An Act to amend section 37 of the Internal Revenue Code of 1954 with respect to the earned income limitation on retirement income
PL 84-398 (H.R.7036), enacted 01/28/1956

PUBLIC LAW 398-JAN. 28, 1966 
[70 ST A T . 
Effective date. 
"(i) overpayments of tax made by such transferee or 
fiduciary, or 
" (ii) overpayments of tax made by the transferor of which 
the transferee or fiduciary is legally entitled to credit or 
refund, 
the agreement referred to in subparagraph (A) and any extension 
thereof shall be deemed an agreement and extension thereof 
referred to in section 322 (b) (3). 
"(C) If the agreement referred to in subparagraph (A) is 
executed after the expiration of the period of limitation for assess-
ment against the taxpayer with reference to whom the liability of 
such transferee or fiduciary arises, then, in applying the limita-
tions under section 322 (b) (3) on the amount of the credit or 
refund, the periods specified in section 322 (b) (3) shall be 
increased by the period from the date of such expiration to the 
date of the agreement." 
SEC. 2. This Act shall be effective in all circumstances in which it 
would have been effective if it had been enacted on August 17,1954. 
Approved January 28, 1956. 
January 28, 1956 
[H. R. 7036] 
Public Law 398 
CHAPTER 17 
AN ACT 
To amend section 37 of the Internal Revenue Code of 1954 witli respect to the 
earned income limitation on retirement income. 
R e t i r e ment in-
come-tax c r e d i t . 
68A Stat. IS. 
26 u s e 37. 
Effective date. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 37 (d) 
(2) of the Internal Revenue Code of 1954 (relating to limitation on 
retirement income) is hereby amended to read as follows: 
" (2) in the case of any individual who has not attained the age 
of 72 before the close of the taxable year, any amount of earned 
income (as defined in subsection (g))— 
"(A) in excess of $900 received by the individual in the 
taxable year if such individual has not attained the age of 
65 before the close of the taxable year, or 
"(B) in excess of $1,200 received by the individual in 
the taxable year if such individual has attained the age of 
65 before the close of the taxable year." 
SEC. 2. The amendment made by the first section of tliis Act shall 
apply only with respect to taxable years beginning after December 31, 
1955. 
Approved January 28, 1956. 
January 28, 1956 
[H. R. 7282] 
Public Law 399 
CHAPTER 18 
AN ACT 
Relating to the allowance of the credits for dividends received, for dividends 
paid, and for a Western Hemisphere trade corporation in computing the 
alternative tax of a corporation with respect to its capital gains. 
65 Stat. 470. 
Be it enacted &y the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 117 
(c) (1) (A) of the Internal Revenue Code of 1939 is hereby amended 
by inserting after the word "reduced" the following: "(except for 
the purposes of determining the credits allowable under subsections 
(b), (h), and (i) of section 26)". 
70 
S T A T . ] 
PUBLIC LAW 401-J AN. 31, 1966 
SEC. 2. The amendment made by section 1 shall be applicable with 
respect to taxable years begi ming after December 31,1951, and before 
January 1, 1954. No interest shall be allowed or paid on any over-
payment resulting from such amendment. 
Approved January 28, 1956. 
Effective date. 
Public Law 400 
CHAPTER 
19 
AN ACT 
Relating to the application of the documentary stamp tax to transfers of certain 
obligations paid for in installments. 
January 28, 1956 
[H. R. 73641 
Be it enacted hy the Senate and House of Representatives 
of the 
United /States of Amerioa in Congress assembled^ That effective as of 
January 1, 1955, section 4332 of the Internal Eevenue Code of 1954 
(relating to exemption from tax on sales or transfers of certificates 
of indebtedness) is hereby amended by relettering subsection (b) as 
subsection (c) and by inserting after subsection (a) the following 
new subsection: 
" (b) INSTALLMENT PURCHASE OF OBLIGATIONS.—The tax imposed by 
section 4331 shall not apply to any instrument under the terms of which 
the obligee is required to make payment therefor in installments and 
is not permitted to make in any year a payment of more than 20 per-
cent of the cash amount to which entitled upon maturity of the instru-
ment." 
Approved January 28, 1956. 
D o c u m e n t a r y 
stamp tax. 
68A Stat. 516. 
26 u s e 4332-
68A Stat. 516. 
26 u s e 4331. 
Public Law 401 
CHAPTER 
27 
JOINT RESOLUTION 
To request the Secretary of State to arrange for the International Joint Com-
mission, United . States and Canada, to conduct a survey of the proposed 
Passamaquoddy tidal power project, and for other puri>oses. 
Resolved hy the Senate and House of Repre-setitatlves of the United 
States of America i/i Congress assembled. That the International 
Joint (commission created by the treaty between the United States 
and (ireat Britain relating to boundary waters between the United 
States and Canada, signed at Washington on January 11, 1909, under 
the provisions of such treaty, be requested by the Secretary of State 
to arrange for a final survey to be made to determine the cost of 
construction of the proposed Passamacjuoddy tidal power project at 
Passamaquoddy Bay in the State of Maine, ITnited States of America, 
and the Province of New I^runswick, Dominion of Canada, and to 
determine whether or not such cost would allow hydroelectric power 
to be produced at a price that is economically feasible, and also to 
determine what contribution such project Mould make to the national 
economy and the national defense. 
SEC, 2. The survey provided for in the first section shall make use of 
the report (dated March 15, 1950) made by the International Pas-
samaquoddy Engineering Board to the International Joint Com-
mission, and with the supplemental report (dated May 1952) on 
details of estimate of cost of comprehensive investigation of Passa-
maquoddy tidal power project by Corps of Engineers, United States 
Army. 
SEC. 3. The Secretary of the Army, the Federal Power Commis-
sion, and other officers and agencies of the Government of the United 
States are authorized to assist the International Joint Commission 
January 31, 1956 
[S. J. Reg. 121 
P a s samaquoddy 
t i d a l power proj-
ect. 
Survey. 
36 Stat. 2448. 
A g e n c y assist-
ance.