59 STAT.] 79TH CONG. , IST SESS. -CH. 453 -NOV. 8 , 1945 (3) Section 47 (e) (relating to the reduction of certain credits against net income) is amended to read as follows: "(e) REDUCTION OF CREDITS AGAINST NET INCOME. -In the case of a return made for a fractional part of a year under section 146 (a) (1), the exemptions provided in section 25 (b) shall be reduced to amounts which bear the same ratio to the full exemptions so provided as the number of months in the period for which return is made bears to twelve months." (4) Section 58 (a) (1) (relating to the requirement of a declaration of estimated tax) is amended by striking out "surtax". (5) Section 143 (a) (2) (relating to credits against net income in the case of interest on tax-free covenant bonds) is amended by striking out "normal tax exemption provided in section 25 (a) (3) and the surtax". (6) Section 163 (a) (1) (relating to credits of estates and trusts against net income) is amended to read as follows: "(1) For the purpose of the normal tax and the surtax, an estate shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $500 against net income, and a trust shall be allowed, in lieu of the exemptions under section 25 (b) (1), a credit of $100 against net income." (7) Section 214 (relating to credits of nonresident aliens against net income) is amended to read as follows: "SEC. 214. CREDITS AGAINST NET INCOME. "In the case of a nonresident alien individual who is not a resident of a contiguous country, only one exemption under section 25 (b) shall be allowed." (8) Section 215 (b) (relating to credits of nonresident aliens against net income in case of tax withheld at source) is amended by striking out the words "normal tax exemption and the surtax exemptions" and by inserting in lieu thereof "the exemptions under section 25 (b)". (9) Section 251 (f) (relating to credits against net income in the case of citizens entitled to the benefits of section 251) is amended to read as follows: "(f) CREDITs AGAINST NET INcoME.-A citizen of the United States entitled to the benefits of this section shall be allowed only one exemption under section 25 (b)." (10) Section 401 (defining "surtax exemption" for the pur- poses of Supplement T) is amended to read as follows: "SEC. 401. DEFINITION OF 'EXEMPTION'. "As used in the table in section 400, the term 'number of exemp- tions' means the number of the exemptions allowed under section 25 (b) as credits against net income for the purpose of the normal tax and the surtax imposed by sections 11 and 12." (c) TAXABLE YEARS TO WHICH APPLICABLE.- The amendments and repeals made by this section shall be applicable with respect to tax- able years beginning after December 31, 1945. For treatment of taxable years beginning in 1945 and ending in 1946, see section 131. 559 53 Stat. 26. 26 U. S. C., Supp. IV, i 47 (e). 53 Stat. 63. 26U .S.C 146(a) (1). Ante, p. 568 . 67 Stat. 141. 26 U. S. C., Supp. IV, § 58 (a) (1). 58 Stat. 239. 26 U. S. C. Supp. IV, §143 (a) (2). Ante, p. 558. 63 Stat. 67 . 26 U.S . C., Supp. Iv, 163 (a) (1). Ante, p. 558 63 Stat. 77 . 26 U. S. C., Supp. IV, 214 . Nonresident aliens. Ante, p. 558 . 53 Stat. 77. 26 U. S. C., Supp. IV, 215 (b). Ante, p. 568 . 63 Stat. 80 . 26 U. S. C., Supp. IV, I 251 (0). Ante, p. 558 . 55 Stat. 691. 26 U. S. C., Supp. IV, i 401. 55 Stat. 689. 26 U. S. C., Supp. IV, § 400. Post, p. 560 . Ante, p. 558. 53 Stat. 5. 26 U. S. C., Supp. IV, §§ 11, 12. Ante, pp. 557, 558 Pos, p. 570.
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