plus (II) the amount in effect under subsection (h)(13) for the taxable year, and (ii) the maximum 15-percent rate amount shall not be more than the sum of— (I) the earned taxable income of such child, plus (II) the amount in effect under subsection (h)(12)(D) for the taxable year. . (2) Earned taxable income Section 1(g)(3) is amended to read as follows: (3) Earned taxable income For purposes of this subsection, the term earned taxable income means, with respect to any child for any taxable year, the taxable income of such child reduced (but not below zero) by the net unearned income of such child. . (3) Conforming amendment So much of paragraph (5) of section 1(g) as precedes subparagraph (A) thereof is amended to read as follows: (5) Special rules for determining parent eligible to make election For purposes of paragraph (7), the parent referred to in subparagraph (A)(iv) thereof is— . (h) Application of income tax brackets to capital gains brackets Section 1(h) is amended— (1) in paragraph (1)(B)(i), by striking 25 percent and inserting 22 percent , (2) in paragraph (1)(C)(ii)(I), by striking which would (without regard to this paragraph) be taxed at a rate below 39.6 percent and inserting below the maximum 15-percent rate amount , and (3) by adding at the end the following new paragraphs: (12) Maximum 15 -percent rate amount defined For purposes of this subsection, the maximum 15-percent rate amount shall be— (A) in the case of a joint return or surviving spouse (as defined in section 2(a)), $479,000 ( ½ such amount in the case of a married individual filing a separate return), (B) in the case of an individual who is the head of a household (as defined in section 2(b)), $452,400, (C) in the case of any other individual (other than an estate or trust), $425,800, and (D) in the case of an estate or trust, $12,700. (13) Determination of 0 percent rate bracket for estates and trusts In the case of any estate or trust, paragraph (1)(B) shall be applied by treating the amount determined in clause (i) thereof as