Tax Reform and Relief Act

Tax Reform and Relief Act - Title I: Tax Relief for Low-and Middle-Income Taxpayers - States that at the election of the taxpayer, for taxable years beginning after December 31, 1974, there shall be allowed, as a credit, an amount equal to $175 multiplied by the number of exemptions to which the taxpayer is entitled under section 151 of the Internal Revenue Code. Requires that such credit shall not exceed the tax imposed for the taxable year.

Sets forth a special rule for exemptions for the taxable year 1974.

Provides that there shall be allowed to a taxpayer who is an eligible individual as a credit an amount equal to a specified percentage of the social security taxes imposed on him and his employer with respect to wages received by the taxpayer during that year.

States that the amount of the credit allowable to a taxpayer shall not exceed an amount equal to 10 percent of so much of his wages as does not exceed $4,000 received by that individual during that year with respect to employment, and that the amount of the credit shall be reduced by one-fourth of the amount by which a taxpayer's income exceeds $4,000.

Provides that a taxpayer may receive an advance refund of the credit allowable to him not more frequently than quarterly by filing an election for such refund with the Secretary. States that if the taxpayer elects to base his claim for refund on social security taxes imposed on him, his spouse, and their employers, the election shall be a joint election signed by the taxpayer and his spouse.

Title II: Amendments to Increase Revenues - Provides for the termination of special tax treatment for a Domestic International Sales Corporation (DISC).

Imposes an excise tax on the windfall profits from domestic crude oil removed from the premises on every person entitled to a deduction for depletion with respect to the crude oil. States that each person liable for such tax shall be allowed, as a credit against such tax, an amount equal to such person's plowback investment for such taxable period. Defines "windfall profit" as the excess of the removal price over the adjusted base price.

Sets forth provisions and regulations governing the imposition and collection of the windfall profits tax on crude oil. Provides, for a gradual phaseout of the percentage depletion allowance for domestic oil and natural gas production. Specifies special rules governing the taxation of foreign oil and gas income.

Title III: Increases Incentive for Expanded Investment - Provides for an increase in the investment tax credit for expanded investment. Defines "expanded investment" as the amount by which the qualified investment of the taxpayer for such year exceeds the average amount of qualified investment of the taxpayer per taxable year, as determined on the 3 most recent previous taxable years, determined without regard to investment credit carryovers and carrybacks.