The Tax Reform Act of 1976 was passed by the United States Congress in September 1976, and signed into law by President Gerald Ford on October 4, 1976, becoming Pub.
It expanded the individual minimum tax and increased the long-term capital gains holding period from 6 months to 1 year.
A unified rate schedule for estate and gift taxes with a $175,000 exemption was created.
The act also created the 501(h) election procedure, allowing 501(c)(3) non-profit organizations to choose to participate in legislative lobbying limited by the annual financial expenditure on that lobbying, rather than its overall extent.
[5] The Act also increased the holding period defining long-term capital gains, which receive preferential tax treatment, from six months to one year.