PUBLIC LAW 94-12—MAR. 29, 1975 (2)
INCREASE
IN
SO-PERCENT
LIMITATION.—Section
89 STAT. 37 46(a)
26 USC 46.
(relating to determination of amount of credit) is amended by adding at the end thereof the following new paragraph: " (6) ALTERNATIVE L I M I T A T I O N I N THE CASE or CERTAIN U T I L I T I E S. —
" (A) IN GENERAL.—If, for a taxable year ending after calendar year 1974 and before calendar year 1981, the amount of the qualified investment of the taxpayer which is attributable to public utility property is 25 percent or more of his aggregate qualified investment, then subparagraph (C) of paragraph (2) of this subsection shall be applied by substituting for 50 percent his applicable percentage for such year. " (B) APPLICABLE PERCENTAGE.—The applicable percentage
of any taxpayer for any taxable year is— " (i) 50 percent, plus " ( i i) that portion of the tentative percentage for the taxable year which the taxpayer's amount of qualified investment which is public utility property bears to his aggregate qualified investment. I f the proportion referred to in clause (ii) is 75 percent or more, the applicable percentage of the taxpayer for the year shall be 50 percent plus the tentative percentage for such year. "(C)
TENTATIVE PERCENTAGE.—For purposes of s u b p a r a -
g r a p h (B), the tentative percentage shall be determined under the following t a b l e: "If the taxable year The tentative ends in: percentage is: 1975 or 1976 1977 1978 1979 1980 "(I))
PUP.LTC TTLT'T PROPEPTY DEFINED.
50 40 30 20 10 F o P purpOSCS of
this paragraph, the term 'public utility property' has the m e a n m g given to such term by the first sentence of subsection (c)(3)(B). " (3) L I M I T A T I O N I N (I\SE OF CERTAIN REGULATED COMPANIES.—
Section 46(f), as redesignated by section 302(a) of this Act (relat- Post, p. 40. ing to limitation h^ c^°o '-" ror*'f\'r^ rejjulated companies), is amended by a d d i n g at the end thereof the following new paragraph: "(8)
PROHIBITION o r IMMEDIATE FLOWTHROUGH.—An election
made under paragraph (3) shall apply only to the amount of the credit allowable under section 38 with respect to public utility 26 USC 38. property (within the meanin^r of subsection (a)(6)(D)) determined as if the T a x Keduction Act of 1975 had not been enacted. Any tax p a y e r who had timely made an election under paragraph (3) may, a t his own option and AA'ithout regard to any requirement imposed by an agency described in subsection (c)(3)(B), elect within 90 days after the date of the enactment of the T a x Reduction Act of 1975 (in such manner as the Secretary or his delegate Ante, p. 26. shall prescribe) to have the provisions of paragraph (3) apply with respect to the amount of the credit allowable under section 38 with respect to such property which is in excess of the amount determined under the preceding sentence. I f such taxpayer does not make such an election, paragraph (1) or (2) (whichever paragraph is applicable without regard to this paragraph) shall apply to such excess credit, except that if neither paragraph (1) n o r (2)
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