Page:United States Statutes at Large Volume 100 Part 3.djvu/441

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2249

(B) Section 703(b) is amended by striking out paragraph (3) and by redesignating paragraphs (4) and (5) as paragraphs (3) and (4), respectively. (C) Section 1363(c)(2) is amended by striking out subparagraph (A) and by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively. (e) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1986.

TITLE VI—CORPORATE PROVISIONS Subtitle A—Corporate Rate Reductions SEC. 601. CORPORATE RATE REDUCTIONS.

(a) GENERAL RULE.—Subsection (b) of section 11 is amended to read as follows: "(b) AMOUNT OF TAX.—The amount of the tax imposed by subsection (a) shall be the sum of^ "(1) 15 percent of so much of the taxable income as does not exceed $50,000, "(2) 25 percent of so much of the taxable income as exceeds $50,000 but does not exceed $75,000, and "(3) 34 percent of so much of the taxable income as exceeds $75,000. In the case of a corporation which has taxable income in excess of $100,000 for any taxable year, the amount of tax determined under the preceding sentence for such taxable year shall be increased by the lesser of (A) 5 percent of such excess, or (B) $11,750." (b) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendment made by subsection (a) shall apply to taxable years beginning on or after July 1, 1987. (2) CROSS REFERENCE.— For treatment of taxable years which include July 1, 1987. see section 15 of the Internal Revenue Code of 1986.

Subtitle B—Treatment of Stock and Stock Dividends SEC. 611. REDUCTION IN DIVIDENDS RECEIVED DEDUCTION.

(a) GENERAL RULE.—The following provisions are each amended by striking out "85 percent" and inserting in lieu thereof "80 percent": (1) Section 243(a)(1) (relating to dividends received by corporations). (2) Sections 244(a)(3) and (bK2) (relating to dividends received on certain preferred stock). (3) Section 2460))(1) (relating to limitation on aggregate amount of deductions). (4) Section 246A(a)(l) (relating to dividends received deduction reduced where portfolio stock is debt financed). (5) Subparagraph (B) of section 805(a)(4) (relating to dividends received by insurance company). (b) EFFECTIVE DATES.—

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