§ 1347. Tax treatment of Conrail public sale

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. 1986

   Omnibus Budget Reconciliation Act of 1986

   Pub. L. 99–509 title VIII § 8021 · 100 Stat. 1874

   Enacted · 45 U.S.C. § 1347

   Pub. L. 99–509, title VIII, § 8021, Oct. 21, 1986, 100 Stat. 1954

   Source evidence

   Code source credit
   Pub. L. 99–509, title VIII, § 8021, Oct. 21, 1986, 100 Stat. 1954

   Enacted provision · exact public law section
   SEC. 8021. TAX TREATMENT OF CONRAIL PUBLIC SALE. (a) Treatment as New Corporation.— (1) In general.— For periods after the public sale, for purposes Post, p. 2095. of the Internal Revenue Code of 1954, Conrail shall be treated as a new corporation which purchased all of its assets as of the beginning of the day after the date of the public sale for an amount equal to the deemed purchase price. (2) Allocation among assets.— The deemed purchase price shall be allocated among the assets of Conrail in accordance with the temporary regulations prescribed under section 338 of 26 USC 338. the Internal Revenue Code of 1954 (as such regulations were in effect on the date of the enactment of this Act). The Secretary shall establish specific guidelines for carrying out the preceding sentence so that the basis of each asset will be clearly ascertainable. For purposes of applying the regulations referred to in the first sentence, accounts receivable and materials and supplies shall be treated as cash equivalents. (3) Deemed purchase price.— For purposes of this subsection, the deemed purchase price is an amount equal to the gross amount received pursuant to the public sale, multiplied by a fraction— (A) the numerator of which is 100 percent, and (B) the denominator of which is the percentage (by value) of the stock of Conrail sold in the public sale. The amount determined under the preceding sentence shall be adjusted under regulations prescribed by the Secretary for liabilities of Conrail and other relevant items. (b) No Income From Cancellation of Debt or Preferred Stock.— No amount shall be included in the gross income of any person by reason of any cancellation of any obligation (or preferred stock) of Conrail in connection with the public sale. (c) Disallowance of Certain Deductions.— No deduction shall be allowed to Conrail for any amount which is paid after the date of the public sale to employees of Conrail for services performed on or before the date of the public sale. (d) Waiver of Certain Employee Stock Ownership Plan Provisions.— For purposes of determining whether the employee stock ownership plans of Conrail meet the qualifications of sections 401 26 USC 401, 501. and 501 of the Internal Revenue Code of 1954— (1) the limits of section 415 of such Code (relating to limitations on benefits and contributions under qualified plans) shall not apply with respect to interests in stock transferred pursuant to this Act or a law heretofore enacted, and (2) the 2-year waiting period for withdrawals shall not apply to withdrawals of amounts (or shares) in participants accounts in connection with the public sale. (e) Definitions.— For purposes of this section— (1) Con rail.— The term “Conrail” means the Consolidated Rail Corporation. Such term includes any corporation which was a subsidiary of Conrail immediately before the public sale. (2) Public sale.— The term “public sale” means the sale of stock in Conrail pursuant to a public offering under the Conrail Privatization Act. If there is more than 1 public offering under Ante, p. 1892. such Act, such term means the sale pursuant to the initial public offering under such Act. (3) Secretary.— The term “Secretary” means the Secretary of the Treasury or his delegate.

2. 1986

   Tax Reform Act of 1986

   Pub. L. 99–514 § 2 · 100 Stat. 2085

   Substituted · 45 U.S.C. § 1347(a)(1); 45 U.S.C. § 1347(a)(2); 45 U.S.C. § 1347(a)(d)

   Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text

   Source evidence

   Code amendment note
   Subsecs. (a)(1), (2), (d). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

   Enacted provision · exact public law section
   SEC. 2. INTERNAL REVENUE CODE OF 1986. (a) Redesignation of 1954 Code.— The Internal Revenue Title enacted August 16, 1954, as heretofore, hereby, or hereafter amended, may be cited as the “Internal Revenue Code of 1986”. (b) References in Laws, Etc.— Except when inappropriate, any reference in any law, Executive order, or other document— (1) to the Internal Revenue Code of 1954 shall include a reference to the Internal Revenue Code of 1986, and (2) to the Internal Revenue Code of 1986 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1954.

2 of 2 references resolved to an enrolled provision