If the taxpayer does not pay any installment under this section on or before the date prescribed for its payment or if the Secretary of the Treasury or his delegate believes that the collection of any amount payable in installments under this section is in jeopardy, the Secretary shall immediately terminate the extension under paragraph (1) and the whole of the unpaid tax shall be paid on notice and demand from the Secretary. An election under paragraph (1) shall be made on the taxpayer’s return for the taxpayer’s taxable year beginning in calendar year 1993. This subsection shall not apply in the case of an estate or trust.” imposing any tax (or exempting any person or property from any tax), establishing any trust fund, or authorizing amounts to be expended from any trust fund.” imposes any tax, premium, or fee, establishes any trust fund, or authorizes amounts to be expended from any trust fund, which is set forth in section 1 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by section 101 of the Economic Recovery Tax Act of 1981 [ Pub. L. 97–34, title I, § 101 , Aug. 13, 1981 , 95 Stat. 176 ], and which applies to married individuals filing separately or to estates and trusts, which contains a term the meaning of which is defined in or modified by any provision of this title, and which has an effective date earlier than the effective date of the provision of this title defining or modifying such term, Congress is determined to continue the tax reduction for the first 6 months of 1976 in order to assure continued economic recovery. Congress is also determined to continue to control spending levels in order to reduce the national deficit. Congress reaffirms its commitments to the procedures established by the Congressional Budget and Impoundment Control Act of 1974 [see Tables for classification of Pub. L. 93–344 , July 12, 1974 , 88 Stat. 297 ] under which it has already established a binding spending ceiling for the fiscal year 1976. If the Congress adopts a continuation of the tax reduction provided by this Act [see Short Title of 1975 Amendment note above] beyond June 30, 1976 , and if economic conditions warrant doing so, Congress shall provide, through the procedures in the Budget Act [ Pub. L. 93–344 ], for reductions in the level of spending in the fiscal year 1977 below what would otherwise occur, equal to any additional reduction in taxes (from the 1974 tax rate levels) provided for the fiscal year 1977: Provided, however , That nothing shall preclude the right of the Congress to pass a budget resolution containing a higher or lower expenditure figure if the Congress concludes that this is warranted by economic conditions or unforeseen circumstances.” The term ‘1986 Code’ means the Internal Revenue Code of 1986. The term ‘1998 Act’ means the Internal Revenue Service Restructuring and Reform Act of 1998 ( Public Law 105–206 ) [see Tables for classification]. The term ‘1997 Act’ means the Taxpayer Relief Act of 1997 ( Public Law 105–34 ) [see Tables for classification].”