§ 381. Carryovers in certain corporate acquisitions

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. 1954

   Aug. 16, 1954, ch. 736, 68A Stat. 124 · 68A Stat. 124

   Enacted · 26 U.S.C. § 381

   Aug. 16, 1954, ch. 736, 68A Stat. 124

   Source evidence

   Code source credit
   Aug. 16, 1954, ch. 736, 68A Stat. 124

2. 1955

   Public Law not identified

   Repealed · 26 U.S.C. § 381(c)(7)

   Subsec. (c)(7). Act June 15, 1955, repealed par. (7) which related to carryover of prepaid income

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Subsec. (c)(7). Act June 15, 1955, repealed par. (7) which related to carryover of prepaid income.

3. 1956

   Public Law not identified

   Added · 26 U.S.C. § 381(c)(20)

   Subsec. (c)(20). Act Jan. 28, 1956 added par. (20)

   Unresolved: No Public Law or Statutes at Large citation in the Code source.

   Source evidence

   Code amendment note
   Subsec. (c)(20). Act Jan. 28, 1956 added par. (20).

4. 1958

   Technical Amendments Act of 1958

   Pub. L. 85–866 title I § 29(c) · 72 Stat. 1606

   Added · 26 U.S.C. § 381(c)(21)

   Pub. L. 85–866 added par. (21)

   Source evidence

   Code amendment note
   Subsec. (c)(21). Pub. L. 85–866 added par. (21).

   Enacted provision · exact public law section
   (c) Amendment of Section 381 (c).— Section 381 (c) (relating to items of distributor or transferor corporation in certain corporate acquisitions) is amended by adding at the end thereof the following new paragraph: “(21) Pre-1954 adjustments resulting from change in method of accounting.— The acquiring corporation shall take into account any net amount of any adjustment described in section 481 (b) (4) of the distributor or transferor corporation— “(A) to the extent such net amount of such adjustment has not been taken into account by the distributor or transferor corporation, and “(B) in the same manner and at the same time as such net amount would have been taken into account by the distributor or transferor corporation.”

5. 1959

   Life Insurance Company Income Tax Act of 1959

   Pub. L. 86–69 § 3(c)(1) · 73 Stat. 112

   Added · 26 U.S.C. § 381(c)(22)

   Pub. L. 86–69, § 3(c)(1), added par. (22)

   Source evidence

   Code amendment note
   Subsec. (c)(22). Pub. L. 86–69, § 3(c)(1), added par. (22).

   Enacted provision · exact public law section
   (1) Section 381(c) of such Code (relating to items of distributor 26 USC 381. or transferor corporations taken into account) is amended by adding at the end thereof the following new paragraph: “(22) Successor life insurance company.— If the acquiring corporation is a life insurance company (as defined in section 801(a)), there shall be taken into account (to the extent proper to carry out the purposes of this section and part I of subchapter L, and under such regulations as may be prescribed by Ante, p. 112. the Secretary or his delegate) the items required to be taken into account for purposes of part I of subchapter L (relating to life insurance companies) in respect of the distributor or transferor corporation.”

6. 1959

   Life Insurance Company Income Tax Act of 1959

   Pub. L. 86–69 § 3(c)(2) · 73 Stat. 112

   Added · 26 U.S.C. § 381(d)

   Pub. L. 86–69, § 3(c)(2), added subsec. (d)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 86–69, § 3(c)(2), added subsec. (d).

   Enacted provision · exact public law section
   (2) Section 381 of such Code is amended by adding at the end 26 USC 381. thereof the following new subsection: “(d) Operations Loss Carrybacks and Carryovers of Life Insurance Companies.— “For application of this part to operations loss carrybacks and carryovers of life insurance companies, see section 812(f).”

7. 1962

   Revenue Act of 1962

   Pub. L. 87–834 § 2(d) · 76 Stat. 960

   Added · 26 U.S.C. § 381(c)(23)

   Pub. L. 87–834 added par. (23)

   Source evidence

   Code amendment note
   Subsec. (c)(23). Pub. L. 87–834 added par. (23).

   Enacted provision · exact public law section
   (d) Certain Corporate Acquisitions.— Section 381(c) (relating 26 USC 381. to items taken into account in certain corporate acquisitions) is amended by adding at the end thereof the following new paragraph: “(23) Credit under section 38 for investment in certain depreciable property.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 38, and under such regulations as may be prescribed by the Secretary or his delegate) the items required to be taken into account for purposes of section 38 in respect of the distributor or transferor corporation.”

8. 1964

   Revenue Act of 1964

   Pub. L. 88–272 § 225(i)(3) · 78 Stat. 19

   Substituted · 26 U.S.C. § 381(c)(15)

   Pub. L. 88–272, § 225(i)(3), substituted “subsections (b)(7) and (c) of section 545, relating to deductions with respect to payment of certain indebtedness” for “section 545(b)(7), relating to a deduction for payment of certain indebtedness incurred before Jan. 1, 1934”

   Source evidence

   Code amendment note
   Subsec. (c)(15). Pub. L. 88–272, § 225(i)(3), substituted “subsections (b)(7) and (c) of section 545, relating to deductions with respect to payment of certain indebtedness” for “section 545(b)(7), relating to a deduction for payment of certain indebtedness incurred before Jan. 1, 1934”.

   Enacted provision · exact public law section
   (3) Paragraph (15) of section 381 (e) (relating to carryovers in certain corporate acquisitions) is amended to read as follows: “(15) Indebtedness of certain personal holding companies.— The acquiring corporation shall be considered to be the distributor or transferor corporation for the purpose of determining the Ante, p. 90. 26 USC 545. applicability of subsections (b)(7) and (c) of section 545, relating to deduction with respect to payment of certain indebtedness.”

9. 1964

   Revenue Act of 1964

   Pub. L. 88–272 § 209(d)(2) · 78 Stat. 19

   Changed · 26 U.S.C. § 381(c)(19)

   Pub. L. 88–272, § 209(d)(2), permitted deductions for contributions made in the taxable year and in 4 prior taxable years, instead of one prior taxable year, and provided that each taxable year beginning on or before the distribution or transfer date shall be treated as a prior taxable year with reference to the acquiring corporation’s taxable years beginning after such date

   Source evidence

   Code amendment note
   Subsec. (c)(19). Pub. L. 88–272, § 209(d)(2), permitted deductions for contributions made in the taxable year and in 4 prior taxable years, instead of one prior taxable year, and provided that each taxable year beginning on or before the distribution or transfer date shall be treated as a prior taxable year with reference to the acquiring corporation’s taxable years beginning after such date.

   Enacted provision · exact public law section
   (2) Carryovers in certain corporate acquisitions.— Paragraph 26 USC 381. (19) of section 381(c) (relating to items of distributor or transferor corporation) is amended to read as follows: “(19) Charitable contributions in excess of prior years’ limitations.— Contributions made in the taxable year ending on the date of distribution or transfer and the 4 prior taxable years by the distributor or transferor corporation in excess of the amount deductible under section 170(b) (2) for such taxable years shall be deductible by the acquiring corporation for its taxable years which begin after the date of distribution or transfer, subject to the limitations imposed in section 170 (b)(2). In applying the preceding sentence, each taxable year of the distributor or transferor corporation beginning on or before the date of distribution or transfer shall be treated as a prior taxable year with reference to the acquiring corporation’s taxable years beginning after such date.”

10. 1968

    Pub. L. 90–240 § 5(d) · 81 Stat. 776

    1. Substituted · 26 U.S.C. § 381(c)(22)

       Pub. L. 90–240 substituted successor insurance companies for successor life insurance companies as the business enterprise covered

    2. Substituted · 26 U.S.C. § 381(c)(22)

       Pub. L. 90–240 substituted reference to insurance companies taxable under subchapter L for reference to life insurance companies as defined in section 801(a)

    3. Substituted · 26 U.S.C. § 381(c)(22)

       Pub. L. 90–240 substituted reference to the purposes of this section and of subchapter L for reference to the purposes of this section and part I of subchapter L

    Source evidence

    Code amendment note
    Subsec. (c)(22). Pub. L. 90–240 substituted successor insurance companies for successor life insurance companies as the business enterprise covered, substituted reference to insurance companies taxable under subchapter L for reference to life insurance companies as defined in section 801(a), and substituted reference to the purposes of this section and of subchapter L for reference to the purposes of this section and part I of subchapter L.

    Enacted provision · exact public law section
    (d) Section 381 (c)(22) of such Code (relating to carryovers in certain corporate acquisitions) is amended to read as follows: “(22) Successor insurance company.— If the acquiring corporation is an insurance company taxable under subchapter L, there shall be taken into account (to the extent proper to carry 73 Stat. 139. 26 USC 801–843. out the purposes of this section and of subchapter L, and under such regulations as may be prescribed by the Secretary or his delegate) the items required to be taken into account for purposes of subchapter L in respect of the distributor or transferor corporation.”

11. 1969

    Tax Reform Act of 1969

    Pub. L. 91–172 § 512(c) · 83 Stat. 487

    Substituted · 26 U.S.C. § 381(b)(3)

    Pub. L. 91–172, § 512(c), substituted “a net operating loss or a net capital loss” for “a net operating loss”

    Source evidence

    Code amendment note
    Subsec. (b)(3). Pub. L. 91–172, § 512(c), substituted “a net operating loss or a net capital loss” for “a net operating loss”.

    Enacted provision · exact public law section
    (c) Certain Corporate Acquisitions.— Section 381(b)(3) (relating to operating rules for carryovers in certain corporate acquisitions) is amended by striking out “a net operating loss” and inserting in lieu thereof “a net operating loss or a net capital loss”.

12. 1969

    Tax Reform Act of 1969

    Pub. L. 91–172 § 521(f) · 83 Stat. 487

    1. Substituted · 26 U.S.C. § 381(c)(6)

       Pub. L. 91–172, § 521(f), substituted “subsections (b), (j) and (k) of section 167” for “paragraphs (2), (3) and (4) of section 167(b)”

    2. Inserted · 26 U.S.C. § 381(c)(6)

       Pub. L. 91–172, § 521(f), inserted reference to adjusted basis in the hand of the distributor or transferor corporation

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 91–172, § 521(f), substituted “subsections (b), (j) and (k) of section 167” for “paragraphs (2), (3) and (4) of section 167(b)” and inserted reference to adjusted basis in the hand of the distributor or transferor corporation.

    Enacted provision · exact public law section
    (f) Carryovers in Certain Corporate Acquisitions.— Section 68A Stat. 126. 381(c)(6) (relating to method of computing depreciation allowance) is amended to read as follows: “(6) Method of computing depreciation allowance.— The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing the depreciation Ante, pp. 625, 649. allowance under subsections (b), (j), and (k) of section 167 on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.”

13. 1969

    Tax Reform Act of 1969

    Pub. L. 91–172 § 504(c)(2) · 83 Stat. 487

    1. Substituted · 26 U.S.C. § 381(c)(10)

       Pub. L. 91–172, § 504(c)(2), substituted “Treatment of certain mining exploration and development expenses of distributor or transferor corporation” for “Treatment of certain expenses deferred by the election of distributor or transferor corporation” in heading, limited deduction of expenses deferred under sections 615 and 616 of this title by the acquiring corporation as if it were the distributor or transferor corporation to pre-1970 exploration and development expenditures

    2. Inserted · 26 U.S.C. § 381(c)(10)

       Pub. L. 91–172, § 504(c)(2), inserted provision that if distributor or transferor corporation, for any taxable year, was allowed the deduction in sections 615(a) or 617(a) of this title or made the election provided in section 615(b) of this title, acquiring corporation shall be deemed to have been allowed such deduction or deductions or to have made such election, as the case may be, for the purpose of applying the limitation provided in section 617 of this title

    Source evidence

    Code amendment note
    Subsec. (c)(10). Pub. L. 91–172, § 504(c)(2), substituted “Treatment of certain mining exploration and development expenses of distributor or transferor corporation” for “Treatment of certain expenses deferred by the election of distributor or transferor corporation” in heading, limited deduction of expenses deferred under sections 615 and 616 of this title by the acquiring corporation as if it were the distributor or transferor corporation to pre-1970 exploration and development expenditures, and inserted provision that if distributor or transferor corporation, for any taxable year, was allowed the deduction in sections 615(a) or 617(a) of this title or made the election provided in section 615(b) of this title, acquiring corporation shall be deemed to have been allowed such deduction or deductions or to have made such election, as the case may be, for the purpose of applying the limitation provided in section 617 of this title.

    Enacted provision · exact public law section
    (2) Paragraph (10) of section 381(c) is amended— 68A Stat. 127. (A) by striking out so much as precedes the second sentence and inserting in lieu thereof: “(10) Treatment of certain mining exploration and development 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 sections 615 and 616 (relating to pre-1970 exploration expenditures 26 USC 616. and development expenditures, respectively) if the distributor or transferor corporation has so elected.”; and (B) by adding at the end thereof the following new sentence: “For the purpose of applying the limitation provided in section 617, if, for any taxable year, the distributor or transferor corporation was allowed the deduction in section 615(a) or section 617(a) or made the election provided in Ante, p. 632. section 615(b), the acquiring corporation shall be deemed to have been allowed such deduction or deductions or to have made such election, as the case may be.”

14. 1971

    Revenue Act of 1971

    Pub. L. 92–178 title VI § 601(c)(3) · 85 Stat. 494

    Added · 26 U.S.C. § 381(c)(24)

    Pub. L. 92–178 added par. (24)

    Source evidence

    Code amendment note
    Subsec. (c)(24). Pub. L. 92–178 added par. (24).

    Enacted provision · exact public law section
    (3) Section 381(c) (relating to items taken into account in certain 68A Stat. 124; 76 Stat. 971. corporate acquisitions) is amended by adding at the end thereof the following new paragraph: “(24) credit under section 40 for work incentive program expenses.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and Ante, p. 553. section 40, and under such regulations as may be prescribed by the Secretary or his delegate) the items required to be taken into account for purposes of section 40 in respect of the distributor or transferor corporation.”

15. 1976

    Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 381(b)(2)

    Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

    Source evidence

    Code amendment note
    Subsec. (b)(2). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

16. 1976

    Pub. L. 94–455 § 1901(b)(33)(N) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 381(c)(3)

    Pub. L. 94–455, § 1901(b)(33)(N), substituted in subpars. (B) and (C) “capital gain net income” for “net capital gain”

    Source evidence

    Code amendment note
    Subsec. (c)(3). Pub. L. 94–455, § 1901(b)(33)(N), substituted in subpars. (B) and (C) “capital gain net income” for “net capital gain”.

    Enacted provision · exact public law section
    (N) Sections 381(e)(3)(B), 381(c)(3)(C), 852(d), 4940 (c)(1), and 4940(c)(4) are each amended by striking out “net capital gain” and inserting in lieu thereof “capital gain net income”.

17. 1976

    Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 381(c)(4); 26 U.S.C. § 381(c)(5)

    Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

    Source evidence

    Code amendment note
    Subsec. (c)(4), (5). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

18. 1976

    Pub. L. 94–455 § 1901(b) · 90 Stat. 1520

    1. Substituted · 26 U.S.C. § 381(c)(10)

       Pub. L. 94–455, § 1901(b)(21(B), among other changes, substituted reference to section 616 (relating to certain development expenditures) if the distributor or transferor corporation has so elected for reference to sections 615 and 616 (relating to pre-1970 exploration expenditures and development expenditures, respectively) if the distributor or transferor corporation has so elected

    2. Struck · 26 U.S.C. § 381(c)(10)

       Pub. L. 94–455, § 1901(b)(21(B), among other changes, struck out provisions that if, for any taxable year, the distributor of transferor corporation was allowed or made the election of the deduction under section 615 of this title, the acquiring corporation shall be deemed to have been allowed or to have made such election of the deduction under section 615 of this title

    Source evidence

    Code amendment note
    Subsec. (c)(10). Pub. L. 94–455, § 1901(b)(21(B), among other changes, substituted reference to section 616 (relating to certain development expenditures) if the distributor or transferor corporation has so elected for reference to sections 615 and 616 (relating to pre-1970 exploration expenditures and development expenditures, respectively) if the distributor or transferor corporation has so elected and struck out provisions that if, for any taxable year, the distributor of transferor corporation was allowed or made the election of the deduction under section 615 of this title, the acquiring corporation shall be deemed to have been allowed or to have made such election of the deduction under section 615 of this title.

    Enacted provision · exact public law section
    (b) Conforming and Clerical Amendments.— (1) Amendments conforming to repeal of sections 35 and 242.— (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)(n) 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 to which election permitted.— In the case of bonds the interest on which is not excludable 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 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 26 USC 642. (1), and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (ii) Section 41(d) is amended by striking out “section 26 USC 41. 642(a)(3)” and inserting in lieu thereof “section 642(a)(2)”. (iii) Section 901(g)(3), as amended by this Act, is 26 USC 901. 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 26 USC 702. (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) 26 USC 1402. (9)” each place it appears and inserting in lieu thereof “702 (a)(8)”. (J) (i) Section 804(a) is amended by striking out paragraph 26 USC 804. (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 26 USC 243. (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 26 USC 809. 804(a)(4)”, and inserting in lieu thereof “section 804(a)(3)”. (v) Section 1561(a)(3) is amended by striking out “sections 26 USC 1561. 804(a)(4)” and inserting in lieu thereof “sections 804 (a)(3)”. (vi) Section 1564(a)(1)(C) is amended by striking out 26 USC 1564. “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) Sections 804(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,”. (N) 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 26 USC 815. “the deduction for partially tax-exempt interest provided 26 USC 242. 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 tax-exempt 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 thereof “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 tax-exempt 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 table 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 of section 51.— 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 auditions of sections 84 and 65.— (A) Paragraphs (1)(C), (5HA), (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 such” 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”. (E) Section 1236 (b) is amended by striking out “loss from 26 USC 1236. 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 26 USC 1242, 1243. 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 26 USC 1244. 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, 26 USC 1248. 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(f). (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 sections 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 repeat, of section 70.— 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 103.— (A) Section 6049(b)(2)(A) is amended by striking out 26 USC 6049. “section 103(a)(1) or (3)” and inserting in lieu thereof “section 103(a)”. (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 143.— (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.”. (B) Section 152(a)(9) is amended by 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 151.— (A) The following provisions are each amended by striking out “educational institution (as defined in section 151 Q(4))” each place it appears and inserting in lieu thereof educational organization described in section 170(b)(1)(A)(ii)”: sections 117(a)(1)(A), 117(b)(1), 117(b)(2), 152(d), 170(g)(1)(B)(as redesignated by subsection (a)(28) 26 USC 117, 152, 170, 403. (A)(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 by 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)(1)(A)(u),and”. (F) Section 512(b)(15)(B), as redesignated by section 1951(b)(8)(A) of this Act, is amended by striking out “edu-cational institution (as defined in section 151(e)(4))” and inserting in lieu thereof “educational organization described in section 170(b)(1)(A)(ii)”. (G) Section 1303(d) is amended by striking out “educational 26 USC 1303. 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, 4945. are amended by striking out “educational institution described in section 151(e)(4)” and inserting in lieu thereof “educational organization described in section 170(b)(1)(AHii)”. (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 (ii) as clause (ii). (10) Amendment conforming to the amendment of section 112.— (A) Section 374(e)(2) is amended by striking out “section Ante, p. 296. 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 172(k)(1)” and inserting in lieu thereof “section 172(h)”. (11) Amendments conforming to repeal of section 187.— (A) Section 48(a)(8) (relating to section 38 property) is 26 USC 48. 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 26 USC 1082. or loss) is amemled by striking out “187,”. (D) Section 1245(a)(2) (relating to gain from dispositions 26 USC 1245. of certain depreciable property) is amended by striking 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) 26 USC 551. 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 C. 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: “Subpart C— Collapsible Corporations”. (13) Amendments conforming to the repeal of section 303.— 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”. (B) Section 374(b) is amended to read as follows: “(b) Basis.— “(1) Railroad corporations.— If the property of a railroad corporation, as defined in section 77(m) of the Bankruptcy 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 Bankruptcy Act, and the acquiring corporation is a railroad corporation (as defined in section 77(m) of the Bankruptcy 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 it 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 Bankruptcy 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 or 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. (570), 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)(8) 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 of sections 391 through 395.— The table of parts 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 481.— Section 381 (c) is amended by striking out paragraph (21). (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.— The table of sections for part II of subchapter H of chapter 1 is amended by striking out the item relating to section 592. (20) Amendments conforming to the repeal of section 601.— (A) Section 535(b) is amended by striking out paragraph 26 USC 535. (8). (B) (i) Section 545(b) is amended by striking out paragraph 26 USC 545. (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 expenditures under section 617(h)(1),”, and (II) by redesignating clauses (iv) and (v) as clauses (iii) and (iv), respectively. (ii) Section 1564(h)(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 us follows: 26 USC 381. “(10) Treatment of certain mining develops cent and exploration expenses of distributor or transfer or 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 effect before the enactment of the Tax Reform Act of 1976)”. (D) Section 617(h)(3) is amended to read as follows: “(3) Application of paragraph (2)(b).— Paragraph (2) (B) shall apply with respect to nil 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— “(1) the taxpayer receives mineral property in a transaction as a 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 Reform 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 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.” (F) Section 703 (b) is amended by striking out “under section 615 (relating to pre–1970 exploration expenditures),”. (G) Section 1016 (a) is amended by striking out paragraph (I?)-. (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 632.— (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). (23) Amendment conforming to the repeal of section 771.— The table of parts for’ subchapter K of chapter 1 is amended by striking out the item relating to part IV. (24) Amendment conforming to the amendment of section 802.— Section 815(c)(3)(B) is amended by striking out “(determined without regard to section 802(a)(3))”. (25) 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 804.— (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) 26 USC 863. 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”. (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) Amendments conforming to the repeal of section 972.— (A) Section 970(b)(1) (relating to inclusion of certain 26 USC 970. previously excluded amounts of sub part 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 0 of chapter 1 is amended by striking out the item relating to section 1002. (29) Amendments conforming to the repeal of section 1920.— (A) The third sentence of subsection (a) of section 1016 is 26 USC 1016. 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 section 1020. (30) Amendments conforming to the repeal of section 1022.— (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 note. apply with respect to stock or securities acquired from a decedent dying after the date of the enactment of this Act. (C) Tho 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 1250(d)(4)(B) is amended by striking out 26 USC 1250. “1033(a)(3)(A)” and inserting in lieu thereof “1033(a)(2)(A)” (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)”. (C) Section 6212(c)(2)(B) is amended by striking out “1033(a)(3)(C) and (D)” and inserting in lieu thereof “1033 (aj (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)(D) are each amended by striking out “1033(c)” and inserting in lieu thereof “1033(b)”. (32) Amendments conforming to the repeal of section 1111.— (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 thereof “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)” (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 thereof 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.— (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 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 26 USC 527. section 1201 gain” and inserting in lieu thereof “net capital gain”. (D) Sections 535(b)(6) and 545(b)(5) are each amended— 26 USC 535, 545. (1) by striking out from the paragraph heading “Long-term” and inserting in lieu thereof “Net”, (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— 26 USC 802. (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 gain”. (F) Section 804(a)(2) is amended by 26 USC 804. 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”. (G) Sections 809(b)(1)(B) and 809(b)(2)(B) are each 26 USC 809. 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 26 USC 815. “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”. (I) Section 852(b)(2)(A) is amended by striking out 26 USC 852. “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 lien thereof “net capital gain”. (K) The second sentence of section 857(b)(3)(C) is 26 USC 857. 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 26 USC 1201. 1201 gain” each place it appears and inserting in lieu thereof “net capital gain”. (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(e)(3)(B), 381(c)(3)(C), 852(d), 4940 (c)(1), and 4940(c)(4) are 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 “the excess of the corporation’s net long-term capital gain 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 long-term capita] 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) 26 USC 1247, 1378. (C), 1247(d)(1) and (2). 1378(a)(1), 1378(b)(1), and 1378 (c)(8). (34) Amendment conforming to the repeal of section 1240.— 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.— (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 (1). (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.— (A) The third sentence of section 901(a) is amended by 26 USC 901. striking out “under section 1333 (relating to war loss recoveries) or”. _ . (B) Section 936(a)(2), as added by this Act, is 26 USC 936. 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 26 USC 6212. (D). (D) Section 6515 is amended by striking out paragraph 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), (7), and (8) as paragraphs (1), (2), (3), (4). (5),and (6) respectively. (F) The table of parts tor subchapter Q of chapter 1 is amended by striking out the item relating to part IV. (38) 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 conforming to the repeal of section 1340.— (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 “, notwithstanding 26 USC 58. the provisions of section 1371(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.

19. 1976

    Pub. L. 94–455 § 1901(b)(17) · 90 Stat. 1520

    Substituted · 26 U.S.C. § 381(c)(15)

    Pub. L. 94–455, § 1901(b)(17), substituted “subsection (c)” for “subsections (b)(7) and (c)”

    Source evidence

    Code amendment note
    Subsec. (c)(15). Pub. L. 94–455, § 1901(b)(17), substituted “subsection (c)” for “subsections (b)(7) and (c)”.

    Enacted provision · exact public law section
    (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)”.

20. 1976

    Pub. L. 94–455 § 1901(a)(54) · 90 Stat. 1520

    Struck · 26 U.S.C. § 381(c)(20)

    Pub. L. 94–455, § 1901(a)(54), struck out par. (20) which related to carry-over of unused pension trust deductions in certain cases

    Source evidence

    Code amendment note
    Subsec. (c)(20). Pub. L. 94–455, § 1901(a)(54), struck out par. (20) which related to carry-over of unused pension trust deductions in certain cases.

    Enacted provision · exact public law section
    (54) Amendment of section 381.— Section 381 (c) (relating to 26 USC 381. items carried over in certain corporate acquisitions) is amended by striking out paragraph (20).

21. 1976

    Pub. L. 94–455 § 1901(b)(16) · 90 Stat. 1520

    Struck · 26 U.S.C. § 381(c)(21)

    Pub. L. 94–455, § 1901(b)(16), struck out par. (21) which related to pre-1954 adjustments resulting from change in method of accounting

    Source evidence

    Code amendment note
    Subsec. (c)(21). Pub. L. 94–455, § 1901(b)(16), struck out par. (21) which related to pre-1954 adjustments resulting from change in method of accounting.

    Enacted provision · exact public law section
    (16) Amendment conforming to the amendments of section 481.— Section 381 (c) is amended by striking out paragraph (21).

22. 1976

    Pub. L. 94–455 § 1906(b)(13)(A) · 90 Stat. 1520

    Struck · 26 U.S.C. § 381(c)(22)(24)

    Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”

    Source evidence

    Code amendment note
    Subsec. (c)(22) to (24). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

    Enacted provision · exact public law section
    (A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.

23. 1976

    Pub. L. 94–455 § 1601(e) · 90 Stat. 1520

    Added · 26 U.S.C. § 381(c)(25)

    Pub. L. 94–455, § 1601(e), added par. (25)

    Source evidence

    Code amendment note
    Subsec. (c)(25). Pub. L. 94–455, § 1601(e), added par. (25).

    Enacted provision · exact public law section
    (e) Carryover of Deficiency Dividend.— Section 381 (c) (relating to carryovers in certain corporate acquisitions) is amended by adding a new paragraph (25) at the end thereof, to read as follows: “(25) Deficiency dividend of real estate investment trust.— If the acquiring corporation pays a deficiency dividend (as Ante, p. 1742. defined in section 859(d)) with respect to the distributor or transferor corporation, such distributor or transferor corporation shall, with respect to such payments, be entitled to the deficiency dividend deduction provided in section 859,”

24. 1977

    Tax Reduction and Simplification Act of 1977

    Pub. L. 95–30 title II § 202(d)(3)(A) · 91 Stat. 126

    Added · 26 U.S.C. § 381(c)(26)

    Pub. L. 95–30 added par. (26)

    Source evidence

    Code amendment note
    Subsec. (c)(26). Pub. L. 95–30 added par. (26).

    Enacted provision · exact public law section
    (A) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: “(26) Credit under section 44B for employment of certain new employees.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 44B. and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44B in respect of the distributor or transferor corporation.”

25. 1978

    Pub. L. 95–600 title III § 362(d)(2) · 92 Stat. 2763

    1. Substituted · 26 U.S.C. § 381(c)(25)

       Pub. L. 95–600 substituted “regulated investment company or real estate investment trust” for “real estate investment trust”

    2. Substituted · 26 U.S.C. § 381(c)(25)

       Pub. L. 95–600 substituted “section 860(f)” for “section 859(d)”

    3. Substituted · 26 U.S.C. § 381(c)(25)

       Pub. L. 95–600 substituted “section 860” for “section 859”

    Source evidence

    Code amendment note
    Subsec. (c)(25). Pub. L. 95–600 substituted “regulated investment company or real estate investment trust” for “real estate investment trust” in heading, and in text “section 860(f)” for “section 859(d)” and “section 860” for “section 859”.

    Enacted provision · exact public law section
    (2) Paragraph (25) of section 381(c) is amended— 26 USC 381. (A) by striking out “section 859(d)” and inserting in lieu thereof “section 860(f)”, (B) by striking out “section 859” and inserting in lieu thereof “section 860”, and (C) by striking out “real estate investment trust” in the paragraph heading and inserting in lieu thereof “regulated investment company or real estate investment trust”.

26. 1980

    Pub. L. 96–223 title II § 232(b)(2)(B) · 94 Stat. 229

    Added · 26 U.S.C. § 381(c)(27)

    Pub. L. 96–223 added par. (27)

    Source evidence

    Code amendment note
    Subsec. (c)(27). Pub. L. 96–223 added par. (27).

    Enacted provision · exact public law section
    (B) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: “(27) Credit under section 44e for alcohol used as fuel.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 44E, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44E in respect of the distributor or transferor corporation.”

27. 1980

    Pub. L. 96–471 § 2(b)(2) · 94 Stat. 2247

    1. Substituted · 26 U.S.C. § 381(c)(8)

       Pub. L. 96–471 substituted “reports on the installment basis under section 453 or 453A” for “has elected, under section 453, to report on the installment basis”

    2. Substituted · 26 U.S.C. § 381(c)(8)

       Pub. L. 96–471 substituted “for purposes of section 453 or 453A” for “for purposes of section 453.”

    Source evidence

    Code amendment note
    Subsec. (c)(8). Pub. L. 96–471 substituted “reports on the installment basis under section 453 or 453A” for “has elected, under section 453, to report on the installment basis” and “for purposes of section 453 or 453A” for “for purposes of section 453.”

    Enacted provision · exact public law section
    (2) Paragraph (8) of section 381(c) is amended— 26 USC 381. (A) by striking out “has elected, under section 453, to report on the installment basis” and inserting in lieu thereof “reports on the installment basis under section 453 or 453A”, Ante, pp. 2247, 2251. and (B) by striking out “for purposes of section 453” and inserting in lieu thereof “for purposes of section 453 or 453A”.

28. 1980

    Pub. L. 96–589 § 4(g)(2) · 94 Stat. 3389

    Inserted · 26 U.S.C. § 381(a)

    Pub. L. 96–589, § 4(g)(2), inserted provisions that a reorganization shall be treated as meeting the requirements of subparagraph (D) or (G) of section 368(a)(1) only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 96–589, § 4(g)(2), inserted provisions that a reorganization shall be treated as meeting the requirements of subparagraph (D) or (G) of section 368(a)(1) only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met.

    Enacted provision · exact public law section
    (2) by adding at the end thereof the following new sentence: “For purposes of the preceding sentence, a reorganization shall be treated as meeting the requirements of subparagraph (D) or (G) of section 368(a)(1) only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met.”

29. 1980

    Pub. L. 96–589 § 4(g)(1) · 94 Stat. 3389

    Substituted · 26 U.S.C. § 381(a)(2)

    Pub. L. 96–589, § 4(g)(1), substituted “subparagraph (A), (C), (D), (F), or (G) of section 368(a)(1)” for “subparagraph (A), (C), (D) (but only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met), or (F) of section 368(a)(1)”

    Source evidence

    Code amendment note
    Subsec. (a)(2). Pub. L. 96–589, § 4(g)(1), substituted “subparagraph (A), (C), (D), (F), or (G) of section 368(a)(1)” for “subparagraph (A), (C), (D) (but only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met), or (F) of section 368(a)(1)”.

    Enacted provision · exact public law section
    (1) by striking out “subparagraph (A), (C), (D) (but only if the requirements of subparagraphs (A) and (B) of section 354(b)(1) are met), or (F) of section 368(a)(1)” in paragraph (2) and inserting in lieu thereof “subparagraph (A), (C), (D), (F), or (G) of section 368(a)(1)”, and

30. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 208 · 95 Stat. 175

    Added · 26 U.S.C. § 381(c)(28)

    Pub. L. 97–34, § 208, added par. (28) relating to recovery allowance for recovery property

    Source evidence

    Code amendment note
    Subsec. (c)(28). Pub. L. 97–34, § 208, added par. (28) relating to recovery allowance for recovery property.

    Enacted provision · exact public law section
    SEC. 208. CARRYOVER OF RECOVERY ATTRIBUTE IN SECTION 381 TRANSACTIONS. Post, p. 246. 26 USC 381. Subsection (c) of section 381 is amended by adding at the end thereof the following new paragraph: “(28) Method of computing recovery allowance for recovery property.— The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing Ante, p. 203. the deduction allowable under section 168(a) on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.”

31. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 221(b)(1)(B) · 95 Stat. 175

    Added · 26 U.S.C. § 381(c)(28)

    Pub. L. 97–34, § 221(b)(1)(B), added par. (28) relating to credit under section 44F

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 97–34, § 221(b)(1)(B), added par. (28) relating to credit under section 44F.

    Enacted provision · exact public law section
    (B) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation) is amended by adding at the end thereof the following new paragraph: “(28) Credit under section 44f.— The acquiring corporation shall take into account (to the extent proper to carry out the Ante, p. 241. purposes of this section and section 44F, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44F in respect of the distributor or transferor corporation.”

32. 1981

    Economic Recovery Tax Act of 1981

    Pub. L. 97–34 § 331(d)(1)(B) · 95 Stat. 175

    Added · 26 U.S.C. § 381(c)(29)

    Pub. L. 97–34, § 331(d)(1)(B), added par. (29)

    Source evidence

    Code amendment note
    Subsec. (c)(29). Pub. L. 97–34, § 331(d)(1)(B), added par. (29).

    Enacted provision · exact public law section
    (B) Subsection (c) of section 381 (relating to items of the distributor or transferor corporation), as amended by this Act, is amended by adding at the end thereof the following new paragraph: “(29) Credit under section 44g.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 44G, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 44G in respect of the distributor or transferor corporation.”

33. 1982

    Pub. L. 97–248 title II § 224(c)(7) · 96 Stat. 324

    Struck · 26 U.S.C. § 381(a)(1)

    Pub. L. 97–248 struck out “, except in a case in which the basis of the assets distributed is determined under section 334(b)(2)” after “applies”

    Source evidence

    Code amendment note
    Subsec. (a)(1). Pub. L. 97–248 struck out “, except in a case in which the basis of the assets distributed is determined under section 334(b)(2)” after “applies”.

    Enacted provision · exact public law section
    SEC. 224. CERTAIN STOCK PURCHASES TREATED AS ASSET PURCHASES. (a) General Rule.— Subpart B of part II of subchapter C of chapter 1 (relating to effects on corporation) is amended by adding at the end thereof the following new section: “SEC. 338. CERTAIN STOCK PURCHASES TREATED AS ASSET ACQUISITIONS. “(a) General Rule.— For purposes of this subtitle, if a purchasing corporation makes an election under this section (or is treated under subsection (e) as having made such an election), then, in the case of any qualified stock purchase, the target corporation— “(1) shall be treated as having sold all of its assets at the close of the acquisition date in a single transaction to which section 337 applies, and “(2) shall be treated as a new corporation which purchased all of the assets referred to in paragraph (1) as of the beginning of the day after the acquisition date. “(b) Price at Which Deemed Sale Made.— “(1) In general.— For purposes of subsection (a), the assets of the target corporation shall be treated as sold (and purchased) at an amount equal to— “(A) the grossed-up basis of the purchasing corporation’s stock in the target corporation on the acquisition date, “(B) properly adjusted under regulations prescribed by the Secretary for liabilities of the target corporation and other relevant items. “(2) Grossed-up basis.— For purposes of paragraph (1), the grossed-up basis shall be an amount equal to the basis of the purchasing corporation’s stock in the target corporation on the acquisition date multiplied by a fraction— “(A) the numerator of which is 100 percent, and “(B) the denominator of which is the percentage of stock (by value) of the target corporation held by the purchasing corporation on the acquisition date. “(3) Allocation among assets.— The amount determined under paragraph (1) shall be allocated among the assets of the target corporation under regulations prescribed by the Secretary “(c) Special Rules.— “(1) Coordination with section 337 where purchasing corporation holds less than 100 percent of stock.— If during the 1-year period beginning on the acquisition date the maximum percentage (by value) of stock in the target corporation held by the purchasing corporation is less than 100 percent, then in applying section 337 for purposes of subsection (a)(1), the non-recognition of gain or loss shall be limited to an amount determined by applying such maximum percentage to such gain or loss. The preceding sentence shall not apply if the target corporation is liquidated during such 1-year period. “(2) Certain redemptions where election made.— If, in connection with a qualified stock purchase with respect to which an election is made under this section, the target corporation makes a distribution in complete redemption of all of the stock of a shareholder which qualifies under section 302(b)(3) (determined 26 USC 302. without regard to the application of section 302(c)(2)(A)(ii)), section 336 shall apply to such distribution as if it were a distribution in complete liquidation. “(d) Purchasing Corporation; Target Corporation; Qualified Stock Purchase.— For purposes of this section— “(1) Purchasing corporation.— The term ‘purchasing corporation’ means any corporation which makes a qualified stock purchase of stock of another corporation. “(2) Target corporation.— The term ‘target corporation’ means any corporation the stock of which is acquired by another corporation in a qualified stock purchase. “(3) Qualified stock purchase.— The term ‘qualified stock purchase’ means any transaction or series of transactions in which stock of 1 corporation possessing— “(A) at least 80 percent of total combined voting power of all classes of stock entitled to vote, and “(B) at least 80 percent of the total number of shares of all other classes of stock (except nonvoting stock which is limited and preferred as to dividends), is acquired by another corporation by purchase during the 12-month acquisition period. “(e) Deemed Election Where Purchasing Corporation Acquires Asset of Target Corporation.— “(1) In general.— A purchasing corporation shall be treated as having made an election under this section with respect to any target corporation if, at any time during the consistency period, it acquires any asset of the target corporation (or a target affiliate). “(2) Exceptions.— Paragraph (1) shall not apply with respect to any acquisition by the purchasing corporation if— “(A) such acquisition is pursuant to a sale by the target corporation (or the target affiliate) in the ordinary course of its trade or business, “(B) the basis of the property acquired is determined (in whole or in part) by reference to the adjusted basis of such property in the hands of the person from whom acquired, “(C) such acquisition was before September, 1, 1982, “(D) to the extent provided in regulations, the property acquired is located outside the United States, or “(E) such acquisition is described in regulations prescribed by the Secretary. “(3) Anti-avoidance rule.— Whenever necessary to carry out the purpose of this subsection and subsection (f), the Secretary may treat stock acquisitions which are pursuant to a plan and which meet the 80 percent requirements of subparagraphs (A) and (B) of subsection (d)(3) as qualified stock purchases. “(f) Consistency Required for All Stock Acquisitions from Same Affiliated Group.— If a purchasing corporation makes qualified stock purchases with respect to the target corporation and 1 or more target affiliates during any consistency period, then (except as otherwise provided in subsection (e))— “(1) any election under this section with respect to the first such purchase shall apply to each other such purchase, and “(2) no election may be made under this section with respect to the second or subsequent such purchase if such an election was not made with respect to the first such purchase. “(g) Election.— “(1) When made.— Except as otherwise provided in regulations, an election under this section shall be made not later than 75 days after the acquisition date. “(2) Manner.— An election by the purchasing corporation under this section shall be made in such manner as the Secretary shall by regulations prescribe. “(3) Election irrevocable.— An election by a purchasing corporation under this section, once made, shall be irrevocable. “(h) Definitions and Special Rules.— For purposes of this section— “(1) 12-month acquisition period.— The term ‘12-month acquisition period’ means the 12-month period beginning with the date of the first acquisition by purchase of stock included in a qualified stock purchase. “(2) Acquisition date.— The term ‘acquisition date’ means, with respect to any corporation, the first day on which there is a qualified stock purchase with respect to the stock of such corporation. “(3) Purchase.— “(A) In general.— The term ‘purchase’ means any acquisition of stock, but only if— “(i) the basis of the stock in the hands of the purchasing corporation is not determined (I) in whole or in part by reference to the adjusted basis of such stock in the hands of the person from whom acquired, or (II) under section 1014(a) (relating to property acquired from a 26 USC 1014. decedent), “(ii) the stock is not acquired in an exchange to which section 351 applies, and “(iii) the stock is not acquired from a person the ownership of whose stock would, under section 318(a) (other than paragaraph (4) thereof), be attributed to the person acquiring such stock. “(B) Deemed purchase of stock of subsidiaries.— If stock in a corporation is acquired by purchase (within the meaning of subparagraph (A)) and, as a result of such acquisition, the corporation making such purchase is treated (by reason of section 318(a)) as owning stock in a 3rd corporation, the corporation making such purchase shall be treated as having purchased such stock in such 3rd corporation. The corporation making such purchase shall be treated as purchasing stock in the 3rd corporation by reason of the preceding sentence on the first day on which the purchasing corporation is considered under section 318(a) as owning such stock. “(4) Consistency period.— “(A) In general.— Except as provided in subparagraph (B), the term ‘consistency period’ means the period consisting of— “(i) the 1-year period before the beginning of the 12-month acquisition period for the target corporation, “(ii) such acquisition period (up to and including the acquisition date), and “(iii) the 1-year period beginning on the day after the acquisition date. “(B) Extension where there is plan.— The period referred to in subparagraph (A) shall also include any period during which the Secretary determines that there was in effect a plan to make a qualified stock purchase plus 1 or more other qualified stock purchases (or asset acquisitions described in subsection (e)) with respect to the target corporation or any target affiliate. “(5) Affiliated group.— The term ‘affiliated group’ has the meaning given to such term by section 1504(a) (determined 26 USC 1504. without regard to the exceptions contained in section 1504(b)). “(6) Target affiliate.— “(A) In general.— A corporation shall be treated as a target affiliate of the target corporation if each of such corporations was, at any time during so much of the consistency period as ends on the acquisition date of the target corporation, a member of an affiliated group which had the same common parent. “(B) Certain foreign corporations, etc.— Except as otherwise provided in regulations (and subject to such conditions as may be provided in regulations)— “(i) the term ‘target affiliate’ does not include a foreign corporation, a DISC, a corporation described in section 934(b), or a corporation to which an election under section 936 applies, and “(ii) stock held by a target affiliate in a foreign corporation or a domestic corporation which is a DISC or described in section 1248(e) shall be excluded from the operation of this section. “(7) Acquisitions by purchasing corporation include acquisitions by corporations affiliated with purchasing corporation.— Except as otherwise provided in regulations, an acquisition of stock or assets by any member of an affiliated group which includes a purchasing corporation shall be treated as made by the purchasing corporation. “(i) Regulations.— The Secretary shall prescribe such regulations as may be necessary to ensure that the purposes of this section to require consistency of treatment of stock and asset purchases with respect to a target corporation and its target affiliates (whether by treating all of them as stock purchases or as asset purchases) may not be circumvented through the use of any provision of law or regulations (including the consolidated return regulations).” (b) Repeal of Section 334(b)(2).— Subsection (b) of section 334 26 USC 334. (relating to limitation of subsidiary) is amended to read as follows: “(b) Liquidation of Subsidiary.— “(1) Distribution in complete liquidation.— If property is received by a corporation in a distribution in a complete liquidation to which section 332(a) applies, the basis of the property in the hands of the distributee shall be the same as it would be in the hands of the transferor. “(2) Transfers to which section 332 (c) applies.— If property is received by a corporation in a transfer to which section 332(c) applies, the basis of the property in the hands of the transferee shall be the same as it would be in the hands of the transferor. “(3) Distributee defined.— For purposes of this subsection, the term ‘distributee’ means only the corporation which meets the 80-percent stock ownership requirements specified in section 332(b).” (c) Technical Amendments.— (1) Subparagraph (E) of section 168(e)(4) (relating to liquidation 95 Stat. 204. of subsidiary, etc.) is amended by adding at the end thereof the following new sentence: “A similar rule shall apply in the case of a deemed liquidation under section 338.” (2) Clause (i) of section 168(f)(10)(B) is amended by striking out “(other than a transaction with respect to which the basis is determined under section 334(b)(2))”. (3) Paragraph (4) of section 318(b) is amended to read as 26 USC 318. follows: “(4) section 338(h)(3)(B) (relating to purchase of stock from subsidiaries, etc.);”. (4) Paragraph (2) of section 336(b) is amended by striking out 26 USC 336. “334(b)(1)” each place it appears and inserting in lieu thereof “334(b)”. (5) Paragraph (2) of section 337(c) (relating to liquidations to 26 USC 337. which section 332 applies) is amended to read as follows: “(2) Liquidations to which section 332 applies.— In the case of any sale or exchange following the adoption of a plan of complete liquidation, if section 332 applies with respect to such liquidation, this section shall not apply.” (6) Subsection (d) of section 337 is amended by striking out “subsection (c)(2)(A)” each place it appears and inserting in lieu thereof “subsection (c)(2)”. (7) Paragraph (1) of section 381(a) is amended by striking out 26 USC 381. “, except in a case in which the basis of the assets distributed is determined under section 334(b)(2)”. (8) Subparagraph (B) of section 617(h)(3) is amended by inserting 26 USC 617. “338,” after “334(b),”. (9) The table of sections for subpart B of part II of subchapter C of chapter 1 is amended by striking out the item relating to section 338 and inserting in lieu thereof the following: “Sec. 338. Certain stock purchases treated as asset acquisitions.” (d) Effective Dates.— (1) In general.— The amendments made by this section shall apply to any target corporation (within the meaning of section 338 of the Internal Revenue Code of 1954 as added by this section) with respect to which the acquisition date (within the meaning of such section) occurs after August 31, 1982. (2) Certain acquisitions before september 1, 1982.— If— (A) an acquisition date under paragraph (1) occurred after August 31, 1980, and before September 1, 1982, (B) the target corporation (within the meaning of section 338 of such Code) is not liquidated before September 1, 1982, and (C) the purchasing corporation (within the meaning of section 338 of such Code) makes, not later than November 15, 1982, an election under section 338 of such Code, then the amendments made by this section shall apply to the acquisition of such target corporation. (3) Certain acquisitions of financial institutions.— In any case in which— (A) there is, on July 22, 1982, a binding contract to acquire control (within the meaning of section 368(c) of such Code) of any financial institution, (B) the approval of one or more regulatory authorities is required in order to complete such acquisition, and (C) within 90 days after the date of the final approval of the last such regulatory authority granting final approval, a plan of complete liquidation of such financial institution is adopted, then the purchasing corporation may elect not to have the amendments made by this section apply to the acquisition pursuant to such contract.

34. 1983

    Pub. L. 97–448 § 102(h)(3) · 96 Stat. 2365

    Redesignated · 26 U.S.C. § 381(c)(28); 26 U.S.C. § 381(c)(29)

    Pub. L. 97–448, § 102(h)(3), redesignated par. (28), relating to credit under section 44F, as (29). Former par. (29) redesignated (30)

    Source evidence

    Code amendment note
    Subsec. (c)(28), (29). Pub. L. 97–448, § 102(h)(3), redesignated par. (28), relating to credit under section 44F, as (29). Former par. (29) redesignated (30).

    Enacted provision · exact public law section
    (3) 95 Stat. 246.26 USC 381. The paragraph (28) of section 381(c) added by section 221 of the Economic Recovery Tax Act of 1981 is redesignated as paragraph (29).

35. 1983

    Pub. L. 97–448 § 103(g)(2)(F) · 96 Stat. 2365

    Redesignated · 26 U.S.C. § 381(c)(30)

    Pub. L. 97–448, § 103(g)(2)(F), redesignated former par. (29), relating to credit under section 44G, as (30)

    Source evidence

    Code amendment note
    Subsec. (c)(30). Pub. L. 97–448, § 103(g)(2)(F), redesignated former par. (29), relating to credit under section 44G, as (30).

    Enacted provision · exact public law section
    (F) The paragraph (29) of section 381(c) added by section 26 USC 381. 331 of the Economic Recovery Tax Act of 1981 is redesignated as paragraph (30).

36. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(B) · 98 Stat. 494

    Redesignated · 26 U.S.C. § 381(c)(23)

    Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (25) as (23). Former par. (23), relating to credit under section 38 for investment in certain depreciable property, was struck out

    Source evidence

    Code amendment note
    Subsec. (c)(23). Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (25) as (23). Former par. (23), relating to credit under section 38 for investment in certain depreciable property, was struck out.

    Enacted provision · exact public law section
    (B) by redesignating paragraphs (25), (28), and (29) as paragraphs (23), (24), and (25), respectively,

37. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(B) · 98 Stat. 494

    Redesignated · 26 U.S.C. § 381(c)(24)

    Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (28) as (24). Former par. (24), relating to credit under section 40 for work incentive program expenses, was struck out

    Source evidence

    Code amendment note
    Subsec. (c)(24). Pub. L. 98–369, § 474(r)(11)(B), redesignated par. (28) as (24). Former par. (24), relating to credit under section 40 for work incentive program expenses, was struck out.

    Enacted provision · exact public law section
    (B) by redesignating paragraphs (25), (28), and (29) as paragraphs (23), (24), and (25), respectively,

38. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(B) · 98 Stat. 494

    1. Redesignated · 26 U.S.C. § 381(c)(25)

       Pub. L. 98–369, § 474(r)(11)(B), (C), redesignated par. (29) as (25)

    2. Redesignated · 26 U.S.C. § 381(c)(25)

       Pub. L. 98–369, § 474(r)(11)(B), (C), substituted “30” for “44F” wherever appearing in heading and text. Former par. (25) redesignated (23)

    Source evidence

    Code amendment note
    Subsec. (c)(25). Pub. L. 98–369, § 474(r)(11)(B), (C), redesignated par. (29) as (25), and substituted “30” for “44F” wherever appearing in heading and text. Former par. (25) redesignated (23).

    Enacted provision · exact public law section
    (B) by redesignating paragraphs (25), (28), and (29) as paragraphs (23), (24), and (25), respectively,

39. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(D) · 98 Stat. 494

    Struck · 26 U.S.C. § 381(c)(26)

    Pub. L. 98–369, § 474(r)(11)(D), added par. (26). Former par. (26), relating to credit under section 44B for employment of certain new employees, was struck out

    Source evidence

    Code amendment note
    Subsec. (c)(26). Pub. L. 98–369, § 474(r)(11)(D), added par. (26). Former par. (26), relating to credit under section 44B for employment of certain new employees, was struck out.

    Enacted provision · exact public law section
    (D) by adding at the end thereof the following new paragraph: “(26) Credit under section 38.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 38, and under such regulations Ante, p. 827. as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 38 in respect of the distributor or transferor corporation.”

40. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(A) · 98 Stat. 494

    Struck · 26 U.S.C. § 381(c)(27)

    Pub. L. 98–369, § 474(r)(11)(A), struck out par. (27) relating to credit under section 44E for alcohol used as fuel

    Source evidence

    Code amendment note
    Subsec. (c)(27). Pub. L. 98–369, § 474(r)(11)(A), struck out par. (27) relating to credit under section 44E for alcohol used as fuel.

    Enacted provision · exact public law section
    (A) by striking out paragraphs (23), (24), (26), (27), and (30),

41. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(B) · 98 Stat. 494

    Redesignated · 26 U.S.C. § 381(c)(28); 26 U.S.C. § 381(c)(29)

    Pub. L. 98–369, § 474(r)(11)(B), redesignated pars. (28) and (29) as (24) and (25), respectively

    Source evidence

    Code amendment note
    Subsec. (c)(28), (29). Pub. L. 98–369, § 474(r)(11)(B), redesignated pars. (28) and (29) as (24) and (25), respectively.

    Enacted provision · exact public law section
    (B) by redesignating paragraphs (25), (28), and (29) as paragraphs (23), (24), and (25), respectively,

42. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 474(r)(11)(A) · 98 Stat. 494

    Struck · 26 U.S.C. § 381(c)(30)

    Pub. L. 98–369, § 474(r)(11)(A), struck out par. (30) relating to credit under section 44G

    Source evidence

    Code amendment note
    Subsec. (c)(30). Pub. L. 98–369, § 474(r)(11)(A), struck out par. (30) relating to credit under section 44G.

    Enacted provision · exact public law section
    (A) by striking out paragraphs (23), (24), (26), (27), and (30),

43. 1984

    Tax Reform Act of 1984

    Pub. L. 98–369 § 211(b)(4) · 98 Stat. 494

    Substituted · 26 U.S.C. § 381(d)

    Pub. L. 98–369, § 211(b)(4), substituted “section 810” for “section 812(f)”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 98–369, § 211(b)(4), substituted “section 810” for “section 812(f)”.

    Enacted provision · exact public law section
    (4) Subsection (d) of section 381 (relating to carryover in certain corporate acquisitions) is amended by striking out “section 812(f)” and inserting in lieu thereof “section 810”.

44. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 411(b)(2)(C)(iii) · 100 Stat. 2085

    Struck · 26 U.S.C. § 381(c)(10)

    Pub. L. 99–514, § 411(b)(2)(C)(iii), struck out last sentence which read: “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.”

    Source evidence

    Code amendment note
    Subsec. (c)(10). Pub. L. 99–514, § 411(b)(2)(C)(iii), struck out last sentence which read: “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.”

    Enacted provision · exact public law section
    (iii) Paragraph (10) of section 381(c) is amended by striking out the last sentence thereof.

45. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 1812(a)(3) · 100 Stat. 2085

    Amended · 26 U.S.C. § 381(c)(12)

    Pub. L. 99–514, § 1812(a)(3), amended par. (12) generally. Prior to amendment, par. (12), recovery of bad debts, prior taxes, or delinquency amounts, read as follows: “If the acquiring corporation is entitled to the recovery of bad debts, prior taxes, or delinquency amounts previously deducted or credited by the distributor or transferor corporation, the acquiring corporation shall include in its income such amounts as would have been includible by the distributor or transferor corporation in accordance with section 111 (relating to the recovery of bad debts, prior taxes, and delinquency amounts).”

    Source evidence

    Code amendment note
    Subsec. (c)(12). Pub. L. 99–514, § 1812(a)(3), amended par. (12) generally. Prior to amendment, par. (12), recovery of bad debts, prior taxes, or delinquency amounts, read as follows: “If the acquiring corporation is entitled to the recovery of bad debts, prior taxes, or delinquency amounts previously deducted or credited by the distributor or transferor corporation, the acquiring corporation shall include in its income such amounts as would have been includible by the distributor or transferor corporation in accordance with section 111 (relating to the recovery of bad debts, prior taxes, and delinquency amounts).”

    Enacted provision · exact public law section
    (3) Paragraph (12) of section 381(c) (relating to recovery of bad debts, prior taxes, or delinquency amounts) is amended to read as follows: “(12) Recovery of tax benefit items.— If the acquiring corporation is entitled to the recovery of any amounts previously deducted by (or allowable as credits to) the distributor or transferor corporation, the acquiring corporation shall succeed to the treatment under section 111 which would apply to such amounts in the hands of the distributor or transferor corporation.”

46. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 231(d)(3)(F) · 100 Stat. 2085

    Redesignated · 26 U.S.C. § 381(c)(25); 26 U.S.C. § 381(c)(26)

    Pub. L. 99–514, § 231(d)(3)(F), redesignated par. (26) as (25). Former par. (25), relating to credit under section 30, was struck out

    Source evidence

    Code amendment note
    Subsec. (c)(25), (26). Pub. L. 99–514, § 231(d)(3)(F), redesignated par. (26) as (25). Former par. (25), relating to credit under section 30, was struck out.

    Enacted provision · exact public law section
    (F) Subsection (c) of section 381 is amended by striking out paragraph (25) and by redesignating paragraph (26) as paragraph (25).

47. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 701(e)(1) · 100 Stat. 2085

    Added · 26 U.S.C. § 381(c)(27)

    Pub. L. 99–514, § 701(e)(1), added par. (27)

    Source evidence

    Code amendment note
    Subsec. (c)(27). Pub. L. 99–514, § 701(e)(1), added par. (27).

    Enacted provision · exact public law section
    (1) Application of section 381.— Subsection (c) of section 381 is amended by adding at the end thereof the following new paragraph: “(27) Credit under section 53.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and section 53, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of section 53 in respect of the distributor or transferor corporation.”

48. 1987

    Pub. L. 100–203 title X § 10202(c)(3) · 101 Stat. 1330

    Struck · 26 U.S.C. § 381(c)(8)

    Pub. L. 100–203 struck out “or 453A” after “section 453” in two places

    Source evidence

    Code amendment note
    Subsec. (c)(8). Pub. L. 100–203 struck out “or 453A” after “section 453” in two places.

    Enacted provision · exact public law section
    (3) Conforming amendments.— Sections 381(c)(8) and 691(a)(4) and (5) are each amended by striking out “or 453A” each place it appears.

49. 1988

    Technical and Miscellaneous Revenue Act of 1988

    Pub. L. 100–647 title I § 1002(a)(13) · 102 Stat. 3342

    Substituted · 26 U.S.C. § 381(c)(24)

    Pub. L. 100–647 substituted “depreciation deduction” for “recovery allowance for recovery property” in heading

    Source evidence

    Code amendment note
    Subsec. (c)(24). Pub. L. 100–647 substituted “depreciation deduction” for “recovery allowance for recovery property” in heading.

    Enacted provision · exact public law section
    (13) The heading of paragraph (24) of section 381(c) of the 1986 Code is amended by striking out “recovery allowance for recovery property” and inserting in lieu thereof “depreciation deduction”.

50. 1989

    Revenue Reconciliation Act of 1989

    Pub. L. 101–239 title VII § 7841(d)(10) · 103 Stat. 2106

    1. Amended · 26 U.S.C. § 381(c)(26); 26 U.S.C. § 381(c)(27)

       Pub. L. 101–239, as amended by Pub. L. 104–188

    2. Redesignated · 26 U.S.C. § 381(c)(26); 26 U.S.C. § 381(c)(27)

       Pub. L. 101–239, as redesignated par. (27) as (26)

    Source evidence

    Code amendment note
    Subsec. (c)(26), (27). Pub. L. 101–239, as amended by Pub. L. 104–188, redesignated par. (27) as (26).

    Enacted provision · exact public law section
    (10) Paragraph (27) of section 381(a) (relating to credit under section 53) is redesignated as paragraph (26).

51. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11812(b)(6)(A) · 104 Stat. 1388

    Substituted · 26 U.S.C. § 381(c)(6)

    Pub. L. 101–508, § 11812(b)(6)(A), substituted “sections 167 and 168” for “subsections (b), (j), and (k) of section 167”

    Source evidence

    Code amendment note
    Subsec. (c)(6). Pub. L. 101–508, § 11812(b)(6)(A), substituted “sections 167 and 168” for “subsections (b), (j), and (k) of section 167”.

    Enacted provision · exact public law section
    (A) Paragraph (6) of section 381(c) is amended by striking “subsections (b), (j), and (k) of section 167” and inserting “sections 167 and 168”.

52. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11801(c)(10)(A) · 104 Stat. 1388

    Struck · 26 U.S.C. § 381(c)(15)

    Pub. L. 101–508, § 11801(c)(10)(A), struck out par. (15) “Indebtedness of certain personal holding companies” which read as follows: “The acquiring corporation shall be considered to be the distributor or transferor corporation for the purpose of determining the applicability of subsection (c) of section 545, relating to deduction with respect to payment of certain indebtedness.”

    Source evidence

    Code amendment note
    Subsec. (c)(15). Pub. L. 101–508, § 11801(c)(10)(A), struck out par. (15) “Indebtedness of certain personal holding companies” which read as follows: “The acquiring corporation shall be considered to be the distributor or transferor corporation for the purpose of determining the applicability of subsection (c) of section 545, relating to deduction with respect to payment of certain indebtedness.”

    Enacted provision · exact public law section
    (A) Paragraph (15) of section 381(c) is hereby repealed.

53. 1990

    Revenue Reconciliation Act of 1990

    Pub. L. 101–508 § 11812(b)(6)(B) · 104 Stat. 1388

    1. Redesignated · 26 U.S.C. § 381(c)(24)(26)

       Pub. L. 101–508, § 11812(b)(6)(B), redesignated pars. (25) and (26) as (24) and (25), respectively

    2. Struck · 26 U.S.C. § 381(c)(24)(26)

       Pub. L. 101–508, § 11812(b)(6)(B), struck out former par. (24) “Method of computing depreciation deduction” which read as follows: “The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing the deduction allowable under section 168(a) on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.”

    Source evidence

    Code amendment note
    Subsec. (c)(24) to (26). Pub. L. 101–508, § 11812(b)(6)(B), redesignated pars. (25) and (26) as (24) and (25), respectively, and struck out former par. (24) “Method of computing depreciation deduction” which read as follows: “The acquiring corporation shall be treated as the distributor or transferor corporation for purposes of computing the deduction allowable under section 168(a) on property acquired in a distribution or transfer with respect to so much of the basis in the hands of the acquiring corporation as does not exceed the adjusted basis in the hands of the distributor or transferor corporation.”

    Enacted provision · exact public law section
    (B) Subsection (c) of section 381 is amended by striking paragraph (24) and redesignating paragraphs (25) and (26) as paragraphs (24) and (25), respectively.

54. 1993

    Revenue Reconciliation Act of 1993

    Pub. L. 103–66 title XIII § 13302(e) · 107 Stat. 312

    Added · 26 U.S.C. § 381(c)(26)

    Pub. L. 103–66 added par. (26)

    Source evidence

    Code amendment note
    Subsec. (c)(26). Pub. L. 103–66 added par. (26).

    Enacted provision · exact public law section
    (e) 26 USC 381. Carryovers.— Subsection (c) of section 381 (relating to carryovers in certain corporate acquisitions) is amended by adding at the end the following new paragraph: “(26) Enterprise zone provisions.— The acquiring corporation shall take into account (to the extent proper to carry out the purposes of this section and subchapter U, and under such regulations as may be prescribed by the Secretary) the items required to be taken into account for purposes of subchapter U in respect of the distributor or transferor corporation.”

55. 1996

    Small Business Job Protection Act of 1996

    Pub. L. 104–188 title I § 1704(t)(26) · 110 Stat. 1755

    Amended · 26 U.S.C. § 381(c)(26); 26 U.S.C. § 381(c)(27)

    Pub. L. 104–188 amended directory language of Pub. L. 101–239. See 1989 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (c)(26), (27). Pub. L. 104–188 amended directory language of Pub. L. 101–239. See 1989 Amendment note below.

    Enacted provision · exact public law section
    (26) Paragraph (10) of section 7841(d) of such Act is amended by striking “section 381(a)” and inserting “section 381(c)”.

56. 2017

    Pub. L. 115–97 § 13301(b)(1) · 131 Stat. 2054

    Added · 26 U.S.C. § 381(c)(20)

    Pub. L. 115–97, § 13301(b)(1), added par. (20)

    Source evidence

    Code amendment note
    Subsec. (c)(20). Pub. L. 115–97, § 13301(b)(1), added par. (20).

    Enacted provision · exact public law section
    (1) In general.— Section 381(c) 26 USC 381. is amended by inserting after paragraph (19) the following new paragraph: “(20) Carryforward of disallowed business interest.— The carryover of disallowed business interest described in section 163(j)(2) to taxable years ending after the date of distribution or transfer.” .

    Effective date note
    Amendment by section 13301 of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13301(c) of Pub. L. 115–97, set out as a note under section 163 of this title. Pub. L. 115–97, title I, § 13511(c), Dec. 22, 2017, 131 Stat. 2142, provided that: “The amendments made by this section [amending this section and sections 805, 831, 953, and 1351 of this title and repealing sections 810 and 844 of this title] shall apply to losses arising in taxable years beginning after December 31, 2017.”

57. 2017

    Pub. L. 115–97 § 13511(b)(3) · 131 Stat. 2054

    Struck · 26 U.S.C. § 381(d)

    Pub. L. 115–97, § 13511(b)(3), struck out subsec. (d). Text read as follows: “For application of this part to operations loss carrybacks and carryovers of life insurance companies, see section 810.”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 115–97, § 13511(b)(3), struck out subsec. (d). Text read as follows: “For application of this part to operations loss carrybacks and carryovers of life insurance companies, see section 810.”

    Enacted provision · exact public law section
    (3) Section 381 is amended by striking subsection (d).

    Effective date note
    Amendment by section 13301 of Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 13301(c) of Pub. L. 115–97, set out as a note under section 163 of this title. Pub. L. 115–97, title I, § 13511(c), Dec. 22, 2017, 131 Stat. 2142, provided that: “The amendments made by this section [amending this section and sections 805, 831, 953, and 1351 of this title and repealing sections 810 and 844 of this title] shall apply to losses arising in taxable years beginning after December 31, 2017.”

58. 2018

    Energy and Water Development and Related Agencies Appropriations Act, 2018

    Pub. L. 115–141 div. U title IV § 401(b)(18) · 132 Stat. 348

    Struck · 26 U.S.C. § 381(c)(16)

    Pub. L. 115–141, in concluding provisions, struck out “A corporation which would have been an acquiring corporation under this section if the date of distribution or transfer had occurred on or after the effective date of the provisions of this subchapter applicable to a liquidation or reorganization, as the case may be, shall be entitled, even though the date of distribution or transfer occurred before such effective date, to apply this paragraph with respect to amounts paid or accrued in taxable years beginning after December 31, 1953, on account of such obligations of the distributor or transferor corporation.” before “This paragraph”

    Source evidence

    Code amendment note
    Subsec. (c)(16). Pub. L. 115–141, in concluding provisions, struck out “A corporation which would have been an acquiring corporation under this section if the date of distribution or transfer had occurred on or after the effective date of the provisions of this subchapter applicable to a liquidation or reorganization, as the case may be, shall be entitled, even though the date of distribution or transfer occurred before such effective date, to apply this paragraph with respect to amounts paid or accrued in taxable years beginning after December 31, 1953, on account of such obligations of the distributor or transferor corporation.” before “This paragraph”.

    Enacted provision · exact public law section
    Sec. 401. The Nuclear Regulatory Commission shall comply with the July 5, 2011, version of Chapter VI of its Internal Commission Procedures when responding to Congressional requests for information.

66 of 69 references resolved to an enrolled provision · 1 partial · 2 unresolved