Distressed Area Tax Incentive Act of 1979

[AI summary unavailable — showing source text] Distressed Area Tax Incentive Act of 1979 - Amends the Internal Revenue Code to allow an additional ten percent investment tax credit for investment by businesses in labor surplus areas, as designated by the Secretary of Labor. Allows a double depreciation deduction for business property which is located in labor surplus areas. Increases, for employers with earnings from labor surplus areas, the $100,000 floor amount upon which an accumulated earnings tax is determined. Allows an income tax credit for the employment of new employees in labor surplus areas. Allows a 50 percent credit for the first-year labor surplus wages paid by an employer and a 25 percent credit for the second-year labor surplus wage paid for any taxable year. Limits the dollar amount of such credit to $100,000 for any taxable year. Increases the amount of domestic international sales corporation (DISC) taxable income which may be deferred to DISC shareholders by an amount which is attributable to operations in a labor surplus area. Permits the deferral of payment of income taxes, unemployment taxes, and social security taxes with respect to operations in labor surplus areas.…