§ 291. Special rules relating to corporate preference items

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1982

   Pub. L. 97–248 title II § 204(a) · 96 Stat. 324

   Enacted · 26 U.S.C. § 291

   Added Pub. L. 97–248, title II, § 204(a), Sept. 3, 1982, 96 Stat. 423

   Source evidence

   Code source credit
   Added Pub. L. 97–248, title II, § 204(a), Sept. 3, 1982, 96 Stat. 423

   Enacted provision · exact public law section
   (a) In General.— Subchapter B of chapter 1 (relating to computation of taxable income) is amended by adding at the end thereof the following new part: “PART XI— SPECIAL RULES RELATING TO CORPORATE PREFERENCE ITEMS “Sec. 291. Special rules relating to corporate preference items. “SEC. 291. SPECIAL RULES RELATING TO CORPORATE PREFERENCE ITEMS. “(a) 15-Percent Reduction In Certain Preference Items, Etc.— For purposes of this subtitle, in the case of an applicable corporation— “(1) Section 1250 capital gain treatment.— In the case of section 1250 property which is disposed of during the taxable year, 15 percent of the excess (if any) of— “(A) the amount which would be treated as ordinary income if such property was section 1245 property or section 1245 recovery property, over “(B) the amount treated as ordinary income under section 1250, shall be treated as gain which is ordinary income and shall be recognized notwithstanding any other provision of this title. “(2) Reduction in percentage depletion.— In the case of iron ore and coal (including lignite), the amount allowable as a deduction under section 613 with respect to any property (as defined in section 614) shall be reduced by 15 percent of the amount of the excess (if any) of— “(A) the amount of the deduction allowable under section 613 for the taxable year (determined without regard to this paragraph), over “(B) the adjusted basis of the property at the close of the taxable year (determined without regard to the depletion deduction for the taxable year). “(3) Certain financial institution preference items.— The amount allowable as a deduction under this chapter (determined without regard to this section) with respect to any financial institution preference item shall be reduced by 15 percent. “(4) Certain deferred disc income.— If an applicable corporation is a shareholder of a DISC, in the case of taxable years beginning after December 31, 1982, section 995(b)(1)(F)(i) shall be applied with respect to such corporation by substituting ‘57.5 percent’ for ‘one-half’. “(5) Amortization of pollution control facilities.— If an election is made under section 169 with respect to any certified 26 USC 169. pollution control facility, the amortizable basis of such facility for purposes of such section shall be reduced by 15 percent. “(b) Special Rules for Treatment of Intangible Drilling Costs and Mineral Exploration and Development Costs.— For purposes of this subtitle, in the case of an applicable corporation— “(1) In general.— The amount allowable as a deduction for any taxable year (determined without regard to this section)— “(A) under section 263(c) in the case of an integrated oil company, or “(B) under section 616(a) or 617, shall be reduced by 15 percent. “(2) Special rule for amounts not allowable as deductions under paragraph (1).— “(A) Intangible drilling costs.— The amount not allowable as a deduction under section 263(c) for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 36-month period beginning with the month in which the costs are paid or incurred. “(B) Mineral exploration and development costs.— In the case of any amount not allowable as a deduction under section 616(a) or 617 for any taxable year by reason of paragraph (1)— “(i) the applicable percentage of the amount not so allowable as a deduction shall be allowable as a deduction for the taxable year in which the costs are paid or incurred and in each of the 4 succeeding taxable years, and “(ii) such costs shall be treated, for purposes of determining the amount of the credit allowable under section 38 for the taxable year in which paid or incurred, as qualified investment (within the meaning of subsections (c) and (d) of section 46) with respect to property placed in service during such year. “(3) Applicable percentage.— For purposes of paragraph (2)(B), the term ‘applicable percentage’ means the percentage determined in accordance with the following table: “Taxable Year: Applicable percentage: 1 15 2 22 3 21 4 21 5 21. “(4) Dispositions.— “(A) Oil, gas, and geothermal property.— In the case of any disposition of any oil, gas, or geothermal property to which section 1254 applies (determined without regard to this section) any deduction under paragraph (2)(A) with respect to intangible drilling and development costs under section 263(c) which are allocable to such property shall, for purposes of section 1254, be treated as a deduction allowable under section 263(c). “(B) Application of section 617(d).— In the case of any disposition of mining property to which section 617(d) 26 USC 617. applies (determined without regard to this section), any amount allowable as a deduction under paragraph (2)(B) which is allocable to such property shall, for purposes of section 617(d), be treated as a deduction allowable under section 617(a). “(C) Recapture of investment credit.— In the case of any disposition of any property to which the credit allowable under section 38 by reason of pa ragraph (2)(B) is allocable, such disposition shall , for purposes of section 47, be treated as a disposition of section 38 recovery property which is not 3-year property. “(5) Integrated oil company defined.— For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer (within the meaning of section 4996(a)(1)) of crude oil other than an independent producer (within the meaning of section 4992(b)). “(6) Coordination with cost depletion.— The portion of the adjusted basis of any property which is attributable to intangible drilling and development costs or mining exploration and development costs shall not be taken into account for purposes of determining depletion under section 611. “(c) Special Rules Relating to Pollution Control Facilities.— For purposes of this subtitle— “(1) Accelerated cost recovery deduction.— For purposes of subclause (I) of section 168(d)(1)(A)(ii), a taxpayer shall not be 95 Stat. 204. treated as electing the amortization deduction under section 169 with respect to that portion of the basis not taken into account under section 169 by reason of subsection (a)(5). “(2) 1250 recapture.— Subsection (a)(1) shall not apply to any section 1250 property which is part of a certified pollution control facility (within the meaning of section 169(d)(1)) with respect to which an election under section 169 was made. “(d) Special Rule for Real Estate Investment Trusts.— In the case of a real estate investment trust (as defined in section 856), the difference between the amounts described in subparagraphs (A) and (B) of subsection (a)(1) shall be reduced to the extent that a capital gain dividend (as defined in section 857(b)(3)(C), applied without regard to this section) is treated as paid out of such difference. Any capital gain dividend treated as having been paid out of such difference to a shareholder which is an applicable corporation retains its character in the hands of the shareholder as gain from the disposition of section 1250 property for purposes of applying subsection (a)(1) to such shareholder . For purposes of this section— “(1) Financial institution preference item.— The term ‘financial institution preference item’ includes the following: “(A) Excess reserves for losses on bad debts of financial institutions.— In the case of a financial institution to which section 585 or 593 applies, the excess of— “(i) the amount which would, but for this section, be allowable as a deduction for the taxable year for a reasonable addition to a reserve for bad debts, over “(ii) the amount which would have been allowable had such institution maintained its bad debt reserve for all taxable years on the basis of actual experience. “(B) Interest on debt to carry tax-exempt obligations acquired after december 31, 1982.— “(i) In general.— In the case of a financial institution to which section 585 or 593 applies, the amount of interest on indebtedness incurred or continued to purchase or carry obligations acquired after December 31, 1982, the interest on which is exempt from taxes for the taxable year, to the extent that a deduction would (but for this paragraph) be allowable with respect to such interest for such taxable year. “(ii) Determination of interest allocable to indebtedness on tax-exempt obligations.— Unless the taxpayer (under regulations prescribed by the Secretary) establishes otherwise, the amount determined under clause (i) shall be an amount which bears the same ratio to the aggregate amount allowable (determined without regard to this section) to the taxpayer as a deduction for interest for the taxable year as— “(I) the taxpayer’s average adjusted basis (within the meaning of section 1016) of obligations described in clause (i), bears to “(II) such average adjusted basis for all assets of the taxpayer. “(2) Applicable corporation.— For purposes of this section, the term ‘applicable corporation’ means any corporation other than an electing small business corporation (as defined in section 1371(b)). “(3) Section 1245 and 1250 property.— The terms ‘section 1245 property’, ‘section 1245 recovery property’, and ‘section 1250 property’ have the meanings given such terms by sections 1245(a)(3), 1245(a)(5), and 1250(c), respectively.” 95 Stat. 222. (b) Coordination With Minimum Tax.— Section 57(b) (relating to 26 USC 1245. 26 USC 57. adjusted itemized deductions) is amended to read as follows: “(b) Application With Section 291.— “(1) In general.— In the case of any item of tax preference of an applicable corporation described in— “(A) paragraph (4) or (7) of subsection (a), or “(B) paragraph (8) of subsection (a) (but only to the extent such item is allocable to a deduction for depletion for iron ore and coal (including lignite)), only 71.6 percent of the amount of such item of tax preference (determined without regard to this subsection) shall be taken into account as an item of tax preference. “(2) Certain capital gains.— In determining the net capital gain of any applicable corporation for purposes of paragraph (9)(B) of subsection (a), there shall be taken into account only 71.6 percent of any gain from the sale or exchange of section 1250 property which is equal to 85 percent of the excess determined under section 291(a)(1) with respect to such property. Ante, p. 423. “(3) Applicable corporation defined.— For purposes of this subsection, the term ‘applicable corporation’ has the meaning given such term by section 291(e)(2).” (c) Conforming Amendments.— (1) Subsection (c) of section 263 (relating to intangible drilling 26 USC 263. and development costs) is amended by adding at the end thereof the following new sentence: “This subsection shall not apply with respect to any costs to which any deduction is allowed under section 58(i) or 291.” Ante, pp. 417, 423. (2) The table of parts for subchapter B of chapter 1 is amended by adding at the end thereof the following: “Part XI. Special rules relating to corporate preference items.” (d) Effective Dates.— (1) In general.— Except as provided in this subsection, the amendments made by this section shall apply to taxable years beginning after December 31, 1982. (2) 1250 gain.— Section 291(a)(1) of the Internal Revenue Code Ante, p. 423. of 1954 shall apply to sales or other dispositions after December 31, 1982, in taxable years ending after such date. (3) Pollution control facilities.— Section 291(a)(5) of such Code shall apply to property placed in service after December 31, 1982, in taxable years ending after such date. (4) Drilling and mining costs.— Section 291(b) of such Code shall apply to expenditures after December 31, 1982, in taxable years ending after such date. (5) Reduction in percentage depletion for coal and iron ore.— Section 291(a)(2) of such Code shall apply to taxable years beginning after December 31, 1983. (6) Minimum tax.— The amendment made by subsection (b) shall apply to taxable years ending after December 31, 1982, with respect to items of tax preference described in section 57(b) Ante, p. 426. of such Code to which section 291 of such Code applies; except that in the case of an item described in section 291(a)(2) of such Code, such amendment shall apply to taxable years beginning after December 31, 1983. SEC. 205. AMENDMENTS TO INVESTMENT CREDIT. (a) Basis Adjustment to Reflect Investment Tax Credit.— (1) In general.— Section 48 (relating to definitions and special 26 USC 48. rules involving section 38 property) is amended by redesignating subsection (q) as subsection (r) and by inserting after subsection (p) the following new subsection: “(q) Basis Adjustment to Section 38 Property.— “(1) In general.— For purposes of this subtitle, if a credit is determined under section 46(a)(2) with respect to section 38 property, the basis of such property shall be reduced by 50 percent of the amount of the credit so determined. “(2) Certain dispositions.— If during any taxable year there is a recapture amount determined with respect to any section 38 property the basis of which was reduced under paragraph (1), the basis of such property (immediately before the event resulting in such recapture) shall be increased by an amount equal to 50 percent of such recapture amount. For purposes of the “Recapture amounts.” preceding sentence, the term ‘recapture amount’ means any increase in tax (or adjustment in carrybacks or carryovers) determined under section 47. “(3) Special rule for qualified rehabilitated buildings.— In the case of any credit determined under section 46(a)(2) for any qualified rehabilitation expenditure in connection with a qualified rehabilitated building other than a certified historic structure, paragraphs (1) and (2) shall be applied without regard to the phrase ‘50 percent of’. “(4) Election of reduced credit in lieu of basis adjustment for regular percentage.— “(A) In general.— If the taxpayer elects to have this paragraph apply with respect to any recovery property— “(i) paragraphs (1) and (2) shall not apply to so much of the credit determined under section 46(a)(2) with 26 USC 46. respect to such property as is attributable to the regular percentage set forth in section 46(a)(2)(B); and “(ii) the amount of the credit allowable under section 38 with respect to such property shall be determined under subparagraph (B). “(B) Reduction in credit.— In the case of any recovery property to which an election under subparagraph (A) applies— “(i) solely for the purposes of applying the regular percentage, the applicable percentage under subsection (c) or (d) of section 46 shall be deemed to be 100 percent, and “(ii) notwithstanding section 46(a)(2)(B), the regular percentage shall be— “(I) 8 percent in the case of recovery property other than 3-year property, or “(II) 4 percent in the case of recovery property which is 3-year property. For purposes of the preceding sentence, RRB replacement property (within the meaning of section 168(f)(3)(B)) shall be 95 Stat. 204. treated as property which is not 3-year property. “(C) Time and manner of making election.— “(i) In general.— An election under this subsection with respect to any property shall be made on the taxpayer’s return of the tax imposed by this chapter for the taxpayer’s taxable year in which such property is placed in service (or in the case of property to which an election under section 46(d) applies, for the first taxable year for which qualified progress expenditures were taken into account with respect to such property). “(ii) Revocable only with consent.— An election under this subsection with respect to any property, once made, may be revoked only with the consent of the Secretary. “(5) Recapture of reductions.— “(A) In general.— For purposes of sections 1245 and 1250, any reduction under this subsection shall be treated as a deduction allowed for depreciation. “(B) Special rule for section 1250.— For purposes of section 1250(b), the determination of what would have been the depreciation adjustments under the straight line method shall be made as if the re had been no reduction under this section.” (2) Allowance of deduction for certain unused investment credits.— Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: “SEC. 196. DEDUCTION FOR CERTAIN UNUSED INVESTMENT CREDITS. “(a) Allowance of Deductions.— If— “(1) the amount of the credit determined under section 46(a)(2) for any taxable year exceeds the limitation provided by 26 USC 46. section 46(a)(3) for such taxable year, and “(2) the amount of such excess has not, after the application of section 46(b), been allowed to the taxpayer as a credit under section 38 for any taxable year, then an amount equal to 50 percent of the amount of such excess (to the extent attributable to property the basis of which is reduced under section 48(q)) not so allowed as a credit shall be allowed to the Ante, p. 427. taxpayer as a deduction for the first taxable year following the last taxable year in which such excess could under section 46(b) have been allowed as a credit. “(b) Taxpayers Dying or Ceasing to Exist.— If a taxpayer dies or ceases to exist prior to the first taxable year following the last taxable year in which the excess described in subsection (a) could under section 46(b) have been allowed as a credit, the amount described in subsection (a), or the proper portion thereof, shall, under regulations prescribed by the Secretary, be allowed to the taxpayer as a deduction for the taxable year in which such death or cessation occurs. “(c) Special rule for qualified rehabilitated buildings.— In the case of any credit to which section 48(q)(3) applies, subsection (a) shall be applied without regard to the phrase ‘50 percent of’.” (3) Basis adjustment not taken into account for purposes of earnings and profits.— Section 312(k) (relating to effect of 26 USC 312. depreciation on earnings and profits) is amended by adding at the end thereof the following new paragraph: “(5) Basis adjustment not taken into account.— In computing the earnings and profits of a corporation for any taxable year, the allowance for depreciation (and amortization, if any) shall be computed without regard to any basis adjustment under section 48(q).” (4) Special rules for certain leased property.— Section 48(d) (relating to certain leased property) is amended by adding 26 USC 48. at the end thereof the following new paragraph: “(5) Coordination with basis adjustment.— In the case of any property with respect to which an election is made under this subsection— “(A) subsection (q) (other than paragraph (4)) shall not apply with respect to such property, “(B) the lessee of such property shall include ratably in gross income over the shortest recovery period which could be applicable under section 168 with respect to such property an amount equal to 50 percent of the amount of the credit allowable under section 38 to the lessee with respect to such property, and “(C) in the case of a disposition of such property to which section 47 applies, this paragraph shall be applied in accordance with regulations prescribed by the Secretary.” (5) Conforming amendments.— (A) Section 48(g) (relating to special rules for qualified rehabilitated buildings) is amended by striking out paragraph (5). (B) Paragraph (24) of section 1016(a) (relating to adjustments 95 Stat. 239. to basis) is amended by striking out “section 48(g)(5)” and inserting in lieu thereof “section 48(q)” (C) The table of sections for part VI of subchapter B of chapter 1 is amended by adding at the end thereof the following new item: “Sec. 196. Deduction for certain unused investment credits.” (b) Investment Credit Limited to 85 Percent of Tax Liability Instead of 90 Percent.— (1) In general.— Subparagraph (B) of section 46(a)(3) (relating 26 USC 46. to limitation based on amount of tax) is amended to read as follows: “(B) 85 percent of so much of the liability for tax for the taxable year as exceeds $25,000.” (2) Technical amendments.— (A) Subsection (a) of section 46 is amended by striking out paragraphs (7) and (8) and by redesignating paragraph (9) as paragraph (7). (B) Clause (i) of section 46(a)(7)(B), as redesignated by subparagraph (A), is amended to read as follows: “(i) paragraph (3)(B) shall be applied by substituting ‘100 percent’ for ‘85 percent’, and”. (C) Subparagraph (B) of section 46(a)(7), as redesignated by subparagraph (A), is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii). (c) Effective Dates.— (1) Subsection (a). — (A) General rule.— Except as otherwise provided in this paragraph, the amendments made by subsection (a) shall apply to periods after December 31, 1982, under rules similar to the rules of section 48(m) of the Internal Revenue Code of 1954. (B) Exception.— The amendments made by subsection (a) shall not apply to any property which— (i) is constructed, reconstructed, erected, or acquired pursuant to a contract which was entered into after August 13, 1981, and was, on July 1, 1982, and at all times thereafter, binding on the taxpayer, (ii) is placed in service after December 31, 1982, and before January 1, 1986, (iii) with respect to which an election under section 168(f)(8)(A) of such Code is not in effect at any time, and Post, p. 442. (iv) is not described in section 167(1)(3)(A) of such Code. (C) Special rule for integrated manufacturing facilities.— (i) In general.— In the case of any integrated manufacturing facility, the requirements of clause (i) of subparagraph (B) shall be treated as met if— (I) the on-site construction of the facility began before July 1, 1982, and (II) during the period beginning after August 13, 1981, and ending on July 1, 1982, the taxpayer constructed (or entered into binding contracts for the construction of) more than 20 percent of the cost of such facility. (ii) Integrated manufacturing facility.— For purposes of clause (i), the term ‘integrated manufacturing facility’ means 1 or more facilities— (I) located on a single site, (II) for the manufacture of 1 or more manufactured products from raw materials by the application of 2 or more integrated manufacturing processes. (D) Special rule for historic structures.— In the case of any certified historic structure (as defined in section 48(g)(3) of the Internal Revenue Code of 1954), clause (i) of 26 USC 48. subparagraph (B) shall be applied by substituting “December 31, 1980” for “August 13, 1981.” (E) Certain projects with respect to historic structures.— In the case of any certified historic structure (as so defined), the requirements of clause (i) of subparagraph (B) shall be treated as met with respect to such property— (i) if the rehabilitation begins after December 31, 1980, and before July 1, 1982, or (ii) if— (I) before July 1, 1982, a public offering with respect to interests in such property was registered with the Securities and Exchange Commission, (II) before such date an application with respect to such property was filed under section 8 of the United States Housing Act of 1937, and 42 USC 1437f. (III) such property is placed in service before July 1, 1984. (2) Subsection (b).— The amendments made by subsection (b) 26 USC 46 note. shall apply to taxable years beginning after December 31, 1982. SEC. 206. REPEAL OF 1985 AND 1986 INCREASES IN ACCELERATED COST RECOVERY DEDUCTIONS. (a) IN GENERAL.— Paragraph (1) of section 168(b) (relating to 95 Stat. 204. amount of accelerated cost recovery deduction) is amended— (1) by striking out “tables” and inserting in lieu thereof “table”; (2) by striking out: “(A) For property placed in service after december 31, 1980, and before january 1, 1985.—”; and (3) by striking out subparagraphs (B) and (C). (b) Conforming Amendments.— Paragraph (4) of section 168(e) (relating to property excluded from application of section) is amended— (1) by striking out subparagraph (H); and (2) by striking out “l986” in the heading thereof and inserting in lieu thereof “1981”. SEC. 207. SECTION 189 MADE APPLICABLE TO CERTAIN CORPORATIONS FOR NONRESIDENTIAL REAL PROPERTY. (a) In General.— Subsection (a) of section 189 is amended to read 26 USC 189. as follows: “(a) Capitalization of Construction Period Interest and Taxes.— Except as otherwise provided in this section or in section 266 (relating to carrying charges), no deduction shall be allowed for real property construction period interest and taxes.” (b) Exclusion of Certain Property.— Subsection (d) of section 95 Stat. 264. 189 (relating to certain property excluded) is amended— (1) by striking out “or” at the end of paragraph (1), (2) by redesignating paragraph (2) as paragraph (3), and (3) by inserting after pa ragraph (1) the following new paragraph: “(2) residential real property (other than low income housing) acquired, constructed, or carried by a corporation other than an electing small business corporation (within the meaning of section 1371(b)), a personal holding company (within the meaning of section 542), or a foreign personal holding company (within the meaning of section 552), or”. (c) Allocation of Interest.— Paragraph (1) of section 189(e) 26 USC 189. (relating to construction period interest and taxes) is amended by adding at the end thereof the following sentence: “The Secretary shall prescribe regulations which provide for the allocation of interest to real property under construction.” (d) Conforming Amendment.— Paragraph (1) of section 189(e) (relating to construction period interest and taxes) is amended— (1) by striking out “construction period interest and taxes” and inserting in lieu thereof “real property construction period interest and taxes”, and (2) by striking out the caption thereof and inserting in lieu thereof: “(1) Real property construction period interest and taxes.—”. (e) Effective Date.— (1) In general.— Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 1982, with respect to construction which commences after such date. (2) Certain planned construction.— The amendments made by this section shall not apply with respect to construction of property which is used in a trade or business described in section 48(a)(3)(B) of the Internal Revenue Code of 1954 or which is a hospital or nursing home if— (A) such construction is conducted pursuant to a written plan of the taxpayer which was in existence on July 1, 1982, and as to which approval from a governmental unit has been requested in writing, and (B) such construction commences before January 1, 1984, and shall not apply to the Alaska Natural Gas Transportation System (15 U.S.C. 719) and its related facilities.

2. 1982

   Subchapter S Revision Act of 1982

   Pub. L. 97–354 § 5(a)(27)(A) · 96 Stat. 1669

   Substituted · 26 U.S.C. § 291(a)

   Pub. L. 97–354, § 5(a)(27)(A), substituted “a corporation” for “an applicable corporation” wherever appearing

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 97–354, § 5(a)(27)(A), substituted “a corporation” for “an applicable corporation” wherever appearing.

   Enacted provision · exact public law section
   (A) Subsections (a) and (b) of section 291 are each amended by striking out “an applicable corporation” each place it appears and inserting in lieu thereof “a corporation”.

3. 1982

   Subchapter S Revision Act of 1982

   Pub. L. 97–354 § 5(a)(27)(A) · 96 Stat. 1669

   Substituted · 26 U.S.C. § 291(b)

   Pub. L. 97–354, § 5(a)(27)(A), substituted “a corporation” for “an applicable corporation”

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 97–354, § 5(a)(27)(A), substituted “a corporation” for “an applicable corporation”.

   Enacted provision · exact public law section
   (A) Subsections (a) and (b) of section 291 are each amended by striking out “an applicable corporation” each place it appears and inserting in lieu thereof “a corporation”.

4. 1982

   Subchapter S Revision Act of 1982

   Pub. L. 97–354 § 5(a)(27)(B) · 96 Stat. 1669

   Redesignated · 26 U.S.C. § 291(e)(2); 26 U.S.C. § 291(e)(3)

   Pub. L. 97–354, § 5(a)(27)(B), redesignated par. (3) as (2). Former par. (2), defining “applicable corporation”, was struck out

   Source evidence

   Code amendment note
   Subsec. (e)(2), (3). Pub. L. 97–354, § 5(a)(27)(B), redesignated par. (3) as (2). Former par. (2), defining “applicable corporation”, was struck out.

   Enacted provision · exact public law section
   (B) Subsection (e) of section 291 is amended by striking out paragraph (2) and by redesignating paragraph (3) as paragraph (2).

5. 1983

   Pub. L. 97–448 title III § 306(a)(2) · 96 Stat. 2365

   Inserted · 26 U.S.C. § 291(a)(1)

   Pub. L. 97–448 inserted provision that, under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d)

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 97–448 inserted provision that, under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d).

   Enacted provision · exact public law section
   (2) Ante, p. 423.26 USC 291. Amendment related to section 204.— Paragraph (1) of section 291(a) (relating to 15-percent reduction for certain preference items) is amended by adding at the end thereof the following new sentence: “Under regulations prescribed by the Secretary, the provisions of this paragraph shall not apply to the disposition of any property to the extent section 1250(a) does not apply to such disposition by reason of section 1250(d).”

6. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 68(a) · 98 Stat. 494

   1. Substituted · 26 U.S.C. § 291(a)

      Pub. L. 98–369, § 68(a), which directed that each subsection be amended by substituting “20 percent” for “15 percent” to reflect the probable intent of Congress

   2. Substituted · 26 U.S.C. § 291(a)

      Pub. L. 98–369, § 68(a), which directed that each subsection be amended by substituting “20-percent” for “15-percent” to reflect the probable intent of Congress

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 98–369, § 68(a), which directed that each subsection be amended by substituting “20 percent” for “15 percent” wherever appearing, was executed in heading by substituting “20-percent” for “15-percent” to reflect the probable intent of Congress.

   Enacted provision · exact public law section
   (a) In General.— Each subsection (other than subsection (a)(2)) of 26 USC 291. section 291 (relating to special rules for corporate preference items) is amended by striking out “15 percent” each place it appears and inserting in lieu thereof “20 percent”.

7. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 68(a) · 98 Stat. 494

   Substituted · 26 U.S.C. § 291(a)(1)

   Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions preceding subpar. (A)

   Source evidence

   Code amendment note
   Subsec. (a)(1). Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions preceding subpar. (A).

   Enacted provision · exact public law section
   (a) In General.— Each subsection (other than subsection (a)(2)) of 26 USC 291. section 291 (relating to special rules for corporate preference items) is amended by striking out “15 percent” each place it appears and inserting in lieu thereof “20 percent”.

8. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 712(a)(1)(A)(ii) · 98 Stat. 494

   Inserted · 26 U.S.C. § 291(a)(1)

   Pub. L. 98–369, § 712(a)(1)(A)(ii), inserted “under section 1250” in provisions following subpar. (B)

   Target inherited from the preceding amendment note.

   Source evidence

   Code amendment note
   Pub. L. 98–369, § 712(a)(1)(A)(ii), inserted “under section 1250” in provisions following subpar. (B).

   Enacted provision · exact public law section
   (ii) by striking out “which is ordinary income” and inserting in lieu thereof “which is ordinary income under section 1250”.

9. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 712(a)(1)(A)(i) · 98 Stat. 494

   Inserted · 26 U.S.C. § 291(a)(1)(B)

   Pub. L. 98–369, § 712(a)(1)(A)(i), inserted “(determined without regard to this paragraph)”

   Source evidence

   Code amendment note
   Subsec. (a)(1)(B). Pub. L. 98–369, § 712(a)(1)(A)(i), inserted “(determined without regard to this paragraph)”.

   Enacted provision · exact public law section
   (i) by striking out “under section 1250” in subparagraph (B) and inserting in lieu thereof “under section 1250 (determined without regard to this paragraph)”, and

10. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 68(a) · 98 Stat. 494

    Substituted · 26 U.S.C. § 291(a)(3)

    Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”

    Source evidence

    Code amendment note
    Subsec. (a)(3). Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”.

    Enacted provision · exact public law section
    (a) In General.— Each subsection (other than subsection (a)(2)) of 26 USC 291. section 291 (relating to special rules for corporate preference items) is amended by striking out “15 percent” each place it appears and inserting in lieu thereof “20 percent”.

11. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 68(b) · 98 Stat. 494

    Amended · 26 U.S.C. § 291(a)(4)

    Pub. L. 98–369, § 68(b), amended par. (4) generally. Prior to amendment, par. (4) read as follows:

    Source evidence

    Code amendment note
    Subsec. (a)(4). Pub. L. 98–369, § 68(b), amended par. (4) generally. Prior to amendment, par. (4) read as follows:

    “(4) Certain deferred disc income.—If a corporation is a shareholder of a DISC, in the case of taxable years beginning after December 31, 1982, section 995(b)(1)(F)(i) shall be applied with respect to such corporation by substituting ‘57.5 percent’ for ‘one-half’.”

    Enacted provision · exact public law section
    (b) Deferred FSC Income.— Paragraph (4) of section 291(a) (relating to certain deferred DISC income) is amended to read as follows: “(4) Certain deferred fsc income.— If a corporation is a shareholder of the FSC, in the case of taxable years beginning Post, p. 986. after December 31, 1984, section 923(a) shall be applied with respect to such corporation by substituting— “(A) ‘30 percent’ for ‘32 percent’ in paragraph (2), and “(B) ‘15/23’ for ‘16/23’ in paragraph (3).

12. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 68(a) · 98 Stat. 494

    Substituted · 26 U.S.C. § 291(a)(5)

    Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”

    Source evidence

    Code amendment note
    Subsec. (a)(5). Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent”.

    Enacted provision · exact public law section
    (a) In General.— Each subsection (other than subsection (a)(2)) of 26 USC 291. section 291 (relating to special rules for corporate preference items) is amended by striking out “15 percent” each place it appears and inserting in lieu thereof “20 percent”.

13. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 68(a) · 98 Stat. 494

    Substituted · 26 U.S.C. § 291(b)(1)

    Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions following subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 98–369, § 68(a), substituted “20 percent” for “15 percent” in provisions following subpar. (B).

    Enacted provision · exact public law section
    (a) In General.— Each subsection (other than subsection (a)(2)) of 26 USC 291. section 291 (relating to special rules for corporate preference items) is amended by striking out “15 percent” each place it appears and inserting in lieu thereof “20 percent”.

14. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 712(a)(2) · 98 Stat. 494

    Inserted · 26 U.S.C. § 291(b)(2)(B)(ii)

    Pub. L. 98–369, § 712(a)(2), inserted “in the case of a deposit located in the United States,”

    Source evidence

    Code amendment note
    Subsec. (b)(2)(B)(ii). Pub. L. 98–369, § 712(a)(2), inserted “in the case of a deposit located in the United States,”.

    Enacted provision · exact public law section
    (2) Investment tax credit allowed only for mineral exploration and development costs for deposits located in the united states.— Clause (ii) of section 291(b)(2)(B) is amended by inserting “in the case of a deposit located in the United States,” after “(ii)”.

15. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 712(a)(3) · 98 Stat. 494

    Substituted · 26 U.S.C. § 291(b)(6)

    Pub. L. 98–369, § 712(a)(3), substituted “attributable to amounts to which paragraph (1) applied” for “attributable to intangible drilling and development costs or mining exploration and development costs”

    Source evidence

    Code amendment note
    Subsec. (b)(6). Pub. L. 98–369, § 712(a)(3), substituted “attributable to amounts to which paragraph (1) applied” for “attributable to intangible drilling and development costs or mining exploration and development costs”.

    Enacted provision · exact public law section
    (3) Clarification of coordination with cost depletion.— Paragraph (6) of section 291(b) (relating to coordination with cost depletion) is amended to read as follows: “(6) Coordination with cost depletion.— The portion of the adjusted basis of any property which is attributable to amounts to which paragraph (1) applied shall not be taken into account for purposes of determining depletion under section 611.”

16. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 712(a)(4) · 98 Stat. 494

    Added · 26 U.S.C. § 291(e)(1)(B)(iii)

    Pub. L. 98–369, § 712(a)(4), added cl. (iii)

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(iii). Pub. L. 98–369, § 712(a)(4), added cl. (iii).

    Enacted provision · exact public law section
    (4) Clarification of definition of interest.— Subparagraph (B) of section 291(e)(1) (relating to interest on debt to carry taxexempt obligations acquired after December 31, 1982) is amended by adding at the end thereof the following new clause: “(iii) Interest.— For purposes of this subparagraph, the term ‘interest’ includes amounts (whether or not designated as interest) paid in respect of deposits, investment certificates, or withdrawable or repurchasable shares.”

17. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1804(k)(3)(A) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 291(a)

    Pub. L. 99–514, § 1804(k)(3)(A), substituted “Reduction” for “20-percent reduction” in heading

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–514, § 1804(k)(3)(A), substituted “Reduction” for “20-percent reduction” in heading.

    Enacted provision · exact public law section
    (A) The subsection heading of section 291(a) is amended by striking out “20-Percent”.

18. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 201(d)(5)(A) · 100 Stat. 2085

    Struck · 26 U.S.C. § 291(a)(1)(A)

    Pub. L. 99–514, § 201(d)(5)(A), struck out “or section 1245 recovery property” after “section 1245 property”

    Source evidence

    Code amendment note
    Subsec. (a)(1)(A). Pub. L. 99–514, § 201(d)(5)(A), struck out “or section 1245 recovery property” after “section 1245 property”.

    Enacted provision · exact public law section
    (A) Subparagraph (A) of section 291(a)(1) is amended by striking out “or section 1245 recovery property”.

19. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 412(b)(1) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 291(a)(2)

    Pub. L. 99–514, § 412(b)(1), substituted “20 percent” for “15 percent”

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 99–514, § 412(b)(1), substituted “20 percent” for “15 percent”.

    Enacted provision · exact public law section
    (1) In general.— Paragraph (2) of section 291(a) (relating to reductions in percentage depletion) is amended by striking out “15 percent” and inserting in lieu thereof “20 percent”.

20. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1876(b)(1) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 291(a)(4)

       Pub. L. 99–514, § 1876(b)(1), substituted “Certain FSC income” for “Certain deferred FSC income” in heading

    2. Substituted · 26 U.S.C. § 291(a)(4)

       Pub. L. 99–514, § 1876(b)(1), amended text generally. Prior to amendment, text read as follows: “If a C corporation is a shareholder of the FSC, in the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to such corporation by substituting—

    Source evidence

    Code amendment note
    Subsec. (a)(4). Pub. L. 99–514, § 1876(b)(1), substituted “Certain FSC income” for “Certain deferred FSC income” in heading and amended text generally. Prior to amendment, text read as follows: “If a C corporation is a shareholder of the FSC, in the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to such corporation by substituting—

    “(A) ‘30 percent’ for ‘32 percent’ in paragraph (2), and “(B) ‘15/23’ for ‘16/23’ in paragraph (3).”

    Enacted provision · exact public law section
    (1) Paragraph (4) of section 291(a) (relating to 20-percent reduction in certain preference items, etc.) is amended to read as follows: (4) Certain fsc income.— In the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to any FSC by substituting— “(A) ‘30 percent’ for ‘32 percent’ in paragraph (2), and “(B) ‘1523’ for ‘1623’ in paragraph (3). If all of the stock in the FSC is not held by 1 or more C corporations throughout the taxable year, under regulations, proper adjustments shall be made in the application of the preceding sentence to take into account stock held by persons other than C corporations.”

21. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1804(k)(1) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 291(a)(4)

    Pub. L. 99–514, § 1804(k)(1), substituted “If a C corporation” for “If a corporation”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 1804(k)(1), substituted “If a C corporation” for “If a corporation”.

    Enacted provision · exact public law section
    (1) No disc preference reduction for s corporations.— Effective with respect to taxable years beginning after December 31, 1982, paragraph (4) of section 291(a) (as in effect on the day before the date of the enactment of the Tax Reform Act of 1984) is amended by striking out “a corporation” and inserting in lieu thereof “a C corporation”.

22. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 411(a)(1) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 291(b)(1)

       Pub. L. 99–514, § 411(a)(1), (b)(2)(C)(ii), substituted “30 percent” for “20 percent” in subpar. (B)

    2. Substituted · 26 U.S.C. § 291(b)(1)

       Pub. L. 99–514, § 411(a)(1), (b)(2)(C)(ii), substituted “617(a)” for “617” in subpar. (B)

    Source evidence

    Code amendment note
    Subsec. (b)(1). Pub. L. 99–514, § 411(a)(1), (b)(2)(C)(ii), substituted “30 percent” for “20 percent” in closing provisions and “617(a)” for “617” in subpar. (B).

    Enacted provision · exact public law section
    (1) Increase in percentage disallowance.— Paragraph (1) of section 291(b) (relating to special rules for treatment of intangible drilling costs and mineral exploration and development costs) is amended by striking out “20 percent” and inserting in lieu thereof “30 percent”.

23. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 411(a)(2) · 100 Stat. 2085

    1. Added · 26 U.S.C. § 291(b)(2)(6)

       Pub. L. 99–514, § 411(a)(2), added pars. (2) to (5)

    2. Struck · 26 U.S.C. § 291(b)(2)(6)

       Pub. L. 99–514, § 411(a)(2), struck out former pars. (2) to (6) as follows: former par. (2), special rule for amounts not allowable as deductions under paragraph (1), related in subpar. (A) to intangible drilling costs and in subpar. (B) to mineral exploration and development costs; former par. (3) defined applicable percentage in accordance with table for taxable years 1 to 5; former par. (4) dispositions, related in subpar. (A) to oil, gas, and geothermal property, in subpar. (B) to application of section 617(d) of this title, and in subpar. (C) to recapture of investment credit; former par. (5) defined integrated oil company; and former par. (6) related to coordination with cost depletion

    Source evidence

    Code amendment note
    Subsec. (b)(2) to (6). Pub. L. 99–514, § 411(a)(2), added pars. (2) to (5) and struck out former pars. (2) to (6) as follows: former par. (2), special rule for amounts not allowable as deductions under paragraph (1), related in subpar. (A) to intangible drilling costs and in subpar. (B) to mineral exploration and development costs; former par. (3) defined applicable percentage in accordance with table for taxable years 1 to 5; former par. (4) dispositions, related in subpar. (A) to oil, gas, and geothermal property, in subpar. (B) to application of section 617(d) of this title, and in subpar. (C) to recapture of investment credit; former par. (5) defined integrated oil company; and former par. (6) related to coordination with cost depletion.

    Enacted provision · exact public law section
    (2) Treatment of disallowed amount.— Subsection (b) of section 291 is amended by striking out paragraphs (2), (3), (4), (5), and (6) and inserting in lieu thereof the following new paragraphs: “(2) ) Amortization of amounts not allowable as deductions under paragraph (i).— The amount not allowable as a deduction under section 263(c), 616(a), or 617(a) (as the case may be) for any taxable year by reason of paragraph (1) shall be allowable as a deduction ratably over the 60-month period beginning with the month in which the costs are paid or incurred. “(3) ) Dispositions.— For purposes of section 1254, any deduction under paragraph (2) shall be treated as a deduction allowable under section 263(c), 616(a), or 617(a) (whichever is appropriate). “(4) ) Integrated oil company defined.— For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer (within the meaning of section 4996(a)(1)) of crude oil other than an independent producer (within the meaning of section 4992(b)). “(5) ) Coordination with cost depletion.— The portion of the adjusted basis of any property which is attributable to amounts to which paragraph (1) applied shall not be taken into account for purposes of determining depletion under section 611.”

24. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 201(d)(5)(B) · 100 Stat. 2085

    Amended · 26 U.S.C. § 291(c)(1)

    Pub. L. 99–514, § 201(d)(5)(B), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “For purposes of subclause (1) of section 168(d)(1)(A)(ii), a taxpayer shall not be treated as electing the amortization deduction under section 169 with respect to that portion of the basis not taken into account under section 169 by reason of subsection (a)(5).”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 99–514, § 201(d)(5)(B), amended par. (1) generally. Prior to amendment, par. (1) read as follows: “For purposes of subclause (1) of section 168(d)(1)(A)(ii), a taxpayer shall not be treated as electing the amortization deduction under section 169 with respect to that portion of the basis not taken into account under section 169 by reason of subsection (a)(5).”

    Enacted provision · exact public law section
    (B) Paragraph (1) of section 291(c) is amended to read as follows: “(1) Accelerated cost recovery deduction.— Section 168 shall apply with respect to that portion of the basis of any property not taken into account under section 169 by reason of subsection (a)(5).”

25. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 901(b)(4) · 100 Stat. 2085

    Struck · 26 U.S.C. § 291(e)(1)(A)

    Pub. L. 99–514, § 901(b)(4), struck out “or 593” after “section 585”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(A). Pub. L. 99–514, § 901(b)(4), struck out “or 593” after “section 585”.

    Enacted provision · exact public law section
    (4) Section 593 reserves not treated as preference for purposes of section 291.— Subparagraph (A) of section 291(e)(1) (defining financial institution preference item) is amended by striking out “or 593”.

26. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 902(c)(2)(C) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 291(e)(1)(B)

    Pub. L. 99–514, § 902(c)(2)(C), substituted “1982, and before August 8, 1986” for “1982” in heading

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B). Pub. L. 99–514, § 902(c)(2)(C), substituted “1982, and before August 8, 1986” for “1982” in heading.

    Enacted provision · exact public law section
    (C) by striking out “after december 31, 1982” in the subparagraph heading and inserting in lieu thereof “after december 31, 1982, and before august 8, 1986”, and

27. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 902(c)(1) · 100 Stat. 2085

    1. Substituted · 26 U.S.C. § 291(e)(1)(B)(i)

       Pub. L. 99–514, § 902(c)(1), (2)(A), substituted “1982, and before August 8, 1986” for “1982”

    2. Substituted · 26 U.S.C. § 291(e)(1)(B)(i)

       Pub. L. 99–514, § 902(c)(1), (2)(A), substituted “(but for this paragraph or section 265(b))” for “(but for this paragraph)”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(i). Pub. L. 99–514, § 902(c)(1), (2)(A), substituted “1982, and before August 8, 1986” for “1982” and “(but for this paragraph or section 265(b))” for “(but for this paragraph)”.

    Enacted provision · exact public law section
    (1) In general.— Clause (i) of section 291(e)(1)(B) (relating to interest on debt to carry tax-exempt obligations acquired after December 31, 1982) is amended by striking out “after December 31, 1982” and inserting in lieu thereof “after December 31, 1982, and before August 8, 1986”.

28. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 901(d)(4)(C) · 100 Stat. 2085

    Substituted · 26 U.S.C. § 291(e)(1)(B)(i)

    Pub. L. 99–514, § 901(d)(4)(C), substituted “which is a bank (as defined in section 582(a)(2)) or to which section 593 applies” for “to which section 585 or 593 applies”

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 901(d)(4)(C), substituted “which is a bank (as defined in section 582(a)(2)) or to which section 593 applies” for “to which section 585 or 593 applies”.

    Enacted provision · exact public law section
    (C) Clause (i) of section 291(e)(1)(B) is amended by striking out “to which section 585 or 593 applies” and inserting in lieu thereof “which is a bank (as defined in section 582(a)(2)) or to which section 593 applies”.

29. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 902(c)(2)(B) · 100 Stat. 2085

    Inserted · 26 U.S.C. § 291(e)(1)(B)(ii)

    Pub. L. 99–514, § 902(c)(2)(B), inserted “and section 265(b)”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(ii). Pub. L. 99–514, § 902(c)(2)(B), inserted “and section 265(b)”.

    Enacted provision · exact public law section
    (B) by striking out “without regard to this section” in clause (ii) and inserting in lieu thereof “without regard to this section and section 265(b)”,

30. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1854(c)(1) · 100 Stat. 2085

    Added · 26 U.S.C. § 291(e)(1)(B)(iv)

    Pub. L. 99–514, § 1854(c)(1), added cl. (iv) relating to special rules for obligations to which section 133 applies

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(iv). Pub. L. 99–514, § 1854(c)(1), added cl. (iv) relating to special rules for obligations to which section 133 applies.

    Enacted provision · exact public law section
    (1) Subparagraph (B) of section 291(e)(1) (defining financial institution preference item) is amended by adding at the end thereof the following new clause: “(iv) Special rules for obligations to which section 133 applies.— In the case of an obligation to which section 133 applies, interest on such obligation shall not be treated as exempt from taxes for purposes of this subparagraph.”

31. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 902(c)(2)(D) · 100 Stat. 2085

    Added · 26 U.S.C. § 291(e)(1)(B)(iv)

    Pub. L. 99–514, § 902(c)(2)(D), added cl. (iv) relating to application of subparagraph to certain obligations issued after August 7, 1986

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 99–514, § 902(c)(2)(D), added cl. (iv) relating to application of subparagraph to certain obligations issued after August 7, 1986.

    Enacted provision · exact public law section
    (D) by adding at the end thereof the following new clause: “(iv) Application of subparagraph to certain obligations issued after august 7, 1986.— “For appliration of this subparagraph to certain obligations issued after August 7, 1986. see section 265(b)(3).”

32. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 201(d)(5)(C) · 100 Stat. 2085

    Struck · 26 U.S.C. § 291(e)(2)

    Pub. L. 99–514, § 201(d)(5)(C), struck out “, ‘section 1245 recovery property’,” after “ ‘section 1245 property’ ” and directed that par. (2) be amended by striking out “, section 1245(a)(5),” which was executed by striking out “, 1245(a)(5),” after “sections 1245(a)(3)” to reflect the probable intent of Congress

    Source evidence

    Code amendment note
    Subsec. (e)(2). Pub. L. 99–514, § 201(d)(5)(C), struck out “, ‘section 1245 recovery property’,” after “ ‘section 1245 property’ ” and directed that par. (2) be amended by striking out “, section 1245(a)(5),” which was executed by striking out “, 1245(a)(5),” after “sections 1245(a)(3)” to reflect the probable intent of Congress.

    Enacted provision · exact public law section
    (C) Section 291(e)(2) is amended by striking out “, ‘section 1245 recovery property’,” and “, section 1245(a)(5),”.

33. 1988

    Omnibus Trade and Competitiveness Act of 1988

    Pub. L. 100–418 title I § 1941(b)(5) · 102 Stat. 1107

    Amended · 26 U.S.C. § 291(b)(4)

    Pub. L. 100–418 amended par. (4) generally. Prior to amendment, par. (4) read as follows: “For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer (within the meaning of section 4996(a)(1)) of crude oil other than an independent producer (within the meaning of section 4992(b)).”

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 100–418 amended par. (4) generally. Prior to amendment, par. (4) read as follows: “For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer (within the meaning of section 4996(a)(1)) of crude oil other than an independent producer (within the meaning of section 4992(b)).”

    Enacted provision · exact public law section
    (5) Paragraph (4) of section 291(b) of such Code is amended to read as follows: “(4) Integrated oil company defined.— For purposes of this subsection, the term ‘integrated oil company’ means, with respect to any taxable year, any producer of crude oil to whom subsection (c) of section 613A does not apply by reason of paragraph (2) or (4) of section 613A(d).”

34. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1009(b)(5) · 102 Stat. 3342

    Substituted · 26 U.S.C. § 291(e)(1)(B)(i)

    Pub. L. 100–647, § 1009(b)(5), substituted “section 585(a)(2)” for “section 582(a)(2)”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(i). Pub. L. 100–647, § 1009(b)(5), substituted “section 585(a)(2)” for “section 582(a)(2)”.

    Enacted provision · exact public law section
    (5) Clause (i) of section 291(e)(1)(B) of the 1986 Code is amended by striking out “section 582(a)(2)” and inserting in lieu thereof “section 585(a)(2)”.

35. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 § 1009(b)(4) · 102 Stat. 3342

    Redesignated · 26 U.S.C. § 291(e)(1)(B)(iv); 26 U.S.C. § 291(e)(1)(B)(v)

    Pub. L. 100–647, § 1009(b)(4), redesignated cl. (iv), relating to application of subparagraph to certain obligations issued after Aug. 7, 1986, as (v)

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(iv), (v). Pub. L. 100–647, § 1009(b)(4), redesignated cl. (iv), relating to application of subparagraph to certain obligations issued after Aug. 7, 1986, as (v).

    Enacted provision · exact public law section
    (4) Subparagraph (B) of section 291(e)(1) of the 1986 Code is amended by redesignating the clause (iv) added by section 902(c)(2) of the Reform Act as clause (v).

36. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 title XI § 11801(c)(12)(B) · 104 Stat. 1388

    Struck · 26 U.S.C. § 291(e)(1)(A)

    Pub. L. 101–508 struck out subpar. (A) “Excess reserves for losses on bad debts of financial institutions” which read as follows: “In the case of a financial institution to which section 585 applies, the excess of—

    Source evidence

    Code amendment note
    Subsec. (e)(1)(A). Pub. L. 101–508 struck out subpar. (A) “Excess reserves for losses on bad debts of financial institutions” which read as follows: “In the case of a financial institution to which section 585 applies, the excess of—

    “(i) the amount which would, but for this section, be allowable as a deduction for the taxable year for a reasonable addition to a reserve for bad debts, over “(ii) the amount which would have been allowable had such institution maintained its bad debt reserve for all taxable years on the basis of actual experience.”

    Enacted provision · exact public law section
    (B) Subparagraph (A) of section 291(e)(l) is hereby repealed.

37. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1616(b)(5) · 110 Stat. 1755

    Struck · 26 U.S.C. § 291(e)(1)(B)(i)

    Pub. L. 104–188, § 1616(b)(5), struck out “or to which section 593 applies” after “585(a)(2))”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(i). Pub. L. 104–188, § 1616(b)(5), struck out “or to which section 593 applies” after “585(a)(2))”.

    Enacted provision · exact public law section
    (5) Clause (i) of section 291(e)(1)(B) is amended by striking “or to which section 593 applies”.

38. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 § 1602(b)(1) · 110 Stat. 1755

    1. Redesignated · 26 U.S.C. § 291(e)(1)(B)(iv); 26 U.S.C. § 291(e)(1)(B)(v)

       Pub. L. 104–188, § 1602(b)(1), redesignated cl. (v) as (iv)

    2. Struck · 26 U.S.C. § 291(e)(1)(B)(iv); 26 U.S.C. § 291(e)(1)(B)(v)

       Pub. L. 104–188, § 1602(b)(1), struck out former cl. (iv) which read as follows: “Special rules for obligations to which section 133 applies.—In the case of an obligation to which section 133 applies, interest on such obligation shall not be treated as exempt from taxes for purposes of this subparagraph.”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(iv), (v). Pub. L. 104–188, § 1602(b)(1), redesignated cl. (v) as (iv) and struck out former cl. (iv) which read as follows: “Special rules for obligations to which section 133 applies.—In the case of an obligation to which section 133 applies, interest on such obligation shall not be treated as exempt from taxes for purposes of this subparagraph.”

    Enacted provision · exact public law section
    (1) Subparagraph (B) of section 291(e)(1) is amended by striking clause (iv) and by redesignating clause (v) as clause (iv).

39. 2007

    Tax Technical Corrections Act of 2007

    Pub. L. 110–172 § 11(g)(6)(A) · 121 Stat. 2473

    1. Redesignated · 26 U.S.C. § 291(a)(4); 26 U.S.C. § 291(a)(5)

       Pub. L. 110–172, § 11(g)(6)(A), redesignated par. (5) as (4)

    2. Substituted · 26 U.S.C. § 291(a)(4); 26 U.S.C. § 291(a)(5)

       Pub. L. 110–172, § 11(g)(6)(A), struck out former par. (4) which read as follows: “In the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to any FSC by substituting—

    Source evidence

    Code amendment note
    Subsec. (a)(4), (5). Pub. L. 110–172, § 11(g)(6)(A), redesignated par. (5) as (4) and struck out former par. (4) which read as follows: “In the case of taxable years beginning after December 31, 1984, section 923(a) shall be applied with respect to any FSC by substituting—

    “(A) ‘30 percent’ for ‘32 percent’ in paragraph (2), and “(B) ‘15⁄23’ for ‘16⁄23’ in paragraph (3). If all of the stock in the FSC is not held by 1 or more C corporations throughout the taxable year, under regulations, proper adjustments shall be made in the application of the preceding sentence to take into account stock held by persons other than C corporations.”

    Enacted provision · exact public law section
    (A) Subsection (a) of section 291 is amended by striking paragraph (4) and by redesignating paragraph (5) as paragraph (4).

40. 2007

    Tax Technical Corrections Act of 2007

    Pub. L. 110–172 § 11(g)(6)(B) · 121 Stat. 2473

    Substituted · 26 U.S.C. § 291(c)(1)

    Pub. L. 110–172, § 11(g)(6)(B), substituted “subsection (a)(4)” for “subsection (a)(5)”

    Source evidence

    Code amendment note
    Subsec. (c)(1). Pub. L. 110–172, § 11(g)(6)(B), substituted “subsection (a)(4)” for “subsection (a)(5)”.

    Enacted provision · exact public law section
    (B) Paragraph (1) of section 291(c) is amended by striking “subsection (a)(5)” and inserting “subsection (a)(4)”.

41. 2009

    American Recovery and Reinvestment Act of 2009

    Pub. L. 111–5 div. B title I § 1501(b) · 123 Stat. 115

    Inserted · 26 U.S.C. § 291(e)(1)(B)(iv)

    Pub. L. 111–5 inserted at end “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”

    Source evidence

    Code amendment note
    Subsec. (e)(1)(B)(iv). Pub. L. 111–5 inserted at end “That portion of any obligation not taken into account under paragraph (2)(A) of section 265(b) by reason of paragraph (7) of such section shall be treated for purposes of this section as having been acquired on August 7, 1986.”

    Enacted provision · exact public law section
    SEC. 1501. DEFINITIONS.   In this title: (1) Agency.— The term “agency” has the meaning given under section 551 of title 5, United States Code. (2) Board.— The term “Board” means the Recovery Accountability and Transparency Board established in section 1521. (3) Chairperson.— The term “Chairperson” means the Chairperson of the Board. (4) Covered funds.— The term “covered funds” means any funds that are expended or obligated from appropriations made under this Act. (5) Panel.— The term “Panel” means the Recovery Independent Advisory Panel established in section 1541.

    Effective date note
    Amendment by Pub. L. 111–5 applicable to obligations issued after Dec. 31, 2008, see section 1501(c) of Pub. L. 111–5, set out as a note under section 265 of this title.

48 of 48 references resolved to an enrolled provision