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Page:United States Statutes at Large Volume 90 Part 2.djvu/313

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1781

" (4) purchased to provide retirement annuities for its employees by an organization which (as of the time the contracts were purchased) was an organization described in section 501(c)(3) which was exempt from tax under section 501(a) or was an organization exempt from tax under section 101(6) of the Internal Revenue Code of 1939 or the corresponding provisions of prior revenue laws, or purchased to provide retirement annuities for employees described in section 403(b)(1)(A) (ii) by an employer which is a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing; or "(5) purchased under contracts entered into with trusts which (at the time the contracts were entered into) were individual retirement accounts described in section 408(a) or under contracts entered into with individual retirement annuities described in section 408(b)." (98) AMENDMEN'ra OF SECTION 809.

(A) Section 809(b) (relating to definition of gain and loss 26 USC 809. from operations) is amended by striking out paragraph (4). (B)(i) Section 809(d) (relating to life insurance company deductions) is amended by striking out paragraph (11) relating to mutualization distributions before 1963), and by redesignating paragraph (12) as paragraph (11). (ii) Section 809(e) is amended by striking out "subsection (d) (12)" and inserting in lieu thereof "subsection (d) (11)". j.? y (C) Section 809 (relating to computation of gain and loss from operations) is amended by striking out subsection (g) (relating to deduction for certain mutualization distributions before 1963). (99) AMENDMENT or SECTION 812.—Section 812(b)(1) (relat- 26 USC 812. ing to years to which operating losses of an insurance company may be carried), other than the last sentence thereof, as added by section 806(d)(1)(A) of this Act, is amended to read as follows: "(1) YEARS TO WHICH LOSS MAY BE CARRIED.—The loss from operations for any taxable year (hereinafter in this section referred to as the'loss year') shall be— "(A) an operations loss carryback to each of the 3 taxable years preceding the loss year, "(B) an operations loss carryover to each of the 5 taxable years following the loss year, and "(C) subject to subsection (e), if the life insurance company is a new company for the loss year, an operations loss carryover to each of the 3 taxable years following the 5 taxable years described in subparagraph (B)." (100) AMENDMENTS OF SECTION 8IT.—Section 817 (relating to

26 USC 817.

rules applicable to certain gains and losses) is amended by striking out subsection (c) (relating to treatment of pre-1959 capital losses) and subsection (e) (relating to certain 1958 reinsurance transactions). (101) AMENDMENT OF SECTION sis.—Section 818 (relating to 26 USC 818. life insurance accounting provisions) is amended by striking out subsection (e) (relating to certain rules applicable to taxable years 1957, 1958, and 1959), and by redesignating subsections (f) and (g) as subsections (e) and (f), respectively. (102) AMENDMENTS o r SECTION 8 i 9. —

(A) The first sentence of section 819(a)(2)(A) (relating 26 USC 819. to definition of minimum figure for foreign life insurance companies) is amended to read as follows: "The minimum figure is the amount determined by multiplying the tax-

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Page:United States Statutes at Large Volume 90 Part 2.djvu/314

 90 STAT. 1782

26 USC 819.

PUBLIC LAW 94-455—OCT. 4, 1976 payer's total insurance liabilities on United States business by a percentage for the taxable year to be determined and proclaimed by the Secretary.-' (B) The second sentence of section 819(a)(2)(A) is amended by striking out "under clause (ii)" and inserting in lieu thereof "under the preceding sentence". (C) Clause (i) of section 819(b)(2)(B) (relating to distributions pursuant to certain mutualizations) is amended to read as follows: "(i) the minimum figure for 1958 determined under subsection (a)(2)(A) computed by using a percentage of 9 percent in lieu of the percentage determined and proclaimed by the Secretary, or". (103)

26 USC 820.

(A) Section 820(c) (relating to optional treatment of certain reinsured policies) is amended by striking out paragraph (6) (relating to reimbursement for 1957 income taxes), and by redesignating paragraph (7) as paragraph (6). (B) The last sentence of section 820(c) is amended by striking out "(5). and (6) and the rules prescribed under paragraph (7)" and inserting in lieu thereof "and (5) and the rules prescribed under paragraph (6)". (104)

26 USC 821.

26 USC 822.

26 USC 825. ' 26 USC 831.

26 USC 832.

AMENDMENTS or SECTION 82O.—

AMENDMENTS OF SECTION 8 21.—

(A) Section 821(a) (relating to imposition of tax on certain mutual insurance companies) is amended by striking out "beginning after December 31, 1963,". (B) Section 821(c)(1) (relating to alternative tax for certain small insurance companies) is amended by striking out "In the case of taxable years beginning after December 31, 1963, there is" and inserting in lieu thereof "There is". (C) Section 821 (relating to tax on certain mutual insurance companies) is amended by striking out subsection (e) (relating to 1962 transitional rules) and by redesignating subsection (f) as subsection (e). (105) AMENDMENTS OF SECTION 822.— (A) Section 822(c)(5) (relating to deduction of interest) is amended by strildng out "(other than obligations of the United States issued after September 24, 1917, and originally subscribed for by the taxpayer)". (B) The last sentence of section 822(d)(2) (relating to amortization of premium and accrual of discount) is amended by striking out "For taxable years beginning after December 31, 1962, no accrual" and inserting in lieu thereof "No accrual". (106) AMENDMENTS or SECTION 82 5.—Section 825(g) (relating to imused loss deduction of certain insurance companies) is amended by striking out paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (107) AMENDMENT OF SECTION 831.—Section 831(a) (relating to tax on certain insurance companies) is amended by striking out "or the taxable income" and inserting in lieu thereof "on the taxable income." (108) AMENDMENTS OF SECTION 832.—Paragraphs (1) and (6) of section 832(b) (definitions relating to insurance company taxable income) are each amended by striking out "Convention" and inserting in lieu thereof "Association".

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license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


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Page:United States Statutes at Large Volume 90 Part 2.djvu/315

 PUBLIC LAW 94-455—OCT. 4, 1976 (109)

90 STAT. 1783

AMENDMENTS OF SECTION 851.—

(A) Section 851Ca)(l) (relating to definition of regu- 26 USC 851. lated investment company) is amended by striking out "54 Stat. 789;". (B) Section 851(b)(1) (relating to regulated investment companies) is amended by striking out "which began after December 31, 1941". (110)

AMENDMENTS OF SECTION 85 2.—

(A) Subparagraph (C) of section 852(b)(3) (relating to method of taxation of regulated investment companies and their shareholders) is amended by striking out the third sentence. (B)(i) Section 852(b)(3)(D) (iii) is amended by striking out "by 75 percent of so much of such amounts as equals the amount subject to tax in accordance with section 1201 (a)(1)(A) and by 70 percent (72 percent in the case of a taxable year beginning after December 31, 1969, and before January 1, 1971) of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a) (1)(B) or (2)" and inserting in lieu thereof "by 70 percent of so much of such amounts as equals the amount subject to tax in accordance with section 1201(a)". (ii) The amendment made by clause (i) shall not be considered to affect the amount of any increase in the basis of stock under the provisions of section 852(b)(3)(D) (iii) of the Internal Revenue Code of 1954 which is based upon amounts subject to tax under section 1201 of such Code in taxable years beginning before January 1, 1975. (C) Section 852(d) is amended by inserting after "Investment Company Act of 1940" the'following: "(15 U.S.C. 80a-l and following)". (111) AMENDMENTS OF SECTION 856.— (A) Section 856(c)(1) (relating to real estate investment trusts) is amended by striking out "which began after December 31, 1960". (B) Section 856(c)(6)(D) (relating to definition of other terms) is amended by inserting after "Investment Company Act of 1940, as amended" the following: "(15 U.S.C. 80a-l and following)". (112) AMENDMENT OF SECTION 857.—Section 857(b)(3)(C) (relating to the taxation of capital gains in the case of real estate investment trusts) is amended by striking out the last sentence. (113) AMENDMENTS or SECTION 864.— (A) Subsection (a) of section 864 (definitions relating to determinations of sources of income) is amended to read as follows: "(a) PRODUCED.—For purposes of this part, the term 'produced' includes created, fabricated, manufactured, extracted, processed, cured, or aged." (B) Clauses (i) and (iii) of section 864(c)(4)(B) and subparagraph (C) of section 864(c)(5) (relating to effectively connected income) are each amended by striking out "sale" each place it appears and inserting in lieu thereof "sale or exchange". (C) Section 864(c)(4)(B) (iii) (relating to effectively connected income) is amended by striking out "sold" and inserting in lieu thereof "sold or exchanged".

26 USC 852. •'•''-

Post, p. 1786. ''^ .rX 26 USC 852 °ote.

26 USC 856.

26 USC 857. ' 26 USC 864. "Produced."

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Page:United States Statutes at Large Volume 90 Part 2.djvu/316

 90 STAT. 1784 26 USC 905.

PUBLIC LAW 94-455—OCT. 4, 1976

26 USC 911.

(114) AMENDMENT OF SECTION 905.—Section 905(b) (relating to proof of foreign tax credits) is amended by striking out the last sentence (relating to the treatment of certain royalty payments). (115) AMENDMENT OF SECTION 911.—Section 911(c) (relating to earned income from sources without the United States) is amended by striking out paragraph (7) (relating to taxable years ending in 1963, 1964, or 1965).

26 USC 921.

(116) AMENDMENT OF SECTION 9 2 I. — S e c t i o n 921 ( r e l a t i n g to

definition of Western Hemisphere Trade Corporation) is amended by striking out the last sentence (relating to taxable years before 1954). 26 USC 931.

26 USC 934. 26 USC 951. 26 USC 972. 26 USC 1001.

(11''') AMENDMENTS OF SECTION 931.—Section 931 ( r e l a t i n g to

income from sources within possession) is amended by striking o u t subsection (h) (relating to certain persons taken as prisoners of w a r while working in a possession), and by redesignating subsection (i) as subsection (h). (118) AMENDMENT o r SECTION 9 34.—Section 934(b) (relating to gross income received by a corporation from the Virgin Islands) is amended by striking out the last sentence. (119) AMENDMENT OF SECTION 9 51.—Section 951(a)(1) (relati n g to treatment of subpart F income) is amended by striking out "beginning after December 31, 1962". (120) REPEAL OF SECTION 9 7 2.—Section 972 (relating to consolidation of export trade corporations) is repealed. (121) AMENDMENT OF SECTION looi.—Section 1001(c) (relati n g to recognition of gain or loss) is amended to read as follows; " (c) RECOGNITION OF G A I N OR Loss.—Except as otherwise provided in this subtitle, the entire amount of the gain or loss, determined under this section, on the sale or exchange of property shall be recognized." (122) AMENDMENTS OF SECTION i O 15.—

26 USC 1015.

26 USC 1016. 26 USC 1018.

26 USC 1020.

(A) Subparagraph (A) of section 1 0 1 5 (d)(1) (relating to increased basis for gift tax p a i d) is amended by strikinar out " the date of the enactment of the Technical Amendments Act of 1958" and inserting in lieu thereof "September 2, 1958". (B) Subparagraph (B) of section 1015(d)(1) is amended by striking out " the date of the enactment of the Technical Amendments Act of 1958" and inserting in lieu thereof "September 2, 1958,". (123) AMENDMENT OF SECTION loie.—Section 1016(a) (relati n g to adjustments to basis) is amended by striking out paragraph (19). (124) AMENDMENT OF SECTION lois.—Section 1018 ( r e l a t i n g to

adjustment of capital structure before September 22, 1938) is amended by striking out "54 Stat. 709;". (125) REPEAL OF SECTION 1020.—Section 1020 (relating to election i n respect of depreciation allowed before 1952) is repealed. (126) R E P E A L OF SECTION 1022.—

26 USC 1022. 26 USC 1022 °*'*®" 26 USC 1024.

(A) Section 1022 (relating to the basis of certain foreign personal holding company stock) is repealed. (B) The repeal made by subparagraph (A) shall apply with respect to stock or securities acquired from a decedent d y i n g after the date of the enactment of this Act. (12<) AMENDMENT OF SECTION 1024.—Section 1024 (containing

cross references) is amended by striking out paragraph (4).

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Page:United States Statutes at Large Volume 90 Part 2.djvu/317

 PUBLIC LAW 94^55—OCT. 4, 1976

90 STAT. 1785

(128) AMENDMENTS OF SECTiox 1033.— (A) Section 1033(a) (relating to involuntary conversions) 26 USC 1033. is amended by striking out paragraph (2) and by redesignating paragraph (3) as paragraph (2). (B) Section 1033(a)(2) (relating to conversion into money), as redesignated by subparagraph (A) of this paragraph and as amended by this Act, is amended— (i) by striking out "WHERE nisposrriox OCCURRED AFTER 19 5 0" in the paragraph heading; (ii) by striking out " (g) " each place it appears and inserting in lieu thereof " (h) "; (iii) by striking out "and the disposition of the converted property (as defined in paragraph (2)) occurred after December 31, 1950," in the text; and (iv) by adding at the end thereof the following new subparagraph: " (E) DEFINITIONS.—For purposes of this paragraph— "(i) CONTROL.—The term 'control' means the ownership of stock possessing at least 80 percent of the total combined voting power of all classes of stock entitled to vote and at least 80 percent of the total number of shares of all other classes of stock of the corporation. "(ii)

DISPOSITION OF THE CONVERTED PROPERTY.—The

term 'disposition of the converted property' means the destruction, theft, seizure, requisition, or condemnation of the converted property, or the sale or exchange of such property under threat or imminence of requisition or condemnation." (C) Section 1033 (relating to involuntary conversions) is amended by striking out subsection (b) (relating to certain conversions occurring before 1954) and by redesignating subsections (c), (d), (e), (f), (g), and (h), as subsections (b), (c), (d), (e), (f),and (g),respectively. (D) The first sentence of section 1033(b) (relating to basis of a property acquired through involuntary conversions), as redesignated by subparagraph (C) of this paragraph, is amended by striking out "or (2)" and inserting in lieu thereof "or section 112(f)(2) of the Internal Revenue Code of 1939". (E) Section 1033(f)(2) (relating to condemnation of real property), as redesignated by subparagraph (C) of this paragraph, is amended to read as follows: ^'(2) LIMITATION.—Paragraph (1) shall not apply to the purchase of stock in the acquisition of control of a corporation described in subsection (a)(2)(A). " (F) Section 1033(g)(4) (relating to condemnation of real property), as amended by section 2140(a) of this Act, is amended by striking out "(a)(3)(B)(i) " and inserting in lieu thereof "(a)(2)(B)(i)". (129) AMENDMENTS or SECTION 1034.— (A) Section 1034(a) (relating to gain on sale of residence) 26 USC 1034. is amended by striking out "after December 31, 1953,". (B) Section 1034(b) (defining adjusted sales price) is amended by striking out paragraph (3) (relating to effective date of subsection (b)). (C) Section 1034(d) (relating to certain limitations) is amended by striking out "or section 112(n) of the Internal Revenue Code of 1939".

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Page:United States Statutes at Large Volume 90 Part 2.djvu/318

 9 0 STAT. 1786 26 USC 1034.

PUBLIC LAW 94-455—OCT. 4, 1976 (D) Section 1034(i) (relating to involuntary convei"sions) is amended to read as follows: " ( i i) SPECIAL RULE FOR C O X D E M X A T I O X. — I n the case of the seizure,

requisition, or condemnation of a residence, or the sale or exchange of a residence under threat or imminence thereof, the provisions of this section, in lieu of section 1033 (relating to involuntary conversions), shall be applicable if the taxpayer so elects. I f such election is made, such seizure, requisition, or condemnation shall be treated as the sale of the residence. Such election shall be made at such time and in such manner as the Secretary shall prescribe by regulations." (E) Section 1034:(j) (relating to statute of limitations) is amended by striking out ''after December 31, 1950,". 26 USC 1037.

(130)

AMENDMENT

OF SECTION

IOST.—Section

1037(b)(1)

(relating to certain exchanges of United States obligations) is amended by striking out "section 1232(a)(2)(A) " and inserting in lieu thereof "section 1232(a)(2)(B) ". 26 USC 1051.

(131) AMENDMENT OF SECTION l o s i. — S e c t i o n 1051 ( r e l a t i n g to

property acquired before 1929 during affiliation) is amendea by striking out the last two sentences. (132) AMENDMENTS o r SECTION l o s i. —

26 USC 1081.

(A) Subsection (c) of section 1081 (relating to distributions required by the S E C) is amended to read as follows: " (c) DISTRIBUTION OF STOCK OR SECURITIES O N L Y. — I f the r e is dis-

^

tributed, in obedience to an order of the Securities and E x c h a n g e Commission, to a shareholder in a corporation which is a registered holding company or a majority-owned subsidiary company, stock or securities (other than stock or securities which are nonexempt property), without the surrender by such shareholder of stock or securities in such corporation, n o gain to the distributee from the receipt of the stock or securities so distributed shall be recognized." (B) Section 1081(f) (relating to conditions for application of section) is amended by striking out " E x c e p t in the case of a distribution described in subsection (c)(2), the provisions" and inserting in lieu thereof " The provisions", and by striking out "49 Stat. 820;". (C) Section 1081(g) (relating to applicability of other provisions) is amended by striking out " I f a distribution described in subsection (c)(2), or a n " and inserting in lieu thereof " I f an", and by striking out the comma after "Commission". (133) AMENDMENTS OF SECTION l o s s. —

26 USC 1083.

(A) Section 1083(a) is amended by striking out "49 Stat. 820;". (B) Section 1083(b) is amended by striking out "49 Stat. 804:". (C) Section 1083(e)(4) is amended by striking out "49 Stat. 820;". (134) REPEAL OF SECTION m i. — Part IX of subchapter O of

26 USC 1111.

chapter 1 (relating to distributions pursuant to orders enforcing the antitrust laws) is repealed. (135) AMENDMENTS OF SECTION 1201.—

26 USC 1201.

•

(A) Section 1201(a) (relating to the alternative tax on capital gain) is amended to read as follows: " (a) CORPORATIONS.—If for any taxable year a corporation has a net capital gain, then, in lieu of the tax imposed by sections 11, 511, 821 (a) or (c) and 8 3 1 (a), there is hereby imposed a tax (if such tax is less than the tax imposed by such sections) which shall consist of the sum of—

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Page:United States Statutes at Large Volume 90 Part 2.djvu/319

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1787

" (1) a tax computed on the taxable income reduced by the amount of the n e t capital gain, at the rates and in the manner as if this subsection h a d not been enacted, plus " (2) a tax of 30 percent of the net capital gain." (B) Section 1201(c) (relating to computation of alternative tax) is amended to read as follows:

< _ 26 USC 1201.

" (c) COMPUTATION OF T A X W H E R E CAPITAL G A I N EXCEEDS $50,000.—

The tax computed for purposes of subsection (b)(3) shall be the amount by which a tax determined under section 1 or 511 on an amount equal to the taxable income (but not less than 50 percent of the net capital gain) for the taxable year exceeds a tax determined under section 1 or 511 on an amount equal to the sum of (A) the amount subject to tax under subsection (b)(1) plus (B) an amount equal to 50 percent of the sum referred to in subsection (b)(2)(A). " ( C H i) Section 1201 is amended by striking out subsection (d) (defining subsection (d) gain) and by redesignating subsection (e) as subsection (d). (ii) Section 1 2 0 1 (b)(2)(A) (relating to alternative tax on noncorporate taxpayers) is amended by striking out " the amount of the subsection (d) g a i n " and inserting in lieu thereof "the sum of the long-term capital gains for the taxable 0 year, b u t not to exceed $50,000 ($25,000 in the case of a married individual filing a separate r e t u r n) ". (iii) Section 1201(b)(3) is amended by striking out "the f amount of the subsection (d) g a i n " and inserting in lieu thereof "the sum referred to in subparagraph (A) ".

'

'•••-'

' '•'

( 1 3 6) AMENDMENTS OF SECTION 1 2 2 2. —

(A) Paragraph (9) of section 1222 (relating to definition of terms applicable to capital gains and losses) is amended to read as follows:

26 USC 1222.

" (9) CAPITAL GAIN N E T INCOME.—The term 'capital gain net

income' means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges." (B) Paragraph (11) of section 1222 (relating to definition of terms applicable to capital gains and losses) is amended •^•i'' to read as follows: " ( 1 1) N E T CAPITAL GAIN.—The term 'net capital gain' means "Net capital the excess of the net long-term capital gain for the taxable year gain-" over the net short-term capital loss for such year." (137) AMENDMENT OF SECTION 1233.—Section 1233(c) (relating 26 USC 1233. to certain options to sell) is amended by striking out "the date of enactment of this title " and inserting in lieu thereof " August 16, 1954". (138) AMENDMENT OF SECTION 1237.—Section 1237 (relating

26 USC 1237.

to real property subdivided for sale) is amended by striking out subsection (d) (relating to effective date). (139) REPEAL OF SECTION 1240.—Section 1240 (relating to tax-

26 USC 1240.

ability to employee of certain termination payments) is repealed. (140) AMENDMENT OF SECTION 1245.—Section 1245(b)(7)(B)

(relating to transfers to tax-exempt organization M-here property will be used in unrelated business) is amended by striking out "such organization acquiring such property,". (141) AMENDMENT OF SECTION 1240.—Section 1246(f) (relating to gain on foreign investment company stock) is amended by striking out "beginning after December 31, 1962".

26 USC 1245.

26 USC 1246.

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Page:United States Statutes at Large Volume 90 Part 2.djvu/320

 90 STAT. 1788 26 USC 1311. 26 USC 1315. 26 USC 1321.

26 USC 1331-1337. Effective date. 26 USC 1331 note. 26 USC 1341, 26 USC 1342.

PUBLIC LAW 94-455—OCT. 4, 1976 (142) AMENDMENT OF SECTION isii.—Paragraphs (2)(A), (2) (B), and (3) of section 1311(b) (relating to mitigation of effect of limitations) are each amended by striking out "Tax Court of the United States" and inserting in lieu thereof "Tax Court"'. (143) REPEAL OF SECTION isis.—Section 1315 (relating to effective date of part II of subchapter Q of chapter 1) is repealed. (144) REPEAL OF SECTION 1321.—Part III of subchapter Q of chapter 1 (relating to involuntary liquidation of L I F O inventories) is repealed. (145) REPEAL OF SECTIONS 1331 THROUGH 1337.—

(A) Part IV of subchapter Q of chapter 1 (relating to war loss recoveries) is repealed. (B) The repeal by subparagraph (A) shall apply with respect to war loss recoveries in taxable years beginning after December 31, 1976. (146) AMENDMENT OF SECTION 1341.—Section 1341(b)(2) (relating to claim of right) is amended by striking out the last sentence. (147) REPEAL OF SECTION 1342.—Section 1342 (relating to computation of tax on certain amounts recovered as a result of a patent infringement suit) is repealed. (148) REPEAL OF SECTION 134 6.—Section 1346 (relating to

26 USC 1346. 26 USC 1372.

Regulations.

recovery of unconstitutional Federal taxes) is repealed. (149) AMENDMENTS OF SECTION 1372.— (A) Section 1372(b)(1) (relating to effect of election under subchapter S) is amended by striking out "(other than the tax imposed by section 1378)" and inserting in lieu thereof "(other than as provided by section 58(d)(2) and by section 1378)". (B) Section 1372(c) (relating to subchapter S elections by small business corporations) is amended to read as follows: "(c) WHERE AND How MADE.—An election under subsection (a) may be made by a small business corporation for any taxable year at any time during the first month of such taxable year, or at any time during the month preceding such first month. Such election shall be made in such manner as the Secretary shall prescribe by regulations." (C) Section 1372 is amended by striking out subsection (g) (relating to certain elections for years beginning before 1961). (150) AMENDMENTS OF SECTION 1374.—

26 USC 1374.

(A) Section 1374(b) (relating to net operating losses of subchapter S corporations) is amended by adding at the end thereof the following new sentence: "The deduction allowed by this subsection shall, for purposes of this chapter, be considered as a deduction attributable to a trade or business carried on by the shareholder." (B) Subsection (d) of section 1374 (relating to treatment of net operating losses of subchapter S corporations) is repealed. (151) AMENDMENTS OF SECTION 1375.—

26 USC 1375.

(A) The heading of subsection (b) of section 1375 is amended by striking^ out "RECEIVED CREDIT NOT ALLOWED" and inserting in lieu thereof " N O T TREATED AS SUCH FOR CERTAIN PURPOSES".

(B) Section 1375(f) (relating to elections as to certain distributions) is amended by striking out paragraph (3).

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Page:United States Statutes at Large Volume 90 Part 2.djvu/321

 PUBLIC LAW 94-455—OCT. 4, 1976 ,.

90 STAT. 178:^

(152) AMENDMENT OF SECTION 1378.Section 1378(b) (relat- 26 USC 1378. i n g to the taxation of capital gain in the case of electing small business corporations) is amended by striking out the last sentence. (153) AMENDMENTS o r SECTION 13 8 8.—

(A) Section 1388(c)(2)(B)(i) (relating to patronage 26 USC 1388.; dividends) is amended by striking out "the date of the enactment of the Revenue Act of 1962" and inserting in lieu thereof "October 16, 1962". (B) Section 1388(h)(2)(B)(i) (relating to per-unit retain certificates) is amended by striking out " the date of the enactment of this subsection" and inserting in lieu thereof "Novem<j., ber 13, 1966". '

(154) AMENDMENTS OF SECTION 14 O i.—

(A) Section 1401(a) (relating to rate of tax on selfemployment income) is amended to read as follows: "(a)

26 USC 1401.

O L D - A G E, SURVIVORS, AND DISABILITY INSURANCE. — I n a d d i t i o n

to other taxes, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to 7.0 percent of the amount of the self-employment income for such taxable year." (B) Section 1401(b) (relating to rate of tax on self-employment income for hospital insurance) is amended by striking out paragraph s (1) and (2) and by redesignating paragraph s • (3), (4), (5), and (6), as paragraph s (1), (2), (3) and (4), respectively. (155)

..

f >

,

AMENDMENTS OF SECTION I 4 0 2. —

(A) Paragraph (1) of section 1402(b) (relating to defini- 26 USC 1402. tion of self-employment income) is amended to read as follows: " (1) that part of the net earnings from self-employment which is in excess of (i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) 42 USC 430, which is effective for the calendar year in which such taxable year begins, minus (ii) the amount of the wages paid to such individual during such taxable year s; or". (B) Section 1402 amended by striking out subsection (g) 26 USC\1402, (relating to treatment of self-employment income for years .^r; prior to 1962), and by redesignating subsections (h) and (i) as subsections (g) and (h), respectively. (C) Section 1 4 0 2 (g)(2) (relating to self-employment income of members of certain religious f a i t h s), as redesignated by subparagraph (B) of this paragraph, is amended to read as follows: " (2) T I M E FOR FILING APPLICATIONS.—For purposes of this sub-

section, an application must be filed on or before the time prescribed for filing the return (including any extension thereof) for the first taxable year for which the individual has self-employment income (determined without regard to this subsection or subsection (c)(6)), except that an application filed after such date but on or before the last d a y of the t h i r d calendar month following the calendar month in which the taxpayer is first notified in writing by the Secretary that a timely application for an exemption from the tax imposed by this chapter has not been filed by h i m shall be deemed to be filed timely." (156) EEPEAL or SECTION 14 e 5.—Section 1465 (relating to definition of withholding agent) is repealed. (157)

26 USC 1465.
 * •• j,,?,^.

AMENDMENTS OF SECTION I 4 8 I. —

(A) Section 1 4 8 1 (a)(1)(A) (relating to mitigation of effect of renegotiation of Government contracts) is amended

9-194 O—78—pt. 2

21

26 USC 14fil.

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Page:United States Statutes at Large Volume 90 Part 2.djvu/322

 90 STAT. 1790 '* ' ' '

PUBLIC LAW 94-455—OCT. 4, 1976 /

26 USC 1481.

26 USC 1551.

26 USC 1552. >

by striking out "within the meaning of the Federal renegotiation act applicable to such transaction" and inserting in lieu thereof "within the meaning of the Eenegotiation Act of 1951, as amended (50 U.S.C. App. 1211 and following)". (B) Section 1481(a)(1) (relating to renegotiation) if? amended by striking out subparagraph (D). (C) Subparagraphs (B) and (C) of section 1481(a)(1) are each amended by striking out "applicable Federal renegotiation act" and inserting in lieu thereof "Renegotiation Act of 1951, as amended". (158) AMENDMENT OF SECTION 155I.—Section 1551(a) (relating to disallowance of surtax exemption) is amended by striking out "determined under subsection (d) " and inserting in lieu thereof "determined under subsection (c)". (159) AMENDMENT OF SECTION 1552.—The first sentence of section 1552(a) (relating to earnings and profits of an affiliated group) is amended by striking out "beginning after December 31, 1953, and ending after the date of enactment of this title,", (b) CONFORMING AND CLERICAL AMENDMENTS.— (1) AMENDMENTS CONFORMING TO REPEAL OF SECTIONS 35 AND 242.—

26 USC 36. \' 26 USC 41. Ante, p. 1580.

26 USC 50A. 26 USC 171. I

^ A) Section 36, as amended by this Act, is amended by striking out "sections 32 and 35" and inserting in lieu thereof "section 32". (B) Section 41(b)(2) is amended by striking out "section 35 (relating to partially tax-exempt interest),", (C) Section 46(a)(3) is amended by striking out subparagraph (B), by inserting "and" at the end of subparagraph (A), and by redesignating subparagraph (C) as subparagraph (B). (D) Section 50A(a)(3) is amended by striking out subparagraph (B) and redesignating subparagraphs (C), (D), and (E), as subparagraphs (B), (C), and (D), respectively. (E)(i) The heading of paragraph (1) of section 171(a) is amended to read "(1) TAXABLE BONDS.—". (ii) The heading of paragraph (2) of section 171(a) is amended to read "(2) TAX-EXEMPT BONDS.—". (iii) Section 171(a) is amended by striking out paragraph (3) and by redesignating paragraph (4) as paragraph (3). (iv) Section 171(b)(1)(B) (ii) is amended by striking out "subsection (c)(1)(B) " and inserting in lieu thereof "subsection (a)(1) ". (v) So much of section 171(c) as precedes paragraph (2) is amended to read as follows: " (c) ELECTION AS TO TAXABLE BONDS.— " (1) ELIGIBILITY TO ELECT; BONDS WITH RESPECT T WHICH ELECO TION PERMITTED.—In the case of bonds the interest on which is not

26 USC 551. 26 USC 1016. 26 USC 584.

excludible from gross income, this section shall apply only if the taxpayer has so elected." (F)(i) Section 551 is amended by striking out subsection (c), and by redesignating subsections (d), (e), (f), and (g), as subsections (c), (d), (e), and (f), respectively. (ii) Section 1016(a) (13) is amended by striking out "section 551(f)" and inserting in lieu thereof "section 551(e)". (G) Section 584(c)(2) is amended to read as follows: "(2) DIVIDENDS RECEIVED.—The proportionate share of each participant in the amount of dividends received by the common

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Page:United States Statutes at Large Volume 90 Part 2.djvu/323

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1791

trust fund and to which section 116 applies shall be considered for purposes of such section as having been received by such participant." (H)(i) Section 642(a) is amended by striking out paragraph (1), and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (ii) Section 41(d) is amended by striking out "section 642(a)(3)" and inserting in lieu thereof "section 642(a)(2)". (iii) Section 901(g)(3), as amended by this Act, is amended by striking out "section 642(a)(2)" and inserting in lieu thereof "section 642(a)(1)". (I)(i) Section 702(a) is amended by striking out paragraph (7) and by redesignating paragraphs (8) and (9) as paragraphs (7) and (8), respectively. (ii) Section 702(b) is amended by striking out "paragraphs (1) through (8)" and inserting in lieu thereof "paragraphs (1) through (7)". (iii) Section 1402(a) is amended by striking out "702(a) (9)" each place it appears and inserting in lieu thereof "702 (a)(8)". (J)(i) Section 804(a) is amended by striking out paragraph (3), and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (ii) Section 243(b)(3)(C) (iii), as redesignated by paragraph (21)(A) of this subsection, is amended by striking out "sections 804(a)(4)" and inserting in lieu thereof "sections 804(a)(3)". (iii) Section 804(a)(2) is amended by striking out "paragraph (5)" and inserting in lieu thereof "paragraph (4)", and by striking out "paragraph (4)" and inserting in lieu thereof "paragraph (3)". (iv) Section 809(d) (10) is amended by striking out "section 804(a)(4)", and inserting in lieu thereof "section 804 (a)(3)". (v) Section 1561(a)(3) is amended by striking out "sections 804(a)(4)" and inserting in lieu thereof "sections 804 (a)(3)". (vi) Section 1564(a)(1)(C) is amended by striking out "sections 804(a)(4)" inserting in lieu thereof "sections 804 (a)(3)". (K) Section 804(a)(2)(A) is amended by striking out clause (ii), by inserting "and" at the end of clause (i), and by redesignating clause (iii) as clause (ii). (L)(i) Section 809(d)(8)(A) is amended by striking out clause (ii), by inserting "and" at the end of clause (i), and by redesignating clause (iii) as clause (ii). (ii) Section 809(d)(8)(B) is amended by striking out "subparagraph (A) (iii)" and inserting in lieu thereof "'subparagraph (A)(ii)". (M) Sections804(a)(1),804(a)(2),809(a)(1),809(b)(1) (A) and 809(b)(2)(A) are each amended by striking out ", partially tax-exempt interest,". CN) Section 809(e) is amended by striking out paragraph (6), and by redesignating paragraph (7) as paragraph (6). (O) Section 815(b)(2)(A) (iii) is amended by striking out "the deduction for partially tax-exempt interest, provided

-.:,,.. ^^ ^^^ ^^^ 26 USC 41. 26 USC 901. 26 USC 702. • -^ < -^^ *' • > 26 USC 1402. ' ' 26 USC 804. 26 USC 243. r

26 USC 809. 26 USC 1561. 26 USC 1564. - '-- '

'^* ' ' '

^

" ^ f. ^,< 26 USC 815.

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text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/324

 90 STAT. 1792 26 USC 242. 26 USC 822.

- ^ i

"

"

' > 26 USC 832.

26 USC 852, 857. 26 USC 1244. " '•' 26 USC 1402. 26 USC 1503.

W8 D?y .

J

,

PUBLIC LAW 94-455—OCT. 4, 1976 by section 242 (as modified by section 804(a)(3))," and by striking out the comma after '^809(d)(8)(B)) ". (P) Section 822(c)(2) is amended by striking out "partially tax-exempt interest and". (Q) Section 822(c)(6)(A) is amended by striking out "or to the deduction provided in section 242 for partially taxexempt interest". (R) Section 822(c)(7) is amended by striking out "partially tax-exempt interest and to". (S) Section 822(d)(2) is amended by striking out ", the deduction provided in subsection (c)(1), and the deduction allowed by section 242 (relating to partially tax-exempt interest)" and inserting in lieu wiereof "and the deduction provided in subsection (c)(1)". (T) Section 832(c)(5)(A) is amended by striking out "or to the deductions provided in section 242 for partially taxexempt interest". (U) Section 832(c) (12) is amended by striking out "partially tax-exempt interest and to". (V) Sections 852(b)(1) and 857(b)(1) are each amended by striking out the last sentence. (W) Section 1244(c)(1)(E) is amended by striking out "sections 172, 242, 243" and inserting in lieu thereof "sections 172 243". (X) Section 1402(a)(2) is amended by striking out" (other than interest described in section 35)". (Y) Section 1503(b)(3) is amended by striking out subparagraph (C). (Z) The taole of sections for subpart A of part IV of subchapter A of chapter 1 is amended by striking out the item relating to section 35. (AA) The table of sections for part VIII of subchapter B of chapter 1 is amended by striking out the item relating to section 242. (2)

AMENDMENT CONFORMING TO REPEAL OP SECTION 5I.—The

table of parts for subchapter A of chapter 1 is amended by striking out the item relating to part V. (3) AMENDMENTS CONFORMING TO ADDITIONS OF SECTIONS 64 AND

I^jgl

65.—

26 USC 341.

26 USC 483.

26 USC 707. 26 USC 735.

^

(A) Paragraphs (1)(C), (5)(A), (6)(D), and (12) of section 341(e) are each amended by striking out "gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231(b)" each place it appears and inserting in lieu thereof "ordinary income". (B) Section 483(f)(3) is amended by striking out "no part of any gain on such" and inserting in lieu thereof "all of the gain, if any, on vSuch" and by striking out "gain from the sale or exchange of a capital asset or property described in section 1231" and inserting in lieu thereof "ordinary income". (C) Section 707(b)(2) is amended by striking out "as gain from the sale or exchange of property other than a capital asset" and inserting in lieu thereof "as ordinary income". (D) Paragraphs (1) and (2) of section 735(a) are each amended by striking out "gain or loss from the sale or exchange of property other than a capital asset" and inserting in lieu thereof "as ordinary income or as ordinary loss, as the case may be".

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Page:United States Statutes at Large Volume 90 Part 2.djvu/325

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1793

(E) Section 1236(b) is amended by striking out "loss from the sale or exchange of property which is not a capital asset" and inserting in lieu thereof "ordinary loss". (F) Sections 1242 and 1243 are each amended by striking out "a loss from the sale or exchange of property which is not a capital asset" each place it appears and inserting in lieu thereof "an ordinary loss". (G) Section 1244 is amended by striking out "a loss from the sale or exchange of an asset which is not a capital asset" each place it appears and inserting in lieu thereof "an ordinary loss". (H) Section 1248(g)(3)(B), as redesignated by this Act, is amended by striking out "gain from the sale of an asset which is not a capital asset" and inserting "ordinary income". (I) The following provisions are each amended by striking out "gain from the sale or exchange of property which is not a capital asset" each place it appears and inserting in lieu thereof "ordinary income": sections 341(a), 871(a)(1)(C) (i) and (ii), 881(a)(3)(A) and (B), 996(d)(1) and (2), 1037(b)(1)(A), 1232(a)(2)(A) and (B), 1232(c), 1246(a), and 1385(c)(2)(C). (J) The following provisions are each amended by striking out "gain from the sale of property which is not a capital asset" and inserting in lieu thereof "ordinary income": sections 306(a)(1)(A), 306(a)(1)(B), and 306(]E). (K) The following provisions are each amended by striking out "gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231" each place it appears and inserting in lieu thereof "ordinary income": sections 80(c)(1), 163(d)(3) and (5), 613(a), 617 (d)(1), 995(b)(1)(C), 1238, 1245(a)(1), 1249(a), 1250 (f) and (g), 1251 (b)(3)(B), (c)(1), and (c)(2), and 1252(a) (1). (4)

CLERICAL AMENDMENTS CONFORMING TO ADDITIONS OF SEC-

26 USC 1236.,• 26 USC 1242, ^243. 26 USC 1244.
 * ?t

26 USC 124a. '

' ^ 'ti^ll

M

>,

,

TIONS 64 AND 65.

(A) The table of sections for part I of subchapter B of chapter 1 is amended by adding at the end thereof the following new items: "Sec. 64. Ordinary income defined. "Sec. 65. Ordinary loss defined."

(B) The heading for part I of subchapter B of chapter 1 is amended by striking out "AND TAXABLE INCOME" and inserting in lieu thereof "TAXABLE INCOME, ETC." ETC." (C) The table of parts for subchapter B of chapter 1 is amended by striking out "and taxable income." in the item relating to part I and inserting in lieu thereof "taxable income, etc." (5) AMENDMENT CONFORMING TO REPEAL OF SECTION 7 6.—The table of sections for part II of subchapter B of chapter 1 is amended by striking out the item relating to section 76.

• -"

(6) AMENDMENTS CONFORMING TO AMENDMENT OF SECTION IO3.—

(A) Section 6049(b)(2)(A) is amended by striking out "section 103(a)(1) or (3)" and inserting in lieu thereof "section 103(a)".

26 USC 6049.

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Page:Queen Moo and the Egyptian Sphinx.djvu/81

 Let us resume our explanation. We have found that in remote times ma was the meaning of the character. Let us try to analyze its component parts in its relation to the name Mayach, and its origin as an alphabetic character. It is easy to see that it is composed of the geometrical figure  flanked on each side by the symbol  imix. Who can fail to see that this figure bears a striking resemblance to the Egyptian sign  that Dr. Young translates ma, and Mr. Champollion asserts to be simply the letter M? By a strange coincidence, if coincidence there be, the meaning of the syllable ma is the same in Maya and Egyptian; that is, in both languages it signifies "earth," "place." "The word τοπος — 'place,' 'site,'" says Mr. Champollion, "of the Greek text of the Rosetta inscription is expressed in the hieroglyphic part of the tablet by an owl for M, and the extended arm for A, which gives the Coptic word μα (ma), 'site,' 'place.' " We see that in the Troano MS. the author represented the earth by the figure of an old man, "the grandfather," mam ; hence, by apocope, ma, "earth," "site," "country," "place."

Ma, in the Maya, is also a particle used, as in the Greek language, in affirmation or negation according to its position before or after the verb. Another curious coincidence worthy of notice is that the sign of negation is absolutely the same for the Mayas as for the Egyptians,. Bunsen says that the latter called it nen. That word in Maya


text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/326

 90 STAT. 1794 Post, p. 1930.

PUBLIC LAW 94-455—OCT. 4, 1976 (B) Section 852(a)(1)(B), as added by this Act, is amended by striking out "section 103(a)(1)" and inserting in lieu thereof "section 103(a)". (7) AMENDMENTS CONFORMING TO AMENDMENT OF SECTION I 4 3. —

26 USC 153, 154.

(A)(i) Part V of subchapter B of chapter 1 is amended by striking out section 153 (relating to determination of marital status) and by redesignating section 154 as section 153. (ii) The table of sections for part V of subchapter B of chapter 1 is amended by striking out the items relating to sections 153 and 154 and inserting in lieu thereof the following: "Sec. 153. Cross references.",

26 USC 152. 26 USC 153.

(B) Section 152(a)(9) is amended b,y striking out "section 153" and inserting in lieu thereof "section 143". (C) Section 153, as redesignated by subparagraph (A) of this paragraph, is amended by adding at the end thereof the following new paragraph: "(5) For determination of marital status, see section 143." (8) AMENDMENTS CONFORMING TO AMENDMENT OF SECTION I 5 I. —

26 USC 117, 152, 170, 403. 26 USC 103.

26 USC 163.

26 USC 415. "Educational organization."

26 USC 508. 26 USC 512.

(A) The following provisions are each amended by striking out "educational institution (as defined in section 151 (e)(4)) " each place it appears and inserting in lieu thereof "educational organization described in section 170(b)(1) (A) ( i i) ": sections 117(a)(1)(A), 117(b)(1), 117(b)(2), 152(d), 170(g)(1)(B) (as redesignated by subsection (a) (28UA)(i) of this section'), and 403(b)(1)(A) (ii). (B) Section 103(c)(3)(A), as redesignated by subsection (a) (17) of this section, is amended by striking out "educational institution (within the meaning of section 151(e)(4)) " and inserting in lieu thereof "educational organization described in section 170(b)(1)(A) (ii)". (C) Section 163(b)(1) is amended h^ striking out "educational institution (as defined in section 151(e)(4)) and which is provided for a student of such institution" and inserting in lieu thereof "educational organization described in section 170(b)(1)(A) (ii) and which is provided for a student of such organization". (D)(i) Subparagraphs (A), (B), and (C) of section 415 (c)(4) are each amended by striking out "educational institution" each place it appears and inserting in lieu thereof "educational organization". (ii) Subparagraph (D) (ii) of section 415(c)(4) is amended to read as follows: "(ii) For purposes of this paragraph the term 'educational organization' means an educational organization described in section 170(b)(1)(A) (ii)." (iii) Section 415(c)(4) is amended by striking out "EDUCATIONAL INSTITUTIONS" from the paragraph heading and inserting in lieu thereof "EDUCATIONAL ORGANIZATIONS". (E) Section 508(c)(2)(A) is amended to read as follows; "(A) educational organizations described in section 170 (b)(l)(A)(ii),and". (F) Section 512(b) (15)(B), as redesignated by section 1951(b)(8)(A) of this Act, is amended by striking out "edu-

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Page:United States Statutes at Large Volume 90 Part 2.djvu/327

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1795

cational institution (as defined in section 151(e)(4)) " and ^ >- -'> ^ inserting in lieu thereof "educational organizaticm described in section 170(b)(1)(A) (ii)". (G) Section 1303(d) is amended by striking out "educa- 26 USC 1303. tional institution (as defined in section 151(e)(4)) " each place it appears and inserting in lieu thereof "educational organization described in section 170(b)(1)(A) (ii)". (H) Sections 4941(d)(2)(G) (ii) and 4945(g)(1) each 26 USC 4941, are amended by striking out "educational institution 4.945. described in section 151(e)(4)" and inserting in lieu thereof "educational organization described in section 170(b)(1)

(AUii)".

(9)

AMENDMENTS CONFORMING TO THE AMENDMENTS OF SECTION

152.—Section 2(b)(3)(B) is amended by striking out clause (ii), 26 USC 2. by adding "or" at the end of clause (i), and by redesignating clause (iii) as clause (ii). (10)

AMENDMENT CONFORMING TO THE AMENDMENT OF SECTION

172.—

(A) Section 374(e)(2) is amended by striking out "sec- Ante, p. 296. tion 172(j)" and inserting in lieu thereof "172(g)". (B) Section 904(f)(2)(B)(i) and 904(f)(4)(B)(i), as Ante, p. 1624. amended by this Act, are each amended by striking out "section 1 7 2 (k)(l) " and inserting in lieu thereof "section 172(h)". (11) AMENDMENTS CONFORMING TO REPEAL OF SECTION IS7.—

(A) Section 48(a)(8) (relating to section 38 property) is amended by striking out "187,". (B) The table of sections for part VI of subchapter B of chapter 1 is amended by striking out the item relating to section 187. (C) Section 1082(a)(2)(B) (relating to basis for determining gain or loss) is amended by striking out "187,". (D) Section 1245(a)(2) (relating to gain from dispositions of certain depreciable property) is amended by strildng out "187," each place it appears. (12) AMENDMENTS CONFORMING TO THE REPEAL, OF SECTION 342.— (A) Section 551(f), as redesignated by paragraph (1) ^F) of this subsection, is amended by striking out paragraph (3). (B) The table of subparts for part II of subchapter C of chapter 1 is amended by striking out the item relating to subpart C and inserting in lieu thereof: "Subpart 0, Collapsible corporations." (C) The table of sections for subpart C of part II of subchapter C of chapter 1 is amended by striking out the item relating to section 342. (D) The heading of subpart C of part II of subchapter C of chapter 1 is amended to read as follows:

26 USC 48.

26 USC 1082. 26 USC 1245.

26 USC 551.

. ^^

"Subpart C—Collapisible Corporations". (13) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 363.— The table of sections for subpart C of part III of subchapter C of chapter 1 is amended by striking out the item relating to section 363. (14) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 373.— (A) Section 372(b)(1) is amended by striking out "373 26 USC 372. (b) or".

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Page:United States Statutes at Large Volume 90 Part 2.djvu/328

 90 STAT. 1796

PUBLIC LAW 94-455—OCT. 4, 1976

26 USC 374.

(B) Section 374(b) is amended to read as follows: «(b)

BASIS.—

" (1) RAILROAD CORPORATIONS.—If the property of a r a i l r o a d

-

S?:

\

•" t ^ ^
 * > i

ls >*

s'-

''

'

Ante, p. 295. 26 USC 1232.

corporation, as defined in section 7 7 (m) of the B a n k r u p t c y Act (11 U.S.C. 205 (m)), was acquired after December 31, 1938, in pursuance of an order of the court having jurisdiction of such corporation— " (A) in a receivership proceeding, or " (B) in a proceeding under section 77 of the B a n k r u p t c y Act, and the acquiring corporation is a railroad corporation (as defined in section 77(m) of the B a n k r u p t c y Act) organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding, the basis shall be the same as i t would be in the hands of the railroad corporation whose property was so acquired, increased in the amount of gain recognized under subsection (a)(2) to the transferor on such transfer. " (2) PROPERTY ACQUIRED BY STREET, SUBURBAN, OR INTERURBAN ELECTRIC RAILWAY CORPORATION.—If the property of any street, suburban, or interurban electric railway corporation engaged as a common carrier in the transportation of persons or property in interstate commerce was acquired after December 31, 1934, in pursuance of an order of the court having jurisdiction of such corporation in a proceeding under section 77 of the B a n k r u p t c y Act (11 U.S.C. 501 and following), and the acquiring corporation is a street, suburban, or interurban electric railway engaged as a common carrier in the transportation of persons o r property in interstate commerce, organized or made use of to effectuate a plan of reorganization approved by the court in such proceeding, then, notwithstanding the provisions of section 270 of the Bankruptcy Act (11 U.S.C. 670), the basis shall be the same as it would be in the hands of the corporation whose property was so acquired." (C) Section 374(c)(3) is amended by striking out "subsection (b) " and inserting in lieu thereof "subsection (b) (1)". (D) Section 1232(b)(2) is amended by striking out "section 371, 373, or 374" and inserting in lieu thereof "section 371 or 374". (E) The table of sections for part IV of subchapter C of chapter 1 is amended by striking out the item relating to section 373. (15)

AMENDMENT CONFORMING TO REPEAL o r

SECTIONS 391

THROUGH 39 5.—The table of part s for subchapter C of chapter 1 is amended by striking out the item relating to part VII. (16) AMENDMENT CONFORMING TO THE AMENDMENTS OF SECTION

26 USC 381.

481.—Section 381(c) is amended by striking out paragraph ( 2 1). (17) AMENDMENT CONFORMING TO THE AMENDMENTS OF SECTION

545.—Section 381(c) (15) is amended by striking out "subsections (b)(7) and (c) " and inserting in lieu thereof "subsection (c) ". (18) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 583.—

The table of sections for part I of subchapter H of chapter 1 is amended by striking out the item relating to section 583. (19) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 592.—

.?v;;„,r

The table of sections for part II of subchapter H of chapter 1 is amended by striking out the item relating to section 592.

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text:
Page:United States Statutes at Large Volume 90 Part 2.djvu/329

 *<3M«lp-

PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1797

(20) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 6 0 I. —

(A) Section 535(b) is amended by striking out paragraph 26 USC 535. (8). (B)(i) Section 545(b) is amended by striking out para- 26 USC 545. graph (6), and by redesignating paragraph (8) as paragraph (6). (ii) Section 545(b)(2) is amended by striking out "paragraph (8)" and inserting in lieu thereof "paragraph (6)". (iii) Section 545(c)(5) is amended by striking out "subsection (b)(8) " and inserting in lieu thereof "subsection (b)(6)". (C) The table of parts for subchapter H of chapter 1 is amended by striking out the item relating to part III. (21) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 615.—

(A)(i) Section 243(b)(3)(C) is amended— 26 USC 243. (I) by striking out clauses (ii) and (iii) and inserting in lieu thereof the following: "(ii) $400,000 limitation for certain exploration A - = expenditures under section 617(h)(1),", and ( II) by redesignating clauses (iv) and (v) as clauses (ill) and (iv), respectively. (ii) Section 1564(b)(2)(C) is amended by striking out 26 USC 1564. "section 243(b)(3)(C)(v) " and inserting in lieu thereof "243(b)(3)(C)(iv)". (B) Section 381(c) (10) is amended to read as follows: 26 USC 381. " ( 1 0) T R E A r a i K N T OF CERTAIN M I N I N G DEVELOPMENT AND EXPLORATION EXPENSES OF DISTRIBUTOR OR TRANSFEROR CORPORATION.—

The acquiring corporation shall be entitled to deduct, as if it were the distributor or transferor corporation, expenses deferred under section 616 (relating to certain development expenditures) if the distributor or transferor corporation has so elected. For the purpose of applying the limitation provided in section 617(h), if, for any taxable year, the distributor or transferor corporation was allowed a deduction under section 617(a), the acquiring corporation shall be deemed to have been allowed such deduction." (C) Section 617(h)(1) is amended by striking out "and 26 USC 617. section 615(a) and the amounts which are or have been treated as deferred expenses under section 615(b) "and inserting in lieu thereof "and subsection (a) of section 615 (as in elfect before the enactment of the Tax Refonn Act of 1976)". (D) Section 617(h)(3) is amended to road as follows: "(3) APPLICATION OF PARAGRAPH (2)(B).—Paragraph (2)(B)

shall apply with respect to all amounts deducted before the latest such transfer from the individual or corporation to the taxpayer. Paragraph (2)(B) shall apply only if— "(A) the taxpayer acquired any mineral property from the individual or corporation under circumstances which make paragraph (7), (8), (11), (15), (17), (20), or (22) of section 113(a) of the Internal Revenue Code of 1939 apply to such transfer; or "(B) the taxpayer acquired any mineral property from the individual or corporation under circumstances which make section 334(b), 362 (a) and (b), 372(a), 374(b)(1), 1051, or 1082 apply to such transfer." (E) Section 617 is amended by adding at the end thereof the following new subsection: "(i) CERTAIN PRE-1970 EXPLORATION EXPENDITURES.—If—

'

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Page:United States Statutes at Large Volume 90 Part 2.djvu/330

 90 STAT. 1798

PUBLIC LAW 94-455—OCT. 4, 1976

"(1) the taxpayer receives mineral property in a transaction as .:•.i ^P: . g, result of which the basis of such property in the hands of the transferee is determined by reference to the basis in the hands ^' of the transferor, "(2) an election made by the transferor under subsection (e) of section 615(e) (as in effect before the enactment of the Tax Keform Act of 1976) applied with respect to expenditures which were made by him and which were properly chargeable to such property, and "(3) the taxpayer has made or makes an election under subsection (a), then in the application of this section with respect to the transferee, the amounts allowed as deductions under such section 615 to the transferor, which (but for the transferor's election) would be reflected .i-M r);-! J in the adjusted basis of such property in the hands of the transferee, shall be treated as expenditures allowed as deductions under subsection (a) to the transferor." 26 USC 703. (F) Section 703(b) is amended by striking out "under section 615 (relating to pre-1970 exploration expenditures),". 26 USC 1016. ((J) Section 1016(a) is amended by striking out paragraph (10). ..-•' i:••" 'r: (H) The table of sections for part I of subchapter I of chapter 1 is amended by striking out the item relating to section 615. (22) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 63 2.—

26 USC 5.

(A) The table of sections for part III of subchapter I of chapter 1 is amended by striking out the item relating to section 632. (B) Section 5(b) is amended by striking out paragraph (1). ( 2 3) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 7 7 1. —

The table of parts for'subchapter K of chapter 1 is amended by striking out the item relating to part IV. (24)

26 USC 815.

802.—Section 815(c)(3)(B) is amended by striking out "(determined without regard to section 802(a)(3))". (25)

26 USC 844.

AMENDMENT CONFORMING TO THE AMENDMENT OF SECTION

AMENDMENT CONFORMING TO THE AMENDMENT OF SECTION

812.—Section 844(b)(2) is amended by striking out "section 812(b)(1)(A) (iii)" and inserting in lieu thereof "section 812 (b)(1)(C)". (26)

AMENDMENTS CONFORMING TO THE AMENDMENTS OF SECTION

864.—

26 USC 861. ,^

26 USC 862. 26 USC 863,

(A) Paragraphs (5) and (6) of section 861(a) (relating to items treated as income from within United States) are each amended by striking out in the heading "SALE" and inserting in lieu thereof "SALE OR EXCHANGE", and by striking out "sale" in the text and inserting in lieu thereof "sale or exchange". (B) Section 861(e)(1) (relating to income from certain aircraft and vessels) is amended by striking out "sale or other disposition" and inserting in lieu thereof "sale, exchange, or other disposition". (C) Paragraphs (5) and (6) of section 862(a) (relating to items treated as income from without the United States) and paragraphs (2) and (3) of section 863(b) (relating to sources of income) are each amended by striking out "sale" and inserting in lieu thereof "sale or exchange".

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Page:United States Statutes at Large Volume 90 Part 2.djvu/331

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1799

(D) Paragraph (2) of section 863(b) (relating to sources 26 USC 863. of income) is amended by striking out "sold" each place it appears and inserting in lieu thereof "sold or exchanged". (27) 972.—

AMENDMENTS CONFORMING TO THE REPEAL OF JSECTION

(A) Section 970(b)(1) (relating to inclusion of certain 26 USC 970. previously excluded amounts of subpart F income) is amended by striking out "application of section 972" and inserting in lieu thereof "treatment (under section 972 as in effect before the date of the enactment of the Tax Reform, Act of 1976) of two or more controlled foreign corporations which are export trade corporations as a single controlled ' •^•' ' • foreign corporation". (B) The table of sections for subpart G of part III of subchapter N of chapter 1 is amended by striking out the item relating to section 972. (28) AMENDMENTS CONFORMING TO THE AMENDMENT OF SECTION 1001.—

(A) Subsection (c) of section 331 is amended to read as 26 USC 331. follows: "(c)

CROSS REFERENCE.—

"For general rule for determination of the amount of gain or loss recognized, see section 1001." (B;) (i) Section 1002 (relating to recognition of gain or 26 USC 1002. loss) is repealed. (ii) The table of sections for part I of subchapter O of chapter 1 is amended by striking out the item relating to section 1002. (29) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 1020.—

(A) The third sentence of subsection (a) of section 1016 is 26 USC 101 amended by striking out "under section 1020" and inserting - \ in lieu thereof "under section 1020 (as in effect before the date of the enactment of the Tax Reform Act of 1976)". Ante, p. 1520| (B) The table of sections for part II of subchapter O of -. ' chapter 1 is amended by striking out the item relating to; j section 1020. i

,1

(30) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 1022.—

i

(A) Section 1016(a) is amended— 26 USC 1016 (i) by striking out paragraph (21), and (ii) by redesignating paragraphs (20) and (22) as paragraphs (19) and (20), respectively. (B) The amendment made by subparagraph (A)(i) shall 26 USC 1016; apply with respect to stock or securities acquired from a note. decedent dying after the date of the enactment of this Act. (C) The table of sections for part II of subchapter O of chapter 1 is amended by striking out the item relating to section 1022. (31) AMENDMENTS CONFORMING TO AMENDMENTS OF SECTION 1033.—

(A) Section 1260(d)(4)(B) is amended by striking out 26 USC 1250; "1033(a)(3)(A) " and inserting in lieu thereof "1033(a)(2) (B) Section 1250(d)(4)(C) and (D) are each amended by striking out "1033(a)(3)" and inserting in lieu thereof "1033(a)(2)".

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Page:United States Statutes at Large Volume 90 Part 2.djvu/332

 90 STAT. 1800 26 USC 6212. 26 USC 6504. 26 USC 1071, 1250.

PUBLIC LAW 94-455—OCT. 4, 1976 (C) Section 6212(c)(2)(B) is amended by striking out "1033(a)(3)(C) and (D) " and inserting in lieu thereof "1033(a)(2)(C) and (D) ". (D) Section 6504(4) is amended by striking out "1033(a) (3)(C) and (D) " and inserting in lieu thereof "1033(a)(2) (C)and(D)". (E) Sections 1071(b) and 1250(d)(4) (]>) are each amended by striking out "1033(c)" and inserting in lieu thereof "1033(b)". (32)

AMENDMENTS CONFORMING TO THE REPEAL OF SECPION

1111.—

26 USC 301. 26 USC 312. 26 USC 1246. 26 USC 964, 1248. Ante, p. 1608. 26 USC 535. 26 USC 543.

26 Use 545. 26 USC 553. 26 USC 556. 26 USC 561.

(A) Section 301 is amended by striking out subsection (f), and by redesignating subsection (g) as subsection (e). (B)(i) Section 312 is amended by striking out subsection (k), and by redesignating subsections (1) and (m) as subsections (j) and (k),respectively. (ii) Section 1246(g) is amended by striking out "312(1)" and inserting in lieu tnereof "312 (j)". (iii) Sections 964(a) and 1248(c)(1) are each amended by striking out "312(m)(3)" and inserting in lieu thereof "312 (k)(3)". (iv) Subsection (d) of section 1377, as added by this Act, is amended by striking out "312(m)" and inserting in lieu thereof "312 (k)". (C) Section 535(b) is amended by striking out paragraphs (9) and (10). (D) Section 543(a)(1) is amended by inserting "and" at the end of subparagraph (A), and by striking out subparagraphs (B) and (C) and inserting in lieu tnereof the following: " (B) interest on amounts set aside in a reserve fund under section 511 or 607 of the Merchant Marine Act, 1936 (46 U.S.C. 1161 or 1177)." (E) Section 545(b) is amended by striking out paragraphs (10) and (11). (F^ Section 553(a)(1) is amended to read as follows: "(1) DIVIDENDS, ETC.—Dividends, interest, royalties, and annuities." (G) Section 556(b) is amended by striking out paragraphs (7) and (8). (H) Section 561(b) is amended to read as follows: "(b) SPECIAL RULES APPLICABLE.—In determining the deduction for dividends paid, the rules provided in section 562 (relating to rules applicable in determining dividends eligible for dividends paid deduction) and section 563 (relating to dividends paid after the close of the taxable year) shall be applicable." (I) The table of parts for subchapter O of chapter 1 is amended by striking out the item relating to part IX. (33) AMENDMENTS CONFORMING TO AMENDMENT OF SECTION 1222.—

26 USC 57. •

(A) Section 57(a)(9)(A) is amended by striking out "the amount by which the net long-term capital gain exceeds the net short-term capital loss" and inserting in lieu thereof "the net capital gain". (B) So much of the first sentence of section 57(a)(9)(B) as precedes "by a fraction" is amended to read as follows; "In the case of a corporation having a net capital gain for the

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Page:United States Statutes at Large Volume 90 Part 2.djvu/333

 PUBLIC LAW 94-455~OCT. 4, 1976 taxable year, an amount equal to the product obtained by multiplying the net capital gain". (C) Section 527(b)(2) is amended by striking out "net section 1201 gain" and inserting in lieu thereof "net capital gain". (D) Sections 535(b)(6) and 545 (b)(5) are each amended— (1) by striking out from the paragraph heading "LONG-TERM" and inserting in lieu thereof " N E T ", (2) by striking out from the text "the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year" each place it appears and inserting in lieu thereof "the net capital gain for the taxable year", and (3) by striking out from the text "such excess" each place it appears and inserting in lieu thereof "such net capital gain". (E) Section 802(a)(2) is amended— ^ (i) by striking out "the net long-term capital gain of any life insurance company exceeds the net short-term capital loss" and inserting in lieu thereof "any life insurance company has a net capital gain", and (ii) by striking out "such excess" each place it appears and inserting in lieu thereof "such net capital gam". (F) Section 804(a)(2) is amended by striking out "by which the net long-term capital gain exceeds the net shortterm capital loss" and inserting m lieu thereof "of the net capital gain". (G) Sections 809(b)(1)(B) and 809(b)(2)(B) are each amended by striking out "by which the net long-term capital gain exceeds the net short-term capital loss" and inserting in lieu thereof "of the net capital gain". (H) Section 815(b)(2)(A) (ii) is amended by striking out "by which the net long-term capital gain exceeds the net shortterm capital loss" and inserting in lieu thereof "of the net capital gain". (I) Section 852(b)(2)(A) is amended by striking out "the excess, if any, of the net long-term capital gain over the net short-term capital loss" and inserting in lieu thereof "the amount of the net capital gain, if any". (J)(i) Section 852(b)(3)(A) is amended to read as follows: "(A) IMPOSITION OF TAX.—There is hereby imposed for each taxable year in the case of every regulated investment company a tax, determined as provided in section 1201(a), on the excess, if any, of the net capital gain over the deduction for dividends paid (as defined in section 561) determined with reference to capital gain dividends only." (ii) The second sentence of section 852(b)(3)(C) is amended by striking out "excess of the net long-term capital gain over the net short-term capital loss" each place it appears and inserting in lieu thereof "net capital gain". (K) The second sentence of section 857(b)(3)(C) is amended by striking out "excess of the net long-term capital gain over the net short-term capital loss" each place it appears and inserting in lieu thereof "net capital gain". (L) Section 1201(b) is amended by striking out "net section 1201 gain" each place it appears and inserting in lieu thereof "net capital gain".

90 STAT. 1801

26 USC 527. 26 USC 535, ^'^^'

f" - ' '- ^ 26 USC 802. ''^

•'' •

26 USC 804.

26 USC 809.

26 USC 815.

26 USC 852.

'^

26 USC 857. • ^ 26 USC 1201.

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Page:United States Statutes at Large Volume 90 Part 2.djvu/334

 90 STAT. 1802 26 USC 1202.

26 USC 381, 852, 4940. 26 USC 1212.

26 USC 1247, '

' ••

26 USC 1375.

.1)8.")>:;:

'*'

26 USC 1247, 1378.

PUBLIC LAW 94-455—OCT. 4, 1976 (M) The first sentence of section 1202 is amended to read as follows: "If for any taxable year, a taxpayer other than a corporation has a net capital gain, 50 percent of the amount of the net capital gain shall be a deduction from gross income." (N) Sections 381(c)(3)(B), 381(c)(3)(C), 852(d), 4940 (c)(1), and 4940 (c)(4) axe each amended by striking out "net capital gain" and inserting in lieu thereof "capital gain net income". (O) Section 1212(a)(1) is amended by striking out "net capital gain" each place it appears and inserting in lieu thereof "capital gain net income", and by striking out "net capital gains" and inserting in lieu thereof "capital gain net income". (P) Section 1247(a)(1)(B) is amended by striking out "the excess (determined as if such corporation were a domestic corporation) of the net long-term capital gain over the net short-term capital loss" and inserting in lieu thereof "the amount (determined as if such corporation were a domestic corporation) of the net capital gain". (Q)(i) Section 1375(a)(1) is amended by striking out over its short-term capital loss" and inserting in lieu thereof "the corporation's net capital gain". (ii) The second sentence of section 1375(a)(1) is amended by striking out "such excess" and inserting in lieu thereof "such net capital gain". (iii) Section 1375(a)(3) is amended by striking out "the excess of an electing small business corporation's net longterm capital gain over its net short-term capital loss" and inserting in lieu thereof "an electing small business corporation's net capital gain". (R) The following provisions are each amended by striking out "the excess of the net long-term capital gain over the net short-term capital loss," and inserting in lieu thereof "the net capital gain": Sections 1247(a)(2)(A)(i), 1247(a)(2) (C), 1247(d)(1) and (2), 1378(a)(1), 1378(b)(1), and 1378 (c)(3). (34) AMENDMENT CONFORMING TO THE REPEAL o r SECTION 1240.—
 * 'the excess of the corporation's net long-term capital gain

The table of sections of part IV of subchapter P of chapter 1 is amended by striking out the item relating to section 1240. (35) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 1315.-—

The table of sections for part II of subchapter Q of chapter 1 is amended by striking out the item relating to section 1315. (36) AMENDMENTS CONFORMING TO THE REPEAL OF SECTION 1321.—

26 USC 472. 26 USC 6422.

(A) Section 472 is amended by striking out subsection (f). (B) Section 6422, as amended by this Act, is amended by striking out paragraph (2), and by redesignating paragraphs (3) through (13) as paragraphs (2) through (12), respectively. (C) Section 6504 is amended by striking out paragraph

Po5(, p. 1829.

(1).

Post, f. 1803.

(D) Section 6515 is amended by striking out paragraph (1). (E) The table of parts for subchapter Q of chapter 1 is amended by striking out the item relating to part III. (37) AMENDMENTS CONFORMING TO THE REPEAL OF SECTIONS 1331

THROUGH 1337.—

,,

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Page:United States Statutes at Large Volume 90 Part 2.djvu/335

 PUBLIC LAW 94-455—OCT. 4, 1976 .--..= „;

1.4

(A) The third sentence of section 901(a) is amended by striking out "under section 1333 (relating to war loss recoveries) or". (B) Section 936(a)(2), as added by this Act, is amended— (i) by inserting "or" at the end of subparagraph (C), and (ii) by striking out subparagraph (D). (C) Section 6212(c),(2) is amended by striking out subparagraph (D). (D) Section 6515 is amended by s<^iking out paragraph

90 STAT. 1803 26 USC 901. 26 USC 936. 4

26 USC 6212. 26 USC 6515.

-.. (6).

(E) Section 6515, as amended by this Act,_is amended by striking out paragraph (2), and by redesignating paragraphs (3), (4), (5), (6), (Y),and (8) as paragraphs (1), (2), (3), (4), (5),and (6) respectively. (F) The table of parts for subchapter Q of chapter 1 is amended by striking out the item relating to part IV. ( 3 8) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 1342.—

The table of sections for part V of subchapter Q of chapter 1 is amended by striking out the item relating to section 1342. (39) AMENDMENTS CONI*ORMING TO THE REPEAL OF SECTION 1346.—

(A) The table of sections for part VI of subchapter Q of • chapter 1 is amended by striking out the item relating to section 1346. (B) Section 6504 is amended by striking out paragraph Post, p. 1829. > (7).

-

(40)

AMENDMENT CONFORMING TO AMENDMENT OF SECTION

1372.—Section 58(d)(2) is amended by striking out ", notwith- 26 USC 58. standing the provisions of section 13Tl(b)(1),". (41)

AMENDMENT CONFORMING TO THE REPEAL OF SECTION

1465.—The table of sections for subchapter C of chapter 3 is amended by striking out the item relating to section 1465. (c)

AMENDMENTS TO PROVISIONS EEFERRINQ TO TERRITORIES.—

(1) Section 37(f) is amended by striking out "a Territory,", (2) Sections 105(e)(2), 273, and 454(b)(2) are each amended by striking out", a Territory,". (3) Section 117(b)(2)(A) (iv) is amended by striking out "a territory,". (4) Section 162(a) is amended b^ striking out "territory". (5) Section 581 is amended by striking out ", of any State, or of any Territory" and inserting in lieu thereof "or of any State", and by striking out", Territorial,". (6) Section 801(b)(3) is amended by striking out "or Territorial". (7) Section 861(a)(1) is amended by striking out ", any Territorv, any political subdivision of a Territory,". (8) Paragraphs (6) and (7) of section 1014(b) are each amended by striking out "Territory,". (9) Section 1221(5) is amended by striking out "or Territory,". (d) EFFECTIVE DATE.—Except as otherwise expressly provided in this section, the amendments made by this section shall apply with respect to taxable years beginning after December 31, 1976. The amendments made by subsections (a) (29) and (b) (10) shall apply with respect to taxable years ending after the date of the enactment of this Act.

Ante, p. 1559. 26 USC 105, 273, 454. 26 USC 117. 26 USC 162. 26 USC 581. 26 USC 801. 26 USC 861. 26 USC 1014., 26 USC 1221. 26 USC 2 note,

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Page:United States Statutes at Large Volume 90 Part 2.djvu/336

 9 0 STAT. 1804

PUBLIC LAW 94-455—OCT. 4, 1976 SEC. 1902. AMENDMENTS OF SUBTITLE B; ESTATE AND GIFT TAXES. (a) IN GENERAL.— (1) AMENDMENTS OF SECTION 2 0 1 2. —

26 USC 2012.

-/ •'

(A) Section 2012(b) (relating to credit for gift tax) is amended— (i) by striking out " (b) I n applying," and inserting in lieu thereof " (b) VALUATION KEDUCTIONS.—In applying,", and (ii) by striking out in paragraph s (2) and (3) "deduction) — the n " and inserting in lieu thereof "deduction), then". (B) Section 2012(c) (relating to gift by spouse or t h i r d party) is amended by striking out " (c) W h e r e the decedent"

'

"-

and inserting in lieu thereof " (c) W H E R E G I F T CONSIDERED M A D E. O N E - H A L F BY SPOUSE.—Where the

decedent".

(G) Section 2 0 1 2 (d)(1) (relating to computation of aMount of gift tax) is amended by striking o u t " (d)(1) For / / purposes of" and inserting in lieu thereof the following:

"(d) ( COMPUTATION

OF A M O U N T OF G I F T T A X PAID.^—

•(1) A M O U N T OF T A X. — For purposes of".

(D) Section 2012(d)(2) (relating to credit for gift tax) is amended by striking out " (2) For purposes" and inserting in lieu thereof: " (2) A M O U N T OF GIFT.—For purposes". 26 USC 2013.

(2) AMENDMENTS OF SECTION 2013.—Section 2 0 1 3 (d)(3)

is

amended by striking out ", or the corresponding provision of p r i o r law,". (3) AMENDMENT OF SECTION 2038,—Section 2038 (relating to revocable transfers) is amended by striking out subsection (c) (relating to effect of disability in certain cases).

26 USC 2038.

(4) AMENDMENTS OF SECTION 2055.—

26 USC 2055.

( ^) Section 2055(b) (relating to powers of appointment) is amended to read as follows: " (b) POWERS OF APPOINTMENT. — Property includible in the decedent's gross estate under section 2041 (relating to powers of appointment) received by a donee described in this section shall, for purposes of this section, be considered a bequest of such decedent." (B) Section 2055(f) (relating to cross references) is amended to read as follows: (f) CROSS REFERENCES.—

r

16 USC 19Z.

t^/r

"(1) For option as to time for valuation for purpose of deduction under this section, see section 2032. "(2) For exemption of gifts and bequests to or for the benefit of Library of Congress, see section 5 of the Act of March 3, 1925, as amended (2 U.S.C. 161). "(3) For treatment of gifts and bequests for the benefit of the OflBce of Naval Records and History as gifts or bequests to or for the use of the United States, see section 7222 of title 10, United States Code. "(4) For treatment of gifts and bequests to or for th« benefit of National Park Foundation as gifts or bequests to or for the use of the United States, see section 8 of the Act of December 18, 1967 (16 U.S.C. 191). (5) For treatment of gifts, devises, or bequests accepted by the Secretary of State under the Foreign Service Act of 1946 as gifts, devices, or bequests to or for the use of the United States, see section 1021 fe) of that Act (22 U.S.C. 809(e)). "(6) For treatment of gifts or bequests of money accepted by the Attorney General for credit to 'Commissary Funds, Federal Prisons,* as gifts or bequests to or for the use of the United States, see section 2 of the Act of May 15, 1952, as amended by the Act of July 9, 1952 (31 U.S.C. 725S-4).

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 PUBLIC LAW 94-455—OCT. 4, 1976 '

90 STAT. 1805

"(7) For payment of tax on gifts and bequests of United States obligations to the United States, see section 24 of the Second Liberty Bond Act (31 U.S.C. 757e). "(8) For treatment of gifts and bequests for benefit of the Naval Academy as gifts or bequests to or for the use of the United States, see section 6973 of title 10, United States Code. "(9) For treatment of gifts and bequests for benefit of the Naval Academy Museum as gifts or bequests to or for the use of the United States, see section 6974 of title 10, United States Code. "(10) For exemption of gifts and bequests received by National Archives Trust Fund Board, see section 2308 of title 44, United States Code." (5) AMENDMENTS OF SECTION 2106.—

(A) Section 2106(a)(2)(F) (relating to cross references concerning the charitable deduction for estate tax purposes) is amended to read as follows: "(F)

26 USC 2106.

CROSS R E F E R E N C E S. —

"(1) For option as to time for valuation for purposes of deduction under this section, see section 2032. "(2) For exemption of certain bequests for the benefit of the United States and for rules, of construction for certain bequests, see section 2C55(f)." (B) Section 2106 (relating to taxable estate of nonresidents) is amended by striking out subsection (c) (relating to treatment of United States b o n d s).

N .,..;• -': ^ '^-

" -• ''"'^'

(6) AMENDMENT OF SECTIONS 2107 AND 2108.—Section 2107(a)

(relating to estate tax on expatriates) and section 2108(a) (relat- 26 USC 2107, i n g to application of pre-1967 estate tax provisions) are each 2108. amended by striking out " the date of enactment of this section" and inserting in lieu thereof "November 13, 1966", (7) AMENDMENT RELATING TO SECTION 2201.—

(A) Section 6(b)(1) of the Act of January 2, 1975 ( P u b lic Law 93-597; 88 Stat. 1950) is amended by striking o u t "Section 2210" and inserting in lieu thereof "Section 2201". (B) The amendment made by subsection (A) is effective July 1, 1973. (8) REPEAL OF SECTION 2202.—Section 2202 (relating to missionaries in foreign service) is repealed. (9) AMENDMENT OF SECTION 2204.—The last sentence of section 2204(b) (relating to the discharge from personal liability of a fiduciary other than the executor) is amended by striking out " has not been" and inserting in lieu thereof "has been". (10) AMENDMENT OF SECTION 2501.—Section 2501(a)(1) (relat-

26 USC 2201. 26 USC 2201 not«26 USC 2202. 26 USC 2204. 26 USC 2501.

ing to imposition of gift tax) is amended to read as follows: " (1) GENERAL RULE.—A tax, computed as provided in section 2502, is hereby imposed for each calendar quarter on the transfer of property by gift during such calendar quarter by any individual, resident or nonresident." (11) AMENDMENT OF SECTION 2522.—Subsection (d) of section 26 USC 2522. 2522 (relating to cross references) is amended to read as follows: " (d) CROSS R E F E R E N C E. —

"For exemption of certain gifts to or for the benefit of the United States and for rules of construction with respect to certain gifts, see section 2055(f).'' (12) AMENDMENTS TO SECTIONS REFERRING TO TERRITORIES.—

(A) The following provisions are each amended by striking o u t "Territory,'^: sections 2055(a)(1), 2056(c)(2)(B), 26 USC 2055, and 2106(a)(2)(A)(i). 2056, 2106.

89-194 O—78—pt. 2

22

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 90 STAT. 1806

PUBLIC LAW 94-455—OCT. 4, 1976 -4

26 USC 2011, 2053. 26 USC 2016. 26 USC 2522. 26 USC 2523. .

(B) The following provisions are each amended by striking out "or Territory": sections 2011(a), 2011(e), and 2053 ((J) (C) Section 2016 is amended by striking out "Territory or". (D) Sections 2522(a)(1) and 2522(b)(1) are each amended by striking out "Territory,". (E) Section 2523(f)(1) is amended by striking out "Territory, or".

(b) CONFORMING AND CLERICAL AMENDMENTS.— (1) AMENDMENT CONFORMING TO REPEAL OF SECTION

' i'

2202.—The table of sections for subchapter C of chapter 11 is amended by striking out the item relating to section 2202. (2) AMENDMENTS CONFORMING TO AMENDMENT OF SECTION 2055.—

26 USC 6503.

26 USC 6167. 26 USC 2011 note.

26 USC 2501 note-

(A) Section 6503, as amended by this Act, is amended by striking out subsection (e), and by redesignating subsections (f), (g), (h), and (i) as subsections (e), (f), (g), and (h), respectively. (B) Section 6167(h)(2) is amended by striking out "section 6503(f)" and inserting in lieu thereof "section 6503(e)". (c) EFFECTIVE DATES.— (1) ESTATE TAX AMENDMENTS.—The

amendments made by paragraphs (1) through (10), and paragraphs (14)(A), (B),and (C), of subsection (a), and by subsection (b) shall apply in the case of estates of decedents dying after the date of the enactment of this Act, and the amendment made by paragraph (11) of subsection (a) shall apply in the case of estates of decedents dying after December 31,197*0. (2) GIFT TAX AMENDMENTS,—The amendments made by paragraphs (12), (13), and (14)(D) and (E) of subsection (a) shall apply with respect to gifts made after December 31, 1976. SEC. 1903. AMENDMENTS OF SUBTITLE C; EMPLOYMENT TAXES. (a) IN GENERAL.— (1) AMENDMENTS OF SECTIONS 3101 AND 3111,—

26 USC 3101. 26 USC 3111. .,j,.;;,,„, •' ' ' " ) 26 USC 3113.

(A) Section 3101(a) (relating to rate of tax on employees for old-age, survivors, and disability insurance) and section 3111 (a) (relating to rate of tax on employers for such insurance) are each amended by striking out paragraphs (1), (2), (3), and (4), and by redesignating paragraphs (5) and (6) as paragraphs (1) and (2),respectively. (B) Section 3101(b) (relating to rate of tax on employees for hospital insurance) and section 3111(b) (relating to rate of tax on employers for such insurance) are each amended by striking out paragraphs (1) and (2), and by redesignating paragraphs (3), (4)j (5), and (6) as paragraphs (1), (2), (3), and (4), respectively. (2) REPEAL OF SECTION 3113.—Section 3113 (relating to application of social security tax on District of Columbia credit unions) is repealed. (3) AMENDMENTS OF SECTION 3121.—

26 USC 3121.

(A) Section 3121(b) (relating to employment) is amended-— (i) by striLing out "performed after 1936 and prior to 1955 which was employment for purposes of subchapter A of chapter 9 of the Internal Revenue Code of 1939 under the law applicable to the period in which such service was performed, and any service, of whatever

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 PUBLIC LAW 94-455—OCT. 4, 1976 nature, performed after 1954" and inserting in lieu thereof ", of whatever nature, performed", and f '>« (ii) by striking out ", in the case of service performed after 1954 ". (B) Section 3121(b)(1) is amended by striking out "65 Stat. 119;". (C) Section 3121(b)(6)(B)(v) is amended by striking 'out "Secretary of the Treasury" and inserting in lieu thereof 'f "Secretary of Transportation". (D) Section 3121(g)(3) (relating to agricultural labor) il. < is amended by striking out "46 Stat. 1550, § 3;". (E) Section 3121(k)(1) (relating to exemption of certain organizations) is amended by striking out subparagraphs (F) and (H) and by redesignating subparagraph (G) as subparagraph (F). (F) Section 3121(1)(2) (relating to employees of foreign subsidiaries) is amended by striking out", but in no case prior HH-, to January 1, 1955". (G) Section 3121(m)(l) (relating to service in the uniformed services) is amended by striking out "after December 1956". (4) AMENDMENTS OF SECTION 3122.—The last sentence of section 3122 (relating to Federal service) is amended by striking out "Secretary" each place it appears and inserting in lieu thereof "Secretary of Transportation". (5) AMENDMENT or SECTION 3125.—Section 3125(c) (relating to returns in the case of Governmental employees in the District of Columbia) is amended by striking out "Commissioners of the District of Columbia or such agents as they may designate" and by inserting in lieu thereof "Mayor of the District of Columbia or such agents as he may designate". (6) AMENDMENT OF SECTION 3201.—Section 3201 (relating to rate of tax on railroad employees) is amended— (A) by striking out "of the Internal Revenue Code of 1954" each place it appears; •.(,0 (B) by striking out "of such Code"; (C) by striking out "after September 30, 1973, as is" and 3i ' inserting in lieu thereof "as is"; and (D) by striking out "any month after September 30, 1973" •? and inserting in lieu thereof "any month".

90 STAT. 1807

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26 USC 3121.

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26 USC 3122. 26 USC 3125.

26 USC 3201.

(7) AMENDMENTS OF SECTION 3202.—

• (A) The second sentence of section 3202(a) (relating to 26 USC 3202. reduction of tax by railroad employer) is amended— (i) by striking out "after September 30, 1973," each place it appears; (ii) by striking out "after September 30, 1973 and the aggregate" and inserting in lieu thereof "and the aggregate"; ' ' y.;' ' (iii) by striking out "of the Internal Revenue Code of 1954" each place it appears; and (iv) by inserting a comma immediately after "for any month" each place it appears. (B) Section 3202(b) (relating to indemnification of ! employer) is amended by striking out "made". (8) AMENDMENTS OF SECTION 3211.—Section 3211(a) (relating 26 USC 3211. to rate of tax on railroad employee representatives) is amended—
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Page:United States Statutes at Large Volume 90 Part 2.djvu/340

 90 STAT. 1808

PUBLIC LAW 94-455--0CT. 4, 1976 ){>

(A) by striking out "3111(a), 3111(b)" and inserting in lieu thereof "3111 (a), and 3111 (b) "; (B) by striking out "of the Internal Revenue Code of 1954" each place it appears; '" '•'• • "-'; (C) by striking out "rendered by him after September 30, 1973," and inserting in lieu thereof "rendered by him"; and (D) by striking out "after September 30, 1973". (9) AMENDMENTS or SECTION 3221.— 26 USC 3221. (A) The first sentence of section 3221(a) (relating to rate • of tax on railroad employers) is amended— (i) by striking out "after September 30, 1973," each place it appears; (ii) by striking out "after September 30, 1973; except that" and inserting in lieu thereof ", except that"; (iii) by striking out "after September 30, 1973 of the aggregate" and inserting in lieu thereof "of the aggregate"; (iv) by striking out "of the Internal Revenue Code of 1954" each place it appears; and (v) by inserting a comma before "the tax imposed". (B) Section 3221(b) (relating to rate of tax on railroad employers) is amended to read as follows: by the rate of tax imposed with respect to wages by section 3111(a) ,,,.,^. plus the rate imposed by section 3111(b)." ': (C) Section 3221(c) (relating to additional railroad retirement tax) is amended— (i) by striking out "(1) at the rate of 2 cents for the period beginning November 1, 1966, and ending March ' '•' ' 31, 1970, and (2) commencing April 1, 1970," and (ii) by striking out "commencing with the quarter "-' ' • beginning April 1, 1970". (10) AMENDMENTS or SECTION 3231.— 26 USC 3231. iN (A) Section 3231(a) (defining employer) is amended by striking out "44 Stat. 577;". (B) Section 3231(b) (defining employee) is amended by fc- striking out "50 Stat. 312;"._ (C) Section 3231(c) (defining employee representative) is ^' ^ amended by striking out "44 Stat. 577;". (D) Section 3231(d)(7) (defining service) is amended by striking out "50 Stat. 308;". 26 USC 3301. ^ (11) AMENDMENTS OF SECTION 3 301.—Section 3301 (relating to Federal unemployment tax rate) is amended— ' (A) by striking out "the calendar year 1970 and each calendar year thereafter" and inserting in lieu thereof "each calendar year", and (B) by striking out the last sentence. ' (12) AMENDMENTS or SECTION 3302.— 26 USC 3302. t ' ( ^) Section 3302(a) (relating to credits against tax) is ! amended by striking out "(10-month period in the case of October 31, 1972)". I , (B) Section 3302(b) (relating to additional credit) is '•*' ' amended— (i) by striking out "(10-month period in the case of " ': • * •;:^;;;.' r),' October 31, 1972)", and
 * "' ' ' '"''"' "(b) The rate of tax imposed by subsection (a) shall be increased

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 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1809

(ii) by striking out "12 or 10-month period, as the • ' case may be," and inserting in lieu thereof "12-month period". (C)(i) Section 3302(c) (relating to limitation on credits 26 USC 3302. against unemployment tax) is amended by striking out paragraph (2) and the unnumbered paragraph immediately following such paragraph (2) (relating to advances made to a State unemployment account before September 13, 1960), and by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively. (ii) Section 3302(c)(2) (relating to advances made to a State unemployment account after September 12, 1960), as redesignated by clause (i) of this subparagraph, is amended by striking out "on or after the date of the enactment of the Employment Security Act of 1960", and by striking out "paragraphs (1) and (2) " and inserting in lieu thereof "paragraph (1)". (iii) Section 3302(c)(3) (relating to reductions with respect to certain agreements under the Trade Act of 1974), as redesignated by clause (i) of this subparagraph, is amended by striking out "paragraphs (1), (2), and (3)" and inserting in lieu thereof "paragraphs (1) and (2)". (iv) Section 3302(d)(3) (relating to effect of repayment -' - . of advances) is amended by striking out "or (3)". (v) Section 3302(d)(4), (5), and (6) (relating to special rules) are each amended by striking out "subsection (c)(3)" / each place it appears and inserting in lieu thereof "subsection (c)(2)". (vi) Section 3302(d)(7) (relating to determination and certification of percentages) is amended by striking out "subsection (c)(3)(B) or (C) " and inserting in lieu thereof "subsection (c)(2)(B) or (C)". • • •'• (T>) Section 3302(d) (relating to special rules for credits "*' against the unemployment tax) is amended by striking out paragraph (8) (across reference). (13) AMENDMENTS TO SECTION 3303.—Section 3303(b) (relating 26 USC 3303. to certification with respect to additional credit allowance) is amended— (A) by striking out "(10-month period in the case of \ October 31, 1972)" each place it appears, (B) by striking out "12 or 10-month period, as the case may be," each place it appears in paragraphs (1) and (2), and inserting in lieu thereof "12-month period", and (C) by striking out "12 or 10-month period, as the case may be," in paragraph (3) and inserting m lieu thereof "12month period,". (14) AMENDMENTS TO SECTION 3304.—

(A) Section 3B04(a)(3) (relating to requirements) is 26 USC 3304. amended by striking out "49 Stat. 640; 52 Stat. 1104, 1105;". (B) Section 3304(c) (relating to certification) is amended by striking out "(10-month period in the case of October 31, 1972)". (15) AMENDMENTS OF SECTION 3305.—

(A) Section 3305(g) (relating to vessels operated by 26 USC 3305. general agents of the United States) is amended by striking out "on or after July 1, 1953,".

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 90 STAT. 1810 26 USC 3305.

PUBLIC LAW 94-455—OCT. 4, 1976 i^]};.,

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(B) Section 3305(h) (relating to certain contributions to States) is amended by striking out "on or after July 1, 1953, and". (Q) Section 3305(j) (relating to denial of credits in certain cases) is amended by striking out "after December 31, 1971,". (16)

AMENDMENTS OF SECTION 3 3 0 6. —

26 USC 3306.

(A) Section 3306(c)(9) (relating to the exclusion of service performed by certain employees and employee representatives from the definition of employment) is amended by striking out "52 Stat. 1094, 1095;". (B) Section 3306(c) (18) (relating to the exclusion of certain service performed by nonresident aliens from the defini, tion of employment) is amended by inserting after the "Immigration and Nationality Act, as amended" the following: "(8 U.S.C. 1101(a) (15)(F) or (J)) ". (C) Section 3306(f) (relating to the definition of an ' unemployment fund) is amended by striking out "49 Stat. 640; 52 Stat. 1104, 1105;". (D) Section 3306(n) (relating to vessels operated by general agents of the United States) is amended by striking out "on or after July 1, 1953,". 26 USC 34^2.. (17) AMENDMENT or SECTION 3402.—Section 3402(1)(3)(B) (relating to marital status) is amended by striking out "section 2 (b)" and inserting in lieu thereof "section 2(a)". (b) AMENDMENT CONFORMING TO THE REPEAL OF SECTION 3113.— The table of sections for subchapter B of chapter 21 is amended by striking out the item relating to section 3113. (c) AMENDMENTS TO PROVISIONS REFERRING TO TERRITORIES.—Sec-

26 USC 3401, 3404. 26 USC 3101 "****• 26 USC 3201. ^

tions 3401(c) and 3404 are each amended by striking out "Territory," each place it appears. (d) EFFECTIVE DATES.—The amendments made by this section shall ^PP^y with respect to wages paid after December 31, 1976, except that the amendments made to chapter 22 of the Internal Revenue Code of 1954 shall apply with respect to compensation paid for services rendered after December 31, 1976. SEC. 1904. AMENDMENTS OF SUBTITLE D; MISCELLANEOUS EXCISE TAXES. (a) IN GENERAL.— (1) AMENDMENTS OF CHAPTER 31.—

(A) So much of chapter 31 (relating to retailers excise taxes) as precedes section 4041 is amended to read as follows:

j:^ 26 USC 4041.

"CHAPTER 31—SPECIAL FUELS "Sec. 4041. Imposition of tax." (B^ Section 4041(g) (relating to exemptions from fuel taxes) is amended to read as follows:

" (g) OTHER EXEMPTIONS.—Under regulations prescribed by the

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Secretary, no tax shall be imposed under this section— " (l) on Rny liquid sold for use or used as supplies for vessels or aircraft (within the meaning of section 4221(d)(3)); j "(2) with respect to the sale of any liquid for the exclusive use of any State, any political subdivision of a State, or the District of Columbia, or with respect to the use by any of the foregoing of any liquid as a fuel;

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 PUBLIC LAW Q4-455—OCT. 4, 1976 "(3) upon the sale of any liquid for export, or for shipment to a possession of the United States, and in due course so exported or shipped; and "(4) with respect to the sale of any liquid to a nonprofit educational organization for its exclusive use, or with respect to the use by a nonprofit educational organization of any liquid as a fuel. For purposes of paragraph (4), the term 'nonprofit educational organization' means an educational organization described in section 170(b) (l)(A) ( i i) which is exempt from income tax under section 501(a). The term also includes a school operated as an activity of an organization de:-;cribed in section 501(c)(3) which is exempt from income tax under section 501(a), if such school normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on."' (C) Section 4041 (relating to tax on fuels) is amended by adding at the end thereof the following new subsection: "(i) SALES BY UNITED STATES, ETC.—The taxes imposed by this section shall apply with respect to liquids sold at retail by the United States, or by any agency or instrumentality of the United States, unless sales by such agency or instrumentality are by statute specifically exempted from such taxes." (D) Chapter 31 is amended by striking out section 4042 (a cross reference) and subchapter F (special provisions applicable to retailers taxes).

90 STAT. 1811

"Nonprofit educational organization."

26 USC 4041.

26 USC 4042, 4054-4058.

(2) AMENDMENTS or SECTION 4216.—

(A) Section 4216 (relating to definition of price) is amended by redesignating subsections (e), (f), and (g) as subsections (d), (e), and (f), respectively. (B) Paragraphs (3), (4), and (5) of section 4216(b) (relating to constructive sales price) are each amended by striking out "subsections (a) and (f) " each place it appears and inserting in lieu thereof "subsections (a) and (e)". (3) AMENDMENT OF SECTION 4217.—Section 4217(d) (relating to lease treated as sale) is amended by striking out paragraph (4) (relating to certain 1958 transitional rules). (4) REPEAL or SECTION 4226.—Section 4228 (relating to floorstock taxes imposed before 1967) is repealed. (5) AMENDMENT OF SECTION 4227.—Section 4227 (relating to cross references) is amended to read as follows: "SEC. 4227. CROSS REFERENCE. "For credit for taxes on tires and inner tubes, see section 6416(c).'* (6) AMENDMENT OF SECTION 42.-53.—Section 4253 (relating to exemptions from the tax on communications services) is amended by adding at the end thereof the following new subsections:

26 USC 4216.

26 USC 4217.

26 USC 4226. 26 USC 4227.

26 USC 4253.

" ( i j STATE AND LOCAL GOVERNMENTAL EXEMPTION.—Under regula-

tions prescribed by the Secretary, no tax shall be imposed under section 4251 upon any payment received for services or facilities furnished to the government of any State, or any political subdivision thereof, or the District of Columbia. "(j)

EXEMPTION FOR NONPROFIT EDUCATIONAL ORGANIZATIONS.—

Under regulations prescribed by the Secretary, no tax shall be imposed under section 4251 on any amount paid by a nonprofit educational organization for services or facilities furnished to such organization. For purposes of this subsection, the term 'nonprofit educational "Nonprofit organization' means an educational organization described in section educational

organization.

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