Public Law 95–458

In General.—

Paragraph (1) of section 4216(b) of the Internal Revenue Code of 1954 (relating to constructive sale price) is amended by inserting after the second sentence thereof the following new sentence: “In the case of an article the sale of which is taxable under section 4061 (a) and which is sold at retail, the computation under the

26 USC 4061.

first sentence of this paragraph shall be a percentage (not greater than 100 percent) of the actual selling price based on the highest price for which such articles are sold by manufacturers and producers in the ordinary course of trade (determined without regard to any individual manufacturer’s or producer’s cost)”.

Conforming Amendment.—

The second sentence of paragraph (1) of such section 4216(b) is amended by inserting “(other than an article the sale of which is taxable under section 4061(a))” after “sold at retail”.

Effective Date.—

The amendments made by this section shall

26 USC 4216 note.

apply to articles sold by the manufacturer or producer on or after the first day of the first calendar quarter beginning 30 days or more after the date of enactment of th is Act.

Exemption From Tax on Wine.—

Section 5042(a)(2) of the

26 USC 5042.

Internal Revenue Code of 1954 (relating to production of wine for personal consumption) is amended to read as follows:

“(2)“(2)

Wine for personal or family use.—

Subject to regulations prescribed by the Secretary—

“(A)“(A)

Exemption.—

Any adult may, without payment of tax, produce wine for personal or family use and not for sale.

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“(B)“(B)

Limitation.—

The aggregate amount of wine exempt from tax under this paragraph with respect to any household shall not exceed—

“(i)“(i)

200 gallons per calendar year if there are 2 or more adults in such household, or

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“(ii)“(ii)

100 gallons per calendar year if there is only 1 adult in such household.

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“(C)“(C)

Adults.—

For purposes of this paragraph, the term ‘adult’ means an individual who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which wine may be sold to individuals, whichever is greater.”.

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Exemption From Tax on Beer.—

For purposes of this subsection, the term ‘adult’ means an individual

“Adult.”

who has attained 18 years of age, or the minimum age (if any) established by law applicable in the locality in which the household is situated at which beer may be sold to individuals, whichever is greater.”.

Effective Date.—

The amendments made by this section shall

26 USC 5042 note.

take effect on the first day of the first calendar month which begins more than 90 days after the date of the enactment of this Act.

Entitlement of Aerial Applicators to Refund of Gasoline Tax in Certain Cases.—

Subsection (c) of section 6420 of the Internal Revenue Code of 1954 (defining use on a farm for farming purposes)

26 USC 6420.

is amended by redesignating paragraph (4) as paragraph (5) and by inserting after paragraph (3) the following new paragraph:

“(4)“(4)

Certain farming use other than by owner, etc.—

In applying paragraph (3)(A) to a use on a farm for any purpose described in paragraph (3) (A) by any person other than the owner, tenant, or operator of such farm—

“(A)“(A)

the owner, tenant, or operator of such farm shall be treated as the user and ultimate purchaser of the gasoline, except that

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“(B)“(B)

if the person so using the gasoline is an aerial applicator who is the ultimate purchaser of the gasoline and the person described in subparagraph (A) waives (at such time and in such form and manner as the Secretary shall prescribe) his right to be treated as the user and ultimate purchaser of the gasoline, then subparagraph (A) of this paragraph shall not apply and the aerial applicator shall be treated as having used such gasoline on a farm for farming purposes.”.

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Entitlement of Aerial Applicators to Refund of Special Fuels Tax in Certain Cases.—

The second sentence of subsection (c) of section 6427 of such Code (relating to use for farming purposes)

26 USC 6427.

is amended to read as follows: “For purposes of this subsection, if fuel is used on a farm by any person other than the owner, tenant, or operator of such farm, the rules of paragraph (4) of section 6420 (c) shall be applied (except that ‘liquid taxable under section 4041’ shall

26 USC 4041.

be substituted for ‘gasoline’ each place it appears in such paragraph (4)).”.

Conforming Amendment.—

Subparagraph (A) of section 6420 (c)(3) of such Code is amended by striking out “except that” and all that follows down through the semicolon at the end of such subparagraph (A).”.

Effective Date.—

The amendments made by this section shall

26 USC 6420 note.

take effect on the first day of the first calendar quarter which begins more than 90 days after the date of the enactment of this Act.

Partial Rollover From Employees’ Trusts Permitted.—

Paragraph (5) of section 402(a) of the Internal Revenue Code of 1954 (relating to rollover amounts) is amended to read as follows:

26 USC 402.

“(5)“(5)

Rollover amounts.—

“(A)“(A)

General rule.—

If—

“(i)“(i)

the balance to the credit of an employee in a qualified trust is paid to him in a qualifying rollover distribution,

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“(ii)“(ii)

the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and

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“(iii)“(iii)

in the case of a distribution of property other than money, the amount so transferred consists of the property distributed,

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then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.

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“(B)“(B)

Maximum amount which mat be rolled over.—

In the case of any qualifying rollover distribution, the maximum amount transferred to which subparagraph (A) applies shall not exceed the fair market value of all the property the employee receives in the distribution, reduced by the employee contributions.

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“(C)“(C)

Transfer must be made within 60 days of receipt.—

Subparagraph (A) shall not apply to any transfer of a distribution made after the 60th day following the day on which the employee received the property distributed.

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“(D)“(D)

Definitions.—

For purposes of this paragraph—

“(i)“(i)

Qualifying rollover distribution.—

The term ‘qualifying rollover distribution’ means 1 or more distributions—

“(I)“(I)

within 1 taxable year of the employee on account of a termination of the plan of which the trust is a part or, in the case of a profit-sharing or stock bonus plan, a complete discontinuance of contributions under such plan, or

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“(II)“(II)

which constitute a lump sum distribution within the meaning of subsection (e)(4)(A) (determined without reference to subsection (e)(4)(B)).

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“(ii)“(ii)

Employee contributions.—

The term ‘employee contributions’ means—

“(I)“(I)

the excess of the amounts considered contributed by the employee (determined by applying section 72(f)), over

26 USC 72.

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“(II)“(II)

any amounts theretofore distributed to the employee which were not includible in gross income.

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“(iii)“(iii)

Qualified trust.—

The term ‘qualified trust’ means an employees’ trust described in section 401(a)

26 USC 401.

26 USC 501.

which is exempt from tax under section 501(a).

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“(iv)“(iv)

Eligible retirement plan.—

The term ‘eligible retirement plan’ means—

“(I)“(I)

an individual retirement account described in section 408(a),

26 USC 408.

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“(II)“(II)

an individual retirement annuity described in section 408(b) (other than an endowment contract),

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“(III)“(III)

a retirement bond described in section 409,

26 USC 409.

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“(IV)“(IV)

a qualified trust, and

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“(V)“(V)

an annuity plan described in section 403(a).

26 USC 403.

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“(E)“(E)

Special rules.—

“(i)“(i)

Transfer treated as rollover contribution under section 408.—

For purposes of this title, a transfer

26 USC 408.

described in subparagraph (A) to an eligible retirement plan described in subclause (I), (II), or (III) of subparagraph (D)(iv) shall be treated as a rollover contribution described in section 408 (d)(3).

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“(ii)“(ii)

Self-employed individuals and owner-employees.—

An eligible retirement plan described in subclause (IV) or (V) of subparagraph (D)(iv) shall not be treated as an eligible retirement plan for the transfer of a distribution if any part of the distribution is attributable to a trust forming part of a plan under which the employee was an employee within the meaning of section 401(c)(1) at the time contributions were

26 USC 401.

made on his behalf under the plan.”

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Partial Rollover of Annuity Contracts Permitted.—

Subsection (a) of section 403 of such Code (relating to taxability of

26 USC 403.

beneficiary under a qualified annuity plan) is amended by striking out paragraphs (4) and (5) and inserting in lieu thereof the following new paragraph:

“(4)“(4)

Rollover amounts.—

“(A)“(A)

General rule.—If—

“(i)“(i)

the balance to the credit of an employee in an employee annuity described in paragraph (1) is paid to him in a qualifying rollover distribution.

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“(ii)“(ii)

the employee transfers any portion of the property he receives in such distribution to an eligible retirement plan, and

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“(iii)“(iii)

in the case of a distribution of property other than money, the amount so transferred consists of the property distributed,

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then such distribution (to the extent so transferred) shall not be includible in gross income for the taxable year in which paid.

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“(B)“(B)

Certain rules made applicable.—

Rules similar to the rules of subparagraphs (B) through (E) of section 402

Ante, p. 1258.

26 USC 402.

(a)(5) and of paragraph (6) of section 402(a) shall apply for purposes of subparagraph (A).”

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Taxation of Portion Not Rolled Over.—

Effective Dates.—

Section 8 (d) of Public Law 93–233 is amended by adding at the

42 USC 1382e notes.

end thereof the following new sentences: “For purposes of this subsection, if the State requests the Secretary to make the finding specified in the first sentence of this subsection and to make an additional cash payment under title XVI in lieu of food stamps, in the amount and

42 USC 1381.

the manner described below, to every individual in the State who does not have an eligible spouse and who receives a supplementary payment pursuant to an agreement under section 1616(a) of the Act (other than

42 USC 1382e.

an individual who (i) receives such a supplementary payment at a level prescribed by the State by reason of his or her residence in an institution, or other living arrangement in which board and care are provided, or (ii) receives payments pursuant to section 212 of Public Law 93–66 at a level in excess of the level applicable to such individual

87 Stat. 155.

as established by the State under such agreement), the Secretary shall make such payments if he finds that the conditions of paragraph (1) have been met (and for this purpose the conditions of paragraph (1) shall be considered to have been met to the extent that they involve amounts payable under the law referred to in paragraph (1) (B) notwithstanding the suspension in 1978 of the cost-of-living increase in State supplementary payments under such law) for months beginning with the first month in which, as determined by the Secretary, such additional cash payment can be made, and ending with the month before the first subsequent month for which the conditions of paragraph (1) are met without regard to this sentence (and the requirements of paragraph (2) shall also be considered to have been met, effective on the first day of such first subsequent month, for purposes of applying the first sentence of this subsection to that month and

42 USC 1381.

7 USC 2017.

succeeding months). For purposes of the preceding sentence, the amount of an additional cash payment under title XVI in lieu of food stamps shall equal the cash value of the minimum allotment specified by section 8 (a) of the Food Stamp Act of 1977 for one-person households, and such additional cash payment shall be appropriately included in or with the check issued to such individual in payment of his supplementary security income benefit (or supplementary payment under such section 1616 (a)).”.

42 USC 1382e.

42 USC 1382e note.

42 USC 1381.

42 USC 1382e note.

No additional cash payment under title XVI of the Social Security Act may be made pursuant to the third sentence of section 8 (d) of Public Law 93–233 (as added by subsection (a) of this section) for any month beginning before October 1, 1978, or ending after September 30, 1979.