Tax Reduction Act of 1975
|Long title||An act to amend the Internal Revenue Code of 1954 to provide for a refund of 1974 individual income taxes, to increase the low income allowance and the percentage standard deduction, to provide a credit for personal exemptions and a credit for certain earned income, to increase the investment credit and the surtax exemption, to reduce percentage depletion for oil and gas, and for other purposes.|
|Enacted by||the 94th United States Congress|
|Effective||January 1, 1974|
|Public law||Pub.L. 94–12|
The United States Tax Reduction Act of 1975 provided a 10-percent rebate on 1974 tax liability ($200 cap). It created a temporary $30 general tax credit for each taxpayer and dependent.
The investment tax credit was temporarily increased to 10 percent through 1976.
The minimum standard deduction was temporarily increased to $1,900 (joint returns) for one year.
For one year, the percentage standard deduction was increased to 16 percent of adjusted gross income, up to $2,600 if married filing jointly, $2,300 if single, or $1,300 if married filing separately.