Page:United States Statutes at Large Volume 100 Part 3.djvu/371

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2179

(ii) Paragraph (2) of section 28(c) is amended by striking out "section 30(b)" and inserting in lieu thereof "section 41(b)". (iii) Paragraph (4) of section 28(d) is amended by striking out "section 30(f)" and inserting in lieu thereof "section 41(f)". (iv) Subparagraph (D) of section 2803X1) is amended by striking out "1985" and inserting in lieu thereof "1988". (B) Subsection (d) of section 38, as amended by this Act, is amended by inserting "41(a)," after "40(a),". (C)(i) Subsection (d) of section 39 (relating to carryback and carry forward of unused credits) is amended by adding at the end thereof the following new paragraph: "(3) SIMILAR RULES FOR RESEARCH CREDIT.—Rules similar to the rules of paragraphs (1) and (2) shall apply to the credit allowable under section 30 (as in effect before the date of the enactment of the Tax Reform Act of 1986) except that— "(A) 'December 31, 1985' shall be substituted for 'December 31, 1983' each place it appears, and "(B) 'January 1, 1986' shall be substituted for 'January 1, 1984'." (ii) Subsection (g) of section 41 (relating to limitation based on amount of tax), as redesignated by this section, is amended to read as follows: "(g) SPECIAL RULE FOR PASS-THRU OF CREDIT.—In the case of an individual who— "(1) owns an interest in an unincorporated trade or business, "(2) is a partner in a partnership, "(3) is a beneficiary of an estate or trust, or "(4) is a shareholder in an S corporation, the amount determined under subsection (a) for any taxable year shall not exceed an amount (separately computed with respect to such person's interest in such trade or business or entity) equal to the amount of tax attributable to that portion of a person's taxable income which is allocable or apportionable to the person's interest in such trade or business or entity." (D) Subparagraph (B) of section 10800X2) (relating to reduction of tax attributes in title 11 Case or insolvency), as amended by this Act, is amended to read as follows: "(B)

GENERAL BUSINESS CREDIT.—Any carryover to

or

from the taxable year of a discharge of an amount for purposes for determining the amount allowable as a credit under section 38 (relating to general business credit)." (E) Paragraph (3) of section 280COt)) is amended— (i) by striking out "section 30(fK5)" and inserting in lieu thereof "section 41(0(5)", (ii) by striking out "section 30(fKlXB)" and inserting in lieu thereof "section 41(fKlXB)", and (iii) by striking out "section 30(f)(l)" and inserting in lieu thereof "section 41(0(1)". (F) Subsection (c) of section 381 is amended by striking out paragraph (25) and by redesignating paragraph (26) as paragraph (25). (G) Section 936(h)(5)(C)(i)(IXa) (defining product area research) is amended by striking out "section 3O0b)" and inserting in lieu thereof "section 41(b)".

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